The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Housing on Feb. 7, 2025.
_____________
Feb. 7, 2025, 9 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: HB419 — RELATING TO HOUSING
Aloha Chair Evslin, Vice-Chair Miyake and other members of the Committee,
The Grassroot Institute of Hawaii supports HB419, which would decrease the time Hawaii’s county councils have to approve, approve with modification, or disapprove a 201H affordable housing project already approved by the Hawaii Housing Finance and Development Corp. from 45 days to 30 days.
The Economic Research Organization at the University of Hawai‘i has found that Hawaii’s housing regulations are the strictest in the country, and “local political pressure” in Hawaii on housing developments is in the top 5% of communities surveyed.[1] Likewise, UHERO researchers estimated that regulations comprise 58% of the cost of new condominium construction.[2]
This suggests that reducing the power of Hawaii’s county councils over state-approved affordable housing projects could lower carrying costs, which would benefit builders and residents alike.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
_____________
[1] Rachel Inafuku, Justin Tyndall and Carl Bonham, “Measuring the Burden of Housing Regulation in Hawaii,” The Economic Research Organization at the University of Hawai‘i, April 14, 2022, p. 6.
[2] Justin Tyndall and Emi Kim, “Why are Condominiums so Expensive in Hawai‘i?” The Economic Research Organization at the University of Hawai‘i, May 2024, p. 11.
