The bill is poised to significantly impact local governance by limiting the ability of county legislative bodies to modify housing development proposals in ways that would increase project costs. If the bill passes, counties will have to approve or disapprove projects swiftly—within a 45-day period—after which, if no decision is made, the proposal is deemed approved. This could lead to an increase in housing supply but raises concerns about potentially bypassing vital local regulations that ensure community interests are protected.
House Bill 527 aims to address housing development in Hawaii by allowing the Hawaii Housing Finance and Development Corporation (HHFDC) to develop housing projects that are exempt from current statutes, ordinances, and rules relating to planning and zoning. This bill seeks to streamline the process for housing development by reducing bureaucratic hurdles that can delay construction, thereby accelerating the availability of housing units. It mandates certain conditions that must be met for any exemption to apply, ensuring health and safety standards are upheld before a project commences.
Notably, there are concerns among local officials and community advocates regarding the reduced local control over housing projects. Critics argue that the expedited approval process may compromise the quality and suitability of developments, as counties may lose the ability to enforce local standards and regulations. The bill’s reliance on the HHFDC to ensure project compliance is seen as a shift in authority that could overlook unique community needs and safety standards.
Furthermore, the bill's stipulation that all units in the projects must be designated for qualified residents for the project's lifetime can be seen as an effort to ensure affordability. However, this too is under scrutiny, as stakeholders debate the sufficiency of the bill's provisions to assure affordability in a rapidly changing housing market.