Mayor signs bill to drive creation of new rental housing for Oʻahu

News release from Office of the Mayor, August 30, 2024

At a ceremony in Honolulu Hale on Tuesday August 27, 2024, Mayor Rick Blangiardi signed into law Bill 3 (2024), which greatly enhances incentives to developers to help generate rental housing projects amid an ongoing housing crisis that is impacting cities nationwide.

Bill 3 increases post-construction grant amounts for privately financed rental housing projects, a key incentive for developers trying to make projects financially feasible. This action is especially needed amid a challenging construction environment and barriers to development that include high interest rates, supply chain shortages, and increased construction costs. The grant incentives under Bill 3 are:

$40 per square foot for units under 300 square feet in size; or
$12,000 per unit for units that are 300 square feet or larger

“This bill will create rental properties on the market that are actually affordable for hard-working people who want their own place to live and the dignity that comes with that,” said Mayor Rick Blangiardi. “This bill will also help mitigate the exorbitant costs that are forcing too many of our loved ones to leave their homes and families here on Oʻahu. I am proud of our leadership team and deeply grateful to our partners at the Honolulu City Council for developing creative solutions to a challenging issue that impacts all of us.”

Bill 3 increases the incentives initially provided under the Blangiardi administration’s very first piece of legislation, Bill 1 (2021). Councilmember Tyler Dos Santos-Tam introduced Bill 3 in January of 2024.

“Every day, housing prices increase. Every day, it becomes more difficult for our residents to live here,” said Councilmember Tyler Dos Santos-Tam. “We can’t solve the housing crisis without building more housing that local people can afford. That starts with Bill 3. It creates hundreds of affordable units – for our young people, our workers, our local families.”

“Bill 3 is another tool in the toolkit to help us respond to our housing crisis,” said Councilmember Matt Weyer. “As a small grant program, it supports the creation of units on otherwise hard to develop parcels in the urban core. Building on and rehabilitating these smaller parcels allows for us to maintain the character of our neighborhoods while maximizing the potential for housing. This is not just about increasing the number of housing units; it’s about reimagining how we use our existing spaces to create sustainable communities that keep families here on Oʻahu.”

Bill 3 was unanimously passed by the Honolulu City Council on August 7, 2024 and signed by Mayor Blangiardi on August 27, 2024. The ordinance takes effect immediately.

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