RELATING TO A DEPARTMENT OF HOUSING.

SB2188

THE SENATE

S.B. NO.

2188

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO A DEPARTMENT OF HOUSING
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
�
The legislature finds that over the past
century, the Territory and State of Hawaii established a variety of entities to
provide and increase the supply of housing in Hawaii.
�
These housing entities are now placed across multiple
departments, which has caused redundancies and bureaucracies that hinder progress
toward solving Hawaii's housing shortage.

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Accordingly, the purpose of this Act is to unify
Hawaii housing efforts by establishing a new department of housing, consisting
of the Hawaii housing finance and development corporation, Hawaii community
development authority, Hawaii public housing authority, office of planning and
sustainable development, and other future state housing entities and
initiatives.

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SECTION
2.
�
Chapter 26, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

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"
�26-
�
Department of housing.
�
(a)
�
The department of housing
shall be headed by a single executive to be known as the director of housing.

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(b)
�
The department of housing shall:

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(1)
�
Be responsible for:

���������
(A)
�
Planning, coordinating, and
implementing section 226-19;

���������
(B)
�
All aspects of policy and planning
relating to the development, redevelopment, preservation, maintenance, and
improvement of housing for individuals and families at all income levels;

���������
(C)
�
All aspects of coastal zone
management and special management area permits, land use, climate change,
sustainability, environmental review, geographic information systems and
mapping, economic resilience, and other statewide policy interests as they
pertain to the development of housing for individuals and families at all
income levels; and

���������
(D)
�
All aspects of planning,
infrastructure, and community building and mixed-use development of housing for
individuals and families at all income levels;

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(2)
�
Strengthen and revitalize
communities throughout the State by promoting affordable housing opportunities;

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(3)
�
Collaborate with local officials,
public agencies, community groups, local housing authorities, and other housing
developers to plan for and develop affordable housing units; and

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(4)
�
Ensure compliance with applicable
statutes, regulations, and financial assistance agreements for funded
activities through long-term program compliance monitoring.

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(c)
�
The department of housing may adopt rules
pursuant to chapter 91 as may be necessary or desirable to fulfill its mission.

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(d)
�
The following are placed in the department of
housing for administrative purposes pursuant to section 26-35:

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(1)
�
Hawaii community development
authority;

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(2)
�
Hawaii
housing finance and development corporation;

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(3)
�
Office
of planning and sustainable development;

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(4)
�
Hawaii
public housing authority
; and

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(5)
�
Any other agencies, boards, and
commissions as shall be provided by law;

provided
that the Hawaii public housing authority shall be attached to the department
for administrative purposes only.
"

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SECTION

3
.
�
Section 26-4,
Hawaii Revised Statutes, is amended to read as follows:

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"
�
26-4
�
Structure of government.
�
Under the supervision of the governor, all
executive and administrative offices, departments, and instrumentalities of the
state government and their respective functions, powers, and duties shall be
allocated among and within the following principal departments that are hereby
established:

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(1)
�
Department of human resources
development (Section 26‑5);

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(2)
�
Department of accounting and general
services (Section 26-6);

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(3)
�
Department of the attorney general
(Section 26-7);

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(4)
�
Department of budget and finance
(Section 26-8);

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(5)
�
Department of commerce and consumer
affairs (Section 26-9);

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(6)
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Department of taxation (Section 26-10);

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(7)
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University of Hawaii (Section 26-11);

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(8)
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Department of education (Section
26-12);

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(9)
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Department of health (Section 26-13);

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(10)
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Department of human services (Section
26-14);

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(11)
�
Department of land and natural
resources (Section 26‑15);

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(12)
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Department of agriculture and
biosecurity (Section 26‑16);

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(13)
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Department of Hawaiian home lands
(Section 26-17);

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(14)
�
Department of business, economic
development, and tourism (Section 26-18);

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(15)
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Department of transportation (Section
26-19);

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(16)
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Department of labor and industrial
relations (Section 26-20);

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(17)
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Department of defense (Section 26-21);

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(18)
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Department of corrections and
rehabilitation (Section 26-14.6); [
and
]

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(19)
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Department of law enforcement (Section
26-14.8)[
.
]
; and

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(20)
�
Department of housing (Section 26- ).
"

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SECTION
4.
�
Section 26-14, Hawaii Revised
Statutes, is amended by amending subsection (d) to read as follows:

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"(d)
�
The [
Hawaii public housing authority and
the
] Hawaii state commission on the status of women [
are
]
is

placed within the department of human services for administrative purposes
only."

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SECTION

5
.
�
Section 26-18,
Hawaii Revised Statutes, is amended by amending subsection (b) to read as
follows:

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"
(b)
�
The following are placed in the department of
business, economic development, and tourism for administrative purposes as
defined by section 26-35:
�
[
Hawaii
community development authority, Hawaii housing finance and development
corporation,
] Hawaii technology development corporation, natural energy
laboratory of Hawaii authority, and any other boards and commissions as shall
be provided by law."

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SECTION

6
.
�
Section 26-52,
Hawaii Revised Statutes, is amended to read as follows:

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"
�26-52
�
Department heads and executive officers.
�
The salaries of the following state officers shall be
as follows:

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(1)
�
The salary of the superintendent of education shall be
set by the board of education.
�
The
superintendent shall be subject to an annual performance evaluation that is in
alignment with other employee evaluations within the department of education
and are based on outcomes determined by the board of education; provided that
nothing shall prohibit the board of education from conditioning a portion of
the salary on performance;

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(2)
�
The
salary of the president of the university of Hawaii shall be set by the board
of regents;

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(3)
�
Effective July 1, 2004, the salaries of
all department heads or executive officers of the departments of accounting and
general services; agriculture
and biosecurity
;
attorney general; budget and finance; business, economic development, and
tourism; commerce and consumer affairs; corrections and rehabilitation;
Hawaiian home lands; health;
housing;
human resources development; human
services; labor and industrial relations; land and natural resources; law
enforcement; taxation; and transportation shall be as last recommended by the
executive salary commission.
�
Effective
July 1, 2007, and every six years thereafter, the salaries shall be as last
recommended by the commission on salaries pursuant to section 26‑
56,
unless rejected by
the legislature; and

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(4)
�
The
salary of the adjutant general shall be $85,302 a year.
�
Effective July 1, 2007, and every six years
thereafter, the salary of the adjutant general shall be as last recommended by
the commission on salaries pursuant to section 26-56, unless rejected by the
legislature, except that if the state salary is in conflict with the pay and
allowance fixed by the tables of the regular Army or Air Force of the United States,
the latter shall prevail.
"

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SECTION

7
.
�
Section 225M-1,
Hawaii Revised Statutes, is amended to read as follows:

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"
�225M-1
�

Purpose.
�
The purpose of this
chapter is to establish an office of planning and sustainable development to
assist the governor;
the director of housing;
the director of business,
economic development, and tourism; the legislature; and state and county
agencies in maintaining an overall framework to guide the development of the
State through a continuous process of comprehensive, long-range, and strategic
planning to meet the physical, economic, and social needs of Hawaii's people,
and provide for the wise use of Hawaii's resources in a coordinated, efficient,
and economical manner, including the conservation of those natural,
environmental, recreational, scenic, historic, and other limited and
irreplaceable resources [
which
]
that
are required for future
generations.

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The
establishment of an office of planning and sustainable development in the
department of [
business, economic development, and tourism,
]
housing,

for administrative purposes, is intended to:

����
(1)
�
Fix responsibility and accountability
to successfully carry out statewide planning programs, policies, and
priorities;

����
(2)
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Improve the efficiency and
effectiveness of the operations of the executive branch; and

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(3)
�
Ensure comprehensive planning and
coordination to enhance the quality of life of the people of Hawaii."

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SECTION

8
.
�
Section 356D-2,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

����
"(a)
�
There is established the Hawaii public
housing authority to be placed within the department of [
human services
]

housing
for administrative purposes only.
�
The authority shall be a public body and a
body corporate and politic."

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SECTION
9.
�
Sections 201H-2, 201H-3, 206E-3,
225M-2, 225M‑3, and 225M-4, Hawaii Revised Statutes, are amended by
substituting the phrase "director of housing" wherever the phrase
"director of business, economic development, and tourism" appears, as
the context requires.

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SECTION
10.
�
Sections 201H-2, 206E-3, and 225M-2,
Hawaii Revised Statutes, are amended by substituting the phrase
"department of housing" wherever the phrase "department of
business, economic development, and tourism" appears, as the context
requires.

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SECTION
11.
�
All rights, powers, functions, and
duties of:

����
(1)
�
The department of business, economic
development, and tourism relating to the Hawaii housing finance and development
corporation pursuant to chapter 201H, Hawaii Revised Statutes; Hawaii community
development authority pursuant to chapter 206E, Hawaii Revised Statutes; and
office of planning and sustainable development pursuant to chapter 225M, Hawaii
Revised Statutes; and

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(2)
�
The department of human services
relating to the Hawaii public housing authority pursuant to chapter 356D,
Hawaii Revised Statutes,

are
transferred to the department of housing.

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All
officers and employees whose functions are transferred by this Act shall be
transferred with their functions and shall continue to perform their regular
duties upon their transfer, subject to the state personnel laws and this Act.

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No
officer or employee of the State having tenure shall suffer any loss of salary,
seniority, prior service credit, vacation, sick leave, or other employee
benefit or privilege as a consequence of this Act, and the officer or employee
may be transferred or appointed to a civil service position without the
necessity of examination; provided that the officer or employee possesses the
minimum qualifications for the position to which transferred or appointed; and
provided that subsequent changes in status may be made pursuant to applicable
civil service and compensation laws.

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An
officer or employee of the State who does not have tenure and who may be
transferred or appointed to a civil service position as a consequence of this
Act shall become a civil service employee without the loss of salary,
seniority, prior service credit, vacation, sick leave, or other employee
benefits or privileges and without the necessity of examination; provided that
such officer or employee possesses the minimum qualifications for the position
to which transferred or appointed.

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If
an office or position held by an officer or employee having tenure is
abolished, the officer or employee shall not thereby be separated from public
employment, but shall remain in the employment of the State with the same pay
and classification and shall be transferred to some other office or position
for which the officer or employee is eligible under the personnel laws of the
State as determined by the head of the department or the governor.

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SECTION
12.
�
All rules, policies, procedures,
guidelines, and other material adopted or developed by the transferred agencies
to implement provisions of the Hawaii Revised Statutes that are reenacted or
made applicable to the department of housing by this Act shall remain in full
force and effect until amended or repealed by the department of housing
pursuant to chapter 91, Hawaii Revised Statutes.
�
In the interim, every reference to the
department of business, economic development, and tourism and department of
human services as they pertain to the transferred agencies in those rules,
policies, procedures, guidelines, and other material is amended to refer to the
department of housing, as appropriate.

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SECTION
13.
�
All deeds, leases, contracts, loans,
agreements, permits, or other documents executed or entered into by or on
behalf of the department of business, economic development, and tourism and the
department of human services as they pertain to the transferred agencies
pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or
made applicable to the department of housing by this Act shall remain in full
force and effect.
�
Upon
the effective date of this Act, every reference to the department of business,
economic development, and tourism and the department of human services as they
pertain to the transferred agencies in those deeds, leases, contracts, loans,
agreements, permits, or other documents shall be construed as a reference to
the department of housing
.

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SECTION
14.
�
All appropriations, records,
equipment, machines, files, supplies, contracts, books, papers, documents,
maps, and other personal property heretofore made, used, acquired, or held by
the department of
business, economic development, and
tourism and the department of human services
relating to the functions
transferred to the department of housing shall be transferred with the
functions to which they relate.

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SECTION
15.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION
16.
�
This Act shall take effect on July
1, 2050.

INTRODUCED BY:

_____________________________

Report Title:

Department
of Housing; HCDA; HHFDC; OPSD; HPHA; Establishment; Transfer

Description:

Establishes
the Department of Housing.
�
Places the
Hawaii Community Development Authority, Hawaii Housing Finance and Development
Corporation, Office of Planning and Sustainable Development, and Hawaii Public
Housing Authority within the Department of Housing for administrative
purposes.
�
Replaces the Director of
Business, Economic Development, and Tourism with the Director of Housing on the
Hawaii Community Development Authority.
�

Effective 7/1/2050.

The summary description
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not legislation or evidence of legislative intent.