Gov. Josh Green has signed into law Senate Bill 2061 as Act 121, 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,” according to an announcement from the Office of the Governor.

Act 121 strengthens and clarifies the statutory framework governing Hawaiʻi’s 99-year leasehold program, an innovative initiative designed to create affordable, owner-occupied condominium homes on state and county lands located in urban areas. The measure builds upon Act 97 (2025), which established the pilot leasehold condominium program within the Hawaiʻi Community Development Authority, and provides additional guidance needed to facilitate implementation of the program.

The legislation supports the development of the authority’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 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 60% of residential units be affordable to households earning no more than 140% of the area median income. 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 represents another important step toward restoring the dream of homeownership for local families,” said state Sen. Stanley Chang, chair of the Senate Housing Committee, 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.”