HB 1718: HHFDC; Affordable Housing; Mixed-Use Developments; County Powers; Sunset

A BILL FOR AN ACT

RELATING TO HOUSING.

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

     SECTION 1.  Section 46-15.1, Hawaii Revised Statutes, is amended to read as follows:

     "§46-15.1  Housing; county powers.  (a)  Notwithstanding any law to the contrary, any county shall have and may exercise the same powers, subject to applicable limitations, as those granted the Hawaii housing finance and development corporation pursuant to chapter 201H insofar as those powers may be reasonably construed to be exercisable by a county for the purpose of developing, constructing, financing, refinancing, or otherwise providing low- and moderate-income housing projects and mixed-use developments; provided that no county shall be empowered to cause the State to issue general obligation bonds to finance a project pursuant to this section; provided further that county projects shall be granted an exemption from general excise or receipts taxes in the same manner as projects of the Hawaii housing finance and development corporation pursuant to section 201H-36; provided further that county projects shall prioritize walkability to the extent practicable; provided further that section 201H-16 shall not apply to this section unless federal guidelines specifically provide local governments with that authorization and the authorization does not conflict with any state laws.  The powers shall include the power, subject to applicable limitations, to:

     (1)  Develop and construct dwelling units, alone or in partnership with developers;

     (2)  Acquire necessary land by lease, purchase, exchange, or eminent domain;

     (3)  Provide assistance and aid to a public agency or other person in developing and constructing new housing and rehabilitating existing housing for elders of low- and moderate-income, other persons of low- and moderate-income, and persons displaced by any governmental action, by making long-term mortgage or interim construction loans available;

     (4)  Contract with any eligible bidders to provide for construction of urgently needed housing for persons of low- and moderate-income;

     (5)  Guarantee the top twenty-five per cent of the principal balance of real property mortgage loans, plus interest thereon, made to qualified borrowers by qualified lenders;

     (6)  Enter into mortgage guarantee agreements with appropriate officials of any agency or instrumentality of the United States to induce those officials to commit to insure or to insure mortgages under the National Housing Act, as amended;

     (7)  Make a direct loan to any qualified buyer for the downpayment required by a private lender to be made by the borrower as a condition of obtaining a loan from the private lender in the purchase of residential property;

     (8)  Provide funds for a share, not to exceed fifty per cent, of the principal amount of a loan made to a qualified borrower by a private lender who is unable otherwise to lend the borrower sufficient funds at reasonable rates in the purchase of residential property; and

     (9)  Sell or lease completed dwelling units.

     For purposes of this section, a limitation is applicable to the extent that it may reasonably be construed to apply to a county.

     (b)  Each county shall recognize housing units developed by the department of Hawaiian home lands and issue affordable housing credits to the department of Hawaiian home lands.  The credits shall be transferable and shall be issued on a one-credit for one-unit basis, unless the housing unit is eligible for additional credits as provided by adopted county ordinances, rules, or any memoranda of agreement between a county and the department of Hawaiian home lands.  In the event that credits are transferred by the department of Hawaiian home lands, twenty-five per cent of any monetary proceeds from the transfer shall be used by the department of Hawaiian home lands to develop units for rental properties.  Credits shall be issued for each single-family residence, multi-family unit, other residential unit, whether for purposes of sale or rental, or if allowed under the county's affordable housing programs, vacant lot, developed by the department of Hawaiian home lands.  The credits may be applied county-wide within the same county in which the credits were earned to satisfy affordable housing obligations imposed by the county on market-priced residential and non-residential developments.  County-wide or project-specific requirements for housing class, use, or type; or construction time for affordable housing units shall not impair, restrict, or condition the county's obligation to apply the credits in full satisfaction of all county requirements, whether by rule, ordinance, or particular zoning conditions of a project.  Notwithstanding any provisions in this section to the contrary, the department may enter into a memorandum of agreement with any of the counties to establish, modify, or clarify the conditions for the issuance, transfer, and redemption of the affordable housing credits in accordance with county affordable housing ordinances or rules.  At least half of the affordable housing credits issued by the city and county of Honolulu shall be subject to a memorandum of agreement pursuant to this subsection.

     (c)  Each county shall recognize housing units developed pursuant to section 201H-38 and issue affordable housing credits to the eligible developer for residences required to be sold or rented to individuals within a specified income range, if a developer chooses to receive affordable housing credits.  Credits shall be issued for each single-family residence, multi-family unit, other residential unit, whether for purposes of sale, rental, or if allowed under the county's affordable housing programs, vacant lot, developed pursuant to chapter 201H.  Affordable housing credits shall not be issued if low-income housing tax credits are utilized in conjunction with the affordable housing developed pursuant to chapter 201H.  The credits shall be transferable and shall be issued on a one-credit for one-unit basis, unless the housing unit is eligible for additional credits as provided by adopted county ordinances, rules, or any memoranda of agreement between a county and the Hawaii housing finance and development corporation.  In the event that the affordable housing credits are transferred to the Hawaii housing finance and development corporation, twenty-five per cent of any monetary proceeds from the transfer shall be used by the Hawaii housing finance and development corporation to develop units for rental properties.  The credits may be applied county-wide within the same county in which the credits were earned to satisfy affordable housing obligations imposed by the county on market-priced residential and non-residential developments.  The credits may be applied to satisfy up to fifty per cent of the affordable housing obligations imposed by the county for each market-priced residential or non-residential development, unless the county allows for more than fifty per cent as provided by county ordinances, rules, or any memoranda of agreement between the county and the Hawaii housing finance and development corporation.  County-wide or project-specific requirements for housing class, use, or type, or construction time for affordable housing units, shall not impair, restrict, or condition the county's obligation to apply the credits in full satisfaction of all county requirements, whether by rule, ordinance, or particular zoning conditions of a project.  Notwithstanding any provision of this section to the contrary, the Hawaii housing finance and development corporation may enter into a memorandum of agreement with any of the counties to establish, modify, or clarify the conditions for the issuance, transfer, and redemption of the affordable housing credits in accordance with county affordable housing ordinances or rules.

     No affordable housing credit shall be issued under this subsection until a certificate of occupancy has been issued.

     [Prior to] Before the issuance of an affordable housing credit under this subsection, an agreement, including affordable housing-related agreements between a county or the Hawaii housing finance and development corporation and an eligible developer, shall be executed and include language requiring:

     (1)  A new and sequential identification number of at least four digits in length for each affordable housing credit to be issued within each county for tracking purposes;

     (2)  An agreement to be recorded on title of at least one parcel or tax map key of the originating housing project, as defined in section 201H-1; and

     (3)  The prompt amendment of an agreement when an affordable housing credit originally generated by a housing project is sold, transferred, or utilized to create an easily auditable trail of ownership.

     (d)  Notwithstanding any law to the contrary, any county may:

     (1)  Authorize and issue bonds under chapter 47 and chapter 49 to provide moneys to carry out the purposes of this section or section 46-15.2, including the satisfaction of any guarantees made by the county pursuant to this section;

     (2)  Appropriate moneys of the county to carry out the purposes of this section;

     (3)  Obtain insurance and guarantees from the State or the United States, or grants from either;

     (4)  Designate, after holding a public hearing on the matter and with the approval of the respective council, any lands owned by it for the purposes of this section;

     (5)  Provide interim construction loans to partnerships of which it is a partner and to developers whose projects qualify for federally assisted project mortgage insurance, or other similar programs of federal assistance for persons of [low] low- and [moderate income;] moderate-income; and

     (6)  Adopt rules pursuant to chapter 91 as are necessary to carry out the purposes of this section.

     (e)  Notwithstanding any law to the contrary, a county may waive its right to repurchase a privately-developed affordable housing unit built pursuant to a unilateral agreement or similar instrument, and may transfer that right of repurchase to a qualified nonprofit housing trust for the purpose of maintaining the unit as affordable for as long as required by the county program.

     (f)  A qualified nonprofit housing trust shall report the status and use of its housing units to its respective county by November 30 of each calendar year.

     (g)  The provisions of this section shall be construed liberally so as to effectuate the purpose of this section in facilitating the development, construction, financing, refinancing, or other provision of low- and moderate-income housing projects and mixed-use developments by the various counties.

     (h)  Any mixed-use development developed, constructed, financed, refinanced, or otherwise provided by this section shall be confined to transit-oriented developments.

     (i)  The authority provided under this section shall continue to apply to any mixed-use development project for which, before July 1, 2033, the county has obtained county council approval or entered into a binding agreement, including a purchase agreement, pre-development agreement, development agreement, or ground lease, committing the county to the acquisition or development of the property for mixed-use development.  Any such project shall be deemed vested and may proceed to completion notwithstanding any subsequent repeal or modification of the authority provided under this section.

     [(h)] (j)  For purposes of this section:

     "Affordable housing obligation" means the requirement imposed by a county, regardless of the date of its imposition, to develop vacant lots, single-family residences, multi-family residences, or any other type of residence for sale or rent to individuals within a specified income range.

     "Eligible developer" has the same meaning as [defined] in section 201H-32.

     "Low- and moderate-income housing project" means any housing project that meets the definition of "low- and moderate-income housing project" in section 39A-281.

     "Mixed-use development" has the same meaning as [defined] in section 201H-12(a).

     "Qualified nonprofit housing trust" means a corporation, association, or other duly chartered organization that:

     (1)  Is registered and in good standing with the State;

     (2)  Is recognized by the Internal Revenue Service as a charitable or otherwise tax-exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and

     (3)  Has the capacity, resources, and mission to carry out the purposes of this section as determined by the county in which the housing unit is located."

     SECTION 2.  Act 45, Session Laws of Hawaii 2024, is amended by amending section 4 to read as follows:

     "SECTION 4.  This Act shall take effect upon its approval, and shall apply to bond proceeds expended by a county after December 31, 2023[, and shall be repealed on June 30, 2028; provided that section 46-15.1, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act.]; provided that the amendments made to section 46-15.1, Hawaii Revised Statutes, by section 2 of this Act shall only apply to bonds originally issued before July 1, 2033, and shall not be repealed when that section is reenacted on:

     (1)  July 1, 2030, pursuant to:

          (A)  Section 3 of Act 141, Session Laws of Hawaii 2009, as amended by section 3 of Act 102, Session Laws of Hawaii 2015, as amended by section 1 of Act 80, Session Laws of Hawaii 2019, as amended by section 2 of Act 90, Session Laws of Hawaii 2023; and

          (B)  Section 3 of Act 98, Session Laws of Hawaii 2012, as amended by section 4 of Act 102, Session Laws of Hawaii 2015, as amended by section 50 of Act 55, Session Laws of Hawaii 2016, as amended by section 2 of Act 80, Session Laws of Hawaii 2019, as amended by section 3 of Act 90, Session Laws of Hawaii 2023; and

     (2)  July 1, 2031, pursuant to section 4 of Act 31, Session Laws of Hawaii 2024."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval; provided that the amendments made to section 46-15.1, Hawaii Revised Statutes, by section 1 of this Act shall not be repealed when that section is reenacted on:

     (1)  July 1, 2030, pursuant to:

          (A)  Section 3 of Act 141, Session Laws of Hawaii 2009, as amended by section 3 of Act 102, Session Laws of Hawaii 2015, as amended by section 1 of Act 80, Session Laws of Hawaii 2019, as amended by section 2 of Act 90, Session Laws of Hawaii 2023; and

          (B)  Section 3 of Act 98, Session Laws of Hawaii 2012, as amended by section 4 of Act 102, Session Laws of Hawaii 2015, as amended by section 50 of Act 55, Session Laws of Hawaii 2016, as amended by section 2 of Act 80, Session Laws of Hawaii 2019, as amended by section 3 of Act 90, Session Laws of Hawaii 2023; and

     (2)  July 1, 2031, pursuant to section 4 of Act 31, Session Laws of Hawaii 2024.

Report Title:

HHFDC; Affordable Housing; Mixed-Use Developments; County Powers; Sunset

Description:

Limits mixed-use developments to transit-oriented developments.  Repeals the sunset date of Act 45, SLH 2024, thereby making permanent the authority of the counties to share in facilitating the development, construction, financing, refinancing, or other provision of mixed-use developments, including low- and moderate-income housing projects, and issue county bonds before 7/1/2033 for this purpose.  (CD1)

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.  Section 46-15.1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Notwithstanding any law to the contrary, any county shall have and may exercise the same powers, subject to applicable limitations, as those granted the Hawaii housing finance and development corporation pursuant to chapter 201H insofar as those powers may be reasonably construed to be exercisable by a county for the purpose of developing, constructing, financing, refinancing, or otherwise providing low- and moderate-income housing projects and mixed-use developments; provided that no county shall be empowered to cause the State to issue general obligation bonds to finance a project pursuant to this section; provided further that county projects shall be granted an exemption from general excise or receipts taxes in the same manner as projects of the Hawaii housing finance and development corporation pursuant to section 201H-36; provided further that county projects shall prioritize walkability to the extent practicable; provided further that mixed-use developments developed, constructed, financed, refinanced, or otherwise provided by this section shall be confined to transit-oriented developments that include housing along a locally preferred alternative for a mass transit system; provided further that section 201H-16 shall not apply to this section unless federal guidelines specifically provide local governments with that authorization and the authorization does not conflict with any state laws.  The powers shall include the power, subject to applicable limitations, to:

     (1)  Develop and construct dwelling units, alone or in partnership with developers;

     (2)  Acquire necessary land by lease, purchase, exchange, or eminent domain;

     (3)  Provide assistance and aid to a public agency or other person in developing and constructing new housing and rehabilitating existing housing for elders of low- and moderate-income, other persons of low- and moderate-income, and persons displaced by any governmental action, by making long-term mortgage or interim construction loans available;

     (4)  Contract with any eligible bidders to provide for construction of urgently needed housing for persons of low- and moderate-income;

     (5)  Guarantee the top twenty-five per cent of the principal balance of real property mortgage loans, plus interest thereon, made to qualified borrowers by qualified lenders;

     (6)  Enter into mortgage guarantee agreements with appropriate officials of any agency or instrumentality of the United States to induce those officials to commit to insure or to insure mortgages under the National Housing Act, as amended;

     (7)  Make a direct loan to any qualified buyer for the downpayment required by a private lender to be made by the borrower as a condition of obtaining a loan from the private lender in the purchase of residential property;

     (8)  Provide funds for a share, not to exceed fifty per cent, of the principal amount of a loan made to a qualified borrower by a private lender who is unable otherwise to lend the borrower sufficient funds at reasonable rates in the purchase of residential property; and

     (9)  Sell or lease completed dwelling units.

     The authority provided under this section shall continue to apply to any mixed-use development project for which, prior to July 1, 2033, the county has obtained county council approval or entered into a binding agreement, including a purchase agreement, pre-development agreement, development agreement, or ground lease, committing the county to the acquisition or development of the property for mixed-use development.  Any such project shall be deemed vested and may proceed to completion notwithstanding any subsequent repeal or modification of the authority provided under this section.

     For purposes of this section, a limitation is applicable to the extent that it may reasonably be construed to apply to a county."

     SECTION 2.  Act 45, Session Laws of Hawaii 2024, is amended by amending section 4 to read as follows:

     "SECTION 4.  This Act shall take effect upon its approval, and shall apply to bond proceeds expended by a county after December 31, 2023[, and shall be repealed on June 30, 2028; provided that section 46-15.1, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act.]; provided that the amendments made to section 46-15.1 by section 2 of this Act shall only apply to bonds originally issued before July 1, 2033, and shall not be repealed when that section is reenacted on:

     (1)  July 1, 2030, pursuant to:

          (A)  Section 3 of Act 141, Session Laws of Hawaii 2009, as amended by section 3 of Act 102, Session Laws of Hawaii 2015, as amended by section 1 of Act 80, Session Laws of Hawaii 2019, as amended by section 2 of Act 90, Session Laws of Hawaii 2023; and

          (B)  Section 3 of Act 98, Session Laws of Hawaii 2012, as amended by section 4 of Act 102, Session Laws of Hawaii 2015, as amended by section 50 of Act 55, Session Laws of Hawaii 2016, as amended by section 2 of Act 80, Session Laws of Hawaii 2019, as amended by section 3 of Act 90, Session Laws of Hawaii 2023; and

     (2)  July 1, 2031, pursuant to section 4 of Act 31, Session Laws of Hawaii 2024."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

HHFDC; Affordable Housing; County Powers; Sunset

Description:

Limits mixed-use developments to transit-oriented developments that include housing along a locally preferred alternative for a mass transit system.  Repeals the sunset date of Act 45, SLH 2024, thereby making permanent the authority of the counties to share in facilitating the development, construction, financing, refinancing, or other provision of mixed-use developments, including low- and moderate-income housing projects, and issue county bonds before 7/1/2033 for this purpose.  Effective 7/1/2050.  (SD1)

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.  Act 45, Session Laws of Hawaii 2024, is amended by amending section 4 to read as follows:

     "SECTION 4.  This Act shall take effect upon its approval, and shall apply to bond proceeds expended by a county after December 31, 2023[, and shall be repealed on June 30, 2028; provided that section 46-15.1, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act.]; provided that the amendments made to section 46-15.1 by section 2 of this Act shall not be repealed when that section is reenacted on:

     (1)  July 1, 2030, pursuant to:

          (A)  Section 3 of Act 141, Session Laws of Hawaii 2009, as amended by section 3 of Act 102, Session Laws of Hawaii 2015, as amended by section 1 of Act 80, Session Laws of Hawaii 2019, as amended by section 2 of Act 90, Session Laws of Hawaii 2023; and

          (B)  Section 3 of Act 98, Session Laws of Hawaii 2012, as amended by section 4 of Act 102, Session Laws of Hawaii 2015, as amended by section 50 of Act 55, Session Laws of Hawaii 2016, as amended by section 2 of Act 80, Session Laws of Hawaii 2019, as amended by section 3 of Act 90, Session Laws of Hawaii 2023; and

     (2)  July 1, 2031, pursuant to section 4 of Act 31, Session Laws of Hawaii 2024."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

HHFDC; Affordable Housing; County Powers; Sunset

Description:

Repeals the sunset date of Act 45, SLH 2024, thereby making permanent the authority of the counties to share in facilitating the development, construction, financing, refinancing, or other provision of mixed-use developments, including low- and moderate-income housing projects, and issue county bonds for this purpose.  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.  Act 45, Session Laws of Hawaii 2024, is amended by amending section 4 to read as follows:

     "SECTION 4.  This Act shall take effect upon its approval, and shall apply to bond proceeds expended by a county after December 31, 2023[, and shall be repealed on June 30, 2028; provided that section 46-15.1, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act.]; provided that the amendments made to section 46-15.1 by section 2 of this Act shall not be repealed when that section is reenacted on:

     (1)  July 1, 2030, pursuant to:

          (A)  Section 3 of Act 141, Session Laws of Hawaii 2009, as amended by section 3 of Act 102, Session Laws of Hawaii 2015, as amended by section 1 of Act 80, Session Laws of Hawaii 2019, as amended by section 2 of Act 90, Session Laws of Hawaii 2023; and

          (B)  Section 3 of Act 98, Session Laws of Hawaii 2012, as amended by section 4 of Act 102, Session Laws of Hawaii 2012, as amended by section 50 of Act 55, Session Laws of Hawaii 2016, as amended by section 2 of Act 80, Session Laws of Hawaii 2019, as amended by section 3 of Act 90, Session Laws of Hawaii 2023; and

     (2)  July 1, 2031, pursuant to section 4 of Act 31, Session Laws of Hawaii 2024."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2026.

Report Title:

HHFDC; Affordable Housing; County Powers; Sunset

Description:

Repeals the sunset date of Act 45, Session Laws of Hawaii 2024, thereby making permanent the authority of the counties to share in facilitating the development, construction, financing, refinancing, or other provision of mixed-use developments, including low- and moderate-income housing projects, and issue county bonds for this purpose.

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.  862-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1718

      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 Finance, to which was referred H.B. No. 1718, 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 repeal the sunset date of Act 45, Session Laws of Hawaii 2024, thereby making permanent the authority of the counties to share in facilitating the development, construction, financing, refinancing, or other provision of mixed-use developments, including low- and moderate-income housing projects, and issue county bonds for this purpose.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Department of Budget and Fiscal Services of the City and County of Honolulu; Department of Housing and Land Management of the City and County of Honolulu; Housing Hawaiʻi's Future; and LeadingAge Pacific West.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1718, H.D. 1, and recommends that it pass Third Reading.

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

STAND. COM. REP. NO.  538-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1718

      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 Water & Land, to which was referred H.B. No. 1718, 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 repeal the sunset date of Act 45, Session Laws of Hawaii 2024 (Act 45), thereby making permanent the authority of the counties to share in facilitating the development, construction, financing, refinancing, or other provision of mixed-use developments, including low- and moderate-income housing projects, and issue county bonds for this purpose.

     Your Committee received testimony in support of this measure from the Office of Planning and Sustainable Development; Hawaii Housing Finance and Development Corporation; Department of Housing and Land Management of the City and County of Honolulu; Land Use Research Foundation of Hawaiʻi; LeadingAge Pacific West; AARP Hawaiʻi; Housing Hawaiʻi's Future; and one individual.

     Your Committee finds that the existing sunset date for Act 45 severely restricts the counties' ability to initiate and implement multi-year housing initiatives and financing.  This measure would allow the State, counties, and housing developers to use county bonding powers over the long term to increase the stock of housing in Hawaii.

     As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1718, 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 Water & Land,

STAND. COM. REP. NO.  113-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1718

      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. 1718 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to repeal the sunset date of Act 45, Session Laws of Hawaii 2024, thereby making permanent the authority of the counties to share in facilitating the development, construction, financing, refinancing, or other provision of mixed‑use developments, including low‑ and moderate‑income housing projects, and to issue county bonds for these purposes.

     Your Committee received testimony in support of this measure from the Office of Planning and Sustainable Development; Hawaii Housing Finance and Development Corporation; Department of Housing and Land Management of the City and County of Honolulu; and Housing Hawaiʻi's Future.

     Your Committee finds that counties play an essential role in developing affordable and mixed‑use housing, yet temporary statutory authority creates uncertainty for long‑term planning and investment.  Your Committee further finds that the existing sunset date in Act 45, Session Laws of Hawaii 2024 (Act 45), limits the counties' ability to pursue multi‑year financing and development initiatives that are necessary to expand the State's housing supply.  Removing Act 45's sunset date ensures counties can reliably utilize their powers over the long term, supporting continued coordination and investment in affordable housing.

     Your Committee has amended this measure by:

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

     (2)  Making a technical, nonsubstantive amendment for clarity, consistency, and style.

     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. 1718, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1718, H.D. 1, and be referred to your Committee on Water & Land.

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