The following testimony was submitted for consideration by the Grassroot Institute of Hawaii on Feb. 7, 2025, by the Senate Committees on Water and Land and Hawaiian Affairs.
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Feb. 7, 2025, 1:16 p.m.
Hawaii State Capitol
Conference Room 229 and Videoconference
To: Senate Committee on Water and Land
Sen. Lorraine Inouye, Chair
Sen. Brandon Elefante, Vice Chair
Senate Committee on Hawaiian Affairs
Sen. Herbert “Tim” Richards, III, Chair
Sen. Joy San Buenaventura, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaignsd
RE: SB1002 — RELATING TO AFFORDABLE HOUSING
Aloha Chairs, Vice-Chairs and other members of the committees,
The Grassroot Institute of Hawaii supports SB1002, which would require the Hawaii Department of Land and Natural Resources to contract with third parties for the review of state or private affordable housing projects and private projects that affect historic properties if the State Historic Preservation Division cannot complete the review within 60 days.
Grassroot has advocated contracting with third parties when practical to conduct certain government work.
As we pointed out in our recent report “Seven low–cost ways to speed up permitting in Hawaii,” Maui County has seen success in contracting with the private firm 4Leaf to expedite the rebuilding of structures in Lahaina that were destroyed or heavily damaged by the August 2023 wildfires.[1] Maui County often takes 200 days to approve permits, but 4Leaf has issued permits in just over 73 days, on average.[2]
According to The Economic Research Organization at the University of Hawai‘i, Hawaii’s housing regulations are the strictest in the country and “approval delays” for housing developments are three times longer than the national average among communities surveyed.[3] Likewise, UHERO researchers have estimated that regulations comprise 58% of the cost of new condominium construction.[4]
Land-use and zoning rules are a key driver of Hawaii’s housing crisis. As measured by the state’s Honolulu Construction Cost Index, the cost for building 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]
Historic preservation reviews certainly play a role in these delays and their associated costs. While SHPD’s average review times for projects are not readily available, the agency noted in its report to the 2023 Legislature that its archaeology reviews were taking between six months and one year, on average.[6]
Allowing third parties to conduct historic reviews could streamline the system for everyone.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Jonathan Helton, “Seven low cost ways to speed up permitting in Hawaii,” Grassroot Institute of Hawaii, Oct. 2024, p. 11.
[2] Ibid, p. 11. See also Maui’s Automated Planning and Permitting System. Permit type: Building Permit – Disaster Recovery for Single-Family Dwellings, Accessory Dwellings and Accessory Structures. Status: Issued. Date range: April 29, 2025 to Dec. 30, 2024. Then download the results.
[3] 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.
[4] 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.
[5] “Quarterly Statistical and Economic Report, 4th Quarter 2024,” Hawaii Department of Business, Economic Development & Tourism, pp. 107-108.
[6] “Report to the Thirty-Second Legislature 2023 Regular Session on the State Historic Preservation Program For Fiscal Year 2021-2022,” Hawaii Department of Land and Natural Resources, October 2022, p. 1.
