STAND. COM. REP. NO. 1182

Honolulu, Hawaii

RE: H.B. No. 1428

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 1428, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Appropriate funds for the Hawaii Housing Finance and Development Corporation to allocate to housing counseling agencies certified by the United States Department of Housing and Urban Development to provide housing counseling services; and

(2) Require a report to the Legislature regarding services provided by the housing counseling agencies.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Office of Housing and Community Development of the County of Hawaiʻi, and two individuals.

Your Committee finds that housing counseling services are an important tool to assist individuals and families with securing and maintaining affordable housing. Nonprofit housing counseling agencies, local banks, and real estate agents have implemented homebuyer education programs to assist with housing counseling services to ensure renters and prospective homeowners receive requisite information. Your Committee further finds that asset limited, income constrained, employed (ALICE) households particularly benefit from housing counseling services as these services are often the difference between remaining dependent on public assistance or achieving the financial independence necessary to enter the housing market. As housing security reduces other negative impacts from social determinants of health, ensuring access to counseling will allow residents to make informed decisions on housing options. Accordingly, this measure ensures residents can receive crucial housing counseling while reducing the risk of eviction, foreclosure, and homelessness.

Your Committee notes, however, that despite the benefits of housing counseling services, homeownership was attainable for most Hawaii residents in the 1950s and 1960s not because of a result of greater participation in housing counseling services, but rather, the cost of housing across the State was significantly lower relative to incomes at the time. The State should therefore continue to also support initiatives that reduce the cost of housing for residents in the State.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

Your Committee notes that this measure contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of $1,500,000 for the Hawaii Housing Finance and Development Corporation to allocate to housing counseling agencies approved by the United States Department of Housing and Urban Development.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1428, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1428, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair