Committee advances bill to expedite affordable rental housing redevelopment with targeted amendments

The House Committee on Housing on March 19 voted to pass SB 1170 SD2 HD1, a bill the committee said would expedite redevelopment and development of affordable rental housing and provide expanded flexibility for some properties affected by disasters.

The vice chair recommended moving the bill out with substantive amendments and clarifications; the committee adopted the recommendation and advanced the measure.

Testimony on the bill included support from the Hawaii Housing Finance and Development Corporation (HHFDC); business and developer groups including Pacific Commercial Realty and KCOM Corporation; nonprofit and community groups such as Hale Maho Olu, the Green Party of Hawaii, Maui Chamber of Commerce, and Lahaina Strong; and scores of individuals. Joe Blanco, who identified himself as a developer and said he developed a project on the subject parcel about 30 years ago, testified in support and outlined two technical amendments he and Pacific Commercial Realty submitted. Blanco summarized one amendment as revised language to address an attorney general concern that a special ordinance could be deemed a special law; he said the language was reworked to avoid that finding. He described a second amendment based on discussions with Maui County counsel to clarify that where housing was built under an emergency proclamation, a permit “in process” should be sufficient so projects are not forced to start over if the emergency proclamation expires before improvements are complete.

The vice chair also noted differences between SB 1170 and another bill, SB 1296, and said SB 1170 would allow “expanded footprints for affordable housing,” offering additional flexibility the committee believed could be important for rebuilding some properties. The committee recommended adopting the technical amendments proposed by Pacific Commercial Realty in full, with additional clarifying language proposed by the vice chair: requiring that an application be deemed complete by the relevant agency; excluding parcels on the shoreline or parcels impacted by waves, storm surge, high tide, or shoreline erosion; deleting references to flooding and tsunami to avoid unintended scope expansion; and adding an exemption so permanently affordable multifamily projects within the State Land Use Special Management Area (SMA) being redeveloped under the disaster criteria would be exempt from HRS 343 requirements if the property or district is on the state or national historic register.

The bill’s proponents recorded broad support; the committee did not record formal opposition but noted one individual filed comments. Elizabeth Ray, a former Lahaina teacher who testified remotely, said many of her former students lost homes in the Lahaina fire and urged expedited affordable housing, telling the committee, “No housing. No peace.” The clerk recorded more than 30 individuals in support and one in opposition for the hearing.

On the motion to pass with amendments, the committee’s recommendation was adopted. The vice chair noted excused absences for Representative Cochran, Representative Kitagawa, and Representative Perrick; no members recorded a no vote or reservations on the measure. The recommendation was adopted and the bill will proceed with the HD 1 version and the committee’s technical amendments.

Proponents emphasized that the stated intent is to speed rebuilding and allow greater flexibility in project footprints while carving out specific coastal and hazard‑impacted parcels. Committee discussion focused on clarifying statutory placement, avoiding creating a special law, and ensuring the permit‑in‑process clarification would prevent project restarts after an emergency proclamation expires.