STAND. COM. REP. NO. 136

Honolulu, Hawaii

RE: S.B. No. 379

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. 379 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require that Hawaii Housing Finance and Development Corporation housing projects include a restrictive covenant that states that the units designated as affordable housing, as described in the submitted project application, shall remain as affordable housing in perpetuity; and

(2) Prohibit development of affordable housing in a special flood hazard area.

Your Committee received testimony in support of this measure from the Hawaii Public Housing Authority, Aloha United Way, and two individuals.

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

Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation, Maui Chamber of Commerce, and one individual.

Your Committee finds that the cost of housing in the State is a serious concern for many households, particularly asset limited, income constrained, employed (ALICE) households who are employed but whose incomes are insufficient to fulfill basic necessities. ALICE households comprise forty percent of the State's residents. According to the 2024 State of ALICE in Hawaii report, thirty-seven percent of households have a household member considering leaving Hawaii in the next twelve months, while seventy-three percent who have considered leaving the State responded that their housing cost is a primary factor. Your Committee therefore finds that this measure will help preserve long-term access to affordable housing in the State.

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. 379 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