Informing the Legislature that on July 8, 2026, the Governor signed the following bill into law: HB2385 HD3 SD1 CD1 (ACT 215).

This bill, signed into law as Act 215, shifts the authority to approve general excise tax exemptions for affordable housing projects from individual counties to the state's Hawaii Housing Finance and Development Corporation. Beginning January 1, 2027, the state agency will certify these tax incentives for developments that utilize county housing programs, aiming to better offset rising construction costs and interest rates. The legislation also grants counties expanded powers to develop, finance, and construct low- and moderate-income housing, including the ability to make loans, guarantee mortgages, and acquire land, while prohibiting counties from issuing state general obligation bonds for such projects. These changes are designed to leverage both state and local resources to address Hawaii's ongoing housing shortage by streamlining the approval process for affordable rental housing.