STAND. COM. REP. NO. 134

Honolulu, Hawaii

RE: S.B. No. 749

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 749 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to require rental housing projects to maintain, in perpetuity, fifty percent of the project's units for certain low-income tenants to be eligible for assistance under the Hawaii Housing Finance and Development Corporation's (HHFDC) Rental Assistance Program.

Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs.

Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that HHFDC's Rental Assistance Program offers assistance to eligible low-income tenants. However, existing law only requires the maintenance, in perpetuity, of twenty percent of units in rental housing projects for low-income tenants, creating a demand that exceeds inventory. Accordingly, this measure expands the available inventory for low-income tenants to ensure that households eligible for the Rental Assistance Program can secure housing.

Your Committee notes the testimony of HHFDC regarding the amount of state of funds necessary to support this expansion of the Rental Assistance Program. As the Rental Assistance Program has not been funded in several years, HHFDC will require a substantial infusion of funds to maintain and administer the Program and to incentivize developers to participate.

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. 749 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair