STAND. COM. REP. NO. 213

Honolulu, Hawaii

RE: S.B. No. 869

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. 869 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 require the Department of Land and Natural Resources, through the State Historic Preservation Division, to contract its review of proposed state projects, projects on privately owned historic property, and projects affecting historic properties to third-party consultants if the projects involve the development of affordable housing and the department will not be able to complete its review within sixty days.

Your Committee received testimony in support of this measure from Michaels Development. Your Committee received testimony in opposition to this measure from the State Procurement Office and Historic Hawaii Foundation. Your Committee received comments on this measure from the Department of Land and Natural Resources.

Your Committee finds that there is a housing crisis in Hawaii that has been exacerbated by the coronavirus 2019 (COVID-19) pandemic. A recent study by the University of Hawaii found that more than eleven thousand Hawaii tenants have fallen behind on their rent and more than forty percent of rental tenants have lost their jobs. Hawaii needs more affordable housing but some affordable housing projects are facing delays waiting on approvals from the State Historic Preservation Division. Your Committee finds that this measure will expedite the construction of affordable housing by removing some of the bureaucratic delays in the approval process.

Your Committee has amended this measure by:

(1) Removing the exemption from the Hawaii procurement code found in section 103D, Hawaii Revised Statutes, for the retention of a third-party consultant;

(2) Requiring that any third party consultant retained by the department has the education, experience, and qualifications for preservation professionals as determined by state historic presentation division rules; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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. 869, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 869, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair