Honolulu, Hawaii



RE:    H.B. No. 884

       H.D. 1

       S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 884, H.D. 1, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to exempt the construction of certain affordable residential units and second dwelling units, and the alteration or expansion of existing dwelling units, from school impact fees.


     Your Committee received written comments in support of this measure from the Hawaii Public Housing Authority; the Office of Planning; the Department of Planning and Permitting, City and County of Honolulu; Hawaii Association of REALTORS; Hawaii Construction Alliance; Pacific Resource Partnership; Hawaii Rental Housing Coalition; and one individual.


     Your Committee received written comments in opposition to this measure from the Department of Education, The Chamber of Commerce Hawaii, Land Use Research Foundation of Hawaii, and the Building Industry Association of Hawaii.


     Your Committee received written comments on the measure from the Hawaii Housing Finance and Development Corporation.


Your Committee finds that a lack of affordable housing, compounded by rising home prices and rental costs, is a significant and challenging problem throughout Hawaii.  Your Committee further finds that lowering the cost of construction for new affordable housing units, and the alteration or expansion of existing dwelling units, by exempting those units from school impact fees is a vital component in addressing the shortage of housing in Hawaii.


     Your Committee has amended this measure by clarifying that an ohana dwelling unit exempted from school impact fees pursuant to this measure may be occupied by persons who are not related to those residing in the first dwelling unit by blood, marriage, or adoption, if the building permit for the ohana dwelling unit was obtained before September 10, 1992.


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 884, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 884, H.D. 1, S.D. 2.


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