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Lanited States ^Fnatc ROOM 7-212 HONOLULU, HI 96850 (808) 523-2061 Testimony in SUPPORT of SB 3104 RELATING to LAND DEVELOPMENT

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Lanited States ^Fnatc ROOM 7-212 HONOLULU, HI 96850 (808) 523-2061 Testimony in SUPPORT of SB 3104 RELATING to LAND DEVELOPMENT BRIAN SCHATZ hart building HAWAII SUITE SH-722 WASHINGTON, DC 20510-1105 (202) 224-3934 300 ALA MOANA BOULEVARD lanitEd States ^fnatc ROOM 7-212 HONOLULU, HI 96850 (808) 523-2061 Testimony in SUPPORT of SB 3104 RELATING TO LAND DEVELOPMENT February 6, 2020 The Honorable Stanley Chang, Chair The Honorable Dru Mamo Kanuha, Vice Chair Hawai'i State Senate Committee on Housing The Honorable Kaiali'i Kahele, Chair The Honorable Gilbert S. C. Keith-Agaran, Vice Chair HawaiT State Senate Committee on Water and Land Dear Chairs Chang and Kahele, Vice Chairs Kanuha and Keith-Agaran and Members of the Senate Committee on Housing and Senate Committee on Water and Land: I am testifying in strong support of SB 3104. This bill represents the effort of stakeholders and elected leaders across the state to identify steps that can and must be taken to implement structural reforms to increase the supply of affordable housing in Hawai'i. For too many, housing means overcrowded dwellings, fear of becoming homeless because rent goes up or crushing commutes on crowded highways. We must do better for working families, not just for a prosperous future but to give people some breathing room for family time, to volunteer to help neighbors, for personal growth and all the other things that make a community vibrant and resilient. Everyone deserves that quality of life. This bill advances us down the path to take bold, ambitious steps to face down the biggest obstacle we face for a better Hawai'i. Thank you for your commitment and for the opportunity to testify. BRIAN SCHATZ United States Senator DAVID Y. IGE DENISE ISERI-MATSUBARA GOVERNOR INTERIM EXECUTIVE DIRECTOR STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION IN REPLY REFER TO: 677 QUEEN STREET, SUITE 300 Honolulu, Hawaii 96813 FAX: (808) 587-0600 Statement of DENISE ISERI-MATSUBARA Hawaii Housing Finance and Development Corporation Before the SENATE COMMITTEE ON WATER AND LAND SENATE COMMITTEE ON HOUSING February 6, 2020 at 1:45 p.m. State Capitol, Room 225 In consideration of S.B. 3104 RELATING TO LAND DEVELOPMENT. The HHFDC strongly supports S.B. 3104, provided it does not adversely impact priorities set forth in the Executive Supplemental Budget. This omnibus housing development measure will facilitate the development of affordable homes for Hawaii's workforce. HHFDC has the following specific comments on this bill. Part II • Section 3 amends §201H-9, HRS, to authorize HHFDC to issue leases for real property set aside by the Governor or leased by any State department or agency for a period not to exceed 99 years. HHFDC would prefer an amendment to §171-2, HRS, to exempt such lands from the definition of "public lands", as proposed in S.B. 2853 and H.B. 2297. Should both bills pass, we respectfully request adding a new subsection (f) to read as follows: (f) The powers conferred upon the corporation by this section shall be in addition and supplemental to the powers conferred by any other law, and nothing in this section shall be construed as limiting any powers, rights, privileges, or immunities conferred. • We strongly support the appropriation of funds in Sections 5 through 7, which addresses one of the major impediments to the development of affordable housing; namely, the lack of major off-site infrastructure. Section 6 targets $200 million for infrastructure to support the development of housing on lands owned by the University of Hawaii at its West Oahu campus. However, we respectfully request that the appropriation language in Section 6 be broadened to provide HHFDC with the added flexibility to fund those regional infrastructure projects that will enable the completion of housing projects as quickly as possible. We suggest the following language be added to Section 6: SECTION 6. There is appropriated out of the dwelling unit revolving fund the sum of $200,000,000 or so much thereof as may be necessary for fiscal year 2020-2021 for the establishment of regional infrastructure for the primary purpose of supporting development of housing on lands located within one mile of a rail transit station, including lands owned by the university of Hawaii that are near or adjacent to the university of Hawaii West Oahu campus;… • We note that HHFDC will require at least 3.0 full-time project manager positions to oversee the infrastructure work funded by this bill. We estimate that total salary and fringe benefits for these positions will require approximately $500,000 per year to fund. Part III • Section 9 amends §201H-12(b), HRS, to authorize HHFDC to develop public land having an area between 15 acres and 25 acres in an agricultural district using the process established pursuant to new §205-3.1(e). Section 201H- 38(a)(4), HRS, provides for an expedited 45-day process for State land use district boundary amendments. We believe that the amendment to §201H-12(b), HRS, is additive to the existing State land use redistricting process. We respectfully request an amendment such that page 8, lines 19 to 21, read as follows: (b) The corporation may develop public land in an agricultural district subject to the prior approval of the land use commission, when developing lands greater than fifteen acres in size, and public land in a conservation district subject to the prior approval of the board of land and natural resources[.]; provided that the corporation may use the process established pursuant to section 205-3.1(e) develop lands having an area between fifteen acres and twenty-five acres. using the process established pursuant to section 205-3.1(e). The corporation shall not develop state monuments, historical sites, or parks. When the corporation proposes to develop public land, it shall file with the department of land and natural resources a petition setting forth the purpose for the development. The petition shall be conclusive proof that the intended use is a public use superior to that which the land has been appropriated. • Section 10 of the bill amends section 205-3.1, HRS, by adding new subsection (e) which allows a person to petition the county decision making authority for a district boundary amendment involving lands comprising 25 acres or less "provided that the majority of the development for which the boundary change is sought shall be for affordable housing." We suggest an amendment to this provision to reference the definition of "affordable housing" in section 201H- 57(b), HRS (i.e. at or below 140 percent of the area median income). Part IV HHFDC does not have any comments on this portion of this bill. Part V HHFDC supports the intent of Part V, which establishes the position Office of the Housing Ombudsman to focus efforts on addressing the housing shortage. Part VI HHFDC is in strong support of Part VI, which lifts the $38,000,000 cap on the Rental Housing Revolving Fund's (RHRF) share of conveyance taxes. HHFDC currently receives 50 percent of conveyance taxes, up to a maximum of $38 million per fiscal year. Any excess accrues to the General Fund. Based on data provided in the Department of Taxation's annual reports, since FY2015, when the RHRF’s share of conveyance taxes was increased to 50%, there has only been one year in which the $38 million cap has not been reached. Thank you for the opportunity to testify. DAVID Y. IGE HAKIM OUANSAFI GOVERNOR EXECUTIVE DIRECTOR BARBARA E. ARASHIRO EXECUTIVE ASSISTANT STATE OF HAWAII HAWAII PUBLIC HOUSING AUTHORITY 1002 NORTH SCHOOL STREET POST OFFICE BOX 17907 HONOLULU, HAWAII 96817 Statement of Hakim Ouansafi Hawaii Public Housing Authority Before the SENATE COMMITTEE ON HOUSING AND SENATE COMMITTEE ON WATER AND LAND Thursday, February 6, 2020 1:45 PM - Room 225, Hawaii State Capitol In consideration of SB 3104 RELATING TO LAND DEVELOPMENT Honorable Chair Chang, Honorable Chair Kahele, and Members of the Senate Committee on Housing and Members of the Senate Committee on Water and Land, thank you for the opportunity to provide testimony concerning Senate Bill (SB) 3104, relating to land development. The Hawaii Public Housing Authority (HPHA) supports, with amendments, SB 3104, which addresses many housing related issues that will assist our state to get out of the housing crisis. The HPHA would like to humbly request that page number 23, lines 1-2 and page 23, lines 9-10 be removed from the measure. In order to receive federal funds, the HPHA, and all other housing authorities, enter into an Annual Contributions Contract (ACC) which provides the terms and conditions between the HPHA and the United States of America, by the Department of Housing and Urban Development (HUD) and covers all federal public housing projects and programs. The HPHA is required to operate these programs in compliance with federal rules and laws. Page 23, lines 1- 2 of the bill is unnecessary, will add an administrative burden and would interfere with the federally mandated grievance process that is currently in place which would cause the HPHA to be in violation of the ACC, rendering the HPHA federally non-compliant and put federal funding at risk. AN EQUAL OPPORTUNITY AGENCY Providing Housing Assistance and Programs Free from Discrimination Similarly, page 23, lines 9-10 of the bill is unnecessary because it would interfere with the ACC federally mandated roles and responsibilities of the HPHA’s Board of Directors (Board). The Board consists of eleven (11) total members, nine (9) are appointed by the Governor and confirmed by the Senate. HUD mandates that the Board be the “legally and financially responsible governing body of a Public Housing Authority (PHA) and the first line of accountability for the PHA’s performance”.
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