STAND. COM. REP. NO. 1783

Honolulu, Hawaii

RE: H.B. No. 286

H.D. 2

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 Ways and Means, to which was referred H.B. No. 286, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE INDIVIDUAL HOUSING ACCOUNT PROGRAM,"

begs leave to report as follows:

The purpose and intent of this measure is to address the affordable housing crisis in the State.

More specifically, this measure increases the maximum annual deduction for contributions into, and maximum account levels for, individual housing accounts, to reflect current housing prices more accurately.

Your Committee received written comments in support of this measure from the Maui Chamber of Commerce and six individuals.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents. Your Committee also finds that, as the cost of housing continues to rise, saving for a down payment on a home loan continues to be a barrier for many Hawaii residents. Accordingly, your Committee finds that increasing the maximum annual deduction and maximum allowable balance for individual housing accounts will incentivize first-time home ownership by allowing greater savings for a down payment and closing costs.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 286, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair