The following testimony was submitted by the Grassroot Institute of Hawaii on March 18, 2025, for consideration by the Senate Committees on Housing and Water and Land.
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March 18, 2025, 1:05 p.m.
Hawaii State Capitol
Conference Room 225 and Videoconference
To: Senate Committee on Housing
Sen. Stanley Chang, Chair
Sen. Troy Hashimoto, Vice Chair
To: Senate Committee on Water and Land
Sen. Lorraine Inouye, Chair
Sen. Brandon Elefante, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: HB732 HD2 — RELATING TO SHORELINE MANAGEMENT AREAS
Aloha chairs, vice-chairs and other members of the committees,
The Grassroot Institute of Hawaii supports HB732 HD2, which would increase the valuation thresholds for determining whether a project in a special management area must apply for a minor permit or a use permit, and index those thresholds to inflation.
The bill would also allow a single-family home 3,500 square feet or smaller to be processed under a SMA minor permit regardless of valuation and contingent on the home not being part of a larger development.
Currently, any non-exempt “development” must apply for an SMA minor permit if the project is valued at $500,000 or less and has no significant environmental impact. If the “development” is valued above $500,000 or could have a significant environmental impact, it requires an SMA use permit.[1]
These figures have not been updated since 2011, when the threshold was increased from $125,000 to $500,000.[2] Adjusted for inflation, $500,000 in December 2010 had the same purchasing power as $719,970 in December 2024.[3] HB732 HD2 would set the threshold at $750,000.
Increasing the threshold and requiring inflation adjustments every five years would protect builders from inflation and save the Legislature time from having to update the threshold by statute.
Applying for an SMA minor permit takes less time and resources than applying for an SMA use permit, which often requires a public hearing and a vote from a county planning commission or County Council. Minor permits, on the other hand, often only need approval from the county planning director.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] 205A-22 Definitions., Hawaii Revised Statutes, accessed Jan. 31, 2025.
[2] Session Laws of Hawaii 2011 Act 153, accessed Jan. 31, 2025.
[3] “CPI Inflation Calculator,” U.S. Bureau of Labor Statistics, December 2010 compared to December 2024, accessed Jan. 31, 2025.
