STAND. COM. REP. NO. 1528

Honolulu, Hawaii

RE: H.B. No. 431

H.D. 2

S.D. 2

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. 431, H.D. 2, S.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 appropriate moneys for housing programs.

More specifically, the measure appropriates moneys to:

(1) The Office of the Governor for the continued implementation of the Kauhale Initiative and Ohana Zones Pilot Program; and

(2) The Hawaii Housing Finance and Development Corporation for the development of supportive housing projects and the provision of supportive services for certain households in the supportive housing projects.

Your Committee received written comments in support of this measure from the Office of the Governor, Department of Human Services, Hawaii Housing Finance and Development Corporation, State Council on Developmental Disabilities, Statewide Office on Homelessness and Housing Solutions, County of Hawaii Office of Housing and Community Development, Ava Sofia Foundation DBA Autism Moms of Kona, Catholic Charities Hawaii, Easterseals Hawaii, Full Life, Hawaii Community Foundation, Hawaii Substance Abuse Coalition, Kokua Kona, Maui Chamber of Commerce, Pacific Housing Assistance Corporation, and six individuals.

Your Committee finds that Hawaii has the highest homelessness rate per capita in the United States. Your Committee also finds that there is a need for affordable housing that includes access to services for special needs populations. Your Committee recognizes that the Kauhale Initiative and Ohana Zones Pilot Program have successfully helped address homelessness in the State, and that the appropriations in this measure will continue to support these critical programs. Your Committee further recognizes that the appropriation to the Hawaii Housing Finance and Development Corporation in this measure will enable the development of supportive housing units for households with special needs.

Your Committee has amended this measure by:

(1) Removing the preambles contained in sections 1 and 4 of the measure;

(2) Requiring kauhale to be connected to public utilities;

(3) Authorizing monthly rents of no more than thirty per cent of the area median income level to be charged for kauhale;

(4) Changing the appropriation expending agency for the Kauhale Initiative and Ohana Zones Pilot Program from the Office of the Governor to the Department of Human Services; and

(5) Making technical, nonsubstantive changes for purposes of clarity, consistency and style.

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. 431, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 431, H.D. 2, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair