The TLDR on State Housing Policy in 2025
Gov. Josh Green addresses the media during the signing of legislation on July 7, 2025. (Office of Gov. Josh Green, M.D.)
When it comes to ending Hawai‘i’s chronic housing shortage, it’s hard to know where we’re going when so much is happening. The news media won’t always track all the action, so folks might not even see everything that’s taking shape in real-time.
Here at Housing Hawai‘i’s Future, we’re navigating the siloes of knowledge to track all the action.
It’s a tall order. Meeting with legislators. Drafting testimony. Attending committee hearings. Explaining important housing measures. Educating community organizations about the policies–and people–driving housing reform.
From Hilo to Lihu‘e, Housing Hawai‘i’s Future has been talking story with folks across the islands about what happened in the 2025 Legislative Session. At least 208 housing bills were introduced in the 2025 Legislative Session. Of these bills, more than 20 housing were signed into law by Gov. Josh Green.
Beyond legislation, the State of Hawai‘i also made appropriations to support existing state efforts like the Ka Lei Momi Initiative of the Hawai‘i Public Housing Authority, the Rental Housing Revolving Fund, and renovations for student housing at the University of Hawai‘i.
HHF is happy to present this TLDR on some of the notable movements made during this 2025 Legislative Session. If you’re interested in learning more, read on!
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Notable 2025 Housing Legislation
At the state level, key advances included legislation for Transit-Oriented Development (TOD); land use reform and consumer relief; financial reform; and other regulatory reforms.
TOD-related legislation includes some of the following:
HB1409 – TOD Housing Density Incentive: Links rental housing funds to TOD zoning reforms. Counties to zone for density; HHFDC to manage sub-account. By tying funding to higher-density zoning, it encourages counties to allow more apartments and mixed-income housing in walkable areas.
HB1298 – Government Employee Housing Program: Establishes leasehold condo housing program for government workers. $15M is allocated to launch pilot near rail stations.
HB800 – Relating to Government: Transfers state-owned land to the City for housing in exchange for Ali‘i Place in Honolulu. Repeals bond sunset. Implementation through settlement and land swaps.
Several pieces of legislation, meanwhile, targeted the State Historic Preservation Division (SHPD).
SB15 – Historic Property Definition Amendment: Amends the definition of a historic property. Exempts projects on certain residential properties.
SB1263 – SHPD Streamlined Reviews for TOD: Expedited review for low-impact projects in TOD areas. SHPD will identify eligible TOD zones.
SB66 – Permit Shot Clock: 60-day limit for permit approvals before architect certification allowed. Counties to establish expedited permit tracks.
HB830 – SHPD Third-Party Review: Authorizes outsourcing SHPD reviews when staff are unavailable. Program will launch in 2026 with sunset in 2030.
SB79 – Historic Preservation Reviews Shot Clock: Imposes a 90-day deadline for SHPD review of housing projects. SHPD to adopt timelines and rules.
Other measures have focused on land use reform and consumer relief.
SB739 – Relating to Land Exchange: Allows the Governor to negotiate land exchanges to preserve farmland and free up land for housing. DLNR to identify and negotiate deals.
HB778 – Relating to Agricultural Land Use: Requires the Office of Planning and Sustainable Development to conduct an integrated land use study for the use of lands within the agricultural districts and submit interim and final reports to the Legislature.
HB420 – Contractor Repair Act Reform: Revises process and timelines for construction defect claims. Builders and buyers must follow new notices and mediation procedures.
SB332 – Community Opportunity to Purchase: Gives tenants, nonprofits, or gov't 45-day first right of refusal at foreclosure. Lenders to revise auction procedures.
With financial reform, things can get pretty wonky. For now, HHF has identified three major bills that passed into law.
*To learn more about these financial reforms, check out Senate Housing Chair Stanley Chang’s thorough primer on their significance here. For what it’s worth, we think he did a good job with his overview.*
SB572 – Community Development Financial Institutions (CDFI) Loan Support via the Affordable Housing Revolving Fund (AHRF): Prioritizes CDFI-administered loans for affordable housing. HHFDC to update funding criteria under the Affordable Homeownership Revolving Fund.
HB529 – HHFDC Line of Credit Authority: Allows HHFDC to use revenue bonds as a credit facility. Supports bond volume cap recycling.
SB576 – Financial Administration Reform: Updates HHFDC and HPHA reporting requirements. Enhances funding use flexibility.
There is then regulatory reform, which might target state and/or county government agencies whose policies impede housing construction.
SB38 – County Restrictions on 201H: Prevents counties from adding costly conditions to 201H projects. HHFDC to lead state-level approvals.
HB732 – Shoreline Permit Thresholds: Raises SMA minor permit threshold to $750k and indexes for inflation. Counties to implement updated rules.
HB735 – Septic System Use Expansion: Allows 1 septic tank to serve 5-bedroom limit regardless of unit count. DoH to amend IWS (Individual Wastewater System) rules.
HB422 – School Impact Fee Reform: Exempts government housing developments, affordable housing units and projects, and Hawaiian home lands housing from school impact fees.
HB1406 – Statewide Permitting Task Force: Establishes Task Force to facilitate, expedite, and coordinate state and intergovernmental development permit processes.
Lastly, a few notable resolutions include the following:
SR60 / HCR78 – Act 31 Credit Clarification: Clarifies eligibility for housing credits under Act 31 through 2031.
HCR66 / HR60 – Point Access Block Design: Requests building code update to allow 6-story, single-stair buildings. State Building Code Council to review.
SCR60 / SR45 – Housing Production Plan: Urges HHFDC to create a plan to produce housing to meet demand. HHFDC to deliver a strategic plan.
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The State Budget
Through the State Budget Bill (HB300), we should anticipate critical appropriations for housing in several key areas. Major appropriations for housing projects, infrastructure, TOD, and even homelessness are targeted at individual communities and/or statewide initiatives.
There are Capital Improvement Projects (CIP), which constitute investments in physical infrastructure. Housing-related neighbor island appropriations include some of the following:
Maui Veterans Home: New long-term care facility. Funded through federal and state match. Construction begins FY2026. ($93M).
Kalaupapa Improvements: Infrastructure improvements for isolated historical settlement ($2.5M)
Kaua‘i CC Housing: Student/faculty housing project for community college on Kaua‘i ($15M).
Kapa‘a Homes Project: Predevelopment for public housing in Kapa‘a ($4M)
Lanakila homes: Predevelopment for public housing in Hilo ($4.2M)
Across the State, the Ka Lei Momi Initiative of the Hawai‘i Public Housing Authority also continues to take shape. Investment in the Ka Lei Momi Initiative (which projects 10,000 units) includes the following:
Ka‘ahumanu Homes: Repairs and upgrades to public housing units ($3.05M)
Nānākuli Homes: Small repairs/infrastructure in a historically underserved community ($750K)
Mayor Wright Homes: Redevelopment of public housing into mixed-income community ($56M)
SB65 – Public Housing Repairs: Appropriates $20M to restore vacant public housing.
HB1093 – HPHA Development Authority: Expands HPHA authority to build mixed-income and non-public housing. Enables broader housing development partnerships.
TOD appropriations also include some of the following:
99-year Leasehold Program: Seed funding for new government employee leasehold condos ($15M).
Kaka‘ako Makai Planning: Environmental and site planning for redevelopment of OHA lands ($1M).
Iwilei-Kapālama Infrastructure: Infrastructure upgrades in TOD district to support affordable housing ($12M).
TOD Planning: State TOD office planning grants and engagement activities ($2M).
Kupuna Supportive Housing: Funding supportive housing for kūpuna with on-site services in Kaka‘ako ($35M).
UH Renovation: Repairs to student and faculty housing across UH campuses ($120M).
Other housing-related appropriations include the following:
RHRF Tier 1: Initial funding for affordable rental housing development. ($100M).
RHRF Tier 2: Conditional release if excess tax revenues materialize ($100M).
DURF: Construction and infrastructure fund for housing development ($40M).
Kauhale Villages: Development of new tiny home villages for the homeless ($37.4M).
Homeless Services: Outreach, case management, and rapid rehousing programs ($11.3M).
DHHL Investments: Ongoing funding to expand native Hawaiian homesteads ($20M).
UH Renovation: Repairs to student and faculty housing across UH campuses. ($120M).
What Happens Now?
Between TOD, regulatory reform, and appropriations, the State continues to take several different approaches to housing. Meanwhile, we face a chronic housing shortage of approximately 65,000 housing units, according to the most recent study published by the Hawai‘i Housing Finance and Development Corporation (through Ward Research, Inc.).
Legislation alone won’t end the housing shortage. However, legislation drives action. It puts money towards projects that increase our state’s housing supply. It holds state and county agencies accountable for making it harder to build workforce housing for our residents.
Ending Hawai‘i’s chronic housing shortage is a marathon dotted with sprints. We’re tracking our State’s progress on this journey, holding elected officials accountable for their role in ending this shortage.
We’re making plans for the next legislative session in 2026. If you have any ideas about policies we should be pursuing, please reach out to our Director of Policy, Perry Arrasmith, via email at perry@hawaiisfuture.org.
