USA – HAWAII Trends and Developments Contributed by: Lisa Broulik, Matthew Cohen, Michelle Chapman and Jon Pang, Case Lombardi, A Law Corporation
Case Lombardi, A Law Corporation 737 Bishop Street, Suite 2600 Pacific Guardian Center, Mauka Tower Honolulu Hawaiʻi 96813 USA Tel: +808-547-5400
Email: info@caselombardi.com Web: www.caselombardi.com
Introduction While the Hawaiʻi real estate market encounters issues similar to those in other regions nationwide, including affordable housing, transit-oriented development and multifamily living, the islands also experience issues more unique to Hawaiʻi, including those relating to tourism, short-term rental regulation, Native Hawaiʻian land rights, coastal and climate considerations, and a dual-land registration system. Affordable Housing Teacher and workforce housing The 2024–2026 legislative cycle signalled a shift away from discretionary encouragement towards manda - tory frameworks for housing production. In 2026, legislative and developmental efforts have prioritised the “missing middle”, referring to individuals whose income exceeds traditional low-income subsidy thresholds but remains insufficient to afford Hawaiʻi’s median home prices. For example, pending HB 2122 seeks to estab - lish housing opportunities for the education sector to address a teacher shortage. The bill notes that Hawaiʻi’s teacher salaries are the lowest in the nation when adjusted for the cost of living, and that the state experiences a 10% turnover rate linked to housing costs that are double the national average. HB 2122 proposes a voucher programme to assist with rent, mortgage payments or down payments. Existing programmes include the Hawaiʻi Housing Finance and Development Corporation (HHFDC) Dwelling Unit Revolving Fund Equity Pilot (DEP), which
allows for the purchase of equity in units to reduce costs for professionals in critical shortage areas. The Teacher Next Door Program offers grants and down payment assistance for Pre-K through 12th-grade staff. Another HHFDC initiative, the Hale Kamaʻāina Mortgage Program, provides low-interest mortgage loans for first-time homebuyers employed in the edu - cation field. In addition, the state has shifted toward utilising state- owned land for dedicated housing inventory. Under Act 172, enacted in 2023, the Hawaiʻi School Facilities Authority (SFA) collaborates with the Hawaiʻi Depart - ment of Education (DOE) to provide housing options for educators through partnerships with private devel - opers on DOE land. The Mililani High School Pilot is the SFA’s initial project, involving construction of new teacher workforce housing on or adjacent to the pub - lic school campus, with projected completion in 2029. Another programme, the Teachers’ Housing Revolv - ing Fund, established under Hawaiʻi Revised Statutes (HRS) 302A-833, manages state-owned cottages in rural areas. HB 2122 aims to modernise this fund to include voucher payments, potentially transitioning the system from opportunistic assistance to entitle - ment-based support. Low-Income Housing Tax Credits The Low-Income Housing Tax Credit (LIHTC) pro - gramme is the primary financing mechanism for affordable housing in Hawaiʻi. Managed by HHFDC, the programme now utilises the Procorem platform for digitised compliance and real-time auditing of costs.
793 CHAMBERS.COM
Powered by FlippingBook