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Grassroot hails passage of bills aimed at boosting housing supply, helping Lahaina
By Grassroot Institute @ 3:30 AM :: 167 Views :: Hawaii State Government

Grassroot hails passage of bills aimed at boosting housing supply, helping Lahaina

State legislators also OK'd bills that will increase healthcare access and reform civil asset forfeiture, pending approval by the governor

News Release from Grassroot Institute, May 1, 2025

HONOLULU, May 1, 2025 >> The Grassroot Institute of Hawaii hailed the 2025 Legislature’s passage this week of bills intended to increase the state's housing stock, speed up the recovery of Lahaina and increase government accountability.

The measures were among more than 200 bills the Legislature approved on Wednesday, in advance of its final session day for the year tomorrow, Friday. Among the housing measures supported by Grassroot were:

>> HB422, which would reduce school impact fees and create exemptions for housing built by the state Department of Hawaiian Homelands and certain affordable housing projects.

>> SB66, which would create an alternate process for people to get county building permits if those permits have not been approved within 60 days.

>> SB15 and HB830, both of which would reform the state's historic preservation review process with the aim of reducing approval delays at the State Historic Preservation Division.

Grassroot President and CEO Keli’i Akina said the Legislature’s actions represent progress in addressing the state’s housing crisis, and urged Gov. Josh Green to follow through by enacting all these measures into law.

“Anyone who has applied for a building permit knows how long and frustrating delays can be,” Akina said. “Reforming the building permit and historic preservation review processes would be a major win for folks looking to build new homes.”

Regarding the school impact fees bill, Akina said reducing such fees will cut costs for most homebuilders, including existing homeowners interested in adding a second home to their properties.

“I am glad to see lawmakers have reduced the fees,” he said, “especially since not a penny of the fees collected has been spent since 2007. But the measure still could be extended to all homebuilders, and I look forward to when school impact fees can be fully repealed.”

Regarding Lahaina, the Legislature approved SB1296, which would codify
Gov. Josh Green’s emergency waiver of Special Management Area rules for current rebuilding efforts in Lahaina and after future disasters.

Akina said the Lahaina-related bill “unfortunately does not provide everyone in Lahaina with relief from these burdensome SMA regulations, but it definitely will add certainty to the rebuilding process for many of our Maui ohana.”

Other important Grassroot-supported bills approved by the Legislature include:

>> HB126, which would increase the transparency and accountability of the state’s civil asset forfeiture program, in which law enforcement agencies can seize a person’s property without a conviction.

>> SB1065, which would generally prohibit state and county agencies from requiring a bachelor’s degree as a condition of employment.

>> HB1379, which would make it easier for graduates of foreign medical schools to practice in Hawaii.

Akina said that the civil asset forfeiture bill is important because “the government should not be allowed to take anyone’s private property without the strictest of rules in place to protect against abuses. This bill takes Hawaii a step closer to protecting the rights of those who have yet to be convicted of any crime.”

Regarding taxes, Akina applauded that almost all of the major tax increases proposed this year failed, including bills to increase the capital gains tax and the unemployment insurance tax.

The fate of one last major tax bill will be determined tomorrow, namely SB1396, which in its final form aims to increase the state transient accommodations tax from 10.25% to 11% and apply the tax to cruise ships.

“Despite its good intentions, I am concerned this bill might harm the state’s tourism economy, as well as have unintended consequences for those of us who live here — for example, when neighbor island residents travel to Oahu for medical care,” Akina said.

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