Informing the Legislature that on July 2, 2025, the Governor signed the following bill into law: HB422 HD1 SD2 CD1 (ACT 268).

This bill eliminates the construction cost component of school impact fees and exempts affordable housing, government projects, Hawaiian home lands developments, and single-room dwellings from these fees. It requires the School Facilities Authority to establish rules for fee collection and increases the minimum unit count needed to trigger land dedication requirements. The legislature found that school impact fees have added to housing costs without effectively funding school construction - only $5.3 million was collected over 12 years, with $17.6 million unused - while burdening new developments. The bill aims to reduce housing costs by addressing these fee structures and ensuring better use of collected funds.