STAND. COM. REP. NO. 782

Honolulu, Hawaii

RE: S.B. No. 1462

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 Commerce and Consumer Protection, to which was referred S.B. No. 1462, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LIMITED-PROFIT HOUSING ASSOCIATIONS,"

begs leave to report as follows:

The purpose and intent of this measure is to establish an organizational and regulatory framework for limited-profit housing associations.

Your Committee received testimony in support of this measure from one individual. Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism and Department of Taxation.

Your Committee finds that there is a desperate need to create additional housing in the State. Your Committee further finds that the limited-profit housing association model is a sustainable option to develop long-term housing, under which any profit generated by a housing project must be used for the creation of more housing. This measure establishes the framework necessary to authorize limited-profit housing associations in Hawaii. Your Committee notes that this measure, as currently written, requires clarification and regulate to identify the entity responsible for issuing the approvals identified in this measure.

Accordingly, your Committee has amended this measure by:

(1) Clarifying that the Limited-Profit Housing Council shall be the entity responsible for issuing any necessary approvals or permissions required for a limited-profit housing association;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; 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 Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1462, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1462, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

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JARRETT KEOHOKALOLE, Chair