SENATE BILL 2061 SIGNED INTO LAW, EXPANDING PATHWAYS TO HOMEOWNERSHIP FOR LOCAL FAMILIES

News release from Hawaiʻi State Senate, June 22, 2026

HONOLULU — Governor Josh Green has signed Senate Bill 2061 into law as Act 121, Session Laws of Hawaiʻi 2026, marking a significant milestone in the State’s ongoing efforts to address Hawaiʻi’s housing affordability crisis and expand opportunities for local families to achieve homeownership.

Act 121 strengthens and clarifies the statutory framework governing Hawaiʻi’s Ninety-Nine Year Leasehold Program, an innovative initiative designed to create affordable, owner-occupied condominium homes on state and county lands located in urban areas. The legislation builds upon Act 97 (2025), which established the pilot leasehold condominium program within the Hawaiʻi Community Development Authority (HCDA), and provides additional guidance needed to facilitate implementation of the program.

The legislation supports the development of HCDA’s planned pilot project in Kakaʻako, located at the corner of Kapiʻolani Boulevard and Ward Avenue. The project is expected to demonstrate how publicly owned land can be leveraged to provide attainable homeownership opportunities for local residents while preserving long-term public stewardship of valuable urban land.

Act 121 reinforces the Legislature’s commitment to ensuring that housing developed under the program primarily benefits Hawaiʻi residents. The law requires that at least sixty percent of residential units be affordable to households earning no more than 140 percent of the Area Median Income. These homes must be owner-occupied and sold to qualified local residents, helping to ensure that the benefits of the program remain focused on Hawaiʻi families.

The legislation also establishes clear eligibility requirements, strengthens owner-occupancy protections, and provides safeguards to preserve long-term housing affordability. These provisions reflect the Legislature’s intent that the program create stable homeownership opportunities for working families.

Act 121 embodies the public policy goals articulated by Senator Stanley Chang, Chair of the Senate Housing Committee, to increase housing supply, promote attainable homeownership, encourage walkable urban communities, and utilize public lands in a manner that maximizes public benefit. By reducing the cost of land through long-term leasehold ownership, the program seeks to make homeownership accessible to households that might otherwise be priced out of Hawaiʻi’s housing market.

“Act 121 represents another important step toward restoring the dream of homeownership for local families,” said Senator Chang, sponsor of the ALOHA Homes initiative(Affordable Locally-Owned Homes for All). “By leveraging public land and creating a new pathway to affordable ownership, we can help ensure that future generations have the opportunity to live, work, and build their lives in Hawaiʻi.”