Counties should have more authority to designate urban land for housing

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Judiciary & 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 & Hawaiian Affairs
       Rep. David A. Tarnas, Chair
       Rep. Mahina Poepoe, Vice Chair

From: Grassroot Institute of Hawaii
            Ted Kefalas, Director of Strategic Campaigns

TESTIMONY IN SUPPORT OF HB1738 HD1 — RELATING TO LAND USE DECISION-MAKING

Aloha Chair, Vice Chair and other Committee members,

The Grassroot Institute supports HB1738 HD1, which would give the counties authority to amend district boundaries involving land areas greater than 15 acres but no more than 25 acres for the purpose of residential housing, agricultural workforce housing, long-term rentals or workforce fee simple ownership.

This measure correctly identifies one of the causes of Hawaii’s housing crisis: excessive red tape. As Grassroot explained in its 2020 report “Reform the Hawaii LUC to encourage more housing,” the state Land Use Commission’s authority over district boundary amendments greater than 15 acres often puts a roadblock in the way of new housing projects.[1]

The LUC review process for DBAs can be lengthy and complicated. Applicants must navigate multiple rounds of filings as well as possible appeals, which can significantly delay even modest housing developments. These delays and the uncertainty that accompanies the approval process add to the cost of construction, which ultimately drives up home prices.

Moreover, LUC review of DBAs often duplicates work done by county councils, zoning boards and planning departments. When a proposed project already complies with county plans and ordinances, redundant state-level review undermines local authority without significantly advancing the public interest.

Expanding the counties’ authority to approve DBAs for new housing would help streamline the approval process while reducing the burden on the LUC.

Thank you for the opportunity to testify.

Ted Kefalas
Director of strategic campaigns
Grassroot Institute of Hawaii
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[1] Jackson Makanikeoe Grubbe, “Reform the Hawaii LUC to encourage more housing,” Grassroot Institute of Hawaii, September 2020.

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