Senate Standing Committee on Health and Human Services

Good afternoon. It's Tuesday, February 10th, 2026. The time is 1:08pm welcome to the Committee on Housing. Welcome to Vice Chair Hashimoto and Committee Members, Senators Elefante, and Rhodes. We have several agendas today that we'll be taking up. We have the one o' clock housing only agenda and we'll start there.

We also have a deferred decision making at one o' clock that will come at the very end. And then there's also a joint hearing with the Committee on Health and Human Services at one o'. Clock.

So when the Health and Human Services Committee is present, we will recess the housing only agenda and then move to the Health and Human Services joint agenda. This meeting is streamed live on YouTube.

In the unlikely event that we have to end this hearing due to technical difficulties, the committees will reconvene to discuss any outstanding business on Thursday, February 12th at 1 o' clock in room 225. Any public notice will be posted on the legislature's website. We have a one minute per testifier time limit. Okay.

Our first Bill for the housing only agenda is Senate Bill 2787 relating to the Rental Housing Revolving Fund. Authorizes the rental housing revolving Fund to be used to provide loans or grants to eligible units to purchase rental unit, eligible individuals to purchase rental units. Our first testifier is Department of Attorney General with comments.

Good morning, Chair, Vice Chair, Members of the Committee, Deputy Attorney General Chase Suzumoto. We've provided our written comments on Senate Bill 2787. And in our testimony, we first recommend placing the authority in a separate new section within HRS Chapter 201H, Part 3, Subpart J. Second, clarifying the phrase purchase a rental unit as used in the Bill.

And third, inserting appropriate standards for the issuance of grants by HHFDC to the eligible individuals. And I'm available if you have any questions. Thank you. Thank you very much.

So we'll just finish the testimony. Yeah, I understand. All right. Yeah. So we'll just finish the testimony on this Bill and then we'll recess and then we'll move to the joint with hhs. Our next testifier is HHFTC with comments.

Good afternoon, Chair, Vice Chair Members. We stand on those comments.

Thank you.

Department of Hawaiian Homelands in support.

Kalani Fronda for DHH. We stand up on support.

Thank you. Office of Hawaiian affairs with comments. Tax foundation of Hawaii with comments.

Thank you, Chair, Vice Chair, Members of the Committee, Tom Yama for Tax Foundation. We just wanted to point out that doing grants is not consistent with the concept of revolving Fund but it probably violates the Provision in Chapter 37 governing the use of revolving funds. Thank you. I'd be happy to answer any questions.

Thank you. Johnny Mae Perry in support and AARP Hawaii in support. Is there anyone else wishing to testify on Senate Bill 2787? You have 60 seconds.

Aloha, Angela Melody Young testifying on behalf of CARES, in support. So I think the legislation will strengthen the Department of Hawaiian Homeland's efforts with the increase of affordable rental housing options for Native Hawaiians.

And it directly assists DHHL in development, acquisition and preservation of rental units while providing crucial financial support to middle class families within the 60 to 140% AMI range for purchasing units.

And it can help with new construction, rehabilitation, and preservation of low income rental housing units that meet the criteria for eligibility described in subsection c or section 201H-202F. And the acquisition of these housing units for the purpose of preservation for Native Hawaiians can help with improving the lives.

Thank you so much.

Of the Hawaiians. Thank you.

Is there anyone else wishing to testify on this Bill? Okay. Seeing none. We're going to recess this hearing. All right. Welcome back. We are now in our joint hearing between the committees on Housing and Health and Human Services. Welcome, Chair San Buenaventura. Our first Bill today is Senate Bill 2957. Our first testifier is HHFTC in support.

Department of the Attorney General with comments.

Good afternoon. Deputy Attorney General Clement Irbank. We have a few comments in our written testimony. I'd just like to highlight a couple of things. One is that the Bill requires that comparable units are offered to displaced tenants and that term is not defined.

So I suggest to reduce uncertainty and potential disputes and implementation to define the term or authorize HHFDC to define by rule the minimum comparability criteria. And then also on page nine, line two, there's an apparent typo. Whereas the the term developer is used as the entity selecting the option to choose the first return unit.

But we propose that it should be tenant. So we suggest that that be amended as well. And I'll be available for any questions. Thank you.

Thank you very much. Office of Hawaiian Affairs and support.

Aloha Me Kakou Chairs Members of the Committee OHA sees this measure as an important way for us to make sure that the new development that are utilizing 201H and state subsidies are not leaving behind our Native Hawaiians and local families.

This makes sure that if we have older housing stock that's removed that was previously affordable, that the projects, though they may increase the total number of units that they offer a replacement for tenants that have been displaced.

Many other states have these protections and we think these are a reasonable and responsible way for us to make sure that the increase in our affordable housing supply and the subsidies we give to developers are also being balanced with protections for our local families and native Hawaiians. Mahalo.

Thank you very much. Parents and Children Together in support.

Aloha, Chairs, Vice Chair, Members of the Committee. My name is Tricia Kajimura. I'm with Parents and Children Together, or pact. We support this Bill. PACT was founded in public housing in Kuhio park terrace in 1968. And so we are forever connected to the struggles of residents in in public housing.

We just want to point out that this Bill is based on the experiences of KPT low rise tenants in phase one of their redevelopment and the struggles that they face in relocation, including language access, access to equivalent units that would fit their size and accommodate their disabilities. We want their experience to benefit future relocation efforts.

Thank you very much for hearing the Bill.

Thank you. Medical Legal Partnership for Children in Hawaii and support.

Good afternoon. My name is Dina Scheck. I'm with the Medical Legal Partnership for Children in Hawaii. I had a whole eloquent thing about housing policy is health policy.

But I will cut to some comments just about when we hear developers talk about the three months of rent might delay progress if, if we use the KPT low rise from the last year and a half as an example, Even if the 64 displaced households received the maximum allowed in this Bill, I think it's approximately $1,800 a month in rent over the three months requirement, it would total about $345,000.

This is actually only a fraction of the $64 million. I think my math's not, not great in subsidies and low interest loans that they are receiving for this project, but it wouldn't be $345,000.

I pulled some KPT low rise rents from my own client base and rents ranged from maybe $50 a month to upwards of $1,300 a month. So more realistically they would be paying around upwards of $120,000 in rent costs under this Bill. So I don't think this is prohibitively expensive. So thank you for your time today.

Next we have Hawaii Yimby in support. And then we have Donne Willets in support, Annette Teixeira in support. Andrew M. Kennedy in support.

Good afternoon, Chairman Chen. Committee Members. Last year I represented a number of tenants in a similarly related at the KPT Low rises. I took this case, when they first called me for this case, I was a little bit not sure what to expect.

And I one thing that wasn't going to happen was I wasn't going to go in and have people who were going to delay progress. And I was like, I learned from these people. I met these people and they were just stressed people who were scared they were losing their homes.

The issues that this Bill addressed are the issues that kind of were concerning to them. They're reasonable once they set forth and they clarify minimum safeguards for protection of these people. The safeguards right now, they exist somewhat in the federal statute, but they're not totally clear. 14:37p is a bit ambiguous. What does reasonableness, what does counseling mean?

And we sort of rely on HUD and the authority of the Executive branch to give us these safeguards. So to the extent that this Bill clarifies for the Hawaiian people what our minimum safeguards are, I believe it's good legislation. Thank you very much.

Hawaii Appleseed center for Law and Economic Justice and Support and ARP Hawaiian Support Therapy says under support.

Thank you.

Thank you. Is there anyone else wishing to testify on Senate Bill 2957?

Good afternoon Chair, Vice Chair and Members of the Committee. My name is Rona Mangai Ayam. I'm the Youth Services Director of Kokua Kalihi Valley. I have witnessed the joys and challenges of many families who have been displaced because of the Low Rise KPT redevelopment.

About a month ago, former participant in one of our youth program reached out and volunteered to come and be part of our program to help the younger men. And and when asked why he wants to come, he said I want to be part of the growth of this young man.

I had a conversation recently with him and he said returning to home here in Kalihi is one of my dream. I was born and raised at Low Rise. Respect each other and we help each other. That's why I am here. This is just one among the many youth who are displayed.

One middle youth school student who was displaced in Halawa still come to Dole Middle School in Kalihi because this is where his school support and he said I am not sure what to answer when my friends ask me where I came from.

Thank you very much. Is there anyone else wishing to testify? Please. Thank you.

Angela Melody on testifying on behalf of CARES and strong support. So in KPT there's a bunch of Asian Americans, Native Hawaiians, Pacific Islanders and these demographics experience language barriers that prevent them from understanding legal rights and accessing and filling out paperwork for housing aid.

And so these populations face high risks of housing displacement due to the Hawaii Public Housing Authority's process working with Michael's Development to build new housing. And so language assistance is crucial because these communities, often foreign born, struggle to navigate complex housing systems as they have to transition into a temporary housing while their new house is being built.

So I think this is helpful to the KPT community raising awareness about housing rights for them. Thank you.

Anyone else wishing to testify on this Bill? Senate Bill 2957. If not, Members are having questions or discussion. Okay.

I actually do have a question. Not sure to ask it. Is anybody from Hawaii Public Housing Authority here? Ben? Yes, he is. I can see him back there. For. For Mayorite Homes, which of course is being renovated or redeveloped, I guess is probably more accurate. We aren't. We promise.

HPHA is promising everybody there that they're going to get to come back, correct?

Bend Park White Public Housing Authority. Yes.

Is it contractual or is it just like a policy promise?

That is a HPHA board of directors adopted policy.

Okay. And that doesn't mean I'm opposed to. Putting in a statute. I'm just curious what this current situation.

And that's typical of any time you redevelop a project.

The board has decided to go for every single redevelopment project to have them have the right to redevelop term.

Okay. All right, thank you. Thanks, Chairs. Thank you. Any further questions or discussion?

Yes, I don't know. It's. It's you or. Dean. Could you come on up? Both of you guys. So who's in charge of KPT?

HPHA?

So what happened to the tenants? I mean, did they just get displaced and nothing, I mean nothing else was promised to them or. No, Senator, that's not the case. They were all relocated.

They were all relocated with comparable. Yes.

Okay. But there are concerns, apparently. I mean, that's the reason why there was. Yeah, I guess my question would be to Kennedy. Come. Come on up. You guys can go. So they're telling me they all got homes. So why did you end up representing people.

There were you know, we haven't disposed of the lawsuit yet, but they are all now placed. There were a couple remaining persons that were not necessarily receiving comparable housing. We had. I filed a complaint, a civil complaint, and there was a motion for preliminary injunction. After filing the complaint, the remaining tenants were placed. Okay, but there were issues.

There were complications. I will say this, A lot of them did get placed. There were certain persons, say due to disability issues, size of the family Then you get to well, what does comparable housing mean? That's when we deal with vagueness and ambiguity.

And that's what the Attorney General says is wrong with this Bill is that there is no definite definition of comparable. Also.

Well, yeah, I mean a lot of it was just habitability. So for example, there was one unit that was being offered to a lot of residents. It was boarded up, it really wasn't livable. That became a problem.

Okay. Okay. Thank you.

Okay. Thank you.

It's okay. I made that same mistake when I first became a.

Further questions? If not, let's move to our next bill today. Our second bill on the joint agenda, which is Senate Bill 2866, relating to kupuna housing. Repeals the sunset for the State Rent Supplement Program for Kupuna.

Appropriates funds to HPHA for the State Rent Supplement Program for Kupuna, and four positions to support the program. Our first testifier is Senate is HPHA in support. Thank you. Policy Advisory Board for Elderly Affairs in support. Catholic Charities of Hawaii in support.

Good morning, Chairs and Vice Chair. I'm Betty Lou Larson representing Catholic Charities of Hawaii. We strongly support this bill because it will keep the 600 households who have currently been placed and are receiving the subsidy. This is a temporary program and so they really will face homelessness.

But it's also a bigger picture of those who are out there who continue to need help, seniors and low income families. I give an example of one person living, a 67 year old living in a container with no bathroom, then was displaced from there, was couch surfing. Finally did get into an affordable senior housing project, but he was paying over 80% of his income for rent.

So when he came to our program, Housing Assistance Program, we helped seniors 60 years and older to look for housing. We were able to get him connected with rent supplement. He moved in. I mean he got that and now he's able to pay his rent.

He's able to save a little, maybe even, you know, if there's future rent increases, he'll be able to pay for those because he'll be able to maintain that rent supplement through the years. So those are the kind of clients we serve, and we really appreciate this bill to help help them in the permanent placement. Thank you.

Aloha United Way in support. AARP Hawaii in support.

Audrey Suga-Nakagawa from AARP, and we stand in strong support of this measure. We've been a longtime advocate and supporter of this program, and we're very happy to see this program passed to be a permanent program for our kupuna. Thank you.

Thank you. And then several individuals. Annette Tashiro, Glen Kagamida, John A. H. Tomoso, Raelene Tenno, Barbara J. Service, all in support. And Executive Office on Aging in support. Is there anyone else wishing to testify on SB 2866?

Angela Melody Young testifying on behalf of CARES in strong supports. So making the Hawaii State Rental Rent Supplement Program for kupunas permanent. It will help with the critical need for senior housing by providing long term financial stability to low income seniors.

And so this removes the sunset date, it cancels it and it prevents the program from expiring. So it offers consistent ongoing rental assistance to prevent homelessness for vulnerable elderly kupunas. And yeah, this will be very helpful to help with the seniors in our community and caring for them. Thank you.

Thank you. Is there anyone else wishing to testify on Senate Bill 2866? If not, any questions, discussion, Members? Okay. Seeing none. We'll go into recess and we'll come back for decision making.

Welcome back to the joint hearing of the Committees on Housing and Health and Human Services. We are back for decision making. Our first bill, Senate Bill 2957, relating to housing. Having conferred, the Chair's recommendation for the Housing Committee will be to pass this measure with amendments.

We'll be replacing the contents with the creation of a working group to address tenant displacement and relocation broadly, focusing not only on the 201H-38 process, but on all reasons for displacement. Its members will include Senate and House Housing Chairs, HHFDC, HPHA, tenant advocate, the development community, and others that may be selected by the group. It will require consultation with the landlord tenant working group. It will have a blank appropriation and a defective date.

And the committee report will also note the dubious effect of creating two classes of tenants, those who are being relocated for a 201H-38 redevelopment, creating workforce housing for local people, often being financed by state taxpayer dollars who will get benefits, versus a totally private redevelopment, creating only luxury units for wealthy investors who will get nothing.

We'll note further that the HPHA KPT Low Rise Development did in fact provide everything required in this bill, including relocation to a comparable unit. Yet the process was far from smooth and residents still raised a number of issues and concerns. And finally, we'll note a request for $75,000 in appropriations for the expenses of the working group. Members, do we have any questions or discussion? Okay, seeing none. SB 2957, Chair's recommendation is to pass with amendments. Chair votes aye.

Members, SB 2957. Chair's recommendation is pass with amendment. Chair votes aye. Vice Chair votes aye. [Roll Call] Chair, recommendation is adopted.

So for HHS, with Senator Kanuha serving as my Vice Chair, same recommendation. Chair votes aye.

Chair votes aye. [Roll Call] Chair, your recommendation is adopted.

Thank you. And for Senate Bill 2866, relating to Kupuna Housing, Chair's recommendation will be to pass this measure with amendments with a blank appropriation as well as a defective date.

And the committee report will note appropriations requests of $110,160 for two FTE public housing specialist two positions within HPHA and $2.16 million for the State Rent Supplement Program. Any questions or discussion? Okay, seeing none. For SB 2866, Chair's recommendation is to pass with amendments. Chair votes aye.

Members, SB 2866. Chair's recommendation is to pass with amendments. Chair votes aye. Any Members voting with reservations? Any Members voting no? With all others voting aye, with the note of excusal of Senator Fevella, your recommendation is adopted.

So for HHS, same recommendation. Chair votes aye.

Chair votes aye. [Roll Call] Chair, recommendation is adopted.

Thank you very much. We're going to adjourn that hearing and then we're going to proceed to our HOU only agenda, if that's all right, IT. Okay, so no countdown needed, right?

Countdown is only needed when gaveling out of an agenda to gavel into different agenda.

Can I gavel in and out without a countdown? All right, that's what we're going to do. So the Joint Committee on Housing and Health and Human Services is now adjourned. And now we are opening our, reopening our Housing only agenda. We just finished taking testimony on Senate Bill 2787. Okay. And we have a questions. Senator Hashimoto.

DHHL. Just get to the right agenda. So I guess you know, as a matter of policy, why is DHHL, because I'm looking. This is approved by your commission. Why is DHHL wanting this type of grant from the RHRF versus something like DURF?

We are looking at other options, and part of it is for pre-development financing to assist us with the development itself.

But inherently you want money to bolster your rent to own program. Isn't that what this is all about?

That's correct.

And so I guess what is DHHL on its own with your 600 million trying to figure out on how do you create this type of similar program without using other sources like RHRF? Because my concern is if we start dipping it into RHRF, there's no other sources for the things like to the 60 and below population.

If RHRF taps into it, right, then what other programs do regular people have when DHHL has the 600 million that you could be tapping into for these type of programs? Has DHHL done anything with rent to own out of the 600 million?

We have not. And one of the reasons why... Well, let me back up. We've used it more for... So 511 million we've used for infrastructure. And some of these products are addressing the rent with option to purchase numbers. And so it all depends upon the project lessees that we've identified for those particular projects and the type of financial capacity that they have.

So based upon that we have not identified yet until we've assessed the project lessees. And then we move forward with that to identify and work with the developers on pursuing that X number amount to pursue for rent with option to purchase. So the LIHTC programs.

Right, but wouldn't you set some budget aside to make that happen? Because I don't think that's restricted by 279 language. Right?

So we have not pursued it on a vertical basis. All of our vertical development has been brought to the table by our developers as they pursue different types of financial. Or just their capital stack. So they've brought the capital stack to the table. We just have utilized that Act 279 monies specifically for infrastructure.

But you guys have not figured out any way to revolve the 279 dollars?

We've done that with a portion of it. So I want to say about 2% of that has been used as revolving funds. We've also worked with other partners such as Hawaii Community Lending on identifying revolving funds that they offer towards beneficiaries that pursue the owner build options.

Why so little bit? Why only 2%?

Because we wanted to move forward with the infrastructure for the 20 projects that we have throughout the state.

Okay, so that was a decision that both the Chair and the Commission decided on. And now you're then coming to look for other funds that is scarce. Is that what I'm understanding?

We are pursuing other funds besides what we have, besides the 600 million. And some of that funds are also looking at bond financing, which we haven't done for a long time. So that's another option that we're pursuing.

Okay, well, I think, you know, I think what I would like to have seen more is that you utilize your 600 in a more efficient manner to control your own destiny instead of trying to, you know, tap into funds that are extremely scarce, right, out of our RHRF that are needed for those who may not be beneficiaries.

Right. And you know, I think the 600 is supposed to show us that you're being responsible, that you can figure out programs to continue to revolve these monies to kind of do some innovative programming. But it sounds like you made a cognizant determination that you just want to spend it.

So I think we have to really look at where we're going to invest. Right. Because if we take, if we decide to invest more in this, then there's just less for other people, which, you know, it's a decision. But I think you guys have to control your own destiny to a certain extent. And you had the opportunity with the 600, right?

I would also like to add that as we move forward and address the affordable housing for our beneficiaries, it also releases the pressure of those that are also pursuing that affordable housing initiatives at the state and county levels.

So what we've been doing in addressing the 7,000 and specifically for, with the 600 million, we will be able to finish roughly about 25 to 300 in homes. That releases the pressure of affordable housing for these various counties as well as state agencies that are doing the same thing.

Well, I agree. That's why we gave you the 600. But you know, we don't want to get into what's encumbered and what's unspent. So I think you guys got to expeditiously get that moving.

And we are. We have it encumbered and we're in the process. We, as of December 31, 2025, we've spent roughly about 120 million. We have probably another 50 million that we've already spent from at that point till now.

Right, but you have 600. 600, right?

And so that's the reason why we strategically looked at using it for infrastructure purposes, because our developers have found different innovative ways to bring funding to the table for the vertical development.

Well, I hope they do. So we don't necessarily have to dip into RHRF, right? Because the number you have, we said we have 600. You only have spent a little over 100, so there's a lot left. But to me, you would double down on the projects that you have to get them into homes. Instead of doing 20, you do 10, and then you do 10. Well, but I guess that's your decision on what you guys are trying to do.

It could be that we use the 600 million and only get 200 people in homes versus trying to get 2,500 people in homes when we have developers that come to the table and be able to...

I get it. But then you're, then you're just, you have to go get other funds from RHRF and DURF and when, you know, you could just get people all encompassed, right. Using funds, using innovative financing and get them into the homes quicker. Right. Instead of dragging it out and then saying, oh, we don't have more money, enough money, so you have to come back, dip into other funds.

So I think strategically, you guys, and I've been saying this all along. You have to strategically look at what are, what are you doing to get people actually into the homes without having to dip into other things. Right? I think you have to control your own destiny. And I'm afraid that, as costs go up, you're gonna, you're just gonna run out of money, right? You're have 20 projects but then none of them fully built. And that's going to be a problem. Right? All right, thank you, Chair.

Thank you, Senator.

Thank you very much. Any further questions or discussion on Senate Bill 2787? If not, we'll move to our next Bill which is SB 3089 relating to the down Payment Loan Assistance Program. It amends the down payment loan program administered by HHFDC to align with federal requirements and enhance assistance for low and moderate income first time homebuyers.

Our first testifier is HHFDC in support. Thank you. Office of Planning and Sustainable Development in support. Department of Business, Economic Development and Tourism in support. Hawaii Realtors, in support. Thank you. Aloha United Way in support, Johnny May L. Perry with comments and AARP Hawaii in support.

This is Audrey. Hold on a second. Hi. Audrey Suga-Nakagawa for AARP. And of course we stand our testimony in support. The reason why AARP is very much interested in this type of measure is because this really impacts our families. This concerns AARP members' children and grandchildren.

And so having them be able to afford housing and to be able to live and work here is very important for the future of our generation, our older population who want to stay intact with their families. So we thank you for this opportunity to testify in support of this measure.

Thank you very much. Is there anyone else wishing to testify on Senate Bill 3089? Okay. Seeing none, members, any questions? Okay. Chair has question for HHFDC. First of all, why is it necessary to delete the requirement that the loan amount be under 100% of the value?

There are federal programs that allow higher loan to value ratios than 100%. Basically, when there are federal programs that allow for example, closing costs to be covered under the mortgage loan, in which case the loan to value ratio could be over 100%. But I'll note that under our existing program we do not cover closing costs.

So our loan to value ratio would not be over 100% unless further modifications were made to the statute.

Okay. What if the statute were amended to allow the loan to value ratio to be equal to the maximum permitted by federal guidelines?

I believe there'd be additional language needed to allow closing costs to be covered by our mortgage loans.

Wouldn't that do so?

Unless of the conflicting language. Yes, it would.

Why is it necessary to have the power to forgive accrued interest.

This would be only for the down payment assistance loan. So there are two components to our mortgage program. One is the 30 year mortgage and the other is down payment assistance. So currently we're offering 4% of the purchase of the loan amount as an optional down payment assistance program.

And under this program is a 1% simple interest per year. We'd like to offer to forgive that 1% interest after 10 years if the buyer remains compliant. And this is a typical incentive offered by housing finance agencies to encourage long term ownership of homes.

And again, it's just 1% simple interest on the down payment loan only, not the permanent, 30 year permanent loan.

Right, but in your testimony on the previous Bill you emphasized that, you know, the, you know, giving grants would be, or even potentially zero interest loans would be compromising the revolving nature of these funds that are designed to deliver a return to taxpayers as well.

Yes. In this case it's a relatively small amount. Again, it's just 1% of the down payment loan only and it's a 1% simple interest per year. So it's not a huge amount, but it's an incentive for home buyers.

And how much is the down payment loan again?

it can be up to 4% of the mortgage amount. So let's say the mortgage amount is $500,000. It could be 4% of that. So up to $20,000 for down payment assistance, which is a soft second loan.

Okay.

Okay, thank you. Further questions, members? Thank you. If not, we'll move on to our next bill which is Senate Bill 3285 relating to workforce housing.

It establishes the Workforce Housing Regulatory Sandbox program within HHFDC, establishes an advisory council within the Workforce Housing Regulatory Sandbox Program to advise on environmental and cultural practices within specific developments, establishes a position, and requires annual reports to the Legislature and appropriates funds. Our first testifier for SB 3285 is HHFDC in support.

HHFDC stands on his written testimony in support.

Thank you. HCDA in support.

HCDA stands on his testimony and support.

Thank you. OPSD in support.

OPSD stands in support.

Thank you. Maui Chamber of Commerce in support. Housing Hawaii's Future in support. Johnny May L. Perry in opposition and Chamber of Commerce Hawaii in support.

Chamber stands on written testimony in support.

Thank you. Is there anyone else wishing to testify on Senate Bill 3285? Okay. If not, members, any questions or discussion? Okay.

Our next bill today is Senate Bill 3011, relating to public housing, which requires HPHA to allow any resident of a public housing project or state low income housing project to keep one or more pet animals in the residence unit, subject to applicable state laws, county ordinances, and any reasonable conditions.

Provides that HPHA may charge a refundable deposit for each pet animal, but shall not impose a monthly pet fee or pet rent. Allows HPHA to remove a vicious animal to protect persons or property. Our first testifier is SB 3011 is HPHA with comments.

HPHA stands on its testimony with comments.

Thank you. Hawaiian Humane Society in support.

Not present on Zoom, Chair.

Oh, sorry guys. Here in person. Stephanie Kendrick with the Hawaiian Humane Society in strong support of this bill. We acknowledge that HPHA already allows pets in much of its housing, but it does so with antiquated restrictions that do not, that do not make pets either better neighbors or more suitable to housing living.

So we'd like to see those rules opened up to be more aligned with California's public housing rules that place minimal restrictions that are tied to the behavior of the pet and the specific situation of the unit involved.

And we'd also like to see the public housing that is contracted out for management by HPHA to welcome pets, which it does not currently do, and that would open up hundreds of housing units to families with their pets. This is an incredibly important issue to us.

Housing access is the number one reason pets are surrendered to the shelters. And it's also a big issue for our houseless population that is looking to move into housing and unable to find housing that will accommodate their pets. So we appreciate the committee's consideration and hope you will pass this bill. Thank you.

Thank you. Humane World for Animals in support. Animal Interfaith Alliance in Britain in support. Kitty Charm Farm in support. And we have a number of individuals also in support. Is there anyone else wishing to testify on Senate Bill 3011?

Aloha. Angela Melody Young testifying on behalf of ROAR, Rescue of Animal Rights, in strong support of the measure. And so low income families often rely on emotional support animals because they face disproportionately high levels of chronic stress, anxiety, and trauma. And so to have animals with them, it helps them to have a good life and to live well.

And so by allowing more animals to be in housing and to be flexible with those housing rules, this can help to accommodate the owner and the animals that need shelter. And assistance animals help special needs persons that need extra assistance and emotional support. And so by letting more animals into housing, it helps to accommodate the owners.

Thank you. Anyone else also wishing to testify on Senate Bill 3011? If not, any questions or discussion, Members? Chair Elefante.

Thank you, Mr. Park. I know you submitted written testimonies. But for the record, does HPHA currently have a policy to allow pets?

For the federal low income public housing program.

Okay. But not for your entire system of all your units? Okay. And are there any federal requirements that would be too stringent for the state to enact policy or is that more on states in terms of flexibility on looking at allowing based on your federally low income units to expand it basically?

Thank you, Senator. I think the state can do whatever the state wants to do. These are state public housing units. However, there's a lot of things that you got to consider. And in our testimony we state that we have a lot of experience with the federal program.

We just have some concerns that's going to open up the state to potential liability issues, but also because we just feel like it's something that it's up to you guys. So we're not saying we don't not want pets ever. We don't not want pets. But please consider our testimony.

Okay, understood.

Thank you Chair. Thank you. Further questions Members. Okay, if not, we'll move to our next bill which is Senate Bill 3176 relating to housing. It appropriates funds to HPHA to rehabilitate, remodel, renovate and repair housing units. Our first testifier is HPHA in support. Thank you. Catholic Charities Hawaii in support.

Chair, Vice Chair of the Members of the Committee, I'm Betty Lou Larson for Catholic Charities Hawaii. We strongly support this bill because it really addresses the low hanging fruit. These are units that don't need permits, long development times for construction.

They can be brought back into occupancy very fast and they're desperately needed by our Kupuna low income families because the subsidy is like extreme. They pay 30% of their income for rent on the federal projects. That is what so many of the seniors at Catholic Charities helps need.

So this is bringing units back in very fast, very needed. We thank you for your. We hope that you will support this bill. Thank you.

Thank you. Johnny Johnny May L. Perry with comments. Is there anyone else wishing to testify on Senate Bill 3176? If not Members, any questions or discussion? Seeing none. Our next bill is Senate Bill 3312 relating to housing which establishes a program and income tax credit to incentivize the conversion of commercial properties into residential properties.

Our first testifier is HHFDC with comments.

HHFDC stands on written testimony offering comments.

Thank you. Hawaii Department of Taxation with comments.

Thank you. Maui Chamber of Commerce in support. Housing Hawaii's Future in support. And Johnny May L. Perry with comments. Is there anyone else wishing to testify on Senate Bill 3312? Okay, seeing none, that brings us to the end of this hearing agenda.

The department will stand on its comments.

Do we need to recess Members or should we go straight into decision making? All right, let's just go straight into decision making. Let's start with Senate Bill 2787 relating to the rental housing revolving Fund. I just wanted to commend the introducer of this bill for folks focusing on a really important need across our community.

I also wanted to note though that HHFDC has a new down payment assistance program and mortgage program focusing on a similar group of first time home buyers. And we'll also note that the revolving nature of rental housing revolving fund makes it unsuitable for a grant program like the one proposed. So we'll be deferring this measure. Discussion, Members.

Okay, our next bill is Senate Bill 3089 relating to the down payment loan assistance program. Chair's recommendation will be to pass this measure with amendments. On page one, lines nine to eleven, we'll allow the loan to value ratio to be the maximum permitted by federal guidelines.

We'll also include technical non substantive amendments for the purposes of clarity and consistency. Any discussion or questions, members? If not, again for Senate Bill 3089, Chair's recommendation is to pass with amendments. Chair votes Aye.

Members SB 3089, Chair's recommendations passed with amendments. [ROLL CALL] Chair, recommendations adopted.

Thank you. Our next Bill is Senate Bill 3285 relating to workforce housing. Chair's recommendation will be to pass this measure with amendments to defect the date to blank the appropriation.

We'll also take HHFDC's amendment to allow, to amend Section 6 to allow waiver or modification of state approval processes such as those by the State Historic Preservation Division and Department of Health. And further in the Committee report will note the appropriation request of $5 million. Any discussion or questions?

Okay, Ii not, Senate Bill 3285, Chair's recommendation is to pass with amendments. Chair votes Aye.

Members SB 3285, Chairs recommendations passed with amendments. Chair votes aye. Any Members voting with reservations? Any members voting no. With all others voting aye. With the excuse of Senator Fevella for this measure and all others, your recommendation is adopted.

Thank you. Senate Bill 3011 relating to public housing. Chair's recommendation we pass the measure with amendments. We'll defect the date and also insert a blank appropriation for site modifications for 50 sites.

As part of phase one, we'll further insert five additional A funded full time positions allocated as follows, one position each to Kauai, Maui, and Hawaii island and two for Oahu.

And then finally in the Committee report, we'll note the appropriation request for $10 million for site modifications and also for $290,000 per year in recurring A funds for the 5 FTEs. And we'll also note that HPHA has no records of any potential tenants being turned away due to pet ownership. Any questions or discussion?

If not for Senate Bill 3011, Chair's recommendation is to pass with amendments. Chair votes aye.

Members SB 3011, Chair's recommendations passed with amendments. Chair votes aye, noting the presence of Senator Fevella. Any Members voting with reservations? Any Members voting no? With all others voting aye, recommendation's adopted.

Thank you. Yep, we noted. Yeah, thank you.

Senate Bill 3176 relating to housing. Chair's recommendation's to pass this measure with amendments. We'll blank the appropriation amount and also defect the date and we'll include HPHA suggested amendment to clarify Section 1 to include exterior repairs.

So the language will read, there's appropriated at the general revenues, et cetera, et cetera, for HPHA to rehabilitate, remodel, renovate and repair housing units, including exterior repairs. In the committee report, we'll also note the appropriation request of $11,242,000 to renovate 154 vacant federal and state public housing units. Any discussion or questions, members? And welcome, Senator Fevella.

All right, so for Senate Bill 3176, Chair's recommendation is to pass with amendments. Chair votes Aye.

Members, SB 3176. Chair's recommendation is to pass with amendments. Chair votes aye.Note the presence of all members. Any members voting with reservations? Any members voting no? With all others voting aye, recommendation's adopted.

Thank you. For Senate Bill 3312, relating to housing. The Chair first wants to commend the introducer of this measure for addressing a deep need with an innovative new approach. We'll also note that the Chair must receive a reasonable return for its investments and an equity based rather than then a free tax credit based system would be more fiscally sustainable to the taxpayer, and that's why we'll be deferring this measure. Any questions or discussion, Members? Okay, we'll move on to our deferred agenda.

This is the deferred decision making agenda at 1:00pm. The first measure on this notice is Senate Bill 2553, relating to the Housing Loan and Mortgage Program. Chair's recommendation will be to pass this measure with amendments.

The amendments will be to defect the date. To change the authorization ceiling to 4 billion rather than $5 billion. To require HHFDC to produce a report documenting how it will produce enough housing at the 60 to 140% AMI levels to meet demand statewide in the most financially and land efficient manner possible, including the selection of specific parcels where the housing will be built.

We'll also take the Attorney General's amendment to amend the sentence beginning on page 2, line 11, to read, revenue bonds treated as refunding bonds under the Internal Revenue Code of 1986 as amended or successor thereto, shall not count against the aggregate principal amount authorized under this section.

And further, there are technical, non-substantive amendments for the purposes of clarity and consistency. Members, do you have any questions or discussion? Okay. If not for Senate Bill 2553, the Chair's recommendation is to pass it with amendments. Chair votes aye.

Members, SB 2553. Chair's recommendation is pass with amendments. Any Members voting with reservations? Any Members voting no? With all others voting aye, recommendation is adopted.

Thank you. Our next bill is Senate Bill 2675 relating to the low income housing tax credit. Chair's recommendation will be to pass with, this measure with amendments. We'll be defecting the date and also applying this measure only to tax credits issued after July 1, 2026 to prevent windfall profits to holders of the existing tax credits.

Further, we'll take DOTax's recommendation to amend page two, line one to add the words "in a manner prescribed by the Department" to the ending of that sentence. And finally, we'll apply to taxable years beginning after December 31, 2026.

The committee report will note the inefficiency of financing housing projects with state tax credit that sells for 60 cents on the dollar. It would be more fiscally efficient to collect the full value of the tax and make a direct appropriation to projects the Legislature deems to be in the state interest. Members, any discussion or questions?

Okay, if not, for Senate Bill 2675, Chair's recommendation is to pass with amendments. Chair votes Aye.

Members, SB 2675. Chair's recommendation is pass with amendments. Chair votes aye. Any Members voting with reservations? Any Members voting no? With all others voting aye, recommendation's adopted.

Thank you. Next is Senate Bill 2676 relating to housing. Jurist's recommendation will be to pass this measure with amendments. We'll defect the date. We'll also introduce a sunset date after 5 years and we'll take SMA's technical non substantive amendments.

For the purposes of clarity and consistency, we'll further take Center Urban Real Estate's suggested amendments to allow HRS201H36A5 to include get waivers for rental income by deleting the words in 201H36A5A shall apply to contracting only.

Will also require that a housing project subject to a regulatory agreement with an affordability requirement qualify for both GET and RPT exemptions for the duration that the housing remains affordable. I think that's it. Okay. Any questions or discussion? Members if not For Senate Bill 2676, Chair's recommendation is to pass with amendments. Chair votes Aye.

Members SB2676 Chair's recommendation is passed with amendments. Chair votes aye. Any Members voting with reservations? Any Members voting no without others voting aye. Recommendations adopted.

Thank you. Senate Bill 2552, relating to the Individual Housing Account Program. Chair's recommendation will be to pass this measure with amendments. We'll defect the date, and we'll also insert dollar amounts on page two of $17,200 for an individual taxpayer and $34,400 for a married couple.

Page three, $17,200 for a married couple filing separate returns or $34,400 for a joint return and $86,000 for an individual for all taxable years. $86,000 for married individuals having separate individual housing accounts. And on page four, $17,200 for a taxable year or $34,400 for joint returns or the excess of $86,000 for all taxable years.

We'll further in the committee report note the limited adoption of the IHA program with only 101 participants in the year 2006. Any discussion or questions, Members? Seeing none. For Senate Bill 2552, Chair's recommendation is to pass with amendments. Chair votes aye.

Members, SB 2552. Chair's recommendation is pass with amendments. Chair votes aye. Any Members voting with reservations? Any Members voting no? With all others voting aye, recommendation is adopted.

Thank you. And that brings us to our last item, Senate Bill 2451 relating to taxation. Chair's recommendation will be to pass this measure with amendments. We'll defect the date. We'll also apply this measure only to second homeowners where either or both homes are not utilized as a primary residence.

In other words, if someone owns two homes, both of which are occupied as primary residences, either by themselves, renters, or family members, they would continue to be eligible for the deduction. However, if someone owns one home that is a primary residence and the other is not, then they would not be eligible for the deduction.

Further, we'll take DOTax's recommendation in section 2 to identify the type of information that shall be included into the report to the Legislature and that will include the number of second homes claimed on federal returns, the number of Hawaii residents versus non residents, the number of homeowners it applies to, the number of homes that are not used as primary residences, the geographic distribution of the homes, among other pertinent information.

Any questions or discussion, Members? Facing none for Senate Bill 2451 relating to taxation, Chair's recommendation is to pass with amendments and Chair votes Aye.

Members, SB 2451. Chair's recommendation's, pass with amendments, Chair votes aye. Any Members voting with reservations? Any Members voting no? With all others voting aye, recommendation's adopted.

Thank you so much for being with us during this very long hearing today. There being no further business, this hearing is adjourned. Sa.