STAND. COM. REP. NO. 289

Honolulu, Hawaii

RE: S.B. No. 68

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 Housing and Government Operations, to which was referred S.B. No. 68 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Department of Housing;

(2) Place the Hawaii Community Development Authority, Hawaii Housing Finance and Development Corporation, Office of Planning and Sustainable Development, and Hawaii Public Housing Authority within the Department of Housing for administrative purposes; and

(3) Replace the Director of Business, Economic Development, and Tourism with the Director of Housing on the Hawaii Community Development Authority.

Your Committees received comments on this measure from the Hawaii Public Housing Authority, Office of Planning and Sustainable Development, and Hawaiʻi Community Development Authority.

Your Committees find that the State is experiencing a severe housing shortage, which has been exacerbated by the high cost of living and increasing prices for both renters and prospective homeowners. Presently, existing state agencies tasked with the development of housing such as the Hawaii Housing Finance and Development Corporation and Hawaii Community Development Authority are placed within the Department of Business, Economic Development, and Tourism (DBEDT). Further, the Office of Planning and Sustainable Development is also placed in DBEDT. However, as the priorities of DBEDT differ from the State's housing policy goals, a new centralized agency would allow for the dedicated development of housing for individuals and families at all income levels. As the State seeks innovative and unique solutions to increase the supply of housing, there is a pressing need to reorganize the structure of government as it relates to housing to ensure an expeditious, coordinated response to the ongoing shortage. Therefore, this measure takes a proactive approach to the State's housing inventory while promoting government efficiency to develop housing statewide.

Your Committees have amended this measure by:

(1) Inserting language that specifies additional responsibilities of the Department of Housing, including:

(A) Coastal zone management and special management area permits, land use, climate change, sustainability, environmental review, geographic information systems and mapping, economic resilience, and other statewide policy interests as it pertains to the development of housing for individuals and families at all income levels; and

(B) Planning, infrastructure, and community building and mixed-used development of housing for individuals and families at all income levels;

(2) Clarifying that the Hawaii Public Housing Authority shall be placed in the Department of Housing for administrative purposes only;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Housing and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 68, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 68, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Government Operations,

________________________________ ANGUS L.K. MCKELVEY, Chair

________________________________ STANLEY CHANG, Chair