STAND.
COM. REP. NO. 1361
Honolulu, Hawaii
, 2025
RE: S.B. No. 38
S.D. 2
H.D. 1
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 S.B. No. 38, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and Grassroot Institute of Hawaii. Your Committee received testimony in opposition to this measure from the Department of Planning and Permitting of the City and County of Honolulu; one member of the Maui County Council; Hawaiʻi State Association of Counties; Lāhainā Strong; HI Good Neighbor; LIMBY Hawaiʻi; Hawaii's Thousand Friends; and two individuals.
Your Committee finds that projects developed under Hawaii Housing Finance and Development Corporation programs must be primarily affordable and conditions of approval and exactions often add significant cost to developments that ultimately may make the projects infeasible. However, your Committee notes that prohibiting a county legislative body from imposing necessary modifications to a project that would increase the cost can negate the quality of their review and could jeopardize the entire project. Your Committee further notes that any condition that required a change to the plans and drawings could be argued to increase the cost of the project. However, your Committee believes that some guardrails are necessary to ensure that these housing projects remain affordable.
Accordingly, your Committee has amended this measure by:
(1) Deleting language that would have prohibited a county legislative body from making any modification to a housing project that would increase the cost of the project;
(2) Prohibiting a county legislative body from imposing conditions stricter than the Hawaii Housing Finance and Development Corporation, stricter area median income requirements, or a reduction in fee waivers that will increase the cost of the project; and
(3) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 38, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 38, S.D. 2, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.
Respectfully submitted on behalf of the members of the Committee on Housing,
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____________________________ LUKE A. EVSLIN, Chair |