Hawaii has embarked on a statewide quest to address a crisis that has developed as home prices have steadily increased, squeezing residents and leading too many to leave the state.
The COVID-19 pandemic worsened the situation for many, as they lost jobs and struggled to hang on to housing. It also cast a bright light on the issue, causing the state’s politicians — and voters — to focus on just how serious the issue had become.
A temporary flood of federal relief, providing support for unemployment relief efforts and rental assistance, strengthened the resolve of policymakers to seek more lasting solutions.
Gov. Josh Green was elected as the pandemic receded, and he based a large part of his campaign on the promise to create an adequate supply of affordable housing. The Legislature also has taken focused action. On Wednesday, Green signed several bills into law that, in conjunction with other plans already in process, are expected to produce an eye-opening 66,000 new housing units in the coming years, according to his administration’s projections.
The time is ripe for this focused action by the state, and the enactment of these bills is a stride in the right direction.
Act 97, authorizing the development of as many as 10,000 affordable leasehold condominiums, is the boldest move of the bunch. Overseen by the Hawaii Community Development Authority, it aims to build housing on state- and county-owned land where infrastructure is either already in place or nearby, reducing costs. The concept, based on a housing model widely used in Singapore, has been championed by state Sen. Stanley Chang, and was first introduced at the Legislature in 2019.
The Act 97 leasehold project is considered a pilot, because Hawaii has long been on a trajectory of shying away from leasehold homes. The difference here, however, is that the land is state-owned, and so it is in the state’s interest to keep these homes affordable, rather than to seek growing profit. In fact, the concept envisions this housing largely as a “break-even” project, funded by home sales to residents of a range of incomes while remaining under the state’s umbrella. It’s historic because, as Chang stated upon the bill’s signing, “The state for the first time will take direct responsibility for reversing the housing shortage by providing income-blind, revenue-neutral, 99-year leasehold homes for all of Hawaii’s people.”
Other bills signed on Wednesday also will help address the need for affordable housing:
>> Act 96 raises the limit for banks to invest in residential housing developments that qualify for low-income housing tax credits, bringing in additional money for affordable projects.
>> Act 98 temporarily expands the state Rent Supplement Program with an additional $1 million to aid qualified renters 62 years or older, subsidizing rent, providing housing counseling and coordinating referrals for other supportive services.
>> Act 99 changes a previous requirement that the Hawaii Public Housing Authority rent no less than half its state and federal public housing units to applicants on the basis of income alone, granting the HPHA discretion to give housing preference to homeless people and families, those affected by domestic violence, or those displaced from other housing. It’s a sensible move allowing for focus on the greatest needs.
All of these measures promise to address the needs of Hawaii’s people and families who now struggle to keep a roof overhead, and will relieve some of the pressure that forces people who live on the edge of homelessness over the brink. Hawaii’s voters must now keep their eye on the ball to ensure that money allocated is used carefully and efficiently, and that the people and areas most in need of assistance get access to it.
