SB 2338: HHFDC; HCDA; HPHA; Executive Director; Deputy Executive Director; Finance Manager; Salary; Employment Contracts

A BILL FOR AN ACT

RELATING TO HOUSING.

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

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

     The legislature further finds that the executive directors of the two entities face different compensation limitations, with the executive director of the Hawaii public housing authority being paid not more than the governor, and the executive director of the Hawaii housing finance and development corporation being paid a lower salary of not more than the director of business, economic development, and tourism--a difference of more than $10,000.  In addition, the salary of the executive assistant of the Hawaii housing finance and development corporation is also capped at a percentage of the executive director's salary.

     The legislature believes that increasing certain salary caps will help the State compete with the private sector for highly skilled individuals and further increase the supply of affordable housing in Hawaii.  Additionally, the legislature recognizes that increases in salary caps are necessary, and that these increases will help expand agencies' development plans.

     Accordingly, the purpose of this Act is to:

     (1)  Exempt Hawaii housing finance and development corporation (HHFDC) employees from the requirement that their employment actions and job descriptions be subject to approval by the director of business, economic development, and tourism;

     (2)  Require the executive director of HHFDC to be paid a salary recommended by its board of directors and subject to the approval of the director of business, economic development, and tourism, not to exceed ninety‑nine percent of the salary of the governor;

     (3)  Rename the position of executive assistant to deputy executive director for HHFDC and increase the salary cap for the deputy executive director;

     (4)  Establish conditions for the issuance, renewal, and termination of employment contracts issued by the HHFDC, Hawaii community development authority (HCDA), and the Hawaii public housing authority (HPHA);

     (5)  Exempt the executive director of HCDA, and officers, agents, and employees appointed by the executive director, from the requirement that their employment actions and job descriptions be subject to approval by the director of business, economic development, and tourism; and

     (6)  Require the executive director of HCDA to be paid a salary recommended by the authority and subject to the approval of the director of business, economic development, and tourism, not to exceed ninety‑nine per cent of the salary of the governor.

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

     "(a)  There is established the Hawaii housing finance and development corporation to be placed within the department of business, economic development, and tourism for administrative purposes only.  The corporation shall be a public body and a body corporate and politic.  All employees covered under subsection (b) shall be exempt from section 26-35(a)(4).

     (b)  The corporation shall employ, exempt from chapter 76 [and section 26-35(a)(4)], an executive director [and an executive assistant.], a deputy executive director, and a finance manager.  The executive director shall be paid a salary [not to exceed the salary of the director of business, economic development, and tourism.] recommended by the board; provided that the salary shall be subject to the approval of the director of business, economic development, and tourism, and shall not exceed ninety‑nine per cent of the salary of the governor.  The [executive assistant] deputy executive director shall be paid a salary not to exceed [ninety] ninety-five per cent of the executive director's salary.  The finance manager shall be paid a salary set by the board.  Subsequent salary increases shall be determined by the board; provided that the salary increases shall be not less than the collective bargaining increases provided to state employees in comparable professional bargaining units.  The finance manager shall oversee all finance programs of the corporation and develop new initiatives to deliver housing to a range of household incomes using minimal state resources and as efficiently as possible.  The finance manager shall have knowledge of the following:

     (1)  State housing finance agencies;

     (2)  Public finance;

     (3)  Bond issuance, debt management, and credit underwriting;

     (4)  Regulatory compliance;

     (5)  Portfolio management; and

     (6)  Housing finance planning and legislation.

The corporation may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent and temporary, as required.  The corporation may also employ officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, not subject to chapter 76, when in the determination of the corporation, the services to be performed are unique and essential to the execution of the functions of the corporation.  The corporation shall not offer an employment contract entered into on or after the effective date of this Act that exceeds a three-year term.  No employment contract shall contain an automatic renewal provision.  Any renewal or extension of an employment contract shall be subject to approval by the board.  No employment contract shall contain any provision for severance pay, liquidated damages, or a financial buyout of the unexpired term of the contract; provided that nothing in this subsection shall prohibit the payment of any compensation or benefits earned or accrued before the date of termination.  The corporation may call upon the attorney general for legal services as it may require.  The corporation may delegate to one or more of its agents or employees its powers and duties as it deems proper."

     SECTION 3.  Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The authority shall appoint [the], exempt from chapter 76 and section 26-35(a)(4), an executive director who shall be the chief executive officer[.  The authority shall set the salary of the executive director, who shall serve at the pleasure of the authority and shall be exempt from chapter 76.] and whose salary shall be recommended by the authority; provided that the salary shall be subject to the approval of the director of business, economic development, and tourism and shall not exceed ninety-nine per cent of the salary of the governor.  The executive director shall serve at the pleasure of the authority.

The authority shall not offer an employment contract entered into on or after the effective date of this Act that exceeds a three-year term.  No employment contract shall contain an automatic renewal provision.  Any renewal or extension of an employment contract shall be subject to approval by the authority.  No employment contract shall contain any provision for severance pay, liquidated damages, or a financial buyout of the unexpired term of the contract; provided that nothing in this subsection shall prohibit the payment of any compensation or benefits earned or accrued before the date of termination."

     SECTION 4.  Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:

     "§206E-4  Powers; generally.  Except as otherwise limited by this chapter, the authority may:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at pleasure;

     (3)  Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

     (4)  Make and alter bylaws for its organization and internal management;

     (5)  Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

     (6)  Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76[;] and section 26-35(a)(4);

     (7)  Prepare or cause to be prepared a community development plan for all designated community development districts;

     (8)  Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

     (9)  Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

    (10)  By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project that the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

    (11)  Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;

    (12)  Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on terms and conditions as it deems advisable;

    (13)  Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify the plans, specifications, designs, or estimates;

    (14)  Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (15)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (16)  Contract for and accept gifts or grants in any form from any public agency or from any other source;

    (17)  Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter; and

    (18)  Allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction; provided that the authority may permit cash payments in lieu of providing reserved housing.  The substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site.  The authority shall establish the following priority in the development of reserved housing:

          (A)  Within the community development district;

          (B)  Within areas immediately surrounding the community development district;

          (C)  Areas within the central urban core;

          (D)  In outlying areas within the same island as the development project.

               The Hawaii community development authority shall adopt rules relating to the approval of reserved housing that are developed outside of a community development district.  The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities."

     SECTION 5.  Section 356D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The authority shall employ, exempt from chapter 76 and section 26-35(a)(4), an executive director, an executive assistant, a chief financial management advisor, a property management branch chief, a chief planner, and a redevelopment officer, whose salaries shall be set by the board established under section 356D-3; provided that no salary shall exceed the governor's salary.  The authority may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent or temporary, as required.  The authority may also employ officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, not subject to chapter 76, when in the determination of the authority, the services to be performed are unique and essential to the execution of the functions of the authority; provided that if the authority hires an officer, agent, or employee in a capacity not subject to chapter 76, the authority shall include in an annual report to the legislature, to be submitted [not] no later than twenty days prior to the convening of each regular session, the position descriptions and reasons for hiring the personnel in a civil service exempt capacity.  The authority shall not offer an employment contract entered into on or after the effective date of this Act that exceeds a three-year term.  No employment contract shall contain an automatic renewal provision.  Any renewal or extension of an employment contract shall be subject to approval by the board.  No employment contract shall contain any provision for severance pay, liquidated damages, or a financial buyout of the unexpired term of the contract; provided that nothing in this subsection shall prohibit the payment of any compensation or benefits earned or accrued before the date of termination.  The authority may call upon the attorney general for legal services as it may require.  The authority may delegate to one or more of its agents or employees the powers and duties it deems proper."

     SECTION 6.  The amendments made to sections 201H-2(b) and 206E-3(c), Hawaii Revised Statutes, regarding the approval of the salaries of the executive directors of the Hawaii housing finance and development corporation and Hawaii community development authority by the director of business, economic development, and tourism, shall not apply to any employment contract executed before the effective date of this Act.  The amendments shall apply to any new employment contract, contract renewal, or contract extension entered into after the expiration of a contract in effect on the effective date 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 upon its approval.

Report Title:

HHFDC; HCDA; HPHA; Executive Director; Deputy Executive Director; Finance Manager; Salary; Employment Contracts

Description:

Exempts Hawaii Housing Finance and Development Corporation employees from the requirement that their employment actions and job descriptions be subject to approval by the Director of Business, Economic Development, and Tourism.  Requires the Executive Director of HHFDC to be paid a salary recommended by its Board of Directors and subject to the approval of the Director of Business, Economic Development, and Tourism, not to exceed ninety-nine per cent of the salary of the Governor.  Renames the position of Executive Assistant to Deputy Executive Director for HHFDC and increases the salary cap for the Deputy Executive Director.  Establishes conditions for the issuance, renewal, and termination of employment contracts issued by the HHFDC, Hawaii Community Development Authority, and the Hawaii Public Housing Authority.  Exempts the Executive Director of HCDA, and officers, agents, and employees appointed by the Executive Director, from the requirement that their employment actions and job descriptions be subject to approval by the Director of Business, Economic Development, and Tourism.  Requires the Executive Director of HCDA to be paid a salary recommended by the Authority and subject to the approval of the Director of Business, Economic Development, and Tourism, not to exceed ninety-nine per cent of the salary of the Governor.  (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.  The legislature finds that the Hawaii housing finance and development corporation and Hawaii public housing authority both provide critical services to address Hawaii's affordable housing crisis.  The Hawaii housing finance and development corporation oversees the financing of affordable housing and the Hawaii public housing authority manages the State's public housing programs and housing choice vouchers.  Through these two entities, the supply of affordable housing in Hawaii has grown, with billions of dollars financed and more than six thousand public housing units currently being managed.

     The legislature further finds that the executive directors of the two entities face different compensation limitations, with the executive director of the Hawaii public housing authority being paid no more than the governor, and the executive director of the Hawaii housing finance and development corporation being paid a lower salary of no more than the director of business, economic development, and tourism--a difference of more than $10,000.  In addition, the salary of the executive assistant of the Hawaii housing finance and development corporation is also capped at a percentage of the executive director's salary.

     The legislature further finds that the Hawaii housing finance and development corporation would benefit from the creation of a finance manager position to oversee all finance programs of the corporation.

     The legislature believes that increasing certain salary caps will help the State compete with the private sector for highly skilled individuals and further increase the supply of affordable housing in Hawaii.  Additionally, the legislature recognizes that an increase in salary caps and the creation of a finance manager position are necessary, not merely to reward the greater responsibilities of the housing agencies over the last ten years, but also to greatly expand the housing agencies' development plans.

     Accordingly, the purpose of this Act is to:

     (1)  Exempt certain positions under the Hawaii housing finance and development corporation (HHFDC) from the requirement that the employment actions and job descriptions of HHFDC officers and employees be subject to approval by the director of business, economic development, and tourism;

     (2)  Increase the salary cap for the executive director of HHFDC to an amount that does not exceed the governor's salary;

     (3)  Rename the position of executive assistant to deputy executive director for HHFDC and increase the salary cap for the deputy executive director;

     (4)  Establish the finance manager position within HHFDC; and

     (5)  Establish a cap on the term of employment contracts for HHFDC and the Hawaii public housing authority.

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

     "(a)  There is established the Hawaii housing finance and development corporation to be placed within the department of business, economic development, and tourism for administrative purposes only.  The corporation shall be a public body and a body corporate and politic.  All employees covered under subsection (b) shall be exempt from the requirements of section 26-35(a)(4).

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

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

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

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

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

Report Title:

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

Description:

Exempts certain positions under the Hawaii Housing Finance and Development Corporation (HHFDC) from the requirement that the employment actions and job descriptions of HHFDC officers and employees be subject to approval by the Director of Business, Economic Development, and Tourism.  Increases the salary cap for the Executive Director of HHFDC.  Renames the position of Executive Assistant to Deputy Executive Director for HHFDC and increases the salary cap for the Deputy Executive Director.  Establishes the Finance Manager position within HHFDC.  Establishes a cap on the term of employment contracts for HHFDC and the Hawaii Public Housing Authority.  Effective 7/1/3000.  (HD2)

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

A BILL FOR AN ACT

RELATING TO HOUSING.

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

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

     The legislature further finds that the executive directors of the two entities face different compensation limitations, with the executive director of the Hawaii public housing authority being paid no more than the governor, and the executive director of the Hawaii housing finance and development corporation being paid a lower salary of no more than the director of business, economic development, and tourism--a difference of more than $10,000.  In addition, the salary of the executive assistant of the Hawaii housing finance and development corporation is also capped at a percentage of the executive director's salary.

     The legislature further finds that the Hawaii housing finance and development corporation would benefit from the creation of a finance manager position to oversee all finance programs of the corporation.

     The legislature believes that increasing certain salary caps will help the State compete with the private sector for highly skilled individuals and further increase the supply of affordable housing in Hawaii.  Additionally, the legislature recognizes that an increase in salary caps and the creation of a finance manager position are necessary, not merely to reward the greater responsibilities of the housing agencies over the last ten years, but also to greatly expand the housing agencies' development plans.

     Accordingly, the purpose of this Act is to:

     (1)  Exempt all positions under the Hawaii housing finance and development corporation (HHFDC) from civil service requirements and from the requirement that the employment actions and job descriptions of HHFDC officers and employees be subject to approval by the director of business, economic development, and tourism;

     (2)  Increase the salary cap for the executive director of HHFDC to an amount that does not exceed the governor's salary;

     (3)  Rename the position of executive assistant to deputy executive director for HHFDC and increase the salary cap for the deputy executive director;

     (4)  Establish the finance manager position within HHFDC; and

     (5)  Establish a cap on the term of employment contracts for HHFDC and the Hawaii public housing authority.

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

     "(a)  There is established the Hawaii housing finance and development corporation to be placed within the department of business, economic development, and tourism for administrative purposes only.  The corporation shall be a public body and a body corporate and politic.  All employees covered under subsection (b) shall be exempt from the requirements of chapter 76 and section 26-35(a)(4).

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

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

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

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

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

Report Title:

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

Description:

Exempts all positions under the Hawaii Housing Finance and Development Corporation (HHFDC) from civil service requirements and from the requirement that the employment actions and job descriptions of HHFDC officers and employees be subject to approval by the Director of Business, Economic Development, and Tourism.  Increases the salary cap for the Executive Director of HHFDC.  Renames the position of Executive Assistant to Deputy Executive Director for HHFDC and increases the salary cap for the Deputy Executive Director.  Establishes the Finance Manager position within HHFDC.  Establishes a cap on the term of employment contracts for HHFDC and the Hawaii Public Housing Authority.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

RELATING TO HOUSING.

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

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

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

     The legislature further finds that the Hawaii housing finance and development corporation would benefit from the creation of a finance director position to oversee all finance programs of the corporation.

     The legislature believes that increasing certain salary caps will help the State compete with the private sector for highly skilled individuals and further increase the supply of affordable housing in Hawaii.  Additionally, the legislature recognizes that an increase in salary caps and the creation of a finance director position are necessary, not merely to reward the greater responsibilities of the housing agencies over the last ten years, but also to greatly expand the housing agencies' development plans.

     Accordingly, the purpose of this Act is to:

     (1)  Increase the salary cap for the executive director of the Hawaii housing finance and development corporation to an amount that does not exceed the governor's salary;

     (2)  Rename the position of executive assistant to deputy executive director for the Hawaii housing finance and development corporation and increases the salary cap for the deputy executive director;

     (3)  Establish the finance director position within the Hawaii housing finance and development corporation;

     (4)  Require the Hawaii housing finance and development corporation to measure personnel performance according to the number of units delivered by program type, state funding per unit, the rate at which funds revolve, and the range of household incomes served;

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

     (6)  Establish a cap on the term of employment contracts for the Hawaii housing finance and development corporation and Hawaii public housing authority.

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

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

     (b)  The corporation shall employ, exempt from chapter 76 and section 26-35(a)(4), an executive director [and an executive assistant.], a deputy executive director, and a finance director.  The executive director shall be paid a salary not to exceed the salary of the [director of business, economic development, and tourism.] governor.  The [executive assistant] deputy executive director shall be paid a salary not to exceed [ninety] ninety-five per cent of the executive director's salary.  The finance director shall be paid a salary set by the board; provided that the salary may exceed the salary of the executive director.  The finance director shall oversee all finance programs of the corporation and develop new initiatives to deliver housing to a range of household incomes as efficiently as possible and with the least use of state resources.  The finance director shall possess experience relevant to:

     (1)  Public finance and housing finance, including the administration of revolving loan funds and complex capital structuring;

     (2)  Bond issuance, debt management, and credit underwriting;

     (3)  Asset and portfolio management, including risk assessment and mitigation strategies for long-term loan portfolios; and

     (4)  Strategic financial planning and regulatory compliance with federal and state housing programs.

The corporation may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent and temporary, as required.  The corporation may also employ officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, not subject to chapter 76, when in the determination of the corporation, the services to be performed are unique and essential to the execution of the functions of the corporation.  Unless approved by the legislature by concurrent resolution, the corporation shall not offer any employment contract that exceeds two years.  The corporation may call upon the attorney general for legal services as it may require.  The corporation may delegate to one or more of its agents or employees its powers and duties as it deems proper.  The corporation shall measure personnel performance according to the number of units delivered by program type, state funding per unit, rate at which funds revolve, and the range of household incomes served."

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

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

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

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

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

HHFDC; HPHA; Executive Director; Deputy Executive Director; Finance Director; Salary; Autonomy; Personnel Matters; Employment Contracts

Description:

Increases the salary cap of the Executive Director of Hawaii Housing Finance and Development Corporation to an amount that does not exceed the Governor's salary.  Renames the Executive Assistant to the Deputy Executive Director and increases that position's salary cap to 95% of the Executive Director salary.  Establishes the position of Finance Director of the Hawaii Housing Finance and Development Corporation.  Requires HHFDC to consider additional measures of personnel performance.  Prohibits HHFDC and Hawaii Public Housing Authority employment contracts that exceed 2 years, unless approved by the Legislature.  Provides HHFDC and HPHA with autonomy in personnel matters.  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.  The legislature finds that the Hawaii housing finance and development corporation and the Hawaii public housing authority both provide critical services to address Hawaii's affordable housing crisis.  The Hawaii housing finance and development corporation oversees the financing of affordable housing and the Hawaii public housing authority manages the public housing programs and housing choice vouchers.  Through these two entities, the supply of affordable housing in Hawaii has grown, with billions of dollars financed and more than six thousand public housing units currently being managed.

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

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

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

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

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

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

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

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

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

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

Report Title:

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

Description:

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

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

STAND. COM. REP. NO. 2966

Honolulu, Hawaii

RE:     S.B. No. 2338

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2338, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is give the Hawaii Housing Finance and Development Corporation and the Hawaii Public Housing Authority flexibility and support regarding certain personnel matters to facilitate the effective development and management of affordable housing in the State.

     More specifically, this measure:

     (1)  Increases the salary cap for the Executive Director of the Hawaii Housing Finance and Development Corporation;

     (2)  Renames the position of the Executive Assistant of the Corporation to the Deputy Executive Director and increases the salary cap for that position;

     (3)  Establishes the Finance Director position within the Corporation;

     (4)  Requires the Corporation to measure personnel performance according to certain metrics;

     (5)  Provides the Corporation and Hawaii Public Housing Authority with autonomy in personnel matters, including establishing and filling positions and setting salaries; and

     (6)  Establishes a two-year cap on the term of employment contracts for the Corporation and the Authority, and requires legislative approval to exceed the cap.

     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation.

     Your Committee received written comments on this measure from the Department of the Attorney General, Hawaii Public Housing Authority, and Hawaii Housing Finance and Development Corporation.

     Your Committee finds that the Hawaii Housing Finance and Development Corporation oversees the financing of affordable housing, and that the Hawaii Public Housing Authority manages the State's public housing programs and housing choice vouchers.  Your Committee acknowledges that, over the last ten years, the production, scale, and complexity of affordable housing programs in the State have grown significantly.  These programs demand leadership with deep knowledge of housing finance, housing development, regulatory compliance, and program development.  Your Committee believes that the flexibility this measure offers in certain personnel matters, and the support the measure provides for the organizations' leadership positions, will help the Corporation and the Authority maximize the potential of existing and future housing programs.

     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. 2338, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 2400

Honolulu, Hawaii

RE:     S.B. No. 2338

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 2338 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Increase the salary cap of the Executive Director of Hawaii Housing Finance and Development Corporation to an amount that does not exceed the Governor's salary;

     (2)  Rename the "Executive Assistant" to the "Deputy Executive Director" and increases that position's salary cap to ninety-five percent of the Executive Director salary;

     (3)  Prohibit the Hawaii Housing Finance and Development Corporation and Hawaii Public Housing Authority from making employment contracts that exceed two years, unless approved by the Legislature; and

     (4)  Provide the Hawaii Housing Finance and Development Corporation with autonomy in personnel matters.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and Stanford Carr Development, LLC.

     Your Committee received testimony in opposition to this measure from two individuals.

     Your Committee received comments on this measure from the Department of Human Resources Development, Hawaii Public Housing Authority, and one individual.

     Your Committee finds that the responsibilities of the Hawaii Housing Finance and Development Corporation and Hawaii Public Housing Authority have increased in number and complexity over the past decade.  For example, the number of units developed that the Corporation has facilitated has more than doubled.  Likewise, the Corporation receives more than twice as many applications for Low-Income Housing Tax Credits than it received in 2015.  This growth in responsibilities reflects rising demand for housing in the State, increasingly complex financing structures, and greater volume of projects.

     Your Committee notes, however, that despite these increased responsibilities, the Hawaii Housing Finance and Development Corporation has encountered challenges in granting merit-based salary increases to its employees.  Though this measure increases the Hawaii Housing Finance and Development Corporation's flexibility in personnel matters, further amendments are necessary to ensure the effectiveness of the Hawaii Housing Finance and Development Corporation and Hawaii Public Housing Authority in meeting the State's housing goals.

     Accordingly, your Committee has amended this measure by:

     (1)  Inserting language establishing the Finance Director position within the Hawaii Housing Finance and Development Corporation to oversee all finance programs of the Corporation;

     (2)  Inserting language requiring the Hawaii Housing Finance and Development Corporation to measure personnel performance metrics according to the number of units delivered by program type, state funding per unit, rate at which funds revolve, and the range of household incomes served;

     (3)  Inserting language providing the Hawaii Public Housing Authority autonomy in personnel matters, including establishing and filling positions and setting salaries;

     (4)  Amending section 1 to reflect its amended purpose;

     (5)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     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 S.B. No. 2338, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2338, S.D. 1, and be referred to your Committee on Ways and Means.

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