STAND. COM. REP. NO. 1659

Honolulu, Hawaii

RE: H.B. No. 740

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. 740, 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 establish an accessory dwelling unit financing and deed restriction program under the Hawaii Housing Finance and Development Corporation.

Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, Catholic Charities Hawaii, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Community Foundation, Holomua Collaborative, Hope Services Hawaii, HPM Building Supply, Mana Up, The Chamber of Commerce Hawaii, Title Guaranty of Hawaii, We Are One, Inc., YIMBY Hawaii, and eight individuals.

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

Your Committee finds that increasing the supply of accessory dwelling units is an important strategy to help address the shortage of rental housing units in Hawaii. Your Committee further finds that the costs of constructing accessory dwelling units can be prohibitive for homeowners. Your Committee believes that providing financial assistance for these projects will encourage homeowners to build accessory dwelling units and thereby help increase the rental housing supply. In addition, restricting the occupancy of the properties to owner-occupants or tenants who work at or are retired from work at a Hawaii business will ensure that the benefits of the assistance program continue to accrue to the Hawaii workforce housing supply.

Your Committee has amended this measure by appropriating an unspecified amount, for fiscal year 2025-2026, into and out of the Dwelling Unit Revolving Fund, to be expended by the Hawaii Housing Finance and Development Corporation for the purposes of infrastructure projects.

Your Committee recommends an appropriation amount of $20,000,000 into the Dwelling Unit Revolving Fund.

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. 740, 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. 740, H.D. 2, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair