Finance committee advances DHHL funding, judiciary and housing bills; several housing measures passed

Committee action The House Committee on Finance on May 20 moved a large group of bills at a lengthy decision session, approving measures that fund and authorize housing programs, adjust court procedures and create new procurement and infrastructure authorities. Among the major outcomes were approvals for a $600 million DHHL funding authorization, the pair of deed‑restriction/ADU bills modeled on localities such as Vail, Colo., and a package of judiciary items to increase pay for court‑appointed counsel and jurors.

Why it matters The package mixes long‑running legislative priorities: accelerating construction and homeownership pathways for native Hawaiians, creating new tools to protect long‑term local housing supply, and addressing strain in the judiciary caused by a shortage of private counsel who accept court appointments. Lawmakers and stakeholders framed the votes as targeted policy steps to relieve backlogs and stabilize local communities.

Key actions and outcomes - DHHL funding (HB606 HD1): Committee recommendation — pass unamended; outcome — approved. The measure authorizes $600,000,000 for the Department of Hawaiian Home Lands to accelerate vertical construction, developer agreements and other production pathways. Department testimony cited the agency’s 29,000‑name wait list and said the requested funds would be dispersed across dozens of projects the department is developing.

- Deed‑restriction / ADU programs (HB739 HD2 and HB740 HD2): Committee recommendation — pass unamended; outcomes — approved. The pair creates a deed‑restriction purchase program and an ADU incentive program. Witnesses and proponents said the idea is to create a parallel, secondary housing market restricted to local residents or local workers. Sponsors cited Vail, Colorado’s experience as a model for preserving housing for local workforce while freeing scarce subsidy dollars to target lower‑income tiers.

- Court‑appointed counsel and juvenile counsel rates; juror pay (HB396, HB398, HB395 series referenced in testimony): Committee recommendation — pass unamended; outcomes — approved. The judiciary and the public defender’s office urged the panel to raise hourly fees and statutory caps that have not been adjusted in about two decades, saying too few private attorneys now accept indigent defense appointments. The committee advanced the measures to increase compensation and to authorize additional district judges in high‑need circuits.

- Deferred and notable dispositions: HB1318 (proposed amendments to HRS 171 relating to ceded lands and county authority) — the committee chair recommended deferral after lengthy public testimony opposing transfers of ceded/crown lands without resolving long‑standing Native Hawaiian land claims and trust concerns; the committee deferred further action on this measure for later consideration.

Quotes from the hearing - “We have over 29,000 on our wait list,” Carly Watson, testified for the Department of Hawaiian Home Lands, pressing that the $600 million package would be used for a second tranche of projects. (Paraphrased from testimony recorded in the committee.) - “This bill is a bright light…we need $6 billion to solve the entire backlog, 600 million is a start,” said a DHHL supporter during public testimony.

Context and next steps The committee’s votes move bills to floor calendars and, where appropriation language appears, toward budget execution and implementation steps. Several measures require follow‑on rule‑making or county implementation — for example, deed restriction purchases will be administered through county programs that set eligibility criteria and negotiating frameworks for purchase amounts. The judiciary measures will require appropriation approval in the budget process before implementation of higher rates and additional judges.

Provenance (selected evidence from transcript) - DHHL funding discussion and figure: witness testimony and department statement (see hearing transcript entries beginning s=6645.63 through s=6966.485). - Deed‑restriction and ADU debate: testimony from Holomua Collaborative, Hawaii Appleseed, and county representatives (see transcript around s=8232–s=9100). - Judiciary and counsel rate testimony: public defender and judiciary comments (see transcript s=16773–s=17816). - HB1318 public comment / deferral discussion: extensive public testimony opposing land transfers (see transcript s=2374–s=4138 and committee recommendation at s=15154–s=15155).

Salience and recommended follow‑up This package has high local civic salience: it includes major funding for DHHL (affecting thousands on the wait list), structural changes to protect local housing, and judiciary changes intended to preserve criminal justice functioning. Recommended follow‑ups for reporters and policy staff: (1) track DHHL project lists and implementation timelines, (2) monitor county deliberations and proposed deed‑restriction valuation methods, and (3) ask the judiciary for a schedule showing when new counsel rates and judge positions would take effect.

Speakers referenced (selection) Carly Watson, Department of Hawaiian Home Lands (appeared in testimony); Josh Wish, Holomua Collaborative; Susan Le, Hawaii Appleseed; Haley Chang, Office of the Public Defender; Michelle Acosta and Jennifer Wong, Judiciary; William Heflin, private practitioner and Hawaii County Bar Association; multiple county and nonprofit representatives.