STAND. COM. REP. NO. 1282

Honolulu, Hawaii

RE: H.B. No. 576

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 Committees on Hawaiian Affairs and Housing, to which was referred H.B. No. 576, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO RESTRICTIONS ON THE TRANSFER OF REAL PROPERTY UNDER CHAPTER 201H, HAWAII REVISED STATUTES,"

beg leave to report as follows:

The purpose and intent of this measure is to exempt transfers of Hawaiian home lands from transfer restrictions for real property under housing development programs of the Hawaii Housing Finance and Development Corporation.

Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands and Hawaii Housing Finance and Development Corporation.

Your Committees find that currently, Department of Hawaiian Home Lands projects using Hawaii Housing Finance and Development Corporation programs are subject to transfer restrictions, such as buyback and shared appreciation restrictions. However, these restrictions may conflict with the objectives and requirements of Department of Hawaiian Home Lands programs. This measure will address this issue by exempting transfers of Hawaiian home lands from Hawaii Housing Finance and Development Corporation's transfer restrictions, allowing the Department of Hawaiian Home Lands to manage the transfer of property under its own programs.

Your Committees have amended this measure by clarifying that section 201H-47, Hawaii Revised Statutes, shall not apply to any transfers of Hawaiian home lands under the Hawaiian Homes Commission Act, 1920, as amended, as any such transfers shall be governed by the provisions of the Hawaiian Homes Commission Act, including but not limited to lease conditions stipulating that the lease shall be for a term of ninety-nine years.

As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 576, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 576, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Hawaiian Affairs and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ HERBERT M. RICHARDS, III, Chair