Relating To Housing Production.
This bill significantly impacts state laws regarding housing development, particularly by empowering counties with increased authority to develop low- and moderate-income housing. It also allows counties to engage in partnerships with developers, procure necessary land, and facilitate financing for housing projects through various means, including mortgage guarantees. This legislative action is intended to stimulate housing development directly, combating the stagnation that has characterized local efforts to meet housing demands in recent years.
Senate Bill 2233 aims to address the significant housing crisis in Hawaii by mandating that each county must authorize the construction of a specified number of new housing units annually until the fiscal year 2024-2025. With an estimated need for over 50,000 new homes by 2025, as highlighted by a 2019 study, the bill expects proactive measures from counties to increase housing production rather than relying on situational responses to market demands. Specifically, counties will be required to authorize construction of 10% of the projected demand annually, with specific targets set for each county based on their projected needs.
While the bill aims to effectively tackle the housing shortage, it is not without its points of contention. One notable provision is the reduction of transient accommodation tax revenues for counties that fail to meet the stipulated construction targets. Critics may argue that this could unfairly penalize counties that are already struggling with their fiscal obligations. The bill is designed to sunset in June 2025, adding an urgency to its implementation and sparking debates on whether short-term mandates can effectively solve long-term housing issues.