The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Housing on Jan. 31, 2025.
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Jan. 31, 2025, 9:15 a.m.
Hawaii State Capitol
Conference Room 430 and Videoconference
To: House Committee on Housing
Rep. Luke Evslin, Chair
Rep. Tyson Miyake, Vice-Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: HB1 — RELATING TO BUILDING CODES
Aloha Chair Evslin, Vice-Chair Miyake and other members of the Committee,
The Grassroot Institute of Hawaii supports HB1, which would change the State Building Code Council’s responsibilities from adopting state codes to advising the counties on which model codes to adopt.
The bill would also require the State Building Code Council to conduct a financial review of the potential impact of any code changes it recommends to the counties for adoption.
Grassroot believes this measure would help fix the state’s convoluted building code-adoption process, since it would balance the objectives of safety and cost.
State law currently requires the State Building Code Council to adopt every iteration of the International Building Code and related codes within two years of their release; the counties have an additional two years to adopt and make their amendments to the state code.
If the first deadline is missed, the model code automatically becomes the state code. If the second is missed, the state code automatically becomes the county code.[1]
But the Council and counties often struggle to meet these deadlines. For example, it was only in April 2021 that the State Building Code Council adopted the 2018 Interim Building Code[2] and not until early 2023 that Honolulu fully adopted those amendments.[3]
Because of this staggered adoption process, county building officials and architects must constantly re-learn the building code’s requirements.
The almost-constant nature of the building code updates also stresses already understaffed county planning and permitting departments and can exacerbate permitting delays, which research shows can affect the price of housing.[4]
Requiring the State Building Code Council to advise the counties on the potential financial effects of code changes also makes sense.
Construction costs for new single-family homes, apartments, condominiums and other residential dwellings have increased dramatically in Hawaii in recent years. As measured by the Honolulu Construction Cost Index, the cost for single-family homes in 2024 was 2.6 times higher than the cost in 2020. For highrises, the cost was 2.5 times higher.[5]
The state’s strict land-use, zoning and permitting rules are a key driver of these costs. The Economic Research Organization at the University of Hawai‘i has estimated that regulations comprise 58% of the cost of new condominium construction.[6]
The National Association of Home Builders already reviews the financial effects of certain code changes, and could serve as a resource for the State Building Code Council to adapt to Hawaii’s specific climate, topographical and other concerns. NAHB’s review of the 2024 International Residential Code, for example, identified a number of changes that would lower costs and others that would increase them.[7]
A final note for your consideration: The current draft of the bill does not change Hawaii Revised Statutes §107-28, which contains a reference to the state building codes this bill seeks to remove. The language of that section should be changed to reflect the changes proposed here.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] 107-24 Authority and duties of the council., Hawaii Revised Statutes, accessed Jan. 29, 2024.
[2] “State Building Code Adoption,” State Building Code Council, April 20, 2021, p. 1.
[3] “Interim Building Code (2018 IBC) Takes Effect,” Honolulu Department of Planning and Permitting, April 20, 2023.
[4] Paul Emrath, “How Government Regulation Affects the Price of a New Home,” National Association of Homebuilders, Economics and Housing Policy Group, 2011, p. 5; and Adam Millsap, Samuel Staley and Vittorio Nastasi, “Assessing the Effects of Local Impact Fees and Land-use Regulations on Workforce Housing in Florida,” James Madison Institute, Dec. 11, 2018, p. 19.
[5] “Quarterly Statistical and Economic Report, 4th Quarter 2024,” Hawaii Department of Business, Economic Development & Tourism, pp. 107-108.
[6] Justin Tyndall and Emi Kim, “Why are Condominiums so Expensive in Hawai‘i?” Economic Research Organization at the University of Hawai‘i, May 2024, p. 11.
[7] “Estimated Costs of the 2024 IRC Code Changes,” Home Innovation Research Labs prepared for the National Association of Home Builders, July 2, 2024.
