STAND. COM. REP. NO. 495
RE: S.B. No. 1190
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2019
State of Hawaii
Your Committees on Housing and Water and Land, to which was referred S.B. No. 1190 entitled:
"A BILL FOR AN ACT RELATING TO LEASEHOLD CONDOMINIUMS ON LANDS CONTROLLED BY THE STATE,"
beg leave to report as follows:
The purpose and intent of this measure is to authorize the Hawaii Housing Finance and Development Corporation (HHFDC) to enter into ninety-nine year leases of units in residential condominiums located on state lands.
Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; and Building Industry Association of Hawaii. Your Committees received comments on this measure from the Office of Hawaiian Affairs.
Your Committees find that there is a severe shortage of affordable housing available in the State. Your Committees further find that developing state lands can be a potential solution to the housing shortage. Allowing HHFDC to sell leasehold units in condominiums on state land to qualified residents will provide homeownership opportunities to Hawaii residents without necessitating the sale of the state land in fee simple. Your Committees also find that most residential developments on leasehold lands require extended lease terms to make projects economically feasible.
Your Committees note the concern of the Office of Hawaiian Affairs regarding the length of the 99-year lease and the Office's request for a more reasonable lease term. Your Committees also note the Office of Hawaiian Affairs' concern regarding the complete exemption of lands set aside by the Governor or lands leased to HHFDC by other state agencies from all public land requirements.
Accordingly, your Committees have amended this measure by:
(1) As suggested by the Office of Hawaiian Affairs:
(A) Reducing the lease term length from 99 years to 75 years; and
(B) Subjecting state lands set aside by the Governor to the HHFDC and lands leased to HHFDC by any department or agency of the State to legislative approval requirements prior to the sale or gift of the lands; and
(2) By making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the records of votes of the members of your Committees on Housing and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1190, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1190, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Housing and Water and Land,
KAIALI'I KAHELE, Chair
STANLEY CHANG, Chair