The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Judiciary and Hawaiian Affairs on Feb. 26, 2026.
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Feb. 26, 2026, 2 p.m.
Hawaii State Capitol
Conference Room 325 and Videoconference
To: House Committee on Judiciary and Hawaiian Affairs
Rep. David A. Tarnas, Chair
Rep. Mahina Poepoe, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: TESTIMONY IN SUPPORT OF HB1742 HD2 — RELATING TO HOUSING
Aloha Chair, Vice Chair and other Committee members,
The Grassroot Institute of Hawaii supports — and offers an amendment to — HB1742 HD2, which would establish a framework for regulating and permitting self-contained, relocatable housing — in other words, homes that can be moved without being disassembled.
These units would give Hawaii residents more housing options and could help families more easily attain homeownership, perhaps through buying a self-contained, movable home and a small plot of land while saving money for a site-built home.
This bill would require these homes to meet various federal rules for prefabricated homes and comply with local building codes. These homes would also have to be able to operate with independent power, sewer and water systems, which would make them perfect for rural or off-grid living.
Last, the bill would establish a permitting process for self-contained housing and require that the counties issue ministerial zoning permits for such housing within 30 days of receiving a complete application.
Hawaii’s slow permitting process discourages innovative housing options such as the ones mentioned in this bill. According to the Economic Research Organization at the University of Hawai‘i, the average permitting wait time across the state for single-family homes was 188 days over the past five years.[1]
The state also suffers from a shortage of skilled tradespeople, which causes housing projects to take longer and cost more.[2]
Creating a streamlined permitting process for homes such as these would especially help Lahaina residents who were affected by the August 2023 wildfires. People displaced by those fires could live in these units while waiting for building permits, then rent them out once their permanent homes are complete.
As to the amendment, Grassroot urges the committee to strike the following language from section 2:
(i) Any installation of a self-contained relocatable housing unit pursuant to this part shall be manufactured in the State or procured by a state-approved distributor.
Grassroot appreciates the intent behind this language, but there are currently no relocatable housing manufacturers in the state of Hawaii. Likewise, the bill does not define the term “state-approved distributor,” which could significantly limit the effect of the bill.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Daniela Bond-Smith, Trey Gordner, Rachel Inafuku. et al., “The Hawaii Housing Factbook 2025,” Economic Research Organization at the University of Hawai‘i, May 14, 2025, p. 27.
[2] “Hawai‘i Skilled Trades Workforce Analysis,” Hawaii Chamber of Commerce, May 2023.
