STAND. COM. REP. NO. 2040

Honolulu, Hawaii

, 2025

RE: S.B. No. 38

S.D. 2

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 38, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to prohibit a county legislative body from imposing stricter conditions than the Hawaii Housing Finance and Development Corporation, stricter area median income requirements, or a reduction in fee waivers to housing development proposals that would increase the cost of the project.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Grassroot Institute of Hawaii; Maui Chamber of Commerce; and Housing Hawaiʻi's Future. 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 Honolulu City Council; Hawaiʻi State Association of Counties; and Lāhainā Strong. Your Committee received comments on this measure from one individual.

Your Committee finds that Hawaii is facing a severe housing crisis, with a shortage of affordable housing that disproportionately affects working families and low-income residents. The development of housing projects is often delayed or made more costly due to inconsistent zoning, planning, and regulatory requirements imposed by different levels of government. This measure will facilitate the timely construction of affordable housing and streamline approval processes, thereby making homes more accessible and reducing costs for Hawaii residents.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 38, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 38, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair