The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Economic Development and Technology on Feb. 18, 2026.
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Feb. 18, 2026, 9:30 a.m.
Hawaii State Capitol
Conference Room 415 and Videoconference
To: House Committee on Economic Development and Technology
Rep. Greggor Ilagan, Chair
Rep. Ikaika Hussey, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: TESTIMONY IN SUPPORT OF HB2385 HD1 — RELATING TO HOUSING
Aloha Chairs, Vice Chairs and other members of the Committees,
The Grassroot Institute of Hawaii supports HB2385 HD1, which would allow projects built under county affordable housing incentive programs, such as Honolulu’s Bill 7 program, to be eligible for the state’s general excise tax exemption for construction work that is already available to other affordable housing projects.
This could improve the financial viability of affordable housing projects and thus help reduce Hawaii’s housing deficit.
And that deficit is significant. A 2024 update to the Hawaii Housing Planning Study estimated that the state needs 64,490 new housing units built between 2023 and 2027 to keep up with demand.[1]
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] “Hawaii Housing Planning Study 2024,” prepared by SMS Research and Marketing Services, Inc., FSR Consulting LLC and Ward Research, Inc. for the Hawai’i Housing Finance and Development Corporation, Table 39A, p. 124.
