STAND. COM. REP. NO. 1125

Honolulu, Hawaii

RE: S.B. No. 865

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 865, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the supply of affordable housing for residents of the State.

More specifically, this measure:

(1) Establishes the ALOHA homes program to develop low-cost homes on state- and county-owned land in urban redevelopment sites near public transit stations, to be sold to qualified residents;

(2) Exempts ALOHA homes program developments from land component impact fee or fee in lieu requirements and construction cost component impact fee requirements; and

(3) Appropriates moneys to the Hawaii Public Housing Authority for the ALOHA homes program, including the establishment of program manager and development specialist positions.

Your Committee received written comments in support of this measure from the Hawaii Public Housing Authority, Church of the Crossroads, Land Use Research Foundation of Hawaii, and numerous individuals.

Your Committee received written comments in opposition to this measure from one individual.

Your Committee received written comments on this measure from the Department of Budget and Finance, Department of Land and Natural Resources, Grassroot Institute of Hawaii, and Sierra Club of Hawaii.

Your Committee finds that increasing the supply of low-cost homes for residents of the State near public transit stations will help to address the State's housing needs without creating widespread urban sprawl.

Your Committee has amended this measure by:

(1) Clarifying that the Hawaii Public Housing Authority is required to administer the ALOHA homes revolving fund;

(2) Clarifying that moneys appropriated by the Legislature are a lawful source of funding for the revolving fund;

(3) Requiring the Hawaii Public Housing Authority to submit annual reports to the Legislature on the progress of ALOHA homes program projects;

(4) Clarifying that the amendments made to section 302A‑1603(b), Hawaii Revised Statutes, by this measure shall not be repealed when that section is reenacted on July 1, 2024;

(5) Inserting a repeal date of July 1, 2053;

(6) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(7) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 865, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 865, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair