STAND. COM. REP. NO. 93

Honolulu, Hawaii

RE: S.B. No. 76

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 Commerce and Consumer Protection, to which was referred S.B. No. 76 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Clarify that the dwelling units eligible for the Rent-to-Own Program shall be units that are for sale in fee simple or leasehold on state or county land under a lease with an initial term of not less than ninety-nine years; and

(2) Increase the time period that the sales price of dwelling units under the Rent-to-Own Program shall remain fixed from five years to ten years after the rental agreement is executed.

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

Your Committees received comments on this measure from the Department of Land and Natural Resources.

Your Committees find that the development of creative homeownership pathways for residents will help the State in achieving solutions for the ongoing housing shortage. Established in 2006, the Rent-to-Own Program, operated by the Hawaii Housing Finance and Development Corporation (HHFDC) provides an alternative pathway to homeownership for residents. Through the program, HHFDC credits a portion of rent received toward the purchase of a dwelling unit. As existing renters can build equity in their unit, more individuals and families can become homeowners. Therefore, this measure helps the State address the critical housing shortage by extending the timeframe for residents to become homeowners.

Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Housing and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 76, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 76, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

Respectfully submitted on behalf of the members of the Committees on Housing and Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ STANLEY CHANG, Chair