HB 374: RELATING TO HOUSING.

A BILL FOR AN ACT

RELATING TO HOUSING.

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

     SECTION 1.  Section 201H-31, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§201H-31[]]  Criteria.  (a)  In administering this chapter and other laws of the State applicable to the supplying of housing or the assistance in obtaining housing, the corporation shall give preference to those applicants most in need of assistance in obtaining housing, in light of the amount of moneys available for the various programs.  In doing so, the corporation shall take into consideration [the]:

     (1)  The applicant's household income and number of dependents; [the]

     (2)  The age of the applicant; [the]

     (3)  The physical disabilities of the applicant or those living with the applicant; [whether or not]

     (4)  Whether the present housing of the applicant is below standard; [whether or not]

     (5)  Whether the applicant's need for housing has arisen by reason of displacement of the applicant by governmental actions;

     (6)  The proximity between the housing location and the applicant's place of employment;

     (7)  Whether the applicant is a state or county employee; and [other]

     (8)  Other factors as it may deem pertinent.

     The corporation may allow households with incomes up to twenty per cent greater than the income on which the maximum sales price was based to be qualified to purchase a unit.

     (b)  The corporation shall:

     (1)  Determine the order of preferences as outlined in this section and rank all applicants accordingly;

     (2)  Select applicants based on application date within the pool of similarly ranked applicants; and

     (3)  Validate the preference status of an applicant before occupancy of an affordable unit.

     (c)  The corporation may establish additional eligibility criteria in rules adopted pursuant to chapter 91."

     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  Statutory material to be repealed is bracketed and stricken.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:

Hawaii State Association of Counties Package; HHFDC; Criteria; Preferences; Housing Location Proximity; State and County Employees

Description:

Requires the Hawaii Housing Finance and Development Corporation  to consider additional preferential factors when supplying housing or assistance in obtaining housing.  Requires the Hawaii Housing Finance and Development Corporation to determine the order of preferences and rank applicants, select applicants based on application date, and validate the preference status of applicants.  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.  Section 201H-31, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§201H-31[]]  Criteria.  (a)  In administering this chapter and other laws of the State applicable to the supplying of housing or the assistance in obtaining housing, the corporation shall give preference to those applicants most in need of assistance in obtaining housing, in light of the amount of moneys available for the various programs.  In doing so, the corporation shall take into consideration the applicant's household income and number of dependents; the age of the applicant; the physical disabilities of the applicant or those living with the applicant; whether or not the present housing of the applicant is below standard; whether or not the applicant's need for housing has arisen by reason of displacement of the applicant by governmental actions; the proximity between the housing location and the applicant's place of employment; whether the applicant is a state or county employee; whether the applicant is a returning resident that left the State to attend a university, college, or trade school and has graduated within the past two years; and other factors as it may deem pertinent.  The corporation may allow households with incomes up to twenty per cent greater than the income on which the maximum sales price was based to be qualified to purchase a unit.

     (b)  For any project developed or administered by the corporation under this chapter, the corporation shall, when feasible, set aside as a matter of preference no fewer than       per cent of the available units for state or county employees.

     (c)  The corporation shall:

     (1)  Determine the order of preferences as outlined in this section and rank all applicants accordingly;

     (2)  Select applicants based on application date within the pool of similarly ranked applicants; and

     (3)  Validate the preference status of an applicant before occupancy of an affordable unit.

     (d)  The corporation may establish additional eligibility criteria in administrative rules adopted pursuant to chapter 91."

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

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

Hawaii State Association of Counties Package; HHFDC; Housing Development Programs; Criteria; Preferences; Ranking; Housing Location Proximity; State and County Employees; Returning Resident Graduates; Reserved Units; Rules

Description:

Requires the Hawaii Housing Finance and Development Corporation (HHFDC) to consider as a preference under chapter 201H, HRS, the proximity between the housing location and the applicant's place of employment; whether the applicant is a state or county employee; and whether the applicant is a returning resident that left the State to attend a university, college, or trade school and has graduated within the past two years.  Requires, for any project developed or administered by the HHFDC under chapter 201, HRS, the HHFDC to set aside as a matter of preference an undetermined per cent of available units for state or county employees, when feasible.  Requires HHFDC to determine the order of preferences and rank applicants accordingly, select applicants based on application date within the pool of similarly ranked applicants, and validate the preference status of applicants before occupancy of a unit.  Authorizes HHFDC to adopt rules to establish additional eligibility criteria.

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.  491

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 374

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Housing, to which was referred H.B. No. 374 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Require the Hawaii Housing Finance and Development Corporation to take into consideration additional preferential factors of project applicants when supplying housing or assistance in obtaining housing;

     (2)  Require a certain percentage of available units to be set aside for state or county employees in projects developed or administered by the Hawaii Housing Finance and Development Corporation; and

     (3)  Require the Hawaii Housing Finance and Development Corporation to determine the order of preferences and rank applicants, select applicants based on application date, and validate the preference status of applicants.

     Your Committee received testimony in support of this measure from two members of the Kauaʻi County Council and Hawai‘i State Association of Counties.  Your Committee received comments on this measure from the Department of the Attorney General and Hawaii Housing Finance and Development Corporation.

     Your Committee finds that the existing housing preference criteria employed by the Hawaii Housing Finance and Development Corporation have been instrumental in addressing housing needs across the State.  However, as the State's communities evolve, it becomes imperative to reassess and enhance these criteria to ensure they align with the diverse and changing needs of residents.  This measure is intended to broaden the existing housing preference criteria, thereby creating a more comprehensive framework that accounts for various elements influencing housing needs.

     However, your Committee has heard the concerns raised in testimony by the Department of the Attorney General that certain provisions in this measure appear to impose a durational residency requirement that may be subject to challenge as a violation of the right to travel protected by the United States Constitution.

     Accordingly, your Committee has amended this measure by:

     (1)  Deleting language that would have required the Hawaii Housing Finance and Development Corporation to take into consideration whether an applicant is a returning resident that left for academic reasons and returned to the State within two years;

     (2)  Deleting language that would have required an unspecified percent of available units developed by Hawaii Housing Finance and Development Corporation to be set aside for state or county employees;

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

     (4)  Making technical, nonsubstantive amendments for the purposes of 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. 374, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 374, H.D. 1, and be referred to your Committee on Finance.

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