STAND. COM. REP. NO. 1523

Honolulu, Hawaii

, 2025

RE: H.C.R. No. 78

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Housing, to which was referred H.C.R. No. 78 entitled:

"HOUSE CONCURRENT RESOLUTION DECLARING THE INTENT THAT PROJECTS WITH HOUSING UNITS THAT QUALIFY FOR HOUSING CREDITS UNDER ACT 31, SESSION LAWS OF HAWAII 2024, ARE STILL ELIGIBLE TO RECEIVE HOUSING CREDITS AFTER THE REPEAL OF THAT ACT IF THE HOUSING PROJECTS WERE APPROVED BY THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION BEFORE JULY 1, 2031, AND REQUESTING THE CORPORATION AND EACH COUNTY TO INCLUDE CERTAIN INFORMATION WHEN APPROVING HOUSING PROJECTS FOR HOUSING CREDITS,"

begs leave to report as follows:

The purpose of this measure is to declare the intent that for projects with housing units that qualify for housing credits under Act 31, Session Laws of Hawaii 2024, those projects are still eligible to receive housing credits after the repeal of that Act if the housing projects were approved by the Hawaii Housing Finance and Development Corporation before July 1, 2031, and requesting the Corporation and each county to include certain information when approving housing projects for housing credits.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and NAIOP Hawaii.

Your Committee finds that the State is facing a persistent and severe housing crisis, with thousands of new housing units needed across all counties to meet demand. Rising mortgage rates and construction financing costs have further exacerbated affordability challenges, making it critical to support the development of affordable housing. To address this, Act 31, Session Laws of Hawaii 2024, was enacted to facilitate housing development through the issuance of housing credits, but uncertainty remains regarding the applicability of these credits after the Act's scheduled repeal in 2031. This measure will clarify the legislative intent to ensure that housing projects approved before July 1, 2031, remain eligible for housing credits, providing stability and certainty for developers working to alleviate the State's housing shortage.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 78 and recommends that it be referred to your Committee on Finance.

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

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LUKE A. EVSLIN, Chair