March 19, 2026, 3:01 p.m.
Hawaii State Capitol
Conference Room 224 and Videoconference
To: Senate Committee on Energy and Intergovernmental Affairs
Sen. Glenn Wakai, Chair
Sen. Stanley Chang, Vice Chair
Senate Committee on Housing
Sen. Stanley Chang, Chair
Sen. Troy N. Hashimoto, Vice Chair
Senate Committee on Water, Land, Culture and the Arts
Sen. Chris Lee, Chair
Sen. Lorraine R. Inouye, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
TESTIMONY ON HB1738 HD2 — RELATING TO LAND USE DECISION-MAKING
Aloha Chairs, Vice Chairs and other Committee Members,
The Grassroot Institute supports the intent of HB1738 HD2, but offers an amendment that would make it more effective in achieving its goals.
The current version of the bill would give the counties authority to amend district boundaries for land areas up to 25 acres for the purpose of affordable residential housing, agricultural workforce housing, long-term rentals or workforce fee simple ownership.
Limiting the scope of this bill to affordable housing projects severely restricts its applicability and usefulness. While affordable projects already have access to many mechanisms intended to streamline development, those without that designation remain subject to the regulatory delays and permissions that have been shown to drive up the cost of housing in our state.
In order to increase the state’s housing supply and speed up approvals more generally, we suggest that the Committee restore the language found in both former drafts of this bill, which would allow the counties to approve DBAs up to 25 acres for “the purpose of residential housing, agricultural workforce housing, long-term rental, or workforce fee simple ownership.”
Making this change would restore the bill’s intended purpose of encouraging housing growth and streamlining the approval process for new construction.
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 general uncertainty that accompanies the 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 simplify 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
1050 Bishop St. #508 | Honolulu, HI 96813 | 808-864-1776 | info@grassrootinstitute.org
[1] Jackson Makanikeoe Grubbe, “Reform the Hawaii LUC to encourage more housing,” Grassroot Institute of Hawaii, September 2020.
