If enacted, HB 668 would amend existing statutes to enable counties to develop and construct affordable housing more effectively. The bill empowers counties to carry out various functions related to housing, ranging from land acquisition to mortgage guarantees for low and moderate-income individuals. This shift in authority is designed to streamline the housing development process and alleviate the financial burdens on the state for maintenance costs related to infrastructure improvements, which have historically been delayed by counties despite the collection of property tax revenues.
House Bill 668 aims to address the urgent need for affordable housing in Hawaii by adjusting the responsibilities and powers of counties in relation to housing development. The bill emphasizes the importance of public infrastructure improvements associated with affordable housing projects, noting that delays in these improvements by counties have led to substantial costs borne by the state. Specifically, the legislation proposes conditions under which counties with populations over 500,000 can exercise similar powers to those held by the Hawaii Housing Finance and Development Corporation, but only after they fulfill their duty to accept the dedication of public infrastructure developed per applicable codes and ordinances.
Notably, while the bill addresses a significant need for more affordable housing, it may also lead to contention among local governments that are wary of increased accountability regarding infrastructure contributions tied to housing projects. Critics may argue that tying state housing powers to infrastructure acceptance could place undue pressure on counties, especially those facing logistical or financial constraints. Additionally, the stipulation that counties cannot enable the state to issue general obligation bonds for financing presents a limitation that may raise concerns around funding and resource allocation for housing initiatives.