Senate Standing Committee on Government Operations

Good afternoon. Welcome to the Committee on Housing. We have three agendas on today's hearing notices. We have a 1 o'clock Housing and Hawaiian Affairs joint meeting. We have a 1:05pm Housing and Government Operations joint meeting. And we have a 1:10 Housing agenda. This meeting is being streamed live on YouTube.

In the unlikely event that we have to abruptly end this hearing due to technical difficulties, the Committee will reconvene to discuss any outstanding business on Tuesday, February 4, 1pm in this room, 225, and a public notice will be posted on the Legislature's website. Please note a one minute per testifier time limit.

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 a written testimony.

So we'll get started with the 1pm agenda of the Committee on Housing and the Committee on Hawaiian Affairs jointly. The Committee on Housing. We have myself and Senator Fevella.

Present.

And from the Committee of Hawaiian Affairs.

It's myself sitting in for, as Vice Chair sitting in for chair. Senator Richards. And we have Senator DeCorte and Senator Ihara.

Our first Bill today is a Hawaiian lead.

So go ahead, Chair.

So first up, we have SB834 relaying jurisdictions on transfer of real property under Chapter 201h, Hawaii by statute. We have HHSDC in support. Dean Minakami.

Good afternoon, Vice Chair, Members. [Inaudible]...stands on testimony in support.

Okay, next we have Department of Hawaiian Homelands in support. I see Kali Watson.

Good afternoon. Kali Watson...[Inaudible]...unless you have any questions.

Okay, thank you very much. Next we have Marion Kapuniai in support. And we have DeMont in support. We stand in support. And we have Jermaine Myers providing comments. Any anyone else speaking on behalf of SB834? Okay, come on up Angela. You have, I think, two minutes for this.

One minute.

One minute, one minute. Just like my Committee.

Angela Melody Young testifying in strong support. So this chapter relates to, relates to the restrictions on the transfer of real property developed and sold under Chapter 201h. So this legislation would exempt the Hawaiian homelands from restrictions during transfers. My proposed amendment is letter L.

This section shall not apply to any transfers of Hawaiian homelands under the Hawaiian Homes Commission Act 1920 as provided.

Further, that program, such as the Hawaiian Homes Land Loans Program and the Native Hawaiian Housing Loan Guarantee Program and the Native Hawaiian Housing Block Grant, which are federally subsidized mortgage programs, will not be affected by restrictions which would jeopardize the Federal Government's ability to recapture any interest credit subsidies provided to the Hawaiian homeowner beneficiaries.

So this proposal is based on the unrestricted parameters of letter E. As the legislation stands, it provides a provision to unrestrict certain federal mortgage programs because it would jeopardize the recapture of the interest credit subsidies. So yeah. In support.

Okay, thank you very much. Anybody else wishing to testify in SB834. Seeing none, Members any questions? I have a question for HHSDC. So SB834 lists the potential property restrictions that if this passes will no longer apply to DHHL for HHSDC funded.

That's correct.

Including affordability requirements.

The main provisions we're concerned about were the buyback and share depreciation requirements. So for example, if DHHL is using funding, for example LIHTC for a LIHTC that converts to a rent to own project, under this, the current statute, the DHHL homes would be subject to buyback and share depreciation regulations.

And what we've heard from the Department is that it's not consistent with their program objectives. So from our side, we have no issue with having aligning 2o and h with their program program objectives.

Okay. So no, I don't sit in housing. But my understanding, with a number of the monies we fund HHFDC with, we want to make sure that there's an affordability requirement and she removed that. How can we ensure that Hawaiian homelands are not going to be used for that use? HHFDC monies are not going to have this affordability requirement.

For the, any initial loan they still must meet affordability requirements. So if we were to, for example, provide DTHO with a DRF loan, the project still must meet the affordability requirement of the project being primarily affordable, greater than 50% affordable to households at 140% AMI and below. So they still must meet that requirement.

So basically. It's the buyback.

And I could see that. But what if we restrict your bot by still continue your buyback but require you to sell what you have purchased so that it complies with Hawaiian homeland restrictions, you know, the native Hawaiian proportion. That sort of thing.

Yes.

We could. I would rather have DHHL administer that though, because there is holding costs for us to buy back a property and if we are stuck holding, it then becomes our cost to hold that property until a suitable buyer can be found.

No, I understand that, but the whole reason for the whole for the buyback is to ensure affordability. Right. And I'm concerned that if we remove the affordability requirements, we basically defeated the purpose of putting monies into HHFBC specifically for affordable housing. Okay. I mean, I don't have any questions.

I have a question. Are there any one homelands developments that are have been implemented under their current law.

They do have some LIHTC properties that are transitioning to rent-to-own models after the LIHTC compliance period. So yes, they do have some projects.

The fundamental question is can the state require the DHHL to have people on the waiting list jump ahead of those who are wealthy? So in other words, if there is a, let's say there, if I hear the share right, is there, let's say there's, there's a threshold where you have your, you can afford a million dollar house.

Right. And then there's those who cannot. And now you're gonna, we're gonna use the state's program to support Hawaiian homelands development. And the state's goal would be to preference if the federal law allows it would be to have those who cannot afford the million dollar homes give priority over those who can.

Yes, I understand the question. I think that's maybe should be directed to the Department of Hawaiian Homelands how they handle their wait list.

Okay, can I ask that question to the Department of Hawaiian Homelands? So I guess the question is under the legal regime that you operate under within, is it possible to meet the state's goals prioritizing and favoring continuation of workforce housing type level homes versus the more expensive homes that are out of the reach of most people?

Yeah, that would be a separate issue with respect to this particular Bill. The 201H really is directed at in our case the participants that are 6% AMI and below. So we're not, we're not even getting into that. So that's restricted.

Okay, so that's okay.

Yeah, that's, this is a great vehicle for those individuals on the waitlist. And there's no, you know, buyback really. It's really a matter of an option to purchase as it reflects to their participation.

So what does it exempt then what you're asking for?

Well, it's 10 year buyback. It's more for the prevention by people that do participate in turnaround and then selling it for a profit. Ours is totally different. We use the funding to address individuals that are, that would otherwise be unable to purchase because they can't qualify for a regular mortgage.

Those individuals are, and we do a vetting and they have to qualify because when we go into HHFDC the listed participants are 6% AMI of we don't have the Participants that can qualify for a turnkey mortgage.

So what you're saying is under that you're actually meeting the state's goals without having to. So it's not necessarily. You're saying that the requirements are not necessary because.

Totally unnecessary.

Okay. So because you're comp it doesn't make a difference in a way. It really doesn't. Yeah. So it doesn't even hurt if you kept it also.

Yeah, because it doesn't really apply. Right.

So it's more housekeeping. Sounds like.

It's more housekeeping. And then it's also clarify that, you know, it's this process or restriction on the transfer does not apply to us. I want that in there. So it doesn't apply.

Okay, so you're trying to remove the bureaucratic...

Restrictions.

...processes that have to. That are, this invokes. But by taking it out then you can, you know, why jump through hoops when you still. That's that what still accomplishing the same.

And we've already used this and we've actually.

Our Ho'o Lima Lima project in Kapolei, we had 70 something units and we used the Litec 201H was involved and you know, it's more as a waiver of some of the sewer connection fees, the plan review fees, permitting and that kind of things that allowed the developer to save certain fees that then are passed on to the homeowner because it reduces the back end costs of each unit.

And in that particular project, I also note we pay for the infrastructure. So this really goes to the vertical financing. And so that in this particular case, the whole Lima Lima it ended up where people were paying 60 to 90,000 for a house that was like worth 3,400,000.

So it's a real great program, but we just want clarification that it that we're not subject to that buyback restriction.

Any other questions? I just have one more question, Mr. Watson.

Okay, so what, how do you prevent, after you've helped out the 6% AMI, how do you prevent that person from then going up and reselling that property?

Well, there's a 15 year compliance period. It goes beyond your 10 years.

Oh, anyway.

Yeah. Anyway,

So you already...[inaudible]...administrative procedures.

In order to access that tax credits that kind of come in and are integrated into the process, there is a 15 year restriction period of compliance spirit.

So you gotta be a certain income, 6% AMI and below you pay rent based on what's laid out by HUD. And then that is in place for 15 years versus your 10 years. And if they depart from the program before the end of the 15 years, they're out. They don't get anything anyway. Yeah.

Okay. So that's beyond the 10 year anyway. Thank you. Any other questions? Seeing none.

Committee in Housing, any question? I'd like to welcome Committee Member, Senator Aquino. Okay, we're ready to move on then to our next measure, which is Senate Bill 759, relating to HHFDC, which adds the Chairperson of DHHL, or the designee, to the HHFDC Board of Directors and amends core requirements for HHFDC's Board of Directors.

Can I take the lead on that one, Senator?

That's right. So, you're our first testifier. DHHL, in support.

Thank you. Yeah, I just have to say that, again, going back to Act 279, it was wonderful that you guys gave us 600 million. But in my testimony, as well, as—just as a matter of fact, that really isn't enough.

And so, one of the things that, you know, when we got 29,000 on the wait list, we did generate 28 projects. But still, the $600 million, we need to leverage it.

And it really is a matter of going after entities, like HHFTC, to get the tax credits, to get the private activity bonds, to get the rental housing, involving the DIRF, and all the other fundings that really make our projects more viable. And so, with me being on HHFDC, I think I can provide guidance and input.

We did get a—and I think it's part of your materials that you have, that there is no conflict of interest, because as a state employee, you know, my best interest is in a state program to further that. There's no private interest involved that might create a conflict.

So, we would help—or hope—that, you know, us being at the table and talking about the program will better not only educate the rest of the Board Members, but also, and I'll be quite upfront about it, we want to advocate for these the projects that we have in place, because we really don't have enough money.

So, that's where. Thank you.

Our next testifier is HHFTC, with comments. Thank you. And Ho'o Manopono, in support.

Hello, mano koko. Dimon Clay Monole, co-manager of Ho'o Manapono LLC, Native Hawaiian Advocacy Corporation, operating on One Eye Coast. And we support this Bill because we need a seat at the table.

Hawaiian Homelands has been around before HHFDC even was created, but it seemed like—I went to a HHFDC meeting and it seemed like our voice is not really heard over there. And I think that it would help the Department if we had a strong voice there. So, I support this Bill for that purpose.

Anyone else wishing to testify on Senate Bill 759?

Okay. So, Angela Melody Young, testifying on behalf of ROAR Cares, in strong support. So, the legislation is inclusive of representation, the Hawaiian Homes Commission to the Board of Directors of HHFDC, and it will also help restore land to a race which experiences disproportionate effects of disadvantage disparities.

The Hawaiian Homes Commission helps with the waitlist by approving the development of new housing lots on Hawaiian Homelands, acquiring new lands to expand the inventory, and using and utilizing state funding allocated specifically to reduce the wait list.

HHFDC works with developers to expedite and speed up the 2:1 each process, while working with developers and also helping with supply of affordable housing statewide, to provide finances and development resources for common goals of elevating development across the State of Hawaii.

So, for HHFDC and Hawaiian Homes Commission to work together will be a good opportunity to share resources with state and federal influences. And also, the Hawaiian Homes Commission is created by an act of Congress, and HHFDC can help with developers to review portfolios of empty parcels for purchase for Hawaiian Homelands.

HHFDC also has knowledge about how to speed up and expedite the building process for Hawaiian beneficiaries, so it can resolve underlying concerns for both HHFDC and Hawaiian Homes.

Do we have anyone else wishing to testify on Senate Bill 759? We'd also like to welcome Senator Kanuha to our Housing Committee. All right, any questions or discussion, Members? Yeah. Senator Fevella.

Chair, were you taking online testimonies, as well?

Oh, that's okay.

I have signed up for online testimony.

Okay. For Senate Bill?

Oh, my, my thing was muted. Am I able to give testimony?

Yes.

Okay. Thank you. Thank you, Chair. My name is Germaine Meyers. I'm a Native Hawaiian Beneficiary of the Hawaiian Homes Commission Act.

I am in support of Senate Bill 759 to add the Chairperson of DHHL, or designee, to the HHFDC Board of Directors, specifically for the purpose to allow DHHL access to receive federal funds for lot development and construction of housing for Native Hawaiian Beneficiaries.

My hesitation, though, is that, similar to when someone receives power in under—as a chairperson of DHHL—as long as you follow the rules and you make it, you follow the list, the wait list, and do not let others go beyond the wait list by creating pilot programs, etc. That's the same way I feel about this.

I hesitate in that, if special interest groups or other groups will be given priority, as far as for funding, as far as nonprofits, etc., that apply, that have a special and direct interest with the Chair.

And so, I'm concerned about measures being in place in order to protect the interests of the beneficiaries, in the order of the wait list, or being served as others are being served. What is fair for one is fair for all. So, that's what I wanted to express regarding this Bill.

I understand that there can be power gained from.

Thank you very much.

Put into the board of directors. I'm just concerned about the abuse of power. Keokuapu. God bless all of you.

Is there anyone else wishing to testify on Senate Bill 759? Okay.

If not, Senator Fevella.

HHFDC. Yeah. So, the question would be, by having, which I think is great, having a person from Hawaiian Homes on there, how is that going to help the development of the mission of Principal Hill, going forward? I understand, like how previous testifiers said, that, you know, Hawaiian Homes was around long time.

Now, we get a new kid on the block getting some of the money. How is that going to help enhance the beneficiaries, and the waitlist is working with, or having Hawaiian Homes on the board?

Well, DHHL does apply for funding to HHFDC, and they do receive awards for funding, such as to the Welcome Housing Tax Credit Program. They're applying for a project soon—Dwelling and Revolving Fund. So, they are recipients of our funding. And so, I believe this measure would, I guess, make the Chairperson of DHHL aware of funding opportunities.

They'll be aware of the amount of funding, about the prioritization of funding. So, I guess in that respect.

And what is the restrictions of their applying for the funding, to you guys? What is the restrictions or the parameters that you have for Hawaiian Homes? Is there parameters of how they can spend the money that they get from you?

Yes. So, they must apply, just like anyone else. So, for example, we get applicants—applications—from HPHA, from DHHL Private Developers. We have our own projects that are seeking financing. So, it's a competitive process. It's primarily meant for the LIHTC Program that they've been using.

So, they have to compete along with, you know, all the other projects that are applying, including the HHFDC Project, HPHA projects.

I guess what I'm getting at is because, again, we're talking about the beneficiary. So, they apply for this loan or whatever you guys going to provide for them. The parameters for what colleague can use them for, is it restricted for beneficiaries, or rent-to-own, or any of the projects that he have in his tool chest? To take care of our beneficiaries.

Yes. So, Digichok works with their developers to propose the model that they want to use, to benefit the Department's beneficiaries. And they have different models. It's primarily been a rent-to-own using LIHTC, or other funding sources. So, that is how they use our funding to benefit their beneficiaries.

So, Senator, I apologize. David White, Finance Manager. So, the structure of the programs that they apply for have the same criteria and the same set aside requirements and the same rules as any other applicant would. So, there's no particular restrictions, at all, on, specifically, because they're a DHHL applicant or it's a DHL project.

It still has the same opportunities, and it still requires the same set asides, as any other applicant would, for funding or for their potential residents.

So, you guys are a state, state funding agency?

Well, we fund partially, we fund the Rental Housing Revolving Fund, which is funds from the Legislature, and we allocate the low-income housing tax credits, which is allocated subject to the rules of the Section 42 of the IRS Code. So, those are federal credits.

And how long have you guys been in existence?

HHFDC has been in existence since, I believe, 2006, but we have a predecessor agency. I'm not...

That was what?

2006, but we have a predecessor agency, the HFDC, and that was preceded by another agency. So, I'm not sure the entire history of the agency.

I just—because my concern is knowing the need of our beneficiaries and Hawaiian homes. What the Chair just said about not having enough money, the 6 million was great and was all good.

I'm just saying that, on the creation of you guys and the percent increase that we could not see now, and what I'm trying to say is that—would have been a portion that probably could have had—maybe be diverted.

I don't want to use the word diverting either but could have been given to, probably, Hawaiian Homes, to take care of the beneficiaries, in that sense.

Well, I think funding different housing programs is always a challenge and I understand that that is a priority of the Legislature. So, yes, I know that there's funding that goes to us, that goes to DHHL, and you know, we put our requests in, but it really is up to the Legislature how they allocate funds.

Thank you. Can I have—thank you, guys. Okay, sorry. So, currently going forward of what I was asking them and stuff like that, what would be your suggestion of when you be on that board? And I know you're still gonna have to apply for the, for the loans and everything, but what we was on the line of talking about the lack of funding, going to a beneficiary in Hawaiian homes. What kind of input can you give this body, in moving forward?

I think one of the advantages of me being on that Board is, you know, we've gotten pretty innovative in providing other options for our beneficiaries. We have the LIHTC Rental, but we also have transitional housing, which in—we're using the Rental Housing Revolving Fund to finance that, along with some NAHASA funds. So, combined several different funding sources.

Similarly, you know, we have, besides the regular single family, we were doing a high rise with...drone. And that was real key. That's $155 million project, but, you know, it's 80 million in rental private activity bonds. Part of the Rental Housing Revolving Fund provided collateral. And then, you know, we also access the 220 V4 HUD loans.

So, you got a combination of all these different funding sources, but they are very key. Especially we're getting into Kupuna housing and we're combining NAHASA with tax credits and others. So, having and educating them about all our different new projects is real critical.

Because if, you know, a developer goes in, it might not have as much sway with the Boar, unless there's somebody there to really answer the questions, but also advocate for all our new programs. So, it's very important that we get on that Board, as well as the other boards that are also going after.

Thank you, Chair. Appreciate it.

Kali, if you could.

Sorry. For Hawaiian Affairs. Senator DeCorte, please proceed.

Thank you very much. Kali, you had shared that, in order for you to be able to sway and have an advantage, it would be helpful for you to be on the HHFDC Board. Can that not be swayed or worked collaboratively, just across collaborative lines? Do you have to actually sit on the Board?

Because it sounds like just something that is just a matter of keeping them updated, with where DHHL is at. I mean, it just seems like such a greater level of power for you to sit on that Board, as opposed to just basically sharing information.

Because I would assume that regardless, if you're sitting on the Board or not, that I would assume the integrity of HHFDC would be honest enough to support a project, just based on its merit, based on its goals, and hopefully, budgeting and funding.

So, I'm just really conflicted in the urgency for you to be on this Board, where the project itself should merit whether HHFDC is going to collaborate or not.

Yeah, it would have to go through the QAP process and, you know, accumulate points to be competitive. Obviously, that's a competitive process. But as mentioned by the Director, they are also aware of other funding sources that can be shared with me, while I'm on the board, versus me independently not being active in person.

Yeah. So, would accumulating points give you more of an advantage on your project, as opposed to somebody else that wasn't on the Board? I'm just afraid that we're sending out the wrong message that, in order for us to push our projects through, that we actually have to be a part of the Board.

Where, again, I'm concerned if HHFDC's integrity of the Board is based on who's actually on the Board, as opposed to the merit of the project.

Well, you have a good cross section. You have the public members. You have representation from all the different counties. You have a governor's representative, as well as DBAD, as well as Department of Finance. So, a collection of different eyes reviewing and looking at, as you mentioned, the merit, versus just one individual, one of 10.

I think that's more than enough to, you know, have a kind of impartial, so to speak, and a more informed and a decision that is based on integrity, as well as a close examination as to the merits of the particular project.

Yeah. So, maybe that's more of a question for HHFDC, if we can bring them up later, but we can move on. If anybody else has questions for...

I support having fine Homelands projects and whatnot and be fully aware by the HHFDC. So, I think you would agree with me, and tell me if you don't, that the trust responsibilities for Hawaiian Homelands is not identical to the states. The same question is how do you address—you said there's no conflict.

I disagree with you, in the sense that it is a fiduciary duty of the state, not just the Department and the program.

So, there's no way there's a conflict?

There's not a conflict, in the sense that this obligation and fiduciary responses to the state as a whole.

The long history of Hawaiian Homelands, the Commission, and it has a trust duty to Native Hawaiians, exclusively within the context of the state. But that's its role. It's its job. So, there might be some policy differences that Hawaiian Homelands might have with the state. Anyway, my, so anyway, we can agree to disagree.

The question is, is, I believe you'd have to recuse yourself on voting on your projects?

That I disagree. We did get the opinion of the Ethics Commission. They said I don't have to recuse.

So, I think it is. So, the question is, could you—so, let's say if you don't, your leverage would be leveraging on other issues. If they don't vote for yours, you won't for theirs, so gets into that leveraging thing and so, my question is, could you accomplish the same goal by being in a non-voting ex official member?

I'd rather be a voting, to be quite honest.

Yes, I know that. I mean, I know you want as much power as you can.

Yeah, I want to have some.

And you should. Well, I mean the power to get things good things done. I mean otherwise...

I don't want to just sit there and look cute.

Yeah, well, power can be used good.

Be useless.

Right. So, we're trying to just avoid the slippage, or if sometimes you stub your toe and you know and whatnot.

And so, so I, I, so maybe you're not—you have a conflict of interest in me answering the question. The question is, could you accomplish the same educational informational objectives, which you say is your objective, by being on the Board, but not having a vote?

Well, I guess to answer your question from an informational perspective, yeah, I could accomplish that by just being on the Board and non-voting. But from a decision-making standpoint, obviously, being a voting member and participating in the decision-making process is far more important.

I think this came up earlier is—let's say your board...

Okay. So, Senator Ihara, I don't think we should argue.

No. I'm just—one last thing. So, your Board—and it's not arguing. This is not arguing.

Sure.

Okay.

So, let's say your board—commission—says we're opposed. We rather have this, this project before this other project. I believe that, you ask that you may be obligated to vote the way they asked you to. Would that be true?

Well, normally, the Commission, like in our strategic plan, which we've amended maybe 3-4 times, but the Commission makes those decisions. It's not a single person.

Yeah. So, but would you, as a Member, would you have to—would you have to vote the way they say?

To raise the?

Let's say the Commission votes a certain way and it's, it's slightly different than—so, maybe we can take it offline. But I'll just...

The majority rules, not just one kind.

....Because Housing has multiple joint agendas today.

Is it okay if I ask one more question, and then...?

Okay, 30 seconds.

30 seconds.

This is, this is, this is a Senate. We do what we need to do.

So, what, you know, Kali, where does the Department of Hawaiian Homes just come to the ledge and ask for the money? And then, you know, another one is, why does Hawaiian Homes—why do we have to apply, why do you have to apply for grants? Why don't you just come out and just ask for more money of this Body?

Yeah, well, we are asking. We need about $6 billion, you know, so, we're asking, but we're also looking at different ways to fund it.

We have SB 152, maybe that's a better question for SB 152, which is the next Bill, which we haven't gotten to yet. Okay, so any other questions? This is regarding only HHFDC Board. Thank you. Any, any questions for Housing, Committee Members?

No. Yeah. I have a question for HHFDC. Okay, HHFDC.

Can I ask my question with HHFDC?

This is a really simple question. Okay. I see that the quorum has gone up from five to six, and a number of times, we are actually decreasing quorum, because they couldn't meet quorum, and they can't have members. What is your—are you folks able to meet quorum each time?

And if we added an extra one, will you folks be able to conduct business? Because proportionally, just adding one member shouldn't, I mean, actually, the, proportionally, the quorum requirement increased.

Yes. So, there are many times when we just meet quorum, we just have five members. So, that is a concern where adding one more member would raise quorum to six members.

And you're not going to be able to get things done.

Yes.

Okay, so.

Okay, thank you very much.

Really quick 30 seconds. It'll be a fast one. You know, I'm concerned about the statement that was made to imply as though the Chair of DHHL needs to sit at the table and be a part of the Board of Directors of HHFDC, and that really concerns me about the integrity of HHFDC.

Can you, in fact, confirm that sitting on the Board does actually influence the ability to complete a project with the other Board Members and not the merit of the project?

We do have other Board Members who are active in nonprofits that apply. In those cases, they recuse themselves from voting on a project affecting something that they're involved with, separately from HHFDC. You know, in terms of—a colleague spoke about whether or not he'll be influencing projects, you know, I don't want to speak to what his...

I'm sure that's not his intention that—but we will be happy to meet with the Chair of the HHO at any time to explain our programs, to inform him of our funding opportunities. So, I think either way, we'd be happy to work with DHHL to collaborate on how we can move their projects forward.

Okay. I would just like you to take in consideration the message that might be sent out by moving forward on something like this. So, thank you. No questions.

Thank you very much. Okay. No more questions?

Okay. Thank you so much. We'll move to our final Bill on this joint agenda, which is Senate Bill 152 relating to DHHL, which authorizes DHHL to utilize funds in the dwelling unit. Revolving Fund is collapsed collateral when DHHL is an eligible borrower of a loan guaranteed by the U.S.

Department of Housing and Urban Development pursuant to the Housing and Community Development act, as amended, subject to the approval of HHFDC and appropriate funds. Our first testifier is HHFDC in support. Thank you. Our second testifier is DHHL in support.

Let's have questions of standing.

Thank you. Kingdom of the Hawaiian Islands with comments. Ho'o Manafono LLC in support.

Aloha mai kakou, Timon Claymonole, co manager of Manapono LLC and Native Hawaiian Advocacy Corporation operating ala Waianae Coast. Yeah, we support this Bill because we need all the help that we can get at DHHL to be able to get Canuck off the wait list. And in order to do that, we need funding.

And the myriad ways of getting funding from the state will help the state to fulfill its fiduciary duties to us, the Native Hawaiian Trust beneficiaries. So we support this bill because we need all the help that we can get. Aloha.

Thank you. We have Cindy Freidas in support and Marion Kapunii in support. Is there anyone else wishing to testify on Senate Bill 152?

Angela Melody Young, ROAR cares in strong support of the Hawaiian community. And also my mom works with Century 21 properties and I passed my class test, so I will soon also be a real estate agent. So very invested in a better Hawaii for all Hawaiians and for the rest of the community. So, yeah, thanks. Strong support.

Anyone else wishing to testify on SB152? Questions. We'll start with on housing. Any questions?

How about Hawaiian Affairs? No questions to move on.

Okay. Well, that brings us to the end of this joint agenda. Should we recess for decision making or?

For Hawaiian Affairs decision making is going to be deferred till February 6, 2025 at 1:01 p.m. in room 224. I don't know about.

Okay, so I guess we can just go into it then. So for Senate Bill 834, the Committee on Housing will be deferring decision making until Tuesday, February 4, 1pm in room 225. And then for the remaining two bills, the housing lead bills for the Committee on Housing, we're ready to go into decision making.

So for SB 759, the Chair's recommendation will be to pass this measure on amended. Members, do we have any questions? Okay, so again, for SB759, Chair's recommendation is to pass. Unamended.

Members, SB759, Chair's recommendation is passed. Unamended.[Roll Call] Chair recommendations adopted. Thank you.

For Senate Bill 152 for the Committee on Housing, the Chair's recommendation will be to pass with amendments. There are technical, non substantive amendments. Any discussion with my students? Okay. If not For Senate Bill 152, Chair's recommendation is to pass with amendments.

Members, SB152. Chairs recommendations passed with amendments.[Roll Call] The recommendations adopted.

Thank you so much. And that concludes the Joint Committee meeting of the Committees on Housing and Hawaiian Affairs. All right, IT. I think we're ready, so we can just keep going.

Good afternoon, and welcome to the Joint Committee meeting of the Committees on Housing as well as Government Operations. If there are any technical difficulties that require us to abruptly end this hearing, we will be reconvening on Tuesday, February 4th, at 1 p.m. in room 225.

So, again, for the Committee on Housing, we have Vice Chair Hashimoto, along with Committee Members, Senators Kanuha, Aquino and Favela. Committee Member Favela just stepped out, and we'd like to welcome the Committee.

Thank you so much. Just to note, we were ready to. Go earlier, but we're waiting for a. Call from your staff coming in, which is why we.

All right, so we have one Bill on our agenda today, which is Senate Bill 68 relating to the Department of Housing. Establishes the Department of Housing places; HCDA, HHFDC, OPSD, and HPHA within the Department of Housing for administrative purposes and replaces the Director of Business, Economic Development and Tourism with the Director of Housing on HCDA.

Our first testifier is OPSD with comments. Thank you. HPHA with comments. Thank you. HCDA with comments.

Aloha everyone, I'm Francine Murray from the Hoy Community Development Authority. Executive Director Nakamoto asked me to apologize that he couldn't be here, he's traveling to a family funeral. We respectfully stand on our testimony and are available for questions.

Thank you. And finally, we have Susan Lee with comments.

I can see you, can you hear me?

Yes, we can.

To Senator Ichiyama, I'm not sure did you receive any copy, a copy of my testimony? Yes.

Yes we did.

I see, just additional few more things or the video the day of a video time I only send only half of what events. I only send the halves and I mean I try to do much as I can from home.

What I could do cover the my window to soundproof and I mean all I could do is just wait for everybody approval what you can do.

Thank you very much for your testimony. Is there anyone else wishing to testify on Senate Bill 68?

I know this chair. Is it okay? Is it okay to testify Chair? Yes. Okay. Aloha. My name is Jermaine Myers. I'm in strong opposition to the creation of another layer of government and the additional state employees within a new Department to oversee other state departments.

If the current State Department fails to complete their duties, remove the ineffective directors, managers, or employees. Please don't create another Department to manage ineffective departments or to create top heavy government structures. This Bill proposes to merge multiple state agencies responsible for housing into a new Department of Housing.

Yet it fails to include the statewide office on Homelessness and Housing Solutions managed by the Governor's Coordinator on Homelessness. Red tape is a term used to describe excessive government regulations and bureaucracy that can cause delays and inefficiencies. It can also refer to rules and procedures that are unnecessary or overly complicated.

This Bill gives the impression of Red Tape. Keokuapu. God bless all of you.

Thank you. Is there anyone else wishing to testify on Senate Bill 68? Okay. If not Committee.

Yes, I. I have a testimony. Hi, my name is Joel Garrison. I live at Makalapa Manor. I'm having trouble getting my picture. It says I cannot use your video because the host is just disabled. It. Okay. So anyways. There. All right. There we go.

I'm here to testify of the chaos that is across the street from our building. We are a group of working class people that need our sleep and we've been harangued and had abuse from the parking lot across the street from us. There's somebody else speaking over me. Oh, it's an alarm.

Okay, There's a emergency alarm going. Right. I hear that. We'll be calling this meeting into recess.

Thank you so much. The Committees on Housing and Government Operations are back. We're going to resume our hearing now. It was just a false alarm. Okay. Okay. So there was a testifier. The gentleman who was testifying.

I just succinctly to say that we have been dealing with this for over 15 years and we've had no response, no effective response to our issue that we are not able to sleep in our bedrooms. Most of the people in my building have resorted to sleeping in their front rooms because their bed bedrooms are not suitable for sleeping at night because of the noise.

Are you testifying on Senate Bill 602?

Yes.

Okay. I'm sorry, this is the wrong bill. This is six Senate Bill 68. We'll come back to Senate Bill 602 later.

Okay. That's the previous. The previous one was for 602. Just to let you know.

Thank you. Anyone else wishes to testify on Senate Bill 68? If not, members of the Housing Committee, any questions?

Any questions? No, not for us. Oh, yeah, I do have a question, but I don't have. We don't have a person to ask a question. Can I ask it of the introducer?

Well, the question is the testifier referred to Office of Homelessness and Housing Solutions being part of Department of Housing. Is that your intent? And frankly, I don't care. But I just want to make sure that we are clear because as Chair of Human Services and Health, you're gonna put in both HPHA and the other one, OHHs. Is that your plan?

Okay.

It's not in the bill.

No, it's not in the bill. So the answer is probably not right now anyway. Okay, thank you.

I have a question, but I don't. See the Director, but I have one. I have a question for Office of Planning. Nobody's here. Oh, okay. Yeah, it's just more in terms of what they're doing in housing and how it's related to this versus all the other programs that she was mentioning in her testimony.

At a minimum, I think we can defect the date to ensure. Yeah, we're going to definitely do that. And then there's a lot of conversation, but there is some historical precedents for this which I discovered along the way because these are all being back in the day with housing.

It's good to coordinate what they do.

Some of the old time that's down. Here and they said that. So actually there is some alignment. Okay.

Well, I like the coordination of all the housing programs and, you know, be able to work together. Right. Rather than all the separate.

Legacy is good back to what it was.

Should we go to decision making? Let's DM this. All right, so the Committees on Housing and Government Operations are going to go into decision making now for Senate Bill 68 relating to the Department of Housing. So the chairs having conferred, the recommendation will be to pass this measure with amendments. We have technical, non-substantive amendments.

We'll also add language to the proposed department's responsibilities that are broad enough to cover OPSDs additional responsibilities, including Coastal Zone Management, land Use policy, et cetera, and HCDA's additional responsibilities, including planning, infrastructure, and community building. Also clarify that HPHA would be an attached agency for administrative purposes only. And we'll also defect the date to ensure that we'll be able to revisit this concept.

So the plan is to put the CZM program in the Department of Housing?

It would be to put the whole OPS.

OPS. Okay.

Okay, great. Any other discussion questions on this? Okay, so for the Committee on Housing, SB 68 recommendation is to pass with amendments. Chair votes aye.

[Roll Call] Aye. Great. Chair Recommendations adopted.

Okay, thank you. Committee on Government Operations, same recommendation. I will note though, historically that these departments were within dead back in the day, so it's not as far of a reach as it may seem. With that recommendation is The Senate draft one. Vice Chair, SB 1.

[Roll Call]

Thank you, guys. This concludes our Joint Hearing.

This concludes our Joint Hearing. This hearing is adjourned.

Okay, we're ready to go back now. Good afternoon. We're now back for the 1:10pm agenda of the Committee on Housing. It looks like the alarm is back on, so we'll be going into recess.

All right, we're back from our recess. And I'd also like to note that if we have to abruptly end this hearing due to technical difficulties, the Committee will resume on Tuesday, February 4th, 1:00pm in this room, 225.

Okay, so our first Bill on this agenda is Senate Bill 1229 relating to the Dwelling Unit Revolving Fund, which makes the Dwelling Unit Revolving Fund Equity pilot program permanent.

It allows partial or full repayment of Dwelling Unit Revolving Fund interim loans in the form of unit equity through the Dwelling Unit Revolving Fund Equity Program, gives preference to projects developed under governmental assistance programs pursuant to section 21H3682. Our first testifier for this measure is HHFDC in support.

Yes. Chair, Committee Members, Dean Minakami, Executive Director, HHFDC we are in strong support of this measure. In 2023, the Legislature passed a pilot program for the equity pilot program and we launched it last year after adopting administrative rules, and it has been at a strong response by developers of for sale projects.

We have three projects participating in the program right now. Kuilei Place, the Flats at Sky Ala Moana, and the park on Keaumoku. And 81 units are now participating in the program. And $7.4 million or $10 million that had been authorized has been encumbered by it.

So we see that this program, particularly in conjunction with DERF Loans, has great potential to, I guess, unleash for sale housing projects that are stalled right now. There are many for sale projects stalled because of higher interest rates and they just are not financially feasible right now.

So with their funding in conjunction with this program, that can really move those projects forward. And we had some comments on the Bill, just to clarify.

Not sure if we received our late testimony, but we'd like to amend the language for the second mortgage loan because in some cases we would prefer to be in first position if that's possible. And it gives us greater flexibility in how we secure the state's funds and the section to be removed

we found that that's not necessary given that section 190 or HRs 191 allows us to purchase equity in projects.

Thank you.

Okay, and while we have you, one question. So what happens if the condo isn't sold, transferred, or any of the other trigger events happen in the first 30 years? Does the owner still have to pay HHFDC back for the value of equity?

Yes, our administrative rules require, and the mortgage recorded on the property, requires a property owner to pay us back the state's equity plus appreciation after 30 years.

Thank you very much. Our next testifier is Council Member Yuki Le Sugimura, Maui County Council in support, followed by Hawaii Appleseed Center for Law and Economic justice in support, followed by Hawaii Community foundation in support, and Holomua Collaborative in support. Thank you. Is there anyone else wishing to testify on SB 1229? If not, any questions or discussion?

Okay.

If not, we'll move to our next Bill, SB572 relating to housing, which adds loan funds administered by nonprofit community development financial institutions, institutions, or CDFIs for certain for sale affordable housing projects to a list of loan priorities for the Affordable Homeownership Revolving Fund expands the use of monies in the revolving Fund to allow financing as matching funds for CDFIs to mobilize other funding sources.

Our first testifier is HHFDC in support. Our second testifier is Hawaii Habitat for Humanity Association in support, followed by Hawaii Community Lending and Support. Is there anyone else wishing to testify on SB 572? Okay, if not, any questions, Members? Discussion. I have a question for hhftc. So the question. Well, two questions.

How much money is in the Affordable Housing Revolving Fund and how is it currently being being used?

Good afternoon, Chair. David Hoy, Finance Manager. So the initial pilot program for the Affordable Homeownership Revolving Fund had a initial deposit of $5 million available right now. We've awarded one project right now for about $1.8 million in funding for four units.

And then what are. Can you describe the loan terms?

The loan terms right now that we were proposed by the developer that we're still evaluating would, would be it's structured as a construction loan to assist with the development on a drawdown basis. So they're going to have to provide the work and work progresses. We disburse funds to them.

So it's a 10 year loan and then the loan would be repaid at that time. And then after that we would. The term loan interest is approximately 1%. Right now.

10 years at 1%. Yes. Thank you. Any other questions, Members? Thank you very much.

Thank you, Chair.

Okay, our next bill today is SB826 relating to the Low Income Housing Tax Credit, which clarifies housing developers that are eligible for the low Income Housing Tax Credit. First testifier is Department of Taxation with comments. Thank you. Followed by Tax foundation of Hawaii with comments.

Yes. Good afternoon, Chair and Members of the Committee. This is Jade McAllen on behalf of Kamichika for the TAC Foundation.

Sorry the emergency alarm has gone off again, so this Committee is going to recess. All right, we're back from our recess and so we'll resume with the testimony of the Tax foundation of Hawaii.

Thank you, Chair. Again, this is Jade Mcmillan on behalf of Tom Amachika for the Tax Foundation of Hawaii. We've submitted some comments on the measure. Our comments are directed towards what may. Be a typo in the Bill as. The section of HRS references School Facilities. Authority and we're not sure how the. Relate to low income housing.

Thank you very much. Is there anyone else wishing to testify on SB826? Okay. If not, any questions or discussion Members? Okay, we'll next move to Senate Bill 771. But before I do that, I should note that we only have the room for another about half an hour.

And so, we're going to try to get through as much as we can on this agenda and we appreciate your conciseness and brevity Members.

So again for SB 771 relating to HHFDC, this Bill repeals a requirement that the chairperson of HHFDC Board of Directors be a public Member and repeals the prohibition that certain ex officio board Members shall not be eligible to serve as chairperson. Our first testifier is HHFDC with comments. Thank you.

Is there anyone else wishing to testify at SB771?

Yes, Chair may I testify?

on SB771?

Yes. On SB771?

Yes.

Thank you Chair. Aloha, my name is Germaine Meyers. I'm Native Hawaiian beneficiary of the Hawaiian Homes Commission Act. I'm in strong opposition of SB771. The current composition of the nine Member, the current nine Member, HHFDC board are six public Members and three Department heads while one of them them is the governor's rep.

So there's that consists of the nine Member board. If you add on the chair of DG Chow, that'll turn it into a 10 Member board. Six being public Members, unpaid public Members, and four being paid staff Department heads.

I strongly oppose it because the Chairman runs the HHFDC board and I'm concerned that a paid Department head would become the Chairperson of HHFDC. I feel that the unpaid public Member the current way the law is written that should remain. So, that's why I strongly oppose SB771. Keakua Pu, God bless all of you.

Thank you very much. Is there anyone else wishing to testify on SB771? If not any questions or discussion Members. All right. We'll move next to SB749 relating to housing which requires rental housing projects to maintain in perpetuity 50% of the project's units for certain low income tenants to be eligible for assistance under HHFTC's rental assistance program.

Our testifier HHFTC with comments. Thank you. Is there anyone else wishing to testify on SB749? Okay. If not any questions or comments Members? Okay. Our next Bill is SB 576 relating to Financial Administration. It amends the requirements of legislative reports to be submitted by HPHA and hhfdc.

It amends the scope of monies to be deposited into and the purposes of the Public Housing Special Fund and it exempts expenditures of the Public Housing Special Fund from appropriation and allotment by the Legislature subject to Certain requirements. Our first testifier is Department of Budget and Finance with comments followed by HPHA and support.

Is there anyone else wishing to testify on SB576? If not, any question Members, questions or discussion seeing none. Our next bill is Senate Bill 602 relating to HPHA. It includes any parcels owned by the Hawaii Public Housing Authority as areas that may be closed to the public and specifies required signage.

We have HPHA in support followed by Joel Garrison in support. Is Joel Garrison still there?

He's still present on Zoom Chair.

Joel, this is your opportunity to testify. Okay.

Yes. Hi. I want to be succinct so another alarm goes off or whatever. I have been living here for 20 years and it's been an issue with this parking lot for the Makalapa Community center parking lot on the corner of Kalaua and Kohomua Street.

There's illegal activity on a constant regular basis that like someone testified between Thursday and Sunday it usually occurs and it's just drinking, brawling, just loud conversations, loud music and fighting going on in this parking lot from late early in the evening till early in the morning. Sometimes it's.

It doesn't end till 6 or 7 in the morning and it keeps people from sleeping. We need help. We need help.

Thank you very much. Our next testifier is Susan Lee with comments. Is there anyone else wishing to testify on SB602? Any questions? Susan Lee.

As Mr. Garrison said, we do need the help because this is a serious matter for us. Everyday life. I here for one year. I just been over one years now. It's been nightmare.

Sorry, the emergency alarm is going off again so we'll go into.

Okay, we're back from recess. Ms. Lee, you can resume your testimony.

Yes, thank you. I just want to add two more things. I didn't add it on my testimony writing earlier as I mentioned or the video text message I sent to the President was only the half of what the day.

I didn't record most of the time because it was going on for almost two weeks and almost sometimes five days in row. So I effected my work next day few days.

It takes me a few days to even go back to work because it makes me jumpy with not sleeping regularly and which I understand it's been going on for over 40 years people who live here and I only experienced for just one year and it's been so hard for people for me and my family.

Just find out if this is what had to go through. I was so thankful to your time and thank you.

Thank you very much for your Testimony. Thank you. Is there anyone else wishing to testify on SB602? If not any discussion or questions? Members? Senator.

Do both of them have an. Area they can talk about? Any of the testifiers that just testified? Do. Do they have an area that they're talking about just public housing?

Yes, I do. No, I told. It's the corner of Kalal. Mr.

Garrison, can you.

It's a corner of. Hello?

Are you there, Mr. Garrison?

Kahlo street and Kohomua Street. Someone keeps cutting me off or muting me. It's me.

It's just the street. I just wanted to know the area. But it's okay. We'll fight. We'll find it out. Thank you. Thank you, Senator.

Okay, anyone else wishing or any other questions or discussion? Okay, if not, we'll move forward. I'd like. May I speak for SB602?

Yes.

All right. Who's this?

My name is Catherine Kanehiro. I am the President for Makalapa Manor, which Mr. Garrison and Ms. Lee is talking about. This. This issue is with the HCAP parking lot, the Halawa location and. I'm sorry, should I start again?

No, don't start again.

Okay, so this. This is the. The location is the Halava Hapcat HCAP parking lot that has been a problem for the past three to five years. In 2023, we had a shooting there. 2024, we had a stabbing, and just recently, we had a stabbing which ended in a murder. What we're asking for is to.

To please pass this bill. We have gone through the process of the protocols of calling HPD to come to the scenes. Thank you.

Unfortunately, we're out of time. Thank you very much for your testimony. Okay, do we have anyone else wishing to testify on SB602? Okay. Again, we'll move on now to the next Bill, which is SB491 relating to housing.

It establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties to provide grants to eligible homeowners or home buyers, finance construction costs, development costs, and non reoccurring closing costs, associated with the construction of an accessory dwelling unit and purchase deed restrictions on such property. Our first testifier is HHFTC in support.

Thank you, Attorney General, with comments.

Well good afternoon Chair Chang, Vice Chair Hashimoto, and Members of the Committee. I'm Deputy Attorney General Chase Suzumoto and we've provided our written comments on Senate Bill 491. In our testimony, we suggest two amendments to this Bill. First to remove the duration requirements on page seven, lines 17 through 18. And also on page-

Oh sorry, what was that? Do you do have your written testimony? Oh, yeah, yeah. I'm just resetting our position.

Thank you very much. Yeah, we don't have a lot of time so we're going to try to get through as much as we can.

Okay, and the, and then quickly. Second is to insert appropriate standards for the issuance of grants by the counties. I'm available if you have any questions. Thank you.

Thank you. Our next testifier is Department of Taxation with comments. Thank you. Chair Alice Lee, Maui County Council in support. Hawaii YIMBY in support. Hawaii Appleseed in support. Holomua Collaborative in support. Thank you. Hawaii Realtors with comments. Hawaii Housing, Hawaii's Future and support. Maui Chamber of Commerce and support.

Also like to note there were several other positive testimonies from Hawaii Community Foundation, Title Guarantee, Mana Up, Hawaii Gas, HPM Building Supply, AO and Tory Richard. Is there anyone else wishing to testify on SB491? If not, any questions or comments, Members? Okay, we'll move forward then to SB490.

SB490 relating to housing establishes the Kama Ina Homes Program to provide funding to the counties to purchase voluntary deed restrictions.

Okay, the alarm has gone off again, so we're now in recess.

Okay, we're now back from our recess and we are resuming SB490. The Kamahaina Homes program to provide funding to the counties to purchase voluntary deed restrictions from eligible homeowners or home buyers. Our first testifier is HHFTC in support. Thank you, Department of the Attorney General with comments.

Oh, I'll go quickly. Deputy Attorney General Chase Suzumoto, just reiterating, we suggest amendments to the Bill to remove the duration requirement. Thank you.

Thank you. Next is Department of Taxation with comments. Thank you, Hawaii Appleseed and support. Thank you. Hawaii Yimby in support. Holomua Collaborative in support. Thank you. We have supportive testimony from Hawaii Community Foundation, Title Guarantee, Mana Up, Hawaii Gas, HPM Building Supply, IO Tory Richard, Lindby Hawaii with comments.

Not present on Zoom Chair.

Thank you, Hawaii Realtors with comments. And then several other supportive testimonies from individuals. Tracy Urker, Douglas Adams, Bridgette Dodge, Michelle Condrey, Sadie Green, Celia Suzuki, Josh Levinson, Jamie Yamagata, Joy Barua, Sarah Malia Wish, Housing Hawaii's Future in support. Ben Trevino in support. Ian Ross, Billy Piper, all its support. Maui Chamber of Commerce in support

and Seth Kamemoto with comments. Is there anyone else wishing to testify on Senate Bill 490? Members? Do we have any questions or discussion?

If not, our next Bill today is SB31 relating to property allows a person who discover discovers a recorded discriminatory restrictive covenant to take certain actions without liability to invalidate the covenant and defines discriminatory restrictive covenant. Our first testifier is Hawaii Civil Rights Commission in support.

Aloha Chair, Vice Chair. This is Heather McVeigh, Deputy Executive Director of the Hawaii Civil Rights Commission. We support the bill and we offer it suggested language to make it clear that Hawaii has additional protected classes in addition to the federal. So we're here for questions if you have any. Thank you.

Thank you. Anyone else wishing to testify on SB31? Okay, if not, our next Bill is SB156 relating to housing.

It requires certain landlords to provide a specified notice to a tenant regarding the tenant's potential right to purchase the property under certain conditions allows tenants, families, local governments, affordable housing nonprofits and community new land trusts 45 days to match or beat the best bonafide offer to buy an eligible affordable housing property.

Our first testifier is HHFDC with comments, followed by Hawaii Realtors with comments. Is there anyone else wishing to testify on SB156? Okay, Members, any questions or comments? All right, we'll move to our last item on today's agenda.

SB 456 relating to bed bugs, prohibits landlords, including those operating in public housing and educational dorm settings, from renting a dwelling unit that the landlord knows has a current bedbug infestation. Establishes procedures that landlords shall take upon receiving notice of an actual or suspected bedbug infestation. Our first testifier is the University of Hawaii system in opposition.

Thank you. Department of the Attorney General with comments.

Good afternoon. Deputy Attorney General Christopher Han with comments on the Bill. We recommended some clarifying amendments. Also, I just wanted to note, should The Committee be inclined to amend the Bill in a substantively different manner, say, try out a different approach, we would ask for additional time to be able to review the feasibility of the approach,

so that we could properly advise the Legislature. Thank you.

Thank you. Hawaii Public Housing Authority with comments. Hawaii Pest Control Association with comments. Hawaii Realtors with comments. Talia Smith in opposition. Is there anyone else wishing to testify on SB 456? Okay. Any questions or discussion numbers? Okay. If not, do you need to recess for decision making? Yes.

All right, let's go into recess and we'll be back with decision making.

All right. Welcome back. The Committee on Housing is back from its recess and we're ready to go into decision making for this agenda, the 1:10pm agenda. Our first Bill is Senate Bill 1229 relating to Derf. Chair's recommendation will be to pass this measure with amendments.

We'll take HHFTC's amendments to revise section A of page one to delete in the form of a second mortgage loan and add secured by a recorded instrument as determined by the corporation. And we'll also delete. Section Emergency has been reported in this building.

Please cease operations.

All right, so for SB 1229, we're taking HHFDC's two amendments, the second of which is to remove Section E on page three. Members, do we have any questions or discussion? So if not for SB 1229, Chair's recommendation is to pass with amendments. Chair votes Aye.

[Roll call]

Chair recommendations adopted. Thank you very much. Our next Bill, SB 572 relating to housing. The Chair's recommendation will be to pass this measure unamended. And we'll also note in the Committee report the testimony on the Affordable Housing Rental Revolving Fund amount allocated and committed and the typical loan term of 10 years and 1% interest rate.

Members, any questions or discussion? Okay, if not so for SB572, Chair's recommendation is to pass unamended. Chair votes.

Act Members SB572 Chairs recommendations passed and amended. Chair votes Aye. Any Members voting with reservations? Any Members voting no with noting the excusal of Senator Aquino for this measure and those all others of recommendations adopted. Voting aye.

Thank you very much. For SB826 relating to the Low Income Housing Tax Credit, the Chair's recommendation will be to pass this measure unamended. Members, any questions or discussion? Okay, if not SB826 chair's recommendation pass. Unamended. Chair votes aye.

Members SB 826 chairs recommendations passed. Unamended. Chair votes Aye. Any Members voting with reservations? Any Members voting no without others voting aye. Recommendations adopted.

Thank you. For SB771 relating to HHFDC, the Chair's recommendation will be to pass this measure unamended. And note in the Committee report, the Board composition would not change and 2/3 of the board would continue to be community Members as this measure were passed. So for SB771, Chair's recommendation is to pass unamended. Share votes Aye.

Members SB771 chair's recommendations passed. Unamended. Chair votes Aye. Any Members voting with reservations? Any Members voting no without others voting? I recommendations adopted.

Thank you for SB749 relating to housing. The Chair's recommendation will be passed this measure unamended and will also note in the Committee report HHFTC's testimony that the rental assistance program has not been funded in several years and a substantial infusion of cash into the rental assistance Revolving Fund would required. Any discussion or questions?

Members okay if not SB 749 Chair's recommendation is to pass Unamended Chair votes.

[Roll call]

I recommendations adopted for SB576 relating to Financial Administration the Chair's recommendation will be to pass this measure unamended. We'll also note in the Committee report BNF's testimony that PHSF test does not have significant consistent revenue sources and that the Legislature should continue to do so.

Consider doing so to ensure the proper maintenance of HPHA's housing inventory and enable them to build more housing for the most vulnerable in our society. Members Any discussion or questions? If not for SB576 Chair's recommendation is to pass Unamended Chair votes aye Members.

Sb576Chairs recommendations to pass Unamended Chair votes Aye Any Members voting with reservations Any Members voting no with all others voting aye Recommendations adopted thank you.

For SB 602 relating to HPHA, Chair's recommendation will be passed this measure unamended Questions or discussions seeing none SB602 recommendation passed on amended chair votes Aye Members.

SB602 chairs recommendations passed on amended Chair votes aye and Members voting with reservations Any Members voting no without others voting I Recommendations adopted thank you.

For SB491 relating to housing. This is a very complex Bill with a lot of testimony and a lot of potential amendments. The Chair will be deferring decision making until 1:00pm on February 4th in this room 225 for SB 490 same situation chair will be deferring DM until 1:00pm on February 4th in room 225.

Questions Discussion okay, we'll proceed next to SB 31 relating to property Chair's recommendation. We can pass this measure with amendments. There are technical non substances.

In addition, we'll take the Hawaii Civil Rights Commission's amendment to add to the definition of discriminatory restrictive covenant 3 the prohibition in Section 5156 of the Hawaii RAI Statutes Against Discrimination on the basis of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age or human immunodeficiency virus infection.

Any discussion or questions? Members? If not for SB31, Chair's recommendation is to pass with amendments. Chair votes Aye.

Members, SB31. Chair's recommendations is to pass with amendments. Chair votes aye. Any Members voting with reservations? Any Members voting no. With all others voting aye. Recommendations adopted. Thank you.

For SB156, chair will be deferring this measure. Any discussion or questions? If not, SB156 is deferred. SB456 relating to bed bugs. Chair's recommendation will be to pass this measure with amendments. And we'll be doing a slightly different approach to this. To this concept of bed bugs.

Instead of creating this whole new section of HRS521, we'll instead add bedbugs to HRS521.42, the implied warranty of habitability. And that would just be a short statement. State stating that bedbugs would be. And bedbug infestation would constitute a violation of the implied warranty of habitability. Members, any questions or discussion? Okay.

If not for SB456, Chair's recommendation is to pass with amendments. Chair votes.

Members. SB456. Chairs recognition is to pass with amendments. Chair votes aye. Any Members voting with reservations. Any Members voting no. Without other voting I. Recommendations adopted. Thank you very much.

There being no further business, the Committee on Housing is hereby adjourned.