STAND. COM. REP. NO. 2309

Honolulu, Hawaii

RE: S.B. No. 2028

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Housing and Government Operations, to which was referred S.B. No. 2028 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to consolidate the Hawaii Housing Finance and Development Corporation, Hawaii Community Development Authority, Hawaii Public Housing Authority, and Office of Planning and Sustainable Development into a new Department of Housing.

Your Committees received testimony in opposition to this measure from one individual.

Your Committees received comments on this measure from the Department of Budget and Finance, Hawaii Public Housing Authority, and the Hawaiʻi Community Development Authority.

Your Committees find that Hawaii is currently undergoing a housing crisis and that there are multiple state agencies responsible for housing.  The existence of multiple separate agencies creates redundancies and bureaucracies that hinder the work of solving Hawaii's housing crisis. The Department of Housing established by this measure could bring several advantages, such as centralized, streamlined coordination between government agencies, prioritization of sustainable and resilient housing solutions, and the creation of comprehensive plans that are unique to Hawaii, and aligned with the State's goals.

Your Committees have heard the concerns raised in testimony that the federal government requires that the State's public housing authority's governing body be legally and financially responsible for the public housing authority's performance. Your Committees note that the agencies affected by this measure would continue to be administratively attached agencies within the newly established Department of Housing. Your Committees also note that Article V, Section 6 of the Hawaii State Constitution limits the number of principal departments to twenty, of which there are currently nineteen. This measure would therefore create the twentieth and final department of the State.

Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Housing and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2028, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2028, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Government Operations,

________________________________ ANGUS L.K. MCKELVEY, Chair

________________________________ STANLEY CHANG, Chair