Senate housing committees weigh DHHL seat on HHFDC, new Department of Housing and multiple housing finance bills; several measures passed

The Senate committees on Housing and Hawaiian Affairs met jointly Feb. 3 to consider multiple housing measures, including Senate Bill 759 to add the chairperson of the Department of Hawaiian Home Lands (DHHL) or a designee to the Hawaii Housing Finance and Development Corporation (HHFDC) board; Senate Bill 68 to create a Department of Housing that would place several housing-related agencies under one umbrella; and a series of financing and program bills affecting HHFDC programs, the Dwelling Unit Revolving Fund (DERF) pilot, and DHHL borrowing authority. Several bills were voted out of committee on the day, while others were deferred for further work.

Supporters of SB 759 argued that adding DHHL representation on the HHFDC board would help Hawaiian Home Lands access tax credits, private activity bonds and other financing to develop lots and housing for beneficiaries. DHHL and several testifiers described existing partnerships with HHFDC — including past awards of Low Income Housing Tax Credits (LIHTC) and use of the Rental Housing Revolving Fund — and said a seat at the table would help DHHL navigate and leverage those funding sources. Opponents and some committee members raised conflicts-of-interest concerns and asked whether non‑voting or informational roles would accomplish the same aims without giving DHHL a voting seat. A DHHL representative said the agency had sought and received an opinion from the State Ethics Commission that a seat would not automatically create a disqualifying conflict and said DHHL would recuse when…