SB 378: HHFDC; Maui County; Mixed-used Developments; Potential Acquisitions; Working Group; Report

A BILL FOR AN ACT

RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION.

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

     SECTION 1.  The legislature finds that repurposing existing commercial buildings into mixed-use developments provides a critical opportunity to address Hawaii's housing crisis while preserving its historical and cultural context.

     Historically, towns such as Hilo, Paia, and Honokaa thrived as mixed-use communities, where residential units above commercial establishments fostered vibrant neighborhoods and robust local economies.  Modern redevelopment of commercial spaces into mixed-use buildings offers numerous benefits, including the creation of affordable housing for service industry workers, which reduces financial strain on employees and relieves businesses from wage pressures tied to high housing costs.  By locating housing near workplaces, redevelopment supports worker retention, fosters community connections, and alleviates traffic congestion, thereby improving overall quality of life.  Additionally, reusing existing structures reduces environmental and financial costs associated with new construction while expediting the delivery of housing options, as many units are already built and ready for conversion.  This approach also ensures economic sustainability by maintaining commercial spaces that support local businesses and providing affordable residential units that are preserved in perpetuity for future generations.

     Accordingly, the purpose of this Act is to establish a working group to identify existing mixed-use developments in the county of Maui that could be used as affordable housing and commercial rental leases.

     SECTION 2.  (a)  There is established within the Hawaii housing finance and development corporation for administrative purposes a working group to identify existing mixed-use developments in the county of Maui that could be acquired by the Hawaii housing finance and development corporation for use as affordable housing and commercial rental leases.

     (b)  The working group shall consist of the following members:

     (1)  The chairperson of the board of directors of the Hawaii housing finance and development corporation, or the Chairperson's designee, who shall serve as chairperson of the working group;

     (2)  The director of the department of housing of the county of Maui, or the director's designee;

     (3)  The president of the REALTORS Association of Maui, Inc., or the president's designee, who shall be invited to participate by the chairperson;

     (4)  One resident of the county of Maui, who shall have knowledge of commercial and residential financing, to be invited to participate by the president of the senate;

     (5)  One resident of the county of Maui, who shall have experience in redevelopment construction and permitting, to be invited to participate by the speaker of the house of representatives;

     (6)  One representative from a Maui housing nonprofit organization, who shall be invited to participate by the president of the senate; and

     (7)  One representative from a Maui housing nonprofit organization, who shall be invited to participate by the speaker of the house of representatives.

     (c)  The members of the working group shall serve without compensation but shall be reimbursed for reasonable expenses, including travel expenses, necessary for the performance of their duties.

     (d)  The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

     (e)  The working group shall be dissolved upon adjournment sine die of the regular session of 2026.

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

Report Title:

HHFDC; Maui County; Mixed-used Developments; Potential Acquisitions; Working Group; Report

Description:

Establishes a working group within the Hawaii Housing Finance and Development Corporation to identify existing mixed-use developments in Maui County that could be acquired by the Hawaii Housing Finance and Development Corporation for use as affordable housing and commercial rental leases.  Requires a report to the Legislature.  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 the Hawaii Housing Finance and Development Corporation.

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

     SECTION 1.  The legislature finds that repurposing existing commercial buildings into mixed-use developments provides a critical opportunity to address Hawaii's housing crisis while preserving its historical and cultural context.

     Historically, towns such as Hilo, Paia, and Honokaa thrived as mixed-use communities, where residential units above commercial establishments fostered vibrant neighborhoods and robust local economies.  Modern redevelopment of commercial spaces into mixed-use buildings offers numerous benefits, including the creation of affordable housing for service industry workers, which reduces financial strain on employees and relieves businesses from wage pressures tied to high housing costs.  By locating housing near workplaces, redevelopment supports worker retention, fosters community connections, and alleviates traffic congestion, thereby improving overall quality of life.  Additionally, reusing existing structures reduces environmental and financial costs associated with new construction while expediting the delivery of housing options, as many units are already built and ready for conversion.  This approach also ensures economic sustainability by maintaining commercial spaces that support local businesses and providing affordable residential units that are preserved in perpetuity for future generations.

     Accordingly, the purpose of this Act is to establish a working group to identify existing mixed-use development in Maui county that could be used as affordable housing and commercial rental leases.

     SECTION 2.  (a)  There is established within the Hawaii housing finance and development corporation for administrative purposes a working group to identify existing mixed-use developments in the county of Maui that could be acquired by the Hawaii housing finance and development corporation for use as affordable housing and commercial rental leases.

     (b)  The working group shall consist of the following members:

     (1)  A member of the board of directors of the Hawaii housing finance and development corporation, who shall serve as chairperson of the working group;

     (2)  The president of the Realtors Association of Maui, or the president's designee, who shall be invited to participate by the chairperson;

     (3)  One resident of Maui county, who shall have knowledge of commercial and residential financing to be invited to participate by the president of the senate;

     (4)  One resident of Maui county, who shall have experience in redevelopment construction and permitting to be invited to participate by the speaker of the house of representatives;

     (5)  One representative from a Maui housing nonprofit organization, who shall be invited to participate by the president of the senate;

     (6)  The director of the department of housing of Maui county, or the director's designee; and

     (7)  One representative from a Maui housing nonprofit organization, who shall be invited to participate by the speaker of the house of representatives.

     (c)  The members of the working group shall serve without compensation but shall be reimbursed for reasonable expenses, including travel expenses, necessary for the performance of their duties.

     (d)  The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

     (e)  The working group shall be dissolved upon adjournment sine die of the regular session of 2026.

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

Report Title:

HHFDC; Maui County; Mixed-used Developments; Potential Acquisitions; Working Group; Report

Description:

Establishes a working group within the Hawaii Housing Finance and Development Corporation to identify existing mixed-use developments in Maui County that could be acquired by the Hawaii Housing Finance and Development Corporation for use as affordable housing and commercial rental leases.  Requires a report to the Legislature.

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.  1358

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 378

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Housing, to which was referred S.B. No. 378 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to establish a working group to identify existing mixed-use developments in the county of Maui that could be acquired by the Hawaii Housing Finance and Development Corporation for use as affordable housing and commercial rental leases.  

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; one member of the Maui County Council; and Maui Chamber of Commerce.

     Your Committee finds that repurposing existing commercial buildings into mixed-use developments presents a valuable opportunity to address Maui's housing crisis while supporting local businesses.  Historically, mixed-use communities have contributed to economic vitality and social cohesion, and their redevelopment can provide much-needed affordable housing while maintaining commercial spaces.  

     Your Committee has amended this measure by:

     (1)  Specifying that the working group chairperson shall be the Chairperson of the Hawaii Housing Finance and Development Corporation Board of Directors, or the Chairperson's designee, rather than a member of the Board of Directors;

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

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

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 378, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 378, H.D. 1, and be referred to your Committee on Finance.

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

STAND. COM. REP. NO. 939

Honolulu, Hawaii

RE:    S.B. No. 378

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. 378 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a working group within the Hawaii Housing Finance and Development Corporation to identify existing mixed-use developments in the County of Maui for use as affordable housing and commercial rental leases.

     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, the Chair of the Maui County Council, and Maui Chamber of Commerce.

     Your Committee finds that despite recent efforts, there remains an urgent need for housing in the County of Maui and that this measure will help to identify potential properties that can be used by the Hawaii Housing Finance and Development Corporation to provide affordable housing and commercial rental leases.

     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. 378 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. 145

Honolulu, Hawaii

RE:    S.B. No. 378

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 378 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish a working group within the Hawaii Housing Finance and Development Corporation to identify existing mixed-use developments in Maui County that could be acquired by the Hawaii Housing Finance and Development Corporation for use as affordable housing and commercial rental leases; and

     (2)  Require a report to the Legislature.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and Maui Chamber of Commerce.

     Your Committee finds that, following the 2023 Maui wildfires, there is a pressing need to develop housing in Maui County to ensure adequate housing inventory.  Mixed-use development projects often combine housing, office, retail, medical, recreational and industrial components, meaning residents can live near where they work and play, creating vibrant communities and reducing traffic congestion.  Establishment of a working group will provide housing agencies in Maui County with critical data and insight to expeditiously develop necessary housing units while maintaining commercial spaces that support local businesses.

     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. 378 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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