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.
_____________
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: HB826 HD2 — RELATING TO HOUSING
Aloha chairs, vice-chairs and other members of the committees,
The Grassroot Institute of Hawaii supports HB826 HD1, which would allow Hawaii’s county planning commissions to approve certain agricultural workforce housing, long-term rental or for-sale workforce housing on lands in the rural or agricultural land-use districts. The bill would sunset on June 30, 2035.
County planning commissions would be allowed to use this alternate approval process as long as the land area is no larger than 100 acres; on land immediately adjacent to the urban district; on land with a soil productivity ratings lower of C or lower, if the lands are in the agricultural district’ and is identified for residential use by the county general plan adopted no earlier than 2005.
The Hawaii Department of Business, Economic Development and Tourism pointed out in a March 2024 report that Hawaii needs an average of 3,297 new housing units per year to satisfy demand between 2025 and 2035.[1]
And as the Hawaii Housing Finance and Development Corp. pointed out in a report to the 2025 Legislature: “The availability and suitability of land for residential development is a critical factor affecting housing production and affordability in Hawaii.”[2]
HHFDC recommended, “streamlining the State Land Use law such that areas designated as ‘urban’ in county general and development plans are automatically included in the ‘urban’ state land use district, eliminating the need for LUC approval. This would simplify the process of reclassifying land for urban use, reduce regulatory duplication, and increase the supply of land available for housing development.”[3]
This targeted carveout for lands adjacent to already suburban or urban areas would give the counties an important tool in reducing Hawaii’s housing shortage.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
____________
[1] “Hawai‘i Housing Demand: 2025-2035,” Research and Economic Analysis Division, Hawaii Department of Business, Economic Development and Tourism, March 2024, p. 2.
[2] “Analysis of Systemic Barriers to Housing Production in Hawaii,” Hawaii Housing Finance and Development Corp., December 2024, p. 1.
[3] Ibid, p. 2.
