US Rep. Ed Case, who represents urban Oʻahu in Congress, has introduced a bipartisan bill intended to encourage more affordable housing construction in areas designated for transit-oriented development, an approach that could offer new financing tools for projects statewide, including Maui.

Case co-introduced the Transit Oriented Development Act with Guam Delegate James Moylan. The legislation would enhance the federal Low-Income Housing Tax Credit for affordable housing projects built in areas served by rail, bus, harbor or waterway transportation and zoned for higher-density development, according to a news release from Case’s office.

The bill specifically targets high-cost, non-contiguous jurisdictions — including Hawaiʻi, Alaska and US territories — by providing an additional incentive on top of the standard tax credit allocation. Case’s office said the Low-Income Housing Tax Credit is currently allocated principally by population, a formula that does not account for the higher construction costs and development challenges in places like Hawaiʻi.

While the announcement highlighted Oʻahu projects near the Honolulu rail system, known as Skyline, the tax credit mechanism is not limited to Oʻahu. Under the bill’s criteria, areas connected to bus or harbor transportation and zoned for denser development could also qualify, meaning the incentive could extend to designated areas on Maui and other islands, though Case did not name specific Maui or Neighbor Island projects.

In a statement, Case said housing costs are forcing “working families to make impossible choices between rent, groceries and health care,” and that the bill aims to reflect “the unique economic realities” of communities like Hawaiʻi’s. Moylan said the legislation addresses similar cost and construction challenges facing Guam.

Several state, county and industry officials issued statements supporting the bill, tied to specific Oʻahu redevelopment projects. Kali Watson, director of the state Department of Hawaiian Home Lands, said an additional 25% basis boost could generate roughly $38,000 to $58,000 in added equity per housing unit — or an estimated $3.8 million to $5.8 million for a 100-unit project — reducing the financing gap for department lands near East Kapolei and Moanalua Kai.

Kaialiʻi Kahele, chairman of the Office of Hawaiian Affairs and a former member of Congress representing Hawaiʻi’s 2nd District, said the change would support the agency’s development plans in the Iwilei-Kapālama transit-oriented development area, including near the planned Kūwili Skyline Station.

Kevin Auger, director of the Honolulu Department of Housing and Land Management, said the city is planning for more than 2,500 affordable homes around the future Kūwili Skyline Station as part of the Iwilei-Kūwili district master plan. Roger Morton, director of the Honolulu Department of Transportation Services, said the bill would complement the city’s investment in the Skyline rail line by encouraging more affordable housing near transit.

Mark Garrity, executive director of the Oʻahu Metropolitan Planning Organization, and Craig Watase, chief executive officer of affordable housing developer Mark Development, also voiced support, saying the legislation would improve project feasibility.

Case previously introduced similar transit-oriented development legislation during the 117th Congress. The text of the newly introduced Transit Oriented Development Act of 2026 can be found here.