Op-Ed: Beyond Tax Relief — Delivering Real Housing Solutions for Hawaiʻi

Beyond Tax Relief: Delivering Real Housing Solutions for Hawaiʻi
By: Senator Donovan Dela Cruz, Senator Sharon Moriwaki, and Senator Troy Hashimoto

“We want our residents, especially our keiki, to make Hawaiʻi their permanent home. Everyone in Hawaiʻi knows someone who has made the difficult decision to move to the continent because the cost of living here is simply too high. As the University of Hawaiʻi Economic Research Organization’s Hawaiʻi Housing Factbook highlighted, our residents are frequently forced into impossible choices. This past legislative session, much coverage has been given to the historic tax relief measures maintained, yet little attention has been given to critical housing investments.

While tax relief puts vital funds back into the pockets of working families, the State cannot stem the tide of out-migration without taking aggressive action on the biggest cost of living driver: housing.

We recognize that housing costs remain the heaviest burden on our local communities. That is why the Legislature focused on passing a comprehensive housing package. We secured over $280 million in the state budget for this coming fiscal year alone, contributing to a historic two-year budget total of nearly $500 million.

This massive investment is actively building homes across the entire housing spectrum, from the most vulnerable to those who want to buy their own home.

Protecting our most vulnerable neighbors is a core priority. Over $80 million is currently being deployed across our two-year budget with the explicit goal of transitioning people off the streets and caring for our aging population. This robust funding supports community-based Kauhale villages, rent supplements for our lowest-income residents, and comprehensive supportive housing ensuring our kūpuna can safely age in their communities.

Working families must have access to affordable rentals, driving a $250 million investment into financing programs for affordable and workforce housing. We also recognize the need for holistic community support, pairing workforce housing with vital behavioral health services and dedicating $68 million to redevelop public housing communities statewide.

Empowering those dreaming of homeownership is another priority, with $40 million invested in for sale homes and essential infrastructure. Fulfilling our commitment to Native Hawaiians, over $24 million will fund Department of Hawaiian Home Lands development statewide. Beyond building inventory, making these homes affordable is essential. The concept of housing sold under a 99 year leasehold program continues to be refined to establish a viable pathway for families.

Furthermore, the expanded Dwelling Unit Revolving Fund Equity Pilot Program directly lowers purchase prices, while a quadrupled tax deduction for Individual Housing Accounts helps families overcome the massive hurdle of saving for a down payment.

Funding alone does not solve the current housing need. Infrastructure and permitting reforms are equally necessary to expedite construction. The new Hawaiʻi Builds Pilot Program cuts through delays by mandating interagency coordination and expediting project reviews. Addressing the staffing shortfall causing severe bottlenecks in county permitting agencies, the Legislature authorized increasing salaries to recruit and retain essential permitting personnel.

Voters are also being asked to consider an additional tool to finance critical infrastructure, such as water lines and roads. A proposed constitutional amendment requires voter approval to grant counties the authority to issue Resilient Infrastructure for Shelter and Equity bonds. If approved, these bonds would be repaid solely by future property tax growth in those specific districts and not by countywide real property tax rates.

Tax relief provides immediate help, but a sustainable future requires housing our residents can afford. The bills and budget appropriations passed this session represent real steps forward. We have a long road ahead, but we are committed to doing the hard work so future generations do not have to leave home. We want every family to stay and thrive in Hawaiʻi.”

*****Views expressed in Op-Ed pieces are those of the author’s alone and do not reflect or represent the opinions, policies or positions of Maui Now.*****