Hawaii Targets 13,000 Affordable Units as Legislature Expands Housing Tools

The Hawaii state legislature has approved sweeping affordable housing measures that expand county authority and inject substantial state resources into combating the islands' persistent housing shortage. According to the 2024 Legislative Session Housing Digest, counties now have similar powers as the Hawaii Housing Finance and Development Corporation to build mixed-use developments that combine residential housing with small businesses in the same buildings—a significant expansion of their previous authority.

These legislative changes come as Governor Josh Green has prioritized the creation of 13,000 affordable units by 2026, with more than 60,000 units already in the pipeline. The state legislature previously allocated $180 million to the Rental Housing Revolving Fund to support development and maintenance of rental housing projects for low-income families. Additionally, the Department of Hawaiian Home Lands received $600 million in 2022 to provide homesteads for beneficiaries on the waitlist, addressing a long-standing crisis within Native Hawaiian communities.

The housing crisis remains acute across the islands. Between 2019 and 2024, rents increased 54% on the Big Island, 52% on Maui, and 23% on Kauai, according to the Office of Hawaiian Affairs. In response, the Office of Hawaiian Affairs proposed legislation (SB2539/HB2105) to cap annual rent increases at 3%, though the bill did not receive a hearing in either chamber. Honolulu has also moved forward with targeted relief: City Councilmember Andria Tupola's Bill 18 expands where affordable housing projects are allowed and eliminates maximum lot and building area requirements, requiring that at least 80% of units remain affordable for 15 years at federal HUD-limit rents.

These measures reflect years of escalating out-migration and homelessness that have strained Hawaii's communities. The legislature's multi-pronged approach—combining funding mechanisms, regulatory streamlining, and expanded development authority—represents an attempt to reverse decades of housing instability while keeping Hawaii residents in their home islands.