A bill that would create a framework for a pre-built home industry in Hawaiʻi advances

A bill that would establish a statewide program for pre-built homes, which aims to help with Hawaiʻi’s housing crisis, on Monday passed unanimously out of the House Finance committee.

House Bill 2606 HD2 is headed to the full House for a floor vote. If it passes, it will cross over to the State Senate.

“It’s how we provide housing, safe, quick and within reach of our working families,” said co-author of the bill, Rep. Sue Keohokapu-Lee Loy of the Big Island.

The measure builds on the Simplifying Permitting for Enhanced Economic Development (SPEED) task force, which was chaired by Lee Loy. It was established in the last legislative session by creating a working group to establish a framework for an off-site construction industry.

Lee Loy said off-site construction includes a variety of structures that are built in a factory setting and then brought to the property.

The purpose of the task force was to bring together various state and county agencies and stakeholders to address issues related to obtaining permits for housing, infrastructure and other projects.

If passed, the bill would implement certain recommendations of the SPEED Task Force and establish a working group within the State Building Code Council to develop proposals for an off-site construction program.

“There’s a desire for construction permits to go faster,” Lee Loy said. “This area is unexplored when it comes to off-site construction, how to inspect and finance them.”

Currently, Lee Loy said the state doesn’t have a process to certify factory-built structures.

According to a 2024 study by Construction Coverage, Hawaiʻi is the only state in the country that does not have manufactured housing, although manufactured housing was used for temporary housing in Lahaina after the 2023 fires.

In its initial phase, the SPEED task force split into three permitted interaction groups, each focused on a specific, high-impact segment of the permitting system. Last year, Lee Loy chaired one of the permitted interaction groups where they discussed coming up with a framework to establish the off-site construction industry, which includes construction, inspection, delivery, erecting then onsite and financing.

If a framework can be established, Lee Loy believes off-site construction will create housing more quickly because it reduces the construction time by half since the structures are being built indoors.

If HB2606 passes and is signed by the governor, the working group will develop proposals for an off-site construction program, which they will submit to the State Legislature no later than 20 days before the convening of the regular session of 2027.