The bill proposes amendments to several sections of the Hawaii Revised Statutes, including provisions for how real estate can be transferred and how affordability will be maintained over time. One of the most notable features is the introduction of a perpetual restriction that ensures affordable housing remains available to buyers at the area median income level. This affects both the initial sale and any future sales of the properties, aiming to prevent the escalation of prices due to market fluctuations. Additionally, it enhances cooperation between government and developers in providing more rental and sale affordable housing options across the state.
Summary
House Bill 633 aims to address Hawaii's housing crisis by creating a separate local housing market that ties housing prices directly to the income levels of residents rather than the global marketplace. This bill is driven by the finding that housing costs in Hawaii have become untenable for most local residents, resulting in a need for housing options that are truly affordable. Under the provisions of this bill, all housing built with government assistance will have deed restrictions to maintain pricing aligned with local ability to pay, specifically targeting those at various income levels, from extremely low to above moderate income.
Contention
Discussion around the bill may center on its potential implications for market forces and its stringent measures that limit the resale price of affordable units. While proponents argue that this will prevent speculation and ensure housing remains accessible to locals, critics might express concerns about the constraints it places on property rights and the effectiveness of such restrictions in a fluctuating housing market. Furthermore, there might be questions regarding the implementation of these policies, particularly how they will interact with existing housing programs and regulations.