HB 1714: HHFDC; HPHA; Executive Director Salary; Deputy Executive Director; Employment Contracts

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the Hawaii housing finance and development corporation and the Hawaii public housing authority both provide critical services to address Hawaii's affordable housing crisis.  The Hawaii housing finance and development corporation oversees the financing of affordable housing and the Hawaii public housing authority manages the public housing programs and housing choice vouchers.  Through these two entities, the supply of affordable housing in Hawaii has grown, with billions of dollars financed and more than six thousand public housing units currently being managed.

     The legislature further finds that the executive directors of the two entities face different compensation limitations, with the executive director of the housing authority being paid no more than the governor, and the executive director of the development corporation being paid a lower salary of not more than the director of business, economic development, and tourism--a difference of more than $10,000.  In addition, the salary of the executive assistant of the development corporation is also capped at a percentage of the executive director's salary.

     The legislature believes that increasing certain salary caps will help the State compete with the private sector for highly skilled individuals and further increase the supply of affordable housing in Hawaii.

     Accordingly, the purpose of this Act is to:

     (1)  Provide the Hawaii housing finance and development corporation with autonomy in personnel matters;

     (2)  Increase the salary cap for the executive director and deputy executive director of the Hawaii housing finance and development corporation;

     (3)  Rename the executive assistant of the Hawaii housing finance and development corporation the deputy executive director; and

     (4)  Prohibit the extension of any employment contract of the Hawaii housing finance and development corporation and Hawaii public housing authority beyond two years without legislative approval.

     SECTION 2.  Section 201H-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established the Hawaii housing finance and development corporation to be placed within the department of business, economic development, and tourism for administrative purposes only[.]; provided that the corporation shall have autonomy in personnel matters, including establishing and filling positions and setting salaries.  The corporation shall be a public body and a body corporate and politic.

     (b)  The corporation shall employ, exempt from chapter 76 and section 26-35(a)(4), an executive director and [an executive assistant.] a deputy executive director.  The executive director shall be paid a salary not to exceed the salary of the [director of business, economic development, and tourism.] governor.  The [executive assistant] deputy executive director shall be paid a salary not to exceed [ninety] ninety-five per cent of the executive director's salary.  The corporation may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent and temporary, as required.  The corporation may also employ officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, not subject to chapter 76, when in the determination of the corporation, the services to be performed are unique and essential to the execution of the functions of the corporation.  Unless approved by the legislature by concurrent resolution, the corporation shall not offer any employment contract that exceeds two years.  The corporation may call upon the attorney general for legal services as it may require.  The corporation may delegate to one or more of its agents or employees its powers and duties as it deems proper."

     SECTION 3.  Section 356D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The authority shall employ, exempt from chapter 76 and section 26-35(a)(4), an executive director, an executive assistant, a chief financial management advisor, a property management branch chief, a chief planner, and a redevelopment officer, whose salaries shall be set by the board established under section 356D-3; provided that no salary shall exceed the governor's salary.  The authority may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent or temporary, as required.  The authority may also employ officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, not subject to chapter 76, when in the determination of the authority, the services to be performed are unique and essential to the execution of the functions of the authority; provided that if the authority hires an officer, agent, or employee in a capacity not subject to chapter 76, the authority shall include in an annual report to the legislature, to be submitted not later than twenty days prior to the convening of each regular session, the position descriptions and reasons for hiring the personnel in a civil service exempt capacity.  Unless approved by the legislature by concurrent resolution, the authority shall not offer any employment contract that exceeds two years.  The authority may call upon the attorney general for legal services as it may require.  The authority may delegate to one or more of its agents or employees the powers and duties it deems proper."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

HHFDC; HPHA; Executive Director Salary; Deputy Executive Director; Employment Contracts

Description:

Provides the Hawaii Housing Finance and Development Corporation with autonomy in personnel matters.  Increases the salary cap for the Executive Director and Deputy Executive Director of the Hawaii Housing Finance and Development Corporation.  Renames the Executive Assistant of the Hawaii Housing Finance and Development Corporation the Deputy Executive Director.  Prohibits the extension of any employment contract of the Hawaii Housing Finance and Development Corporation and Hawaii Public Housing Authority beyond two years without legislative approval.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to Housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the Hawaii housing finance and development corporation and the Hawaii public housing authority both provide critical services to address Hawaii's affordable housing crisis.  The Hawaii housing finance and development corporation oversees the financing of affordable housing and the Hawaii public housing authority manages the public housing programs and housing choice vouchers.  Through these two entities, the supply of affordable housing in Hawaii has grown, with billions of dollars financed and more than six thousand public housing units currently being managed.

     The legislature further finds that the executive directors of the two entities face different compensation limitations, with the executive director of the housing authority being paid no more than the governor, and the executive director of the development corporation being paid a lower salary of not more than the director of business, economic development, and tourism--a difference of more than $10,000.  In addition, the salary of the executive assistant of the development corporation is also capped at a percentage of the executive director's salary.

     The legislature believes that increasing certain salary caps will help the State compete with the private sector for highly skilled individuals and further increase the supply of affordable housing in Hawaii.

     Accordingly, the purpose of this Act is to increase the salary cap for the executive director of the Hawaii housing finance and development corporation to an amount that does not exceed the governor's salary, while also increasing the salary cap for the executive assistant.

     SECTION 2.  Section 201H-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established the Hawaii housing finance and development corporation to be placed within the department of business, economic development, and tourism for administrative purposes only[.]; provided that the corporation shall have autonomy in personnel matters, including establishing and filling positions and setting salaries.  The corporation shall be a public body and a body corporate and politic.

     (b)  The corporation shall employ, exempt from chapter 76 and section 26-35(a)(4), an executive director and [an executive assistant.] a deputy executive director.  The executive director shall be paid a salary not to exceed the salary of the [director of business, economic development, and tourism.] governor.  The [executive assistant] deputy executive director shall be paid a salary not to exceed [ninety] ninety-five per cent of the executive director's salary.  The corporation may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent and temporary, as required.  The corporation may also employ officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, not subject to chapter 76, when in the determination of the corporation, the services to be performed are unique and essential to the execution of the functions of the corporation.  Unless approved by the legislature by concurrent resolution, the corporation shall not offer any employment contract that exceeds two years.  The corporation may call upon the attorney general for legal services as it may require.  The corporation may delegate to one or more of its agents or employees its powers and duties as it deems proper."

     SECTION 3.  Section 356D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The authority shall employ, exempt from chapter 76 and section 26-35(a)(4), an executive director, an executive assistant, a chief financial management advisor, a property management branch chief, a chief planner, and a redevelopment officer, whose salaries shall be set by the board established under section 356D-3; provided that no salary shall exceed the governor's salary.  The authority may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent or temporary, as required.  The authority may also employ officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, not subject to chapter 76, when in the determination of the authority, the services to be performed are unique and essential to the execution of the functions of the authority; provided that if the authority hires an officer, agent, or employee in a capacity not subject to chapter 76, the authority shall include in an annual report to the legislature, to be submitted not later than twenty days prior to the convening of each regular session, the position descriptions and reasons for hiring the personnel in a civil service exempt capacity.  Unless approved by the legislature by concurrent resolution, the authority shall not offer any employment contract that exceeds two years.  The authority may call upon the attorney general for legal services as it may require.  The authority may delegate to one or more of its agents or employees the powers and duties it deems proper."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

HHFDC; HPHA; Executive Director Salary; Executive Assistant; Employment Contract

Description:

Increases the salary cap of the Executive Director of Hawaii Housing Finance and Development Corporation to an amount that does not exceed the Governor's salary.  Renames the Executive Assistant to the Deputy Executive Director and increases that position's salary cap to 95% of the Executive Director salary.  Prohibits HHFDC and Hawaii Public Housing Authority employment contracts that exceed 2 years, unless approved by the Legislature.  Provides HHFDC with autonomy in personnel matters.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  645-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1714

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred H.B. No. 1714, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Provide the Hawaii Housing Finance and Development Corporation with autonomy in personnel matters;

     (2)  Rename the Executive Assistant position as Deputy Executive Director;

     (3)  Increase the salary cap for its Executive Director and Deputy Executive Director; and

     (4)  Prohibit employment contracts exceeding two years unless approved by the Legislature for the Hawaii Housing Finance and Development Corporation and Hawaii Public Housing Authority.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation Board of Directors.  Your Committee received comments on this measure from the Department of the Attorney General and Hawaii Public Housing Authority

     Your Committee finds that State's ability to expand and maintain affordable housing depends heavily on recruiting and retaining highly qualified leadership within the Hawaii Housing Finance and Development Corporation and the Hawaii Public Housing Authority, yet existing statutory salary caps limit the State's competitiveness when compared to private‑sector compensation.  These constraints place an added burden on existing staff, contribute to vacancy and turnover challenges, and undermine the stability needed to support workers, residents, and communities that rely on affordable housing programs.  This measure will strengthen the workforce capacity of these agencies and ensure both agencies can more effectively carry out their missions to expand access to safe, stable, and affordable homes.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1714, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

STAND. COM. REP. NO.  120-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1714

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Housing, to which was referred H.B. No. 1714 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Provide the Hawaii Housing Finance and Development Corporation with autonomy in personnel matters;

     (2)  Increase the salary cap of the Executive Director and Deputy Executive Director of the Hawaii Housing Finance and Development Corporation;

     (3)  Rename the Executive Assistant position to Deputy Executive Director; and

     (4)  Prohibit employment contracts exceeding two years unless approved by the Legislature.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation.  Your Committee received testimony in opposition to this measure from two individuals.  Your Committee received comments on this measure from the Department of Human Resources Development and Hawaii Public Housing Authority.

     Your Committee finds that the State's main housing agencies face increasing difficulty recruiting and retaining highly qualified leadership due to salary caps that lag behind private sector compensation and comparable public‑sector positions.  Your Committee further finds that the Hawaii Housing Finance and Development Corporation, in particular, is constrained by a compensation ceiling that is lower than that of its counterpart agency, the Hawaii Public Housing Authority, and which does not reflect the complexity or statewide impact of its work in financing affordable housing.  This measure is intended to strengthen the Hawaii Housing Finance and Development Corporation's ability to deliver on the State's commitment to increasing the affordable housing supply.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee notes the concerns raised in testimony from the Department of Human Resources Development that this measure, in its current form, would allow individual state agencies to operate outside of the State's centralized personnel and collective bargaining framework.  Your Committee further notes the Department's concern regarding allowing a state agency to enter into employment contracts for up to two years and the likely conflict with existing law that governs State employment benefits.  Your Committee respectfully requests your Committee on Labor, should it deliberate on this measure, to work with the Department of Human Resources Development in addressing these concerns.

     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 H.B. No. 1714, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1714, H.D. 1, and be referred to your Committee on Labor.

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