The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Housing on March 12, 2025.
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March 12, 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: SB1002 SD2 — RELATING TO AFFORDABLE HOUSING
Aloha Chair Evslin, Vice-Chair Miyake and other members of the Committee,
The Grassroot Institute of Hawaii supports SB1002 SD2, which would require the Hawaii Department of Land and Natural Resources to contract with third parties for the reviews of state affordable housing projects if the State Historic Preservation Division cannot complete the reviews within 60 days.
Grassroot has long 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 had 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 84 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]
Grassroot’s recent white paper “Preserving the past or preventing progress?” analyzed SHPD data and found that more than 90% of the projects the agency reviewed from 2021 to 2024 had no impact on historic properties.
The average review time for projects issued determinations has been 94 days. However, the SHPD reviewed less than half of the applications it has received during this period.
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 Feb. 12, 2025. 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.
