STAND. COM. REP. NO. 1454

Honolulu, Hawaii

RE: S.R. No. 45

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.R. No. 45 entitled:

"SENATE RESOLUTION URGING THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION TO DEVELOP A PLAN TO PRODUCE SUFFICIENT HOUSING TO MEET THE STATE'S DEMAND,"

begs leave to report as follows:

The purpose and intent of this measure is to urge the Hawaii Housing Finance and Development Corporation to develop a plan to produce sufficient housing to meet the State's demand.

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

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

Your Committee finds that the State's chronic housing shortage negatively impacts the quality of life for individuals and families statewide, creating lower economic well-being and higher rates of out-migration from Hawaii. In 2023, Governor Josh Green issued the Proclamation Relating to Housing, which aspired to lower or eliminate barriers to housing production. Additionally, the Legislature adopted House Concurrent Resolution No. 131, Regular Session of 2024 (H.C.R. No. 131), which requested the Hawaii Housing Finance and Development Corporation (HHFDC) to develop a ten-year plan to satisfy Hawaii's housing demand. Upon completion of its report, HHFDC identified three primary barriers to housing development: inadequate supply of suitable land; insufficient infrastructure to support development; and unavailability of financing. While various state agencies have proposed solutions to address prohibitive barriers to housing development, including proposals passed by the Legislature, additional support through personnel, government capacity needs, and financial stability are needed to ensure accountability in the development of housing units. Therefore, addressing the systematic barriers to housing development will help the State to encourage expeditious development and maximize its resources to develop housing that is affordable to local working individuals and families, thereby addressing the State's existing housing demand.

Your Committee notes that H.C.R. No. 131 did not fully address financing needs or potential financing mechanisms that could be utilized to satisfy the State's housing demand. While HHFDC's report offers information on existing financing mechanisms, new approaches or existing financing needs were not addressed. Accordingly, the Department of Business, Economic Development, and Tourism's Strategic Plan to Increase Housing Supply in Hawaii will address financing needs required to meet the existing demand for housing statewide.

Your Committee has amended this measure by inserting language requesting HHFDC to include in its plan:

(1) Site identification, including density at each site;

(2) How to maximize walkability and density;

(3) The most efficient and sustainable financial plan and needs;

(4) Personnel and government capacity needs; and

(5) How to overcome barriers to housing supply, such as ensuring adequate availability of land, sufficient infrastructure, and increasing available financing models.

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.R. No. 45, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 45, S.D. 1.

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

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STANLEY CHANG, Chair