House Housing Committee advances package of housing bills; SHPD capacity and historic-preservation rules draw scrutiny

The House Committee on Housing on Wednesday advanced a package of housing bills with amendments after hours of testimony on historic-preservation review, county permitting capacity and protections for Maui recovery areas.

Committee members approved committee reports or recommended passing with amendments for a range of measures including SB26 SD2 (a transit‑oriented development land study), SB66 SD2 (expedited permitting and historic-preservation procedures), SB1002 SD2 (third‑party review and shot‑clock for affordable housing historic reviews), SB1263 SD2 (historic‑preservation process changes), SB332 SD1 (foreclosure protections), SB414 SD2 (restoring access to disaster‑affected areas), SB942 SD1 (rental application evidence), SB576 SD1 (HPHA financial administration), SB1413 SD1 (HPHA technical), SB31 SD2 (property), and SB801 SD1 (managing agents). Several measures were amended to include funding notes, reporting deadlines or sunset/defect dates.

Why it matters: Lawmakers said the bills aim to speed housing production and clarify preservation procedures, but agency witnesses repeatedly warned about the State Historic Preservation Division’s (SHPD) limited staffing and the potential for procedural gaps that could harm historic and Native Hawaiian sites or produce unintended administrative burdens for counties and applicants.

During testimony, Jessica Puff, administrator of the State Historic Preservation Division, described how SHPD would handle inadvertent discoveries of human remains under existing law and the practical limits on staff capacity. “No. 60.43 would still apply if there's an inadvertent discovery,” Puff said, noting that burial‑site procedures and consultation with island burial councils and descendants remain in place even if review timelines are shortened.

Office of Hawaiian Affairs (OHA) witnesses urged clearer language to ensure consultation when projects may affect Native Hawaiian historic properties. Kamakana Ferrer, lead compliance specialist with OHA, asked that OHA and island burial councils be included as consulting parties for programmatic and risk‑assessment processes and recommended extending one draft time period from six months to one year to allow adequate consultation.

Lahaina recovery and permitting: Testimony from Maui groups highlighted worries about expedited permitting in post‑disaster areas. Katie Austin of Lahaina Strong testified in opposition to SB66’s current language, saying that removing oversight could let projects “slip through the cracks” and exacerbate West Maui’s strained water and infrastructure systems. The committee’s adopted amendment to SB66 clarified that counties must follow Chapter 6E (historic preservation statute) and that county certifications must include a statement that on‑site infrastructure is adequate.

Third‑party reviewers and shot clocks: SB1002SD2 drew sustained discussion about giving SHPD the ability to hire third‑party reviewers when it cannot complete reviews within the statutory time. Puff described how SHPD would triage affordable‑housing projects and assess whether a third‑party reviewer is required. The committee added language to: (1) ensure the 60‑day shot clock for SHPD does not start until the application is complete, (2) exempt projects subject to Section 106 of the National Historic Preservation Act (federally funded projects), (3) require the applicant to request third‑party review before being charged, and (4) make third‑party review contingent on availability of qualified reviewers. The committee also recommended a five‑year sunset for the authority to use third‑party reviewers to encourage SHPD to hire staff.

Other actions and clarifications: The committee recommended a $500,000 appropriation and a 2027 reporting deadline for the SB26 TOD public‑lands study, and noted $250,000 for appraisal and legal services in the committee report for SB414 to begin condemnation proceedings if necessary to restore access to disaster‑affected sites. The committee changed the proposed 30‑day window in SB942 SD1 (rental documentation) to 90 days to accommodate tenants with nontraditional income documentation.

Votes at a glance

- SB26 SD2 (affordable housing/TOD land study): Committee recommended pass with HD1 (study purview moved to OPSD; $500,000 requested; report due 2027); committee roll call recorded and recommendation adopted (Chair Eslin — aye; Vice Chair Miyake — aye; Rep. Grandinetti — aye; Rep. Keeler — aye; Rep. Kitagawa — aye; Rep. LaChica — aye; Rep. Muraoka — aye; Rep. Peric — no; Rep. Parikh — no; Rep. Cochran — excused).

- SB66 SD2 (expedited permitting / historic preservation): Recommended pass with HD1, clarifications added to preserve Chapter 6E processes and require county certification of infrastructure; recommendation adopted.

- SB332 SD1 (foreclosure protections; floor closures): Recommended pass with HD1 (defective date 07/01/3000); recommendation adopted.

- SB414 SD2 (restore access to disaster areas): Recommended pass with HD1 (defective date 07/01/3000; committee report to note $250,000 for appraisal/legal to begin condemnation proceedings); recommendation adopted.

- SB1002 SD2 (affordable housing / SHPD third‑party review and shot‑clock): Recommended pass with HD1 and technical amendments (60‑day shot clock begins when SHPD finds application complete; third‑party review constraints; 5‑year sunset suggested; appropriation noted $100,000); recommendation adopted.

- SB1263 SD2 (historic preservation): Recommended pass with HD1 replacing bill text with House language; deadlines clarified to 90 days or 30 days if no historic properties present; OHA/burial council consultation added where applicable; recommendation adopted.

- SB576 SD1 (financial administration, HPHA): Section found unconstitutional by Attorney General; committee deleted problematic section and moved remaining provisions forward; recommendation adopted.

- SB942 SD1 (rental applications): Recommended pass with HD1; 30‑day window changed to 90 days; recommendation adopted.

- SB1413 SD1, SB31 SD2, SB801 SD1 and other items on the agenda: Committee recommended passing with technical or procedural amendments or deferring to other committees for further work (SB801 referred to CPC for condominium/consumer protection work); recommendations adopted or deferred as stated by the chair.

What was not decided: Committee members deferred some zoning‑change proposals (SP25 SD1) citing administrative difficulties and referred SB801 (managing agents) to the Consumer Protection & Commerce Committee for further work on licensing/credentialing concerns.

Discussion vs. decision: The article summarizes committee decisions (formal committee recommendations and votes) and separates those from ongoing discussions or requested follow‑up (SHPD staffing data requests, OHA consultation language, sunset/scope clarifications). Several agencies asked the committee to preserve existing statutory protections (for example, burial‑site protections and Section 106 federal processes) even as the committee sought to tighten review timelines for certain affordable housing projects.

Looking ahead: The committee asked SHPD to supply updated backlog and county‑by‑county workload data for future deliberations and included reporting and funding language in several committee reports to support studies and staffing/contract needs. The adopted amendments generally attempt to balance faster project review for affordable housing with retained avenues for cultural and historic review and post‑disaster protections.

Ending note: Committee members repeatedly emphasized the goal of speeding housing production while asking agencies to return with more data on staffing, backlogs and implementation risks so the Legislature can judge whether time limits, third‑party review authority or sunset clauses are needed to achieve both speed and preservation.