STAND. COM. REP. NO. 212

Honolulu, Hawaii

RE: S.B. No. 866

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 866 entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to temporarily exempt affordable housing projects by the Hawaii Housing Finance and Development Corporation from certain specific state and county fees and exactions; provided that the affordable housing units are exclusively for qualified residents who are owner/renter occupants and who own no other real property.

Your Committee received testimony in support of this measure from Michaels Development and Hawaii Habitat for Humanity Association.

Your Committee finds that the State is experiencing economic turmoil brought on by the coronavirus 2019 (COVID-19) pandemic. Unfortunately, the declining economy has affected some of Hawaii's most vulnerable residents. A recent study by the University of Hawaii found that more than eleven thousand Hawaii tenants have fallen behind on their rent payments and more than forty percent of rental tenants have lost their jobs. To make matters worse, Hawaii continues to suffer from a lack of affordable housing. This measure will make the development of affordable housing projects more financially viable for developers and therefore bring more affordable housing units to market for Hawaii residents.

Your Committee has amended this measure by replacing the affordability income restriction with the requirement that the affordable housing units be exclusively for qualified residents who are owner or renter occupants and who own no other real property.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 866, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 866, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Housing,

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STANLEY CHANG, Chair