STAND. COM. REP. NO. 589

Honolulu, Hawaii

RE: S.B. No. 867

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 Water and Land, to which was referred S.B. No. 867 entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish a working group within the Office of the Governor for administrative purposes to ascertain the State's available water resources and water system source capacity and to streamline well permit approval processes to further plan for the development of affordable housing;

(2) Require the working group to inventory all available water resources statewide and identify sources of aquifer replenishment in relation to affordable housing development; and

(3) Require an interim and final report to the Legislature.

Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Department of Water Supply of the County of Hawaiʻi, one member of the Hawaiʻi County Council, Honolulu Board of Water Supply, and one individual.

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

Your Committees find that it is of paramount importance to protect the State's finite natural resources. Presently, development of potable water systems is a critical issue affecting housing development across the State. Further, the State is experiencing a severe housing shortage that is far outpaced by demand. As water resource availability is dependent on the timely establishment of advanced water conservation programs and water supply development, the State must ensure water availability for existing and new housing development projects. Therefore, this measure takes a proactive approach to conserving the State's natural resources while addressing water resources needed for housing development projects critical to alleviating the State's existing housing shortage.

Your Committees have amended this measure by:

(1) Adding the Director of Health, or their designee, to the working group, rather than the Chief of the Department of Health Clean Water Branch; and

(2) 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 Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 867, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 867, 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 Water and Land,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ STANLEY CHANG, Chair