HR 86: urging the hawaii housing finance and development corporation to develop a plan to produce sufficient housing to meet the state's demand.

HOUSE RESOLUTION

urging the hawaii housing finance and development corporation to develop a plan to produce sufficient housing to meet the state's demand.

     WHEREAS, the State is experiencing a severe housing shortage, which has impacted the ability of many local families representing a wide range of household incomes to remain in Hawaii; and

     WHEREAS, according to the 2019 Hawaii Housing Planning Study (2019 Study), there were 532,880 housing units in the State in 2017, of which 45,373 were vacant housing units; and

     WHEREAS, in the period between 2010 and 2018, the State produced 26,152 units, or an average of 2,902 units per year for an average annual growth rate of 0.6 percent, which is lower than the 1.3 percent national average; and

     WHEREAS, the State has one of the highest rates of vacant unavailable units at 11.2 percent; and

     WHEREAS, the Hawaii Housing Finance and Development Corporation has been overbuilding in a very narrow market, namely rental units financed using low-income housing tax credits, which are intended for households earning fifty to sixty percent of the area median income; and

     WHEREAS, the 2019 Study projected a demand of only 1,789 rental units for households earning fifty to sixty percent of the area median income over the 2020 – 2025 period; and

     WHEREAS, conversely, the 2019 Study forecasted demand of 1,855 rental units for renters earning one hundred twenty percent to one hundred forty percent of the area median income over the same five year period, and over 11,800 ownership units for households earning one hundred twenty percent or greater of the area median income; and

     WHEREAS, these figures indicate that there is much greater demand than what the market is currently supplying; and

     WHEREAS, the critical lack of affordable housing is a major barrier to recruiting and maintaining a skilled workforce in the State, with twenty-four percent of Hawaii residents reporting that they intended to move out-of-state, according to the 2019 Study; and

     WHEREAS, nearly a quarter of the respondents who planned to leave the State said the high cost and limited availability of housing was one of the problems causing them to move; and

     WHEREAS, prioritizing financing for housing production for a broader range of income segments and producing housing in the most efficient means possible will greatly increase housing production in the State; and

     WHEREAS, a proactive, innovative approach to developing more housing units to address the State's severe housing shortage is necessary to meet existing demand while ensuring residents can remain in the State; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, that the Hawaii Housing Finance and Development Corporation is urged to develop a plan to produce sufficient housing needed to meet the State's demand; and

     BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation is requested to submit a copy of its plan to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of Directors of the Hawaii Housing Finance and Development Corporation and Executive Director of the Hawaii Housing Finance and Development Corporation.

Report Title: 

HHFDC; Housing Plan; Report