STAND. COM. REP. NO. 460

Honolulu, Hawaii

RE: S.B. No. 1145

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 1145 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 Hawaii Housing Finance and Development Corporation housing projects to include a restrictive covenant that the percentage of units of the housing project that are designated as affordable housing, as described in the submitted housing project application, be affordable housing units in perpetuity.

Your Committee received testimony in support of this measure from two individuals. Your Committee received comments on this measure from the Department of Land and Natural Resources and Hawaii Housing Finance and Development Corporation.

Your Committee finds that housing costs in the State continue to rise, keeping homeownership outside the reach of many Hawaii residents. This measure seeks to keep affordable units designated as affordable in perpetuity. Your Committee believes that this measure will help result in a larger inventory of affordable housing and ensure that low-income residents will be able to continue to afford housing in the State.

Your Committee has amended this measure by:

(1) Inserting clarifying language to more accurately reflect that the units designated as affordable housing are to remain as affordable housing in perpetuity; and

(2) 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. 1145, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1145, 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