Gov. Josh Green incorporated a phrase in his State of the State address on Monday, one that is fairly standard in speeches of this kind: “I’m here to report that the state of Hawaii is strong.”
The public has got to hope that it is, because the address went on to lay out precisely what the state now faces, particularly in its ongoing struggle to narrow the shortage of housing units.
Sadly, the tragic fire that in August swept through West Maui and devastated Lahaina is what has turned the housing deficit into a true crisis. It is no longer enough to move swiftly to build the new housing units needed for the population at large, although that also is necessary.
It is especially essential that emergency action be taken to house the thousands of Maui residents displaced by the fire, and those homes are urgently needed now. The question is, as always: Can the taxpayer afford what it would cost?
And, specifically to this case, will enough homeowners step up to make their properties available?
A $500 million initiative — a collaborative effort by state, county and federal agencies as well as nonprofits — is key to success.
For example, the Federal Emergency Management Agency is helping to cover hotel charges, leases and rent payments; FEMA is designing housing sites for 500 more families. Those who want to participate in the housing of Maui families should email mauihousing2024@fema.dhs.gov.
Equally as important, however, is the cooperation of private owners of existing homes used as short-term rentals (STRs). The governor wants to tap the 27,000 STRs on the Valley Isle, converting at least 10% of them to long-term rentals for displaced families.
Those participating would have the fair-market value of the rentals covered for two years, along with a property-tax exemption for 18 months, the governor said. That is more-than-fair incentive to do the right thing.
Let’s hope the voluntary program works — but if not, the governor repeated a pledge made earlier to place a moratorium on short-term rentals on Maui, “until we find enough housing for the displaced families.” Extreme conditions require extreme solutions.
Longer term, further incentives would be offered for the sale of properties anywhere in the state to supplement efforts to add new units to Hawaii’s housing inventory.
What Green is calling the “House Hawaii’s Ohana” plan would create a two-year tax amnesty period to encourage STR owners and nonresidents who own vacant investment properties to sell and make them available to local residents for long-term housing. In return, the sellers would be exempted from capital gains, conveyance and general excise taxes.
Green applauded the progress of the Ready Keiki program to expand the state’s capacity for early education in public schools; that effort deserves continued support. He also restated some other priorities: further tax relief to lower the cost of living, expansion of the “kauhale” communal-village approach to fight homelessness, and his administration’s program to address the doctor shortage.
Mental health care needs, made particularly evident by the Maui crisis, are rightly seen as a focus for this phase of the state’s Healthcare Education Loan Repayment Program, which aims to draw more health-care
providers to practice in Hawaii.
And the governor is reviving a proposal for a climate impact fee for tourists: a $25 fee on visitors when they check into a hotel or short-term rental. It’s a solid initiative to help fund mitigation of rising seas and extreme weather, such as the drought that fueled the Maui wildfire.
Perhaps after a year in which Hawaii witnessed that impact with such horrific clarity, there will be more support for this idea as well.
