Grassroot assesses first year of Gov. Green’s housing emergency proclamations
The main value of the edicts so far has been to focus attention on barriers to homebuilding and prompt positive legislative action
By Mark Coleman and Drew Luff, Grassroot Institute, July 17, 2024
A year ago today, July 17, 2023, Hawaii Gov. Josh Green issued his first emergency proclamation that suspended numerous state laws with the aim of fast-tracking housing projects to better meet Hawaii’s housing demand,[1] estimated to be about 10,000 homes a year.[2]
Gov. Green told the Grassroot Institute yesterday that the housing crisis remains “the number one economic challenge facing this and future generations in Hawaii,” and that the crisis “demanded that we take bold actions in the form of emergency proclamations to stem the exodus of thousands of working-class local families who can’t afford to buy or rent a home in this state.”
He said that since signing the first emergency proclamation, “a diverse range of innovative affordable rental housing solutions have benefited from the streamlined permitting and entitlement processes and have moved forward.”
So one year later, inquiring minds want to know: What exactly has been accomplished?
According to the Hawaii Housing Finance and Development Corp., which has been in charge of authorizing new projects under the governor’s emergency proclamations, only eight housing projects amounting to a total of 3,683 units have been authorized to proceed.[3]
Moreover, two-thirds of the total units — 2,448 — represent just one project: the Mayor Wright Homes public housing just outside downtown Honolulu, under redevelopment by the Hawaii Public Housing Authority.
Documents accompanying the governor’s first proclamation stated there were 50,000 housing units in the 10-year pipeline across the state, and implied that creating processes “to track major housing projects and remove unnecessary delays” could enable those projects to be completed within five years.[4]
On average, that would be 10,000 a year, so the first year of the plan in terms of homebuilding hasn’t turned out to be quite as productive as perhaps it might have been. But in fairness, the governor’s plan still has some time to go.
Also to be fair, the governor’s initial proclamation encountered significant backlash from environmental groups and others who threatened legal action if he didn’t restore some of the initially suspended laws and regulations.
Gov. Green subsequently removed the most contentious provisions of the proclamation when he released his second edict,[5] leaving far fewer tools at his disposal to pursue the goal of cutting “red tape” to stimulate Hawaii housing construction.[6]
He also narrowed the focus to just “affordable housing,” which severely limited the impact of his edicts on housing in general. Indeed, his first housing proclamation was titled “Proclamation related to Housing,” while the six that have followed have all been titled “Proclamation Related to Affordable Housing.”[7]
In addition to the Mayor Wright Homes, the other affordable housing projects that have moved forward under the proclamations are the Hawaii Public Housing Authority’s 124-unit redevelopment of the Kapa‘a Homes public housing on Kauai,[8] a 52-unit office-to-housing conversion in downtown Honolulu,[9] two projects with 405 total units at Parkway Village in Kapolei,[10] the 348-unit Gateway Rentals at Ho‘opili,[11] the 127-unit Kaleima’o Village at West Loch,[12] and the 179-unit Hale Pilina at Kahului on Maui.[13]
Under the proclamations, the office conversion project in downtown Honolulu, Kaleima’o Village, Hale Pilina and the two projects at Parkway Village in Kapolei were exempted from paying the state Department of Education’s school impact fees; the two HPHA housing projects were allowed to have their Chapter 201H-38 exemptions approved by the county planning director instead of the County Council; and the Gateway Rentals development was allowed to be built on property zoned for commercial use.[14]
Saving time and costs for affordable housing projects might make a difference in the numbers going forward, but everyone else seeking to build homes in Hawaii has remained subject to the usual regulatory and permitting requirements and delays, as if the governor’s proclamations had never been issued.
At any rate, Gov. Green’s unusual decision to declare a housing emergency at least put the public spotlight on Hawaii’s longstanding housing crisis, and probably helped motivate state lawmakers to pass some permanent policy changes earlier this year that likely will lead to a substantial increase in Hawaii homebuilding in the near future.
Heading into the 2024 legislative session, state lawmakers proposed about 20 bills to remove barriers to homebuilding.[15] Several of those, such as SB3202 and HB2090, have been signed into law by Gov. Green.
SB3202 requires the counties to allow at least two accessory dwelling units per lot in many residential areas,[16] which will add to Hawaii’s housing supply at no cost to the state. HB2090 requires the counties to streamline the process of converting commercial buildings into housing,[17] which will ease the state’s housing shortage while contributing to the revitalization of the state’s downtown urban areas.
These bills represent major progress toward resolving Hawaii’s housing crisis. However, there are still many more barriers to homebuilding for our legislators to tackle.
Keli‘i Akina, president and CEO of the Grassroot Institute of Hawaii, which supported passage of those housing bills in the 2024 Legislature, said yesterday that “the initial progress in removing housing barriers over the past year has been welcome. Now we just need to go further.”
For guidance on crafting pro-housing legislation, lawmakers can consult the governor’s first housing proclamation, which featured a list of virtually all the laws in the state that prevent or delay homebuilding.
At the July 17, 2023, news conference announcing Gov. Green’s first housing emergency proclamation, then-Lead Housing Officer Nani Medeiros said the governor’s staff met with more than 200 community stakeholders — including “grassroots groups, housing builders, industry partners, and government process owners” — to help identify those barriers.[18]
As for the past year, the governor’s housing emergency proclamations might not have much to show just yet, but in any case, whether directly or indirectly, they appear to be moving Hawaii housing in the right direction.
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Mark Coleman is communications director of the Grassroot Institute of Hawaii; Drew Luff is a Grassroot Institute research associate.
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[1] Gov. Josh Green, “Proclamation Relating to Housing,” Office of the Governor, State of Hawaii, July 17, 2023. The document suspended more than 20 state laws, including civil service, environmental, land-use, procurement, public records and tax laws.See also: Dan Nakaso and Mia Anzalone, “Gov. Josh Green signs Hawaii housing emergency proclamation,” Honolulu Star-Advertiser, July 18, 2023.
[2] “Hawai’i Housing Planning Study, 2019,” SMS Research, Dec. 30, 2019, pp. 36-40.
[3] Gordon Pang, housing information officer at the Hawaii Housing Finance and Development Corp., via email, July 12, 2024.
[4] “Pipeline Projects in Hawaii,” Office of the Governor, State of Hawaii, accessed July 16, 2024.
[5] Stewart Yerton, “Hawaii Governor Is Changing Course On His Sweeping Housing Order,” Honolulu Civil Beat, Sept. 15, 2023. Due to a state law that limits emergency orders to 60 days, Gov. Green’s initial proclamation has been renewed six times, the latest being on June 18, 2024. See Hawaii Revised Statutes Section 127A-14, Hawaii State Legislature.
[6] Dan Nakaso, “Gov. Green to cut ‘red tape’ to stimulate Hawaii affordable housing,” Honolulu Star-Advertiser, May 27, 2023.
[7] “Emergency Proclamation,” Office of the Governor’s Housing Team, State of Hawaii, accessed July 3, 2024.
[8] Diana Firtea, “Highridge Costa to Build 10K Affordable Units in Hawaii,” Multi-Housing News, July 6, 2023.
[9] Andrew Gomes, “Housing panel makes first development decision,” Honolulu Star-Advertiser, Jan. 3, 2024. The office-to-housing conversion at 1060 Bishop St. also participated in Honolulu’s “Bill 7” affordable housing program. For more information, see: “History and Explanation of Ordinance 19-8 (Formerly Bill 7 [2019]),” Honolulu City Council Committee on Zoning, Aug. 23, 2023, p. 13.
[10] “Parkway Village Breaks Ground in Kapolei,” Honolulu Office of Housing, September 2023. The Parkway Village projects are being built on city-owned land with financing assistance from the Hawaii Housing Finance and Development Corp. The projects also received exemptions from the HHFDC’s Chapter 201H-38 affordable housing program. For more information about these exemptions, see: “Resolution No. 20-272,” Honolulu City Council, Oct. 21, 2020.
[11] Gordon Pang, housing information officer at Hawaii Housing Finance and Development Corp., via email, July 12, 2024. The builder of the Gateway Rentals, the Mutual Housing Association of Hawaii, has indicated to the HHFDC that they may apply for financing support from the HHFDC.
[12] “West Loch Affordable Housing Project,” West Loch Fairways, July 23, 2024. Kaleima’o Village also received financing assistance from the HHFDC.
[13] “CCHDC Announces New Affordable Housing Project,” Catholic Charities Hawai’i, accessed July 14, 2024. Hale Pilina also received financing assistance from the HHFDC and funding from Maui County’s Affordable Housing Fund.
[14] Gordon Pang, housing information officer at Hawaii Housing Finance and Development Corp., via email, July 12, 2024.
[15] “Governor Green extends emergency housing proclamation,” Office of the Governor, State of Hawaii, Feb. 23, 2024.
[16] SB3202 SD2 HD1 CD1, Hawaii State Legislature, 2024.
[17] HB2090 HD1 SD2 CD1, Hawaii State Legislature, 2024.
[18] “Gov. Green Builds Foundation For Thousands of Affordable Housing Units,” Office of the Governor, State of Hawaii, July 17, 2023. Nani Medeiros resigned as the Lead Housing Officer and chair of the Build Beyond Barriers Working Group in September 2023. She was not replaced. In February 2024, Gov. Josh Green disbanded the Working Group as well, handing its duties over to the Hawaii Housing Finance and Development Corp. See Daryl Huff, “Governor disbands controversial affordable housing working group that he formed,” Hawaii News Now, Feb, 23, 2024; and Stewart Yerton, “Why The State’s Housing Working Group Is Being Dissolved,” Honolulu Civil Beat, Feb. 27, 2024.