STAND. COM. REP. NO. 713

Honolulu, Hawaii

, 2025

RE: H.B. No. 1318

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 Water & Land, to which was referred H.B. No. 1318, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Remove from the definition of "public lands" lands set aside by the Governor to the counties for the purpose of affordable housing; and

(2) Specify that lands set aside by the Governor to the counties for affordable housing require legislative approval for the sale or gift of the lands.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Kaua‘i County Housing Agency; and two individuals. Your Committee received comments on this measure from the Department of Land and Natural Resources and Office of Hawaiian Affairs.

Your Committee finds that the State is facing an ongoing housing crisis. Your Committee further finds that although the Governor set aside cooperatively identified state-owned residential parcels to the counties for the purpose of developing affordable housing, the counties have been unable to productively develop these parcels as existing statutes require the counties to seek the Board of Land and Natural Resources' approval for many actions relating to these lands, including leases, mortgages, easements, and rights of entry. Your Committee believes that removing these lands from the definition of "public lands" will reduce procedural burdens while also ensuring that valuable state lands may be productively utilized for the development of much needed affordable housing.

Your Committee has amended this measure by requiring lands set aside by the Governor to the counties for the development of affordable housing to be managed by the counties pursuant to the same public trust fiduciary duties and obligations of the Board of Land and Natural Resources.

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1318, 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. 1318, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair