Senate Standing Committee on Housing

Good afternoon. It's Tuesday, February 11, 2025 at 1:00pm here in Conference Room 225, and this is the hearing of the Committee on Housing. This meeting is being streamed live on YouTube.

In the unlikely event that we have to abruptly end this meeting due to technical difficulties, the committee will reconvene to discuss any outstanding business on Thursday, February 13th at 1pm in this room 225. Any public notice will be posted on the legislature's website. The time limit per testifier is one minute.

If there are temporary technical glitches during your turn to testify via Zoom, we may have to move on to the next person due to time constraints. We appreciate your understanding and remind you that the committee has your written testimony. We'd like to welcome Vice Chair Hashimoto to this hearing.

Our first bill today is Senate Bill 662 relating to transportation, which requires HHFTC to transfer the public roads of the villages of Kapolei to the city and county of Honolulu by January 1, 2026. It authorizes county police officers to enforce the statewide traffic code on all public streets, roadways and highways within the state.

Our first testifier is HHFTC in support. Thank you. Followed by city and county Honolulu in support. And Ellen Ay in support. Is there anyone else wishes to testify on this measure? Thank you, member Senator Fevella. Members, do we have any questions? Okay. If not, the chair has a question for HHFTC and if you can identify yourself for the record, please.

Dean Minakami, Executive Director, Hawaii Housing Finance and Development Corporation.

So the city testified that there had been ongoing negotiations for this transfer and that, in fact, a deal had been reached last year in which the city agreed to accept $60 million in exchange for accepting dedication of the roads. Can you provide us with an update on these negotiations?

Yes. We were in negotiations with the city for HHFDC to transfer maintenance responsibility of the roads to the roads and infrastructure to the city for $60 million. But there never was any MOA or agreements drafted to effectuate this agreement. Negotiations were just at a very high level.

And we then became aware that Senate Bill 1535 and HB 800 would be introduced, at which time we paused negotiations because we didn't want to basically preempt any action by the legislature.

What if the bills don't pass?

Then we'll continue negotiations. And, you know, $60 million is a lot, but it is less than our estimate that we would incur to rehab those roads. So it still would be a preferable alternative for us to do it our and another benefit also is that frees up staff time.

Also, right now we have at least three staff working on road rehab work in Kapolei. Those staff could be reassigned to other tasks.

Okay, thank you. Members, any further questions? We'd also like to welcome Committee Member Aquino. Okay, our next agenda item today is Senate Bill 66 relating to housing, which requires counties to grant building permits within 60 days if the application is stamped and certified by a licensed engineer and architect and certain other conditions are met.

Our first testifier is DLNR, State Historic Preservation Division with comments. Thank you. Department of Planning and Permitting. City and County of Honolulu in opposition. Grassroots Institute of Hawaii in support. RMS Sales in support. Hawaii Realtors in support. Hawaii Food Industry Association in support.

Not present on Zoom, Chair.

Thank you. NIOP Hawaii Chapter in support.

BIA Hawaii in support. Thank you. Maui Chamber of Commerce in support. Lahaina Strong in opposition. Several individuals in support. Joy Dillon, Jacob Weinsek, Zachary Laprade, Victor Brock, Ellen Awai and finally, Tamara Poulton with comments. Is there anyone else wishing to testify on Senate Bill 66? Members, any questions? Okay.

If not, that brings us to the end of our agenda today. Numbers. Are we ready to go straight into the decision making? We'd like to welcome Committee Member Senator Kanuha. Thank you. All right, we'll start our decision making with SB 662. Chair's recommendation will be to pass with amendments. We'll be defecting the date.

And also in the committee report noting that HHFDC, noting the HHFDC negotiations with the city and that the bill and the other bills that HHFDC cited will hopefully serve as an incentive for the parties to swiftly conclude the dedication and finally solve this problem for the people of Kapolei. Members, any questions or discussion?

If not for SB 662, Chair's recommendation is to pass with amendments. Chair votes I.

Members, SB 662, Chair's recommendation is passed with amendments.

[roll call]

Chair, recommendations adopted.

Thank you very much. Our second measure is SB 66 relating to housing. The Chair's recommendation will be to pass this measure with adopt with amendments. There are technical, non substantive amendments.

And also we'll take DLNR's amendments on page four, line seven to 13, to require a complete application being filed and on page five, line 11 to 12, to insert qualified professionals who meet State Historic Preservation Division rules governing professional qualifications for architecture, archaeology, architecture, architectural history and or physical anthropology at the county. Okay, any questions or discussions?

If not, so for Senate Bill 66, Chair's recommendation is to pass with amendments. Chair votes I.

Members SB 66, Transportations. Passed with amendments to all members. Any members voting with reservations? Any members voting no? wEthout others voting, I recommendations adopted.

Thank you very much. There be no further business. This hearing is adjourned.