STAND. COM. REP. NO. 672

Honolulu, Hawaii

, 2025

RE: H.B. No. 1325

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 Consumer Protection & Commerce, to which was referred H.B. No. 1325, 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 require developers of affordable housing projects under the Hawaii Housing Finance and Development Corporation to assist certain tenants who are subject to displacement or eviction by the proposed project by:

(1) Granting certain persons displaced or evicted by the proposed affordable housing project the right of first refusal of a comparable unit in the housing project at an affordable rate or establish a fund to provide relocation benefits and offer assistance to the tenants;

(2) Providing information, either directly or through a contracted service, on how to obtain assistance and exercise the right of first refusal; and

(3) Establishing procedures to maintain communication with displaced and evicted tenants.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Tagnawa for Maui; Hawaiʻi YIMBY; Democratic Party of Hawaiʻi; Adult Friends for Youth; Hui Malama Pono Hawaiʻi; Hawaii Appleseed Center for Law & Economic Justice; Lāhainā Strong; Medical Legal Partnership for Children in Hawaiʻi; Hawaiʻi Workers Center; Maui Housing Hui; Parents And Children Together; and numerous individuals.

Your Committee finds that the creation of new affordable housing units is an important aspect of the State's efforts to address the existing housing crisis in Hawaii. However, the creation of new affordable housing units through the redevelopment of existing housing displaces and dislocates those tenants. This measure specifies a clear procedure for developers to follow when redeveloping areas on which existing tenants reside.

Your Committee has amended this measure by:

(1) Specifying consequences for a developer's failure to comply with the requirements of this measure; 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1325, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Judiciary & Hawaiian Affairs in the form attached hereto as H.B. No. 1325, H.D. 2.

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

____________________________

SCOT Z. MATAYOSHI, Chair