STAND. COM. REP. NO. 1040

Honolulu, Hawaii

, 2025

RE: H.B. No. 1298

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 1298, H.D. 2, 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;

(2) Establish the Government Employee Housing Revolving Fund; and

(3) Appropriate funds out of the Dwelling Unit Revolving Fund for the Hawaii Housing Finance and Development Corporation to adopt rules, engage the community, conduct site and pre-development planning for at least one government employee rental or ninety-nine year leasehold rent-to-own project in each county, and establish positions.

Your Committee received testimony in support of this measure from the Maui Chamber of Commerce.

Prior to the hearing on this measure, your Committee posted and made available for public review a proposed H.D. 3, which amends this measure by:

(1) Codifying a purpose section in statute;

(2) Specifying that grants shall only be made to state departments and agencies pursuant to adopted rules; and

(3) Removing the exemption of Government Employee Housing Revolving Fund expenditures from legislative appropriation and allotment requirements.

Your Committee received testimony in support of the proposed H.D. 3 from the Hawaii Housing Finance and Development Corporation; United Public Workers, AFSCME Local 646, AFL-CIO; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO. Your Committee received comments on the proposed H.D. 3 from the Department of Budget and Finance and Tax Foundation of Hawaii.

Your Committee has amended this measure by adopting the proposed H.D. 3 and further amending the measure by changing the positions to an unspecified number.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1298, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1298, H.D. 3.

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

____________________________

KYLE T. YAMASHITA, Chair