STAND. COM. REP. NO. 659

Honolulu, Hawaii

, 2025

RE: H.B. No. 1298

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Labor, to which was referred H.B. No. 1298, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program; and

(2) Establish the Government Employee Housing Revolving Fund.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; United Public Workers, AFSCME Local 646, AFL-CIO; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Maui Chamber of Commerce; and one individual. Your Committee received comments on this measure from the Department of the Attorney General and Tax Foundation of Hawaii.

Your Committee finds that the State's high cost-of-living contributes to unaffordable housing prices and makes it difficult for residents to save money to own a home. Your Committee also finds that many government employees do not earn enough wages to own property, especially when they have families to provide for. Your Committee believes that this measure can provide a path toward home ownership for government employees, and possibly attract candidates to apply for government jobs.

Your Committee has amended this measure by:

(1) Inserting grant standards as recommended by the Department of the Attorney General to comply with the requirements for awarding grants of public money in article VII, section 4 of the Hawaii State Constitution; and

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

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1298, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1298, H.D. 2.

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

____________________________

JACKSON D. SAYAMA, Chair