SB 1610: SOHHS; Ohana Zones Program; Establishment; HHFDC; General Excise Tax; Exemption; Reports; Appropriation
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-03-17
Current Status:
Failed
(2025-12-08: Carried over to 2026 Regular Session.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Establishes the Ohana Zones Program as a program within the Statewide Office on Homelessness and Housing Solutions. Authorizes the Hawaii Housing Finance and Development Corporation to exempt ohana zones projects from general excise taxes. Requires annual reports to the Legislature. Appropriates funds. Effective 7/1/3000. (HD1)
Establishes the Ohana Zones Program as a program within the Statewide Office on Homelessness and Housing Solutions. Authorizes the Hawaii Housing Finance and Development Corporation to exempt ohana zones projects from general excise taxes. Requires annual reports to the Legislature. Appropriates funds. Effective 12/31/2050. Sunsets 6/30/2026. (SD2)
Establishes the Ohana Zones Program as a permanent program within the Statewide Office on Homelessness and Housing Solutions. Exempts ohana zones projects from general excise taxes. Requires annual reports to the Legislature. Appropriates funds. Effective 12/31/2050. (SD1)
Establishes the Ohana Zones Program as a permanent program within the Statewide Office on Homelessness and Housing Solutions. Exempts ohana zones projects from general excise taxes. Requires annual reports to the Legislature. Appropriates funds.
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THE SENATE |
S.B. NO. |
1610 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO OHANA ZONES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
(b) The office shall determine the number and locations of ohana zone sites, which shall be situated on public or private lands in accordance with subsection (c).
(c) The office may coordinate with public or private entities, as appropriate, to develop and implement the ohana zones program; provided that:
(1) If any public land under the jurisdiction of a state or county agency is determined to be suitable for use as an ohana zone, the office shall:
(A) Work with the appropriate state or county agency that controls the land to transfer the land designated for use as an ohana zone to an agency whose mission is more suited to the management of ohana zones; and
(B) Work with the appropriate state or county agency that controls the land and its construction agency to ensure that an ohana zone's infrastructure needs are met and minimize adverse impacts to the environment, including to nearshore resources, such as corals, reef fish, and seabirds;
(2) Use of any private lands determined to be suitable for use as an ohana zone shall be for limited purposes and require a written agreement between the private land owner and any state or county agency that any structure built with public funds may be moved or is temporary; provided further that, if the land ceases to be used for an ohana zone or low-income housing before the time specified in the agreement, the state or county agency may choose to move the structure off the private land to a location of the state or county agency's choosing; and
(3) The ohana zones program may allow for off-the-grid technologies that can:
(A) Provide drinking water and electricity; and
(B) Process sewage,
without existing infrastructure; provided further that ohana zone sites with the ability to hook up to electricity, water, and sewer shall be preferred when considering ohana zone sites; provided further that connections to these utilities shall be made as soon as the project is able, unless there is a more cost-effective renewable energy option.
(d) The ohana zones program may provide the following facilities and services at each ohana zone site:
(1) Secure dwelling spaces that:
(A) May be private or communal;
(B) Have access to toilets, showers, and other hygiene facilities; and
(C) Have access to an area for food storage and meal preparation;
(2) Medical and social support services; and
(3) Transportation to appointments related to medical care or supportive services that are not available onsite;
provided that a person receiving accommodations or services from an ohana zone site may request a ninety-day extension of the person's receipt of accommodations or services, subject to approval by the applicable ohana zone site and other eligibility criteria as determined by each ohana zone site.
(e) Contracts entered into by the office shall be exempt from the requirements of chapters 6E, excluding section 6E-43.6; 46, excluding sections 46-1.5(5)(D), 46-1.5(14)(A)(iii), 46‑88(c)(5), and 46-88(j); 103D; 103F; and 343; provided that no contract entered into pursuant to the ohana zones program or structures constructed thereunder shall be exempt from county, state, or federal floodplain management development standards, or statutes, codes, ordinances, rules, or regulations with which compliance is required under the National Flood Insurance Program.
(f) The office shall establish the following:
(1) The criteria that the agencies shall use to evaluate potential ohana zone locations;
(2) A monthly timetable of milestones that the office expects to meet in establishing ohana zones;
(3) The specific, measurable, attainable, reasonable, and time-based performance measures that the office expects to meet at the end of each fiscal year;
(4) The evaluation criteria and process that the office shall use each year when reviewing the success and sustainability of the ohana zones; and
(5) The monitoring and oversight controls that the office shall establish over the ohana zones to identify, address, and prevent possible fraud, waste, and abuse and ensure compliance with local, state, and federal laws.
(g) The coordinator shall compile and consolidate information from the office to effectuate this section and submit a report to the legislature no later than twenty days prior to the convening of each regular session, which shall include:
(1) A summary and explanation of the process that the office engaged in to identify possible ohana zone locations;
(2) The milestones established pursuant to subsection (f) that were met by the office and ohana zones established during the immediately preceding fiscal year;
(3) An evaluation of the ohana zones to determine whether the objectives set have been met or exceeded;
(4) Any proposed changes that need to be made to the performance measures used to assess the achievement of program goals;
(5) An assessment of the impact of the ohana zone model on the homelessness problem in the State; and
(6) A summary of the information required under subsection (f)."
SECTION 2. Section 201H-36, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) In accordance with section 237-29, the corporation may approve and certify for exemption from general excise taxes any qualified person or firm involved with a newly constructed, or a moderately or substantially rehabilitated, project that is:
(1) Developed under this part;
(2) Developed under a government assistance
program approved by the corporation, including but not limited to the United
States Department of Agriculture's section 502 direct loan program [and],
Federal Housing Administration's section 235 program[;], and the
ohana zones program established under section 346- ;
(3) Developed under the sponsorship of a private nonprofit organization providing home rehabilitation or new homes for qualified families in need of decent, low‑cost housing;
(4) Developed by a qualified person or firm to provide affordable rental housing where at least fifty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below sixty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; or
(5) Approved or certified from July 1, 2018, to June 30, 2030, and developed under a contract described in section 104‑2(i)(2) by a qualified person or firm to provide affordable rental housing through new construction or substantial rehabilitation; provided that:
(A) The allowable general excise tax and
use tax costs shall apply to contracting only and shall not exceed $30,000,000
per year in the aggregate for all projects approved and certified by the
corporation; and
(B) All available units are for households with incomes at or below one hundred forty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; provided further that an owner shall not refuse to lease a unit solely because the applicant holds a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937, as amended.
(b) To obtain certification for exemption under this section, rental housing projects shall, unless exempted by the corporation, enter into a regulatory agreement with the corporation to ensure the project's continued compliance with the applicable eligibility requirements set forth in subsection (a), as follows:
(1) For moderate rehabilitation projects, a minimum term of five years as specified in a regulatory agreement;
(2) For substantial rehabilitation projects[,]
and ohana zones projects under contracts entered into pursuant to section
346- , a minimum term of ten years as specified in a
regulatory agreement; or
(3) For new construction projects, a minimum term of thirty years from the date of issuance of the certificate of occupancy."
SECTION 3. Section 346-361, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:
""Kauhale" means:
(1) A program to address the basic needs of individuals experiencing houselessness; and
(2) Affordable housing spaces that are communal living spaces with individual household units and charge monthly rents no more than thirty per cent of the area median income level.
"Ohana zone" means a place:
(1) That has a program to address basic needs of individuals experiencing homelessness; and
(2) Where wrap-around services, social and health care services, transportation, and other services may be offered with the goals of alleviating poverty and transitioning individuals experiencing homelessness into affordable housing.
"Ohana zone" includes a kauhale."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 for the ohana zones program's transient temporary housing; provided that no more than $ in general funds shall be spent on kauhale.
The sum appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 for the development and management of kauhales or semi-permanent housing to transition persons out of homelessness.
The sum appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 3000.
Report Title:
SOHHS; Ohana Zones Program; Establishment; HHFDC; General Excise Tax; Exemption; Reports; Appropriation
Description:
Establishes the Ohana Zones Program as a program within the Statewide Office on Homelessness and Housing Solutions. Authorizes the Hawaii Housing Finance and Development Corporation to exempt ohana zones projects from general excise taxes. Requires annual reports to the Legislature. Appropriates funds. 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.
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THE SENATE |
S.B. NO. |
1610 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO OHANA ZONES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
(b) The office shall determine the number and locations of the ohana zones, which shall be situated on public or private lands in accordance with subsection (c).
(c) The office may coordinate with public or private entities, as appropriate, to develop and implement the ohana zones program; provided that:
(1) If any public land under the jurisdiction of a state or county agency is determined to be suitable for use as an ohana zone, the office shall:
(A) Work with the appropriate state or county agency that controls the land to transfer the land designated for use as an ohana zone to an agency whose mission is more suited to the management of ohana zones; and
(B) Work with the appropriate state or county agency that controls the land and its construction agency to ensure that an ohana zone's infrastructure needs are met and minimize adverse impacts to the environment, including to nearshore resources, such as corals, reef fish, and seabirds;
(2) Use of any private lands determined to be suitable for use as an ohana zone shall be for limited purposes and require a written agreement between the private land owner and any state or county agency that any structure built with public funds may be moved or is temporary; provided that, if the land ceases to be used for an ohana zone or low-income housing before the time specified in the agreement, the state or county agency may choose to move the structure off the private land to a location of the state or county agency's choosing; and
(3) The ohana zones program may allow for off-the-grid technologies that can:
(A) Provide drinking water and electricity; and
(B) Process sewage
without existing infrastructure; provided that kauhale shall have connections to public utilities, such as water, sewer, and electricity.
(d) The ohana zones program may provide the following facilities and services at each ohana zone site:
(1) Secure dwelling spaces that:
(A) May be private or communal;
(B) Have access to toilets, showers, and other hygiene facilities; and
(C) Have access to an area for food storage and meal preparation;
(2) Medical and social support services; and
(3) Transportation to appointments related to medical care or supportive services that are not available onsite;
provided that a person receiving accommodations or services from an ohana zone site may request a ninety-day extension of the person's receipt of accommodations or services, subject to approval by the applicable ohana zone site and other eligibility criteria as determined by each ohana zone site.
(e) Contracts entered into by the office shall be exempt from the requirements of chapters 6E, excluding section 6E-43.6; 46, excluding sections 46-1.5(5)(D), 46-1.5(14)(A)(iii), 46‑88(c)(5), and 46-88(j); 103D; 103F; and 343; provided that no contract entered into pursuant to the ohana zones program or structures constructed thereunder shall be exempt from county, state, or federal floodplain management development standards, or statutes, codes, ordinances, rules, or regulations with which compliance is required under the National Flood Insurance Program.
(f) The office shall establish the following:
(1) The criteria that the agencies shall use to evaluate potential ohana zone locations;
(2) A monthly timetable of milestones that the office expects to meet in establishing ohana zones;
(3) The specific, measurable, attainable, reasonable, and time-based performance measures that the office expects to meet at the end of each fiscal year;
(4) The evaluation criteria and process that the office shall use each year when reviewing the success and sustainability of the ohana zones; and
(5) The monitoring and oversight controls that the office shall establish over the ohana zones to identify, address, and prevent possible fraud, waste, and abuse and ensure compliance with local, state, and federal laws.
(g) The coordinator shall compile and consolidate information from the office to effectuate this section and submit a report to the legislature no later than twenty days prior to the convening of each regular session, which shall include:
(1) A summary and explanation of the process that the office engaged in to identify possible ohana zone locations;
(2) The milestones established pursuant to subsection (f) that were met by the office and ohana zones established during the immediately preceding fiscal year;
(3) An evaluation of the ohana zones to determine whether the objectives set have been met or exceeded;
(4) Any proposed changes that need to be made to the performance measures used to assess the achievement of program goals;
(5) An assessment of the impact of the ohana zone model on the homelessness problem in the State; and
(6) A summary of the information required under subsection (f)."
SECTION 2. Section 201H-36, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) In accordance with section 237-29, the corporation may approve and certify for exemption from general excise taxes any qualified person or firm involved with a newly constructed, or a moderately or substantially rehabilitated, project that is:
(1) Developed under this part;
(2) Developed under a government assistance
program approved by the corporation, including but not limited to the United
States Department of Agriculture's section 502 direct loan program [and],
Federal Housing Administration's section 235 program[;], and the
ohana zones program established under section 346- ;
(3) Developed under the sponsorship of a private nonprofit organization providing home rehabilitation or new homes for qualified families in need of decent, low‑cost housing;
(4) Developed by a qualified person or firm to provide affordable rental housing where at least fifty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below sixty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; or
(5) Approved or certified from July 1, 2018, to June 30, 2030, and developed under a contract described in section 104‑2(i)(2) by a qualified person or firm to provide affordable rental housing through new construction or substantial rehabilitation; provided that:
(A) The allowable general excise tax and
use tax costs shall apply to contracting only and shall not exceed $30,000,000
per year in the aggregate for all projects approved and certified by the
corporation; and
(B) All available units are for households with incomes at or below one hundred forty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; provided further that an owner shall not refuse to lease a unit solely because the applicant holds a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937, as amended.
(b) To obtain certification for exemption under this section, rental housing projects shall, unless exempted by the corporation, enter into a regulatory agreement with the corporation to ensure the project's continued compliance with the applicable eligibility requirements set forth in subsection (a), as follows:
(1) For moderate rehabilitation projects, a minimum term of five years as specified in a regulatory agreement;
(2) For substantial rehabilitation projects[,]
and ohana zones projects under contracts entered into pursuant to section
346- , a minimum term of ten years as specified in a
regulatory agreement; or
(3) For new construction projects, a minimum term of thirty years from the date of issuance of the certificate of occupancy."
SECTION 3. Section 346-361, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:
""Kauhale" means:
(1) A program to address the basic needs of individuals experiencing houselessness; and
(2) Affordable housing spaces that are communal living spaces with individual household units and charge monthly rents no more than thirty per cent of the area median income level.
"Ohana zone" means a place:
(1) That has a program to address basic needs of individuals experiencing homelessness; and
(2) Where wrap-around services, social and health care services, transportation, and other services may be offered with the goals of alleviating poverty and transitioning individuals experiencing homelessness into affordable housing.
"Ohana zone" includes a kauhale."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 for the ohana zones program's transient temporary housing; provided that no more than $ in general funds shall be spent on kauhale.
The sum appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 for the development and management of kauhales or semi-permanent housing to transition persons out of homelessness.
The sum appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on December 31, 2050, and shall be repealed on June 30, 2026; provided that section 201H-36(a) and (b), Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act.
Report Title:
SOHHS; Ohana Zones Program; Establishment; HHFDC; General Excise Tax; Exemption; Reports; Appropriations
Description:
Establishes the Ohana Zones Program as a program within the Statewide Office on Homelessness and Housing Solutions. Authorizes the Hawaii Housing Finance and Development Corporation to exempt ohana zones projects from general excise taxes. Requires annual reports to the Legislature. Appropriates funds. Effective 12/31/2050. Sunsets 6/30/2026. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
1610 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO OHANA ZONES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the 2021 report on the ohana zones pilot program sought to broaden the program beyond temporary housing to promote affordable rental housing for persons transitioning out of homelessness, thus including projects with permanent and semi-permanent housing, such as the Kamaoku kauhale on Oahu for homeless single adults. The report noted a decrease of 43.7 per cent in the point in time counts from 2016 to 2020 for persons in homeless families, and an overall decrease in homelessness in Hawaii statewide.
The legislature further finds that although the ohana zones pilot program was extended to June 30, 2026, by Act 235, Session Laws of Hawaii 2022, noting the success of the program to date, the legislature believes the program should be made permanent to ensure continued support to the homeless population of the State.
Accordingly, the purpose of this Act is to establish the ohana zones program as a permanent program within the statewide office on homelessness and housing solutions.
SECTION 2. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to subpart B of part XVIII to be appropriately designated and to read as follows:
(b) The office shall determine the number and locations of the ohana zones, which shall be situated on public or private lands in accordance with subsection (c).
(c) The office may coordinate with public or private entities, as appropriate, to develop and implement the ohana zones program; provided that:
(1) If any public land under the jurisdiction of a state or county agency is determined to be suitable for use as an ohana zone, the office shall:
(A) Work with the appropriate state or county agency that controls the land to transfer the land designated for use as an ohana zone to an agency whose mission is more suited to the management of ohana zones; and
(B) Work with the appropriate state or county agency that controls the land and its construction agency to ensure that an ohana zone's infrastructure needs are met and minimize adverse impacts to the environment, including to nearshore resources such as corals, reef fish, and seabirds;
(2) Use of any private lands determined to be suitable for use as an ohana zone shall be for limited purposes and require a written agreement between the private land owner and any state or county agency that any structure built with public funds may be moved or is temporary; provided further that if the land ceases to be used for an ohana zone or low-income housing before the time specified in the agreement, the state or county agency may choose to move the structure off the private land to a location of the state or county agency's choosing; and
(3) The ohana zones program may allow for off-the-grid technologies that can provide drinking water, electricity, and process sewage without existing infrastructure.
(d) The ohana zones program may provide the following facilities and services at each ohana zone site:
(1) Secure dwelling spaces that:
(A) May be private or communal;
(B) Have access to toilets, showers, and other hygiene facilities; and
(C) Have access to an area for food storage and meal preparation;
(2) Medical and social support services; and
(3) Transportation to appointments related to medical care or supportive services that are not available onsite;
provided that a person receiving accommodations or services from an ohana zone site may request a ninety-day extension of the person's receipt of accommodations or services, subject to approval by the applicable ohana zone site and other eligibility criteria as determined by each ohana zone site.
(e) Contracts entered into by the office shall be exempt from the requirements of chapters 6E, excluding section 6E-43.6; 46, excluding sections 46-1.5(5)(D), 46-1.5(14)(A)(iii), 46‑88(c)(5), and 46-88(j); 103D; 103F; and 343; provided that no contract entered into pursuant to the ohana zones program or structures constructed thereunder shall be exempt from county, state, or federal floodplain management development standards, or statutes, codes, ordinances, rules, or regulations with which compliance is required under the National Flood Insurance Program.
(f) The office shall establish the following:
(1) The criteria that the agencies will use to evaluate potential ohana zone locations;
(2) A monthly timetable of milestones that the office expects to meet in establishing ohana zones;
(3) The specific, measurable, attainable, reasonable, and time-based performance measures that the office expects to meet at the end of each fiscal year;
(4) The evaluation criteria and process that the office intends to use each year when reviewing the success and sustainability of the ohana zones; and
(5) The monitoring and oversight controls that the office will have over the ohana zones to identify, address, and prevent possible fraud, waste, and abuse and ensure compliance with local, state, and federal laws.
(g) The coordinator shall compile and consolidate information from the office to effectuate this section and submit a report to the legislature no later than twenty days prior to the convening of each regular session, which shall include:
(1) A summary and explanation of the process that the office engaged in to identify possible ohana zone locations;
(2) The milestones established pursuant to subsection (f) that were met by the office and ohana zones established during the immediately preceding fiscal year;
(3) An evaluation of the ohana zones to determine whether the objectives set have been met or exceeded;
(4) Any proposed changes that need to be made to the performance measures used to assess the achievement of program goals;
(5) An assessment of the impact of the ohana zone model on the homelessness problem in the State; and
(6) A summary of the information required under subsection (f)."
SECTION 3. Section 201H-36, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) In accordance with section 237-29, the corporation may approve and certify for exemption from general excise taxes any qualified person or firm involved with a newly constructed, or a moderately or substantially rehabilitated, project that is:
(1) Developed under this part;
(2) Developed under a government assistance
program approved by the corporation, including but not limited to the United
States Department of Agriculture's section 502 direct loan program [and],
Federal Housing Administration's section 235 program[;], and the
ohana zones program established under section 346- ;
(3) Developed under the sponsorship of a private nonprofit organization providing home rehabilitation or new homes for qualified families in need of decent, low‑cost housing;
(4) Developed by a qualified person or firm to provide affordable rental housing where at least fifty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below sixty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; or
(5) Approved or certified from July 1, 2018, to June 30, 2030, and developed under a contract described in section 104‑2(i)(2) by a qualified person or firm to provide affordable rental housing through new construction or substantial rehabilitation; provided that:
(A) The allowable general excise tax and
use tax costs shall apply to contracting only and shall not exceed $30,000,000
per year in the aggregate for all projects approved and certified by the
corporation; and
(B) All available units are for households with incomes at or below one hundred forty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; provided further that an owner shall not refuse to lease a unit solely because the applicant holds a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937, as amended.
(b) To obtain certification for exemption under this section, rental housing projects shall, unless exempted by the corporation, enter into a regulatory agreement with the corporation to ensure the project's continued compliance with the applicable eligibility requirements set forth in subsection (a), as follows:
(1) For moderate rehabilitation projects, a minimum term of five years as specified in a regulatory agreement;
(2) For substantial rehabilitation projects[,]
and ohana zones projects under contracts entered into pursuant to section
346- , a minimum term of ten years as specified in a regulatory
agreement; or
(3) For new construction projects, a minimum term of thirty years from the date of issuance of the certificate of occupancy."
SECTION 4. Section 346-361, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Ohana zone" means a place:
(1) That has a program to address basic needs of individuals experiencing homelessness; and
(2) Where wrap-around services, social and health care services, transportation, and other services may be offered with the goals of alleviating poverty and transitioning individuals experiencing homelessness into affordable housing.
"Ohana zone" includes a kauhale."
SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the ohana zones program's transient temporary housing.
The sums appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the development and management of kauhales or semi-permanent housing to transition persons out of homelessness.
The sums appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on December 31, 2050; provided that the amendments made to section 201H-36, Hawaii Revised Statutes, by section 3 of this Act shall not be repealed when that section is reenacted on June 30, 2030, pursuant to section 4 of Act 39, Session Laws of Hawaii 2018.
Report Title:
SOHHS; Ohana Zones Program; Establishment; General Excise Tax; Exemption; Reports; Appropriations
Description:
Establishes the Ohana Zones Program as a permanent program within the Statewide Office on Homelessness and Housing Solutions. Exempts ohana zones projects from general excise taxes. Requires annual reports to the Legislature. Appropriates funds. Effective 12/31/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
1610 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING to ohana zones.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the 2021 report on the ohana zones pilot program sought to broaden the program beyond temporary housing to promote affordable rental housing for persons transitioning out of homelessness, thus including projects with permanent and semi-permanent housing, such as the Kamaoku kauhale on Oahu for homeless single adults. The report noted a decrease of 43.7 per cent in the point in time counts from 2016 to 2020 for persons in homeless families, and an overall decrease in homelessness in Hawaii statewide.
The legislature further finds that although the ohana zones pilot program was extended to June 30, 2026, by Act 235, Session Laws of Hawaii 2022, noting the success of the program to date, the legislature believes the program should be made permanent to ensure continued support to the homeless population of the State.
Accordingly, the purpose of this Act is to establish the ohana zones program as a permanent program within the statewide office on homelessness and housing solutions.
SECTION 2. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to subpart B of part XVIII to be appropriately designated and to read as follows:
(b) The office shall determine the number and locations of the ohana zones, which shall be situated on public or private lands in accordance with subsection (c).
(c) The office may coordinate with public or private entities, as appropriate, to develop and implement the ohana zones program; provided that:
(1) If any public land under the jurisdiction of a state or county agency is determined to be suitable for use as an ohana zone, the office shall:
(A) Work with the appropriate state or county agency that controls the land to transfer the land designated for use as an ohana zone to an agency whose mission is more suited to the management of ohana zones; and
(B) Work with the appropriate state or county agency that controls the land and its construction agency to ensure that an ohana zone's infrastructure needs are met and minimize adverse impacts to the environment, including to nearshore resources such as corals, reef fish, and seabirds;
(2) Use of any private lands determined to be suitable for use as an ohana zone shall be for limited purposes and require a written agreement between the private land owner and any state or county department that any structure built with public funds may be moved or is temporary; provided further that if the land ceases to be used for an ohana zone or low-income housing before the time specified in the agreement, the state or county agency may choose to move the structure off the private land to a location of the state or county agency's choosing; and
(3) The ohana zones program may allow for off-the-grid technologies that can provide drinking water, electricity, and process sewage without existing infrastructure.
(d) The ohana zones program may provide the following facilities and services at each ohana zone site:
(1) Secure dwelling spaces that:
(A) May be private or communal;
(B) Have access to toilets, showers, and other hygiene facilities; and
(C) Have access to an area for food storage and meal preparation;
(2) Medical and social support services; and
(3) Transportation to appointments related to medical care or supportive services that are not available onsite;
provided that a person receiving accommodations or services from an ohana zone site may request a ninety-day extension of the person's receipt of accommodations or services, subject to approval by the applicable ohana zone site and other eligibility criteria as determined by each ohana zone site.
(e) Contracts entered into by the office shall be exempt from the requirements of chapters 6E, excluding section 6E-43.6; 46, excluding sections 46-1.5(5)(D), 46-1.5(14)(A)(iii), 46‑88(c)(5), and 46-88(j); 103D; 103F; and 343; provided that no contract entered into pursuant to the ohana zones program or structures constructed thereunder shall be exempt from county, state, or federal floodplain management development standards, or statutes, codes, ordinances, rules, or regulations with which compliance is required under the National Flood Insurance Program.
(f) The office shall establish the following:
(1) The criteria that the agencies will use to evaluate potential ohana zone locations;
(2) A monthly timetable of milestones that the office expects to meet in establishing ohana zones;
(3) The specific, measurable, attainable, reasonable, and time-based performance measures that the office expects to meet at the end of each fiscal year;
(4) The evaluation criteria and process that the office intends to use each year when reviewing the success and sustainability of the ohana zones; and
(5) The monitoring and oversight controls that the office will have over the ohana zones to identify, address, and prevent possible fraud, waste, and abuse and ensure compliance with local, state, and federal laws.
(g) The coordinator shall compile and consolidate information from the office to effectuate this section and submit a report to the legislature no later than twenty days prior to the convening of each regular session, which shall include:
(1) A summary and explanation of the process that the office engaged in to identify possible ohana zone locations;
(2) The milestones established pursuant to subsection (f) that were met by the office and ohana zones established during the immediately preceding fiscal year;
(3) An evaluation of the ohana zones to determine whether the objectives set have been met or exceeded;
(4) Any proposed changes that need to be made to the performance measures used to assess the achievement of program goals;
(5) An assessment of the impact of the ohana zone model on the homelessness problem in the State; and
(6) A summary of the information required under subsection (f)."
SECTION 3. Section 201H-36, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) In accordance with section 237-29, the corporation may approve and certify for exemption from general excise taxes any qualified person or firm involved with a newly constructed, or a moderately or substantially rehabilitated, project that is:
(1) Developed under this part;
(2) Developed under a government assistance
program approved by the corporation, including but not limited to the United
States Department of Agriculture's section 502 direct loan program [and],
Federal Housing Administration's section 235 program[;], and the
ohana zones program established under section 346- ;
(3) Developed under the sponsorship of a private nonprofit organization providing home rehabilitation or new homes for qualified families in need of decent, low‑cost housing;
(4) Developed by a qualified person or firm to provide affordable rental housing where at least fifty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below sixty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; or
(5) Approved or certified from July 1, 2018, to June 30, 2030, and developed under a contract described in section 104‑2(i)(2) by a qualified person or firm to provide affordable rental housing through new construction or substantial rehabilitation; provided that:
(A) The allowable general excise tax and
use tax costs shall apply to contracting only and shall not exceed $30,000,000
per year in the aggregate for all projects approved and certified by the
corporation; and
(B) All available units are for households with incomes at or below one hundred forty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; provided that an owner shall not refuse to lease a unit solely because the applicant holds a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937, as amended.
(b) To obtain certification for exemption under this section, rental housing projects shall, unless exempted by the corporation, enter into a regulatory agreement with the corporation to ensure the project's continued compliance with the applicable eligibility requirements set forth in subsection (a), as follows:
(1) For moderate rehabilitation projects, a minimum term of five years as specified in a regulatory agreement;
(2) For substantial rehabilitation projects[,]
and ohana zones projects under contracts entered into pursuant to section
346- , a minimum term of ten years as specified in a regulatory
agreement; or
(3) For new construction projects, a minimum term of thirty years from the date of issuance of the certificate of occupancy."
SECTION 4. Section 346-361, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Ohana zone" means a place:
(1) That has a program to address basic needs of individuals experiencing homelessness; and
(2) Where wrap-around services, social and health care services, transportation, and other services may be offered with the goals of alleviating poverty and transitioning individuals experiencing homelessness into affordable housing."
SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the ohana zones program's transient temporary housing.
The sums appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the development and management of kauhales or semi-permanent housing to transition persons out of homelessness.
The sums appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2025; provided that the amendments made to section 201H-36, Hawaii revised Statutes, by section 3 of this Act shall not be repealed when that section is reenacted on June 30, 2030, pursuant to section 4 of Act 39, Session Laws of Hawaii 2018.
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INTRODUCED BY: |
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Report Title:
SOHHS; Ohana Zones Program; Establishment; General Excise Tax; Exemption; Reports; Appropriations
Description:
Establishes the Ohana Zones Program as a permanent program within the Statewide Office on Homelessness and Housing Solutions. Exempts ohana zones projects from general excise taxes. Requires annual reports to the Legislature. Appropriates funds.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Mar 18, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; Representative(s) Muraoka voting no (1) and Representative(s) Cochran, Ward excused (2). |
| Mar 18, 2025 | Reported from HSH (Stand. Com. Rep. No. 1340) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Mar 13, 2025 | The committee on HSH recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Marten, Olds, Amato, Chun, Keohokapu-Lee Loy, Takayama, Takenouchi, Alcos, Garcia; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| Mar 7, 2025 | Bill scheduled to be heard by HSH on Thursday, 03-13-25 10:00AM in House conference room 329 VIA VIDEOCONFERENCE. |
| Mar 6, 2025 | Referred to HSH, FIN, referral sheet 19 |
| Mar 6, 2025 | Pass First Reading |
| Mar 4, 2025 | Received from Senate (Sen. Com. No. 378) in amended form (SD 2). |
| Mar 4, 2025 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Feb 28, 2025 | 48 Hrs. Notice 03-04-25. |
| Feb 28, 2025 | Reported from WAM (Stand. Com. Rep. No. 833) with recommendation of passage on Third Reading, as amended (SD 2). |
| Feb 19, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 14, 2025 | The committee(s) on WAM will hold a public decision making on 02-19-25 10:02AM; Conference Room 211 & Videoconference. |
| Feb 14, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 14, 2025 | Reported from HHS/HOU (Stand. Com. Rep. No. 559) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Feb 7, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 4 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Feb 7, 2025 | The committee(s) on HHS recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HHS were as follows: 3 Aye(s): Senator(s) San Buenaventura, Aquino, Hashimoto; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Keohokalole, Fevella. |
| Feb 3, 2025 | The committee(s) on HHS/HOU has scheduled a public hearing on 02-07-25 1:00PM; Conference Room 225 & Videoconference. |
| Jan 27, 2025 | Referred to HHS/HOU, WAM. |
| Jan 27, 2025 | Passed First Reading. |
| Jan 23, 2025 | Introduced. |
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Date
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Description
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Location
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Votes
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| Mar 13, 2025 | The committee on HSH recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Human Services & Homelessness |
Passed |
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| Mar 4, 2025 | Third Reading | Senate Floor |
Passed |
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| Feb 19, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 7, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Housing |
Passed |
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| Feb 7, 2025 | The committee(s) on HHS recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Health and Human Services |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| CARES, Community Advocacy Research Education Services | ** Support | |
| County of Hawaii Office of Housing and Community Development | ** Support | |
| County of Hawai‘i Office of Housing and Community Development | *** Support | Mar 12, 2025 |
| Hawaii Housing Finance and Development Corporation | ** Support | |
| Kauaʻi County Housing Agency | ** Support | |
| Kaua‘i County Housing Agency | *** Support | Feb 7, 2025 |
| Statewide Office on Homelessness and Housing Solutions | *** Support | Feb 18, 2025 |
STAND. COM. REP. NO. 1340
Honolulu, Hawaii
, 2025
RE: S.B. No. 1610
S.D. 2
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 Human Services & Homelessness, to which was referred S.B. No. 1610, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO OHANA ZONES,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Establish the Ohana Zones Program within the Statewide Office on Homelessness and Housing Solutions;
(2) Authorize the Hawaii Housing Finance and Development Corporation to exempt ohana zones projects from general excise taxes; and
(3) Appropriate funds for the Ohana Zones Program's transient temporary housing and the development and management of kauhales or semi-permanent housing to transition persons out of homelessness.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and County of Hawaii Office of Housing and Community Development. Your Committee received comments on this measure from the Statewide Office on Homelessness and Housing Solutions; Department of Land and Natural Resources; Department of Taxation; Department of Human Services; and Tax Foundation of Hawaii.
Your Committee finds that homelessness remains a critical issue in Hawaii, requiring innovative solutions to provide stable, transitional housing and essential services. This measure establishes the Ohana Zones Program within the Statewide Office on Homelessness and Housing Solutions and aims to create designated areas where homeless individuals and families can access temporary shelter, medical and social services, and pathways to permanent housing. By integrating shelter, health care, and supportive services, this measure enhances the State's capacity to break the cycle of homelessness and provide sustainable pathways to housing stability.
Your Committee has amended this measure by:
(1) Clarifying that Ohana Zone sites that have the ability to hook up to public utilities shall be preferred for the Ohana Zones Program, under certain conditions;
(2) Removing the sunset date;
(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 Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1610, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1610, S.D. 2, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Human Services & Homelessness,
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____________________________ LISA MARTEN, Chair |
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STAND. COM. REP. NO. 833
Honolulu, Hawaii
RE: S.B. No. 1610
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 1610, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO OHANA ZONES,"
begs leave to report as follows:
The purpose and intent of this measure is to address homelessness in the State.
More specifically, this measure:
(1) Establishes the Ohana Zones program as a permanent program within the Statewide Office on Homelessness and Housing Solutions;
(2) Authorizes the Hawaii Housing Finance and Development Corporation to exempt Ohana Zones projects from the general excise tax;
(3) Requires annual reports to the Legislature; and
(4) Makes unspecified appropriations to the Department of Human Services.
Your Committee received written comments in support of this measure from the Statewide Office on Homelessness and Housing Solutions, County of Hawaii Office of Housing and Community Development, and one individual.
Your Committee received written comments on this measure from the Department of Human Services, Department of Land and Natural Resources, Department of Taxation, and Tax Foundation of Hawaii.
Your Committee finds that Act 209, Session Laws of 2018, established a pilot program for the establishment of ohana zones, with the goal of improving the health and well-being of individuals experiencing homelessness and providing those individuals with needed services. Your Committee also finds that the Kauhale Initiative was established as part of the Ohana Zones program. Also referred to as "opportunity housing" or "bridge housing", a kauhale provides transitional, non-permanent residences to support homeless individuals in need. Your Committee further finds that a kauhale is a communal living space, with modest housing units for individual households, and shared space for cooking and eating, recreation, growing food or engaging in industrious activities together.
Your Committee has amended this measure by:
(1) Deleting the purpose section;
(2) Adding a definition of the term "kauhale";
(3) Requiring kauhale to have connections to public utilities, such as water, sewer, and electricity;
(4) Establishing an unspecified maximum amount of appropriated moneys that may be expended on kauhale;
(5) Inserting a repeal date of June 30, 2026;
(6) Amending the appropriations to apply only to the 2025‑2026 fiscal year; and
(7) 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 Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1610, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1610, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 559
Honolulu, Hawaii
RE: S.B. No. 1610
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Health and Human Services and Housing, to which was referred S.B. No. 1610 entitled:
"A BILL FOR AN ACT RELATING TO OHANA ZONES,"
beg leave to report as follows:
The purpose and intent of this measure is to:
(1) Establish the Ohana Zones Program as a permanent program within the Statewide Office on Homelessness and Housing Solutions;
(2) Exempt Ohana Zones projects from general excise taxes;
(3) Require annual reports to the Legislature; and
(4) Appropriate funds.
Your Committees received testimony in support of this measure from the Governor's Coordinator on Homelessness; Kauaʻi County Housing Agency; and CARES, Community Advocacy Research Education Services.
Your Committees received testimony in opposition to this measure from one individual.
Your Committees received comments on this measure from the Department of Human Services, Department of Taxation, Department of Land and Natural Resources, and Tax Foundation of Hawaii.
Your Committees find that the development of permanent housing takes time, and in the meantime, people experiencing homelessness will continue to live unsheltered and without adequate and meaningful access to social services. Your Committees further find that the Ohana Zones Pilot Program established by Act 209, Session Laws of Hawaii 2018, has been effective at serving its intended purpose of providing housing and critical services to the State's homeless population. Noting the success of the Program to date, your Committees believe that the Program should be made permanent. This measure codifies the Ohana Zones Program to ensure continued support to the homeless population of the State.
Your Committees have amended this measure by:
(1) Inserting language to clarify that "ohana zone" includes a kauhale;
(2) Inserting an effective date of December 31, 2050, to encourage further discussion; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1610, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1610, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Housing,
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________________________________ STANLEY CHANG, Chair |
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________________________________ JOY A. SAN BUENAVENTURA, Chair |
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Date
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Testimony PDF
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| Mar 12, 2025 | SB1610_SD2_TESTIMONY_HSH_03-13-25_.PDF |
| Feb 18, 2025 | SB1610_SD1_TESTIMONY_WAM_02-19-25_.PDF |
| Feb 7, 2025 | SB1610_TESTIMONY_HHS-HOU_02-07-25_.PDF |
Discussed in Hearing
6MIN
House Standing Committee on Human Services & Homelessness
Bill Author
