Joint committees pass SB 1235 to create government employee housing revolving fund, add $450,000 for staffing

The Senate committees on Housing and Labor and Technology voted Feb. 6 to pass Senate Bill 1235, a measure directing the Hawaii Housing Finance and Development Corporation (HHFDC) to establish a government employee housing revolving fund and a 99‑year leasehold rent‑to‑own program.

The bill, as amended in decision making, includes a $450,000 appropriation from the revolving fund to pay for two full‑time HHFDC positions to administer the program and removes an income eligibility restriction. The committees also amended the bill to state explicitly that “for‑sale day‑one projects,” including leasehold units, are eligible and to make the program available to members of the general public as more units are produced, not solely government employees.

Supporters told the committees the program could be a recruitment and retention tool for state government. “This could be one of many tools that state government can use to recruit and retain employees,” said Nui Sebastian of the Hawaii Government Employees Association, who stood on written testimony in support.

United Public Workers filed written support and requested clarification about what would happen if a renter elected not to purchase a unit; committee discussion recorded HHFDC’s response that the agency would consider incentives to encourage purchase. Elena Y testified in opposition to the measure’s current scope, saying she supported the intent but was concerned the bill targeted only state employees and could be broadened to include more residents. “My concern is that it’s specific to state workers and it’s very specific to a specific group of people,” Elena Y said during public testimony.

The committees adopted technical, non‑substantive clarifying amendments and HHFDC’s staffing appropriation. The chairs’ recommendation to pass SB 1235 with amendments was adopted in both the Housing committee and the Labor and Technology committee during joint decision making. The transcript records the chair and vice chair voting “aye,” and multiple senators recorded in the roll call also voting aye; one senator was noted as excused during a later roll call.

Discussion: Committee members asked no further substantive questions during decision making. The committees noted they would record UPW’s question and HHFDC’s response about how the program would handle participants who decide not to buy a unit.

Outcome: Passed with amendments. The committee report will note the staffing appropriation, removal of the income restriction, expansion to day‑one for‑sale projects including leaseholds, and the intent to make units available to the general public as more units are produced.

Next steps: The measure now advances per the legislature’s procedures.