Carl Bonham, executive director of UHERO (University of Hawaii Economic Research Organization) in his remarks to state legislative leaders weeks before Wednesday’s start of the 2018 Legislature, issued a sharp challenge to them and the political leadership of the state at all levels. That challenge: to see the housing crisis as an opportunity to give a boost — not be a drag — to the state economy. To see this housing crisis not as a crisis, but as an opportunity. The response from the legislative leadership was hopeful, since they complained about the slowness of both state and city administrations in addressing the crisis.
The cost of addressing the crisis is daunting, will cost billions and will continue to do so. It and rail are very unpopular but are tied together. Bonham has done us a favor by reframing this as a challenge. On both rail and housing, our energy has been directed at pointing fingers of blame at each other in all directions.
Gov. David Ige has produced a budget that moves in the right direction in funding solutions, but does not go far enough.
We should not spend the bulk of our energy tearing at it, but in making it stronger and better. That I believe is Bonham’s intention, and I have been seeing and hearing more talk from the various stakeholder groups that we must talk to each other more and find common ground to seek solutions; developers, advocates, financial institutions, politicians and unions need to be at a common table.
It will not be easy because elections that can easily tear us apart are upon us. We must join together or we will continue replacing our best and brightest with wealthier outsiders, a long-term process that continues.
Bonham’s challenge offers the best way out of the dilemma. He offers hope in that a good economy is foreseen for the immediate future, with near-full employment. Also, the Legislature funded many priorities last year: air conditioning for schools, rail hopefully behind us, union contracts largely done, homeless services fared well, and there is a healthy state surplus. Housing and infrastructure (mainly sewers) are the major items.
Still, it will not be easy, and will probably be bruising. Fortunately, many groups interested in solving the issues have been meeting. The leaders of these groups need to get together around a common table and hash out differences, both internally and externally, to produce a large housing inventory, and thereby, a better Hawaii.
I believe that $100 million should be put into the Rental Housing Trust Fund and also the Dwelling Unit Revolving Fund for sewers, drainage and other infrastructure. Another $50 million should be put into the Hawaii Public Housing Authority for repair and maintenance.
Continuous funding of about $200-$300 million a year for 10 years is needed. Between the Legislature and the City Council, bills are being drafted along these lines by various stakeholders.
If we do not seriously consider them, we will continue to lose our best and brightest to the mainland, as indicated by a recent Aloha United Way report.
Gathering at the common table for all stakeholders must start now as the Legislature begins its new session.