STAND. COM. REP. NO. 1822

Honolulu, Hawaii

RE: H.B. No. 1325

H.D. 3

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred H.B. No. 1325, H.D. 3, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to protect vulnerable communities from displacement.

More specifically, the measure:

(1) Requires developers of affordable housing projects under the Hawaii Housing Finance and Development Corporation that are completed with state or federal funds and that result in the displacement or eviction of tenants from existing rental properties to:

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

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

(C) Establish procedures to maintain communication with displaced and evicted tenants; and

(2) Provides that a developer's failure to comply shall subject the developer to certain actions by the Hawaii Housing Finance and Development Corporation.

Your Committees received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, Adult Friends for Youth, Chamber of Commerce of Hawaii, Democratic Party of Hawaii, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Children's Action Network Speaks!, Hawaii Workers Center, Hawaii YIMBY, Kokua Kalihi Valley Comprehensive Family Services, Lahaina Strong, Medical-Legal Partnership for Children in Hawaii, Parents and Children Together, We Are One, Inc., and numerous individuals.

Your Committees received written comments in opposition to this measure from NAIOP Hawaii.

Your Committees find that efforts to address the ongoing housing crisis in the State by increasing the housing supply have sometimes led to the unintended consequence of displacing tenants from properties marked for redevelopment. Your Committees further find that displacement, whether from rising rents or redevelopment, disrupts individuals, families, and communities, especially vulnerable populations who lose not only their homes but also their critical support systems. Your Committees believe that in addition to increasing affordable housing, it is vital to prevent unnecessary displacement and ensure that publicly subsidized developers offer displaced tenants the right of first refusal for comparable units or provide relocation assistance.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1325, H.D. 3, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair