Urging The Counties To Utilize An Empty Homes Tax As A Means Of Addressing Affordable Housing In The State.
If adopted, this empty homes tax could potentially increase the overall housing stock available to residents by motivating property owners to lease their vacant units rather than holding onto them as investment properties. The resolution highlights the fact that approximately 36% of properties deemed vacant in Vancouver were occupied as a result of their tax enforcement, and suggests that Hawaii could benefit similarly. This approach aims to address the supply of affordable housing and relieve pressure on the rental market in Hawaii.
House Resolution 170 urges counties in Hawaii to adopt an empty homes tax as a strategy to address the state's affordable housing crisis. This proposal arises from the awareness that, despite relatively low property taxes in Hawaii, a substantial portion of housing units are owned by individuals who do not reside in the state. These absentee owners often leave properties vacant, thereby contributing to the scarcity of available housing and exacerbating issues related to homelessness. The bill references a successful model implemented in Vancouver, British Columbia, where a similar tax has been used to convert vacant properties into long-term rentals.
Notably, the proposal may face contention regarding how it affects property rights and the real estate market dynamics in the state. Critics might argue that imposing an empty homes tax could discourage investment in real estate, particularly from non-residents, thereby impacting local economies. However, supporters assert that it is crucial for addressing the dire need for more affordable housing solutions. The bill emphasizes that the measure would exempt principal residences and homes rented for a significant portion of the year, aiming to strike a balance between incentivizing housing availability and protecting homeowners.