The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu City Council Committee on Budget on April 16, 2025.
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April 16, 2025, 10 a.m.
Honolulu Hale
To: Honolulu City Council Committee on Budget
Matt Weyer, Chair
Radiant Cordero, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: Bill 29 (2025) — RELATING TO AFFORDABLE HOUSING
Aloha Chair Weyer, Vice Chair Cordero and other members of the Committee,
The Grassroot Institute of Hawaii supports Bill 29 (2025), which would extend the property tax exemption for Bill 7 affordable housing projects from 10 years to 15 years.
Lengthening this waiver would help these affordable rentals pencil out. For context, a small apartment project valued at $10 million could save as much as $142,600 a year in property taxes as a result of this waiver, depending on its tax classification.[1]
As other testifiers have pointed out, a longer waiver period could also assist homebuilders in obtaining financing for these projects.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] This figure assumes the parcel is classified as Residential A. See “City and County of Honolulu Real Property Tax Valuation For Fiscal Year 2024 – 2025,” Technical Branch, Real Property Assessment Division, Department of Budget and Fiscal Services, City and County of Honolulu, August 2024.
