Senate bill introduced to encourage mixed-use developments in Maui County

Maui’s affordable housing crisis is spurring some creative ways to increase the island’s housing inventory, including a bill to encourage mixed-use developments introduced by Sen. Angus McKelvey (West and South Maui, Mā‘alaea and Waikapū) and a half-dozen other senators.

Senate Bill 378 would establish a working group within the Hawaiʻi Housing Finance and Development Corp. It would identify existing mixed-use developments in Maui County that could be acquired by the state housing agency for use as affordable housing and commercial rental leases.

The bill includes a legislative finding that “repurposing existing commercial buildings into mixed-use developments provides a critical opportunity to address Hawaiʻi’s housing crisis while preserving its historical and cultural context.”

“Historically, towns such as Hilo, Pāʻia and Honokaʻa thrived as mixed-use communities, where residential units above commercial establishments fostered vibrant neighborhoods and robust local economies,” the bill says. “Modern redevelopment of commercial spaces into mixed-use buildings offers numerous benefits, including the creation of affordable housing for service industry workers, which reduces financial strain on employees and relieves businesses from wage pressures tied to high housing costs. By locating housing near workplaces, redevelopment supports worker retention, fosters community connections, and alleviates traffic congestion, thereby improving overall quality of life. Additionally, reusing existing structures reduces environmental and financial costs associated with new construction while expediting the delivery of housing options, as many units are already built and ready for conversion. This approach also ensures economic sustainability by maintaining commercial spaces that support local businesses and providing affordable residential units that are preserved in perpetuity for future generations.”

This past August, the Maui County Council approved land use measures to allow mixed-use redevelopment of the Queen Kaʻahumanu Center, which has been struggling as a brick-and-mortar shopping center amid a national decline of shopping malls.

The Council measure amended the Wailuku-Kahului Community Plan for 6.75 acres and a change of zoning from M-2 Heavy Industrial District to B-3 Central Business District for 33.8 acres for the shopping center’s revitalization and infill project. The shopping complex has 2,728 parking spaces, now often or mostly vacant. The mall also has two parking structures.

McKelvey is joined in introducing the measure by Sens. Stanley Chang (Hawai‘i Kai, Kuli‘ou‘ou, Niu, ‘Āina Haina, Wai‘alae-Kāhala, Diamond Head, Kaimukī, Kapahulu), chair of the Senate Housing Committee; Republican Kurt Fevella (‘Ewa Beach, Ocean Pointe, ‘Ewa by Gentry, Iroquois Point, portion of ‘Ewa Villages); Mike Gabbard (Kapolei, Makakilo, Kalaeloa, portions of Fernandez Village, and ‘Ewa); Michelle Kidani (Mililani Town, Waipi‘o Gentry, Crestview, Waikele, portion of Waipahu, Village Park, Royal Kunia); Dru Mamo Kanuha (Kona, Ka‘ū, Volcano); and Joy San Buenaventura (Puna).