STAND. COM. REP. NO. 1452

Honolulu, Hawaii

RE: S.C.R. No. 77

S.D. 1

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.C.R. No. 77 entitled:

"SENATE CONCURRENT RESOLUTION DECLARING THE INTENT THAT PROJECTS WITH HOUSING UNITS THAT QUALIFY FOR HOUSING CREDITS UNDER ACT 31, SESSION LAWS OF HAWAII 2024, ARE STILL ELIGIBLE TO RECEIVE HOUSING CREDITS AFTER THE REPEAL OF THAT ACT IF THE HOUSING PROJECTS WERE APPROVED BY THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION BEFORE JULY 1, 2031, AND REQUESTING THE CORPORATION AND EACH COUNTY TO INCLUDE CERTAIN INFORMATION WHEN APPROVING HOUSING PROJECTS FOR HOUSING CREDITS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Declare the intent that projects with housing units that qualify for housing credits under Act 31, Session Laws of Hawaii 2024, are still eligible to receive housing credits after the repeal of Act 31 if the housing projects were approved by the Hawaii Housing Finance and Development Corporation before July 1, 2031; and

(2) Request the Hawaii Housing Finance and Development Corporation and each county to include certain information in actions approving housing projects for housing credits.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands and Hawaii Housing Finance and Development Corporation.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that Act 31, Session Laws of Hawaii 2024 (Act 31), required the counties to issue affordable housing credits for affordable housing units that are constructed under the various programs administered by the Hawaii Housing Finance and Development Corporation (HHFDC). However, the provisions of Act 31 will sunset on July 1, 2031, creating uncertainty for projects approved, but not completed, by that date. As the State seeks to address the existing housing shortage, ensuring housing developers can access HHFDC programs to lower the cost of housing will empower more individuals and residents to achieve homeownership and a lower cost of living. Therefore, this measure affirms the Legislature's commitment to the development of housing units that remain affordable for working individuals and families.

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

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 77, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 77, S.D. 1.

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

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STANLEY CHANG, Chair