Housing

This message from the Governor informs the Hawaii Legislature that he signed Act 250 into law on July 14, 2026. The bill makes permanent the state rent supplement program for elderly residents, known as kupuna, which provides monthly rental assistance to prevent eviction and homelessness. Previously set to expire in 2026, the program's sunset date was extended to 2028 before this legislation made the funding permanent. The act takes effect on July 1, 2026, ensuring continued support for approximately 300 at-risk elderly individuals who receive less than $500 per month in aid.

This bill amends the rules for the Hawaii Housing Finance and Development Corporation to address housing shortages by updating how "qualified residents" are defined and what restrictions apply to affordable housing units. It removes certain financial screening requirements that duplicate standard lender checks and allows deed-restricted units to be rented long-term after an initial occupancy period, rather than requiring perpetual owner-occupancy. The law also limits a qualified resident to owning a majority interest in no more than one dwelling property at a time, requiring the sale of any additional property within two years. These changes aim to reduce administrative burdens, prevent vacant investment holdings, and ensure that affordable housing remains available to local residents without unnecessarily restricting household mobility.

This bill extends the Dwelling Unit Revolving Fund equity pilot program in Hawaii from June 2028 to June 2031, allowing the state housing finance corporation to continue helping qualified buyers purchase homes at reduced prices. The program specifically targets residents in critical shortage professions like healthcare and education by having the state purchase a share of equity in new homes, which lowers the purchase price for the buyer. Additionally, the law requires that these equity purchases be limited to homes located in transit-oriented development zones, such as areas near major bus routes or transit hubs. By amending existing statutes, the bill ensures that the program's requirements and eligibility rules remain in effect through the extended deadline.

This bill, signed into law on July 8, 2026, requires Hawaiian counties to conduct specific studies before implementing or changing rules that mandate developers build affordable housing units. Under the new law, any requirement forcing developers to include affordable units is treated legally as a fee, meaning counties must prove the rule is necessary and financially feasible before adopting it. If a county wants to set an affordable housing requirement above ten percent, it must provide written evidence showing the rule is proportional and won't make projects unbuildable. These new rules aim to ensure that policies requiring affordable housing are based on data and do not inadvertently reduce the overall supply of homes available to residents.

This bill, signed into law as Act 212, establishes a new Rental Housing Revolving Fund to support the development, construction, and preservation of affordable rental housing in Hawaii. The fund will be administered by the state corporation and can be financed through legislative appropriations, conveyance taxes, private donations, loan repayments, and interest. It provides various forms of financial assistance, including loans, equity investments, and credit enhancement, with a specific priority given to projects that include a significant number of very low-income units. The legislation also defines a "mixed-income rental project" as a development offering units to households at different income levels, primarily those earning at or below 140% of the area median income.

This bill, signed into law by Governor Josh Green on July 13, 2026, modifies how school impact fees are applied to residential developments in Hawaii to address housing costs. It directly affects developers and housing projects by expanding exemptions from these fees for smaller developments with fewer than 500 units, affordable housing, and other specific property types. The legislation also clarifies the procedures for paying fees in lieu of land dedications and removes previous reporting requirements while reorganizing related fee accounts. Ultimately, the act aims to reduce financial barriers for smaller housing projects while maintaining contributions from larger developments that significantly increase school enrollment.

This bill, signed into law as Act 214, amends Hawaii statutes to update the rules for the state's downpayment loan assistance program. It directly affects eligible homebuyers by defining how they can receive financial help for purchasing residential property. The key provisions allow the state corporation to provide loans covering up to 15% of a home's price or $60,000, whichever is less, with interest rates set based on federal requirements and market conditions. To qualify, borrowers must be U.S. citizens or resident aliens, live in Hawaii, complete a homeownership counseling program, and contribute at least 3% of the purchase price themselves. The bill also specifies that these loans must be used strictly for downpayments and closing costs, and the property cannot be sold without the lender's approval.

This bill, signed into law by the Governor on July 8, 2026, amends Hawaii's Individual Housing Account Program to increase the tax benefits available to residents saving for a home. It directly affects Hawaii residents who wish to purchase their first principal residence by raising the maximum annual tax deduction for contributions to these accounts from $5,000 to $20,000 for individuals and from $10,000 to $40,000 for married couples filing jointly. Additionally, the bill increases the lifetime contribution limit for these accounts from $25,000 to $200,000 per individual or couple. The legislation also updates the definition of an eligible financial institution to include depository services loan companies, ensuring that contributions made to these accounts can be deducted from taxable income.

This bill establishes a five-year pilot program called "Hawaii Builds" within the Hawaii Housing Finance and Development Corporation to address the state's shortage of affordable housing for middle-income families. The program allows the corporation to use up to $20 million per year from its revolving fund for predevelopment activities like land acquisition and design, while requiring interagency coordination to speed up project timelines. To qualify, projects must be located on sites with adequate infrastructure, preferably in residential zones, and ensure all units meet specific affordability standards. Additionally, the law mandates that at least one such pilot project be designated in each county to promote statewide participation.

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.