Let homebuilding expand into industrial-commercial zones

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Hawaii County Council Policy Committee on Planning, Land Use and Economic Development on June 3, 2025.
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June 3, 2025, 1:30 p.m.
Hawai‘i County Building

To: Hawai‘i County Council Policy Committee on Planning, Land Use and Economic Development
      Ashley Kierkiewicz, Chair
      Michelle Galimba, Vice Chair

From: Grassroot Institute of Hawaii
            Jonathan Helton, Policy Analyst

RE: Bill 63 (2025) — RELATING TO DWELLING

Aloha Chair Kierkiewicz, Vice Chair Galimba and other members of the Committee,

The Grassroot Institute of Hawaii supports Bill 63 (2025), which would make single-family, double-family and multifamily dwellings a by-right permitted use in the County’s industrial-commercial mixed use zoning districts.

Under the bill, double-family and multifamily dwellings would be allowed at a maximum density of one unit per 1,250 square feet of land area. Single-family dwellings would not face this same density restriction.

These are the same standards under which single-family, double-family and multifamily dwellings are allowed in Hawaii County’s neighborhood commercial, village commercial and general commercial zoning districts.

Grassroot supports legalizing more mixed-use zoning because it would expand housing options.

According to research from the Hawaii Research and Economic Analysis Division, Hawaii County needs 6,665 new housing units built between 2025 and 2025 just to keep up with demand,[1] and authorizing more mixed-use construction could help make a dent in this shortfall.

This measure would also align Hawaii County’s zoning code with Act 37 (2024), which made residential uses a permitted use in all commercial zones statewide.

Construction that contains both housing and businesses also promotes walkable neighborhoods and all the benefits that come with them. As Grassroot pointed out in a 2023 policy brief, “Studies show that walkable neighborhoods also yield positive health outcomes. People lose weight, cardiovascular disease declines, and people report being happier.”[2]

Finally, Grassroot suggests the Council and the county planning commissions consult with building owners and homebuilders on whether the 1,250 square feet of land per dwelling limitation should be relaxed to make more projects financially feasible.

Thank you for the opportunity to testify.

Jonathan Helton
Policy Analyst
Grassroot Institute of Hawaii
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[1] Rene Kamita, “Hawai‘i Housing Demand: 2025-2035,” Research and Economic Analysis Division, Hawaii Department of Business, Economic Development and Tourism, March 2024, p. 11.
[2] Jonathan Helton, “How to facilitate more homebuilding in Hawaii,” Grassroot Institute of Hawaii, December 2023, p. 16.

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