SB 2192: Counties; Aggregate Zoned Residential Capacity; Reduction

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, according to the 2024 Hawaii Housing Planning Study prepared for the Hawaii housing finance and development corporation, the State needs an estimated additional 64,490 housing units through 2027 to meet current and projected demand.  However, the State is currently on track to build only 13,471 units by 2027.  The legislature believes that it is essential for the counties, at minimum, to maintain the housing supply to help the State with housing production goals.

     The legislature further finds that downzoning constitutes a significant threat to the State's housing supply by forcing developers to abandon or significantly modify development plans.  Additionally, downzoning imposes long-term constraints on housing development.  Past instances of downzoning, including in Waikiki and other parts of the State, have posed a serious challenge to existing development plans.  Without adequate compensation for downzoning by upzoning other areas, the State will experience diminished housing production, which is necessary to accommodate the State's growing population.

     The purpose of this Act is to authorize each county to reduce the aggregate zoned residential capacity within the county only if the county offsets that reduction by increasing zoned residential capacity elsewhere in the county, so that there is no net loss in residential capacity in the county.

     SECTION 2.  Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§46-     Reduction in housing units; residential capacity; no net loss.  A county may reduce the aggregate zoned residential capacity within the county only if the county offsets that reduction by increasing zoned residential capacity elsewhere in the county, such that there is no net loss in total residential capacity in the county."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Counties; Aggregate Zoned Residential Capacity; Reduction

Description:

Authorizes a county to reduce the aggregate zoned residential capacity within the county only if the county offsets that reduction by increasing zoned residential capacity elsewhere in the county, such that there is no net loss in residential capacity in the county.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, according to the 2024 Hawaii Housing Planning Study prepared for the Hawaii housing finance and development corporation, the State needs an estimated additional 64,490 housing units through 2027 to meet current and projected demand.  However, the State is currently on track to build only 13,471 units by 2027.  The legislature believes that it is essential for the counties, at minimum, to maintain the housing supply to help the State with housing production goals.

     The Legislature further finds that downzoning constitutes a significant threat to the State's housing supply by forcing developers to abandon or significantly modify development plans.  Additionally, downzoning imposes long-term constraints on housing development.  Past instances of downzoning, including in Waikiki and other parts of the State, have posed a serious challenge to existing development plans.  Without adequate compensation for downzoning by upzoning other areas, the State will experience diminished housing production, which is necessary to accommodate the State's growing population.

     The purpose of this Act is to provide that each county may only reduce the number of housing units that may be built within any geographical area of the county if the county increases the number of housing units that may be built elsewhere in the county, so that there is no net loss in residential capacity in the county.

     SECTION 2.  Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§46-    Reduction in housing units; residential capacity; no net loss.  A county may reduce the number of housing units that may be built within any geographical area of the county only if the county increases the number of housing units that may be built elsewhere in the county, such that there is no net loss in total residential capacity in the county."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Counties; Reduction in Housing; Prohibited

Description:

Authorizes a county to reduce the number of housing units that may be built within any geographical area of the county only if the county increases the number of housing units that may be built elsewhere in the county, such that there is no net loss in residential capacity in the county.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, according to the 2024 Hawaii Housing and Planning Study prepared for the Hawaii Housing Finance and Development Corporation, the State needs an estimated additional 64,490 housing units through 2027.  However, the State is currently on track to build only 13,471 units by 2027.  The legislature believes that it is essential for the counties, at minimum, to maintain the housing supply to help the State with housing production goals.

     The purpose of this Act is to provide that each county may only reduce the number of housing units that may be built within any geographical area of the county if the county increases the number of housing units that may be built elsewhere in the county, so that there is no net loss in residential capacity in the county.

     SECTION 2.  Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§46-     Reduction in housing units; residential capacity; no net loss.  A county may reduce the number of housing units that may be built within any geographical area of the county only if the county increases the number of housing units that may be built elsewhere in the county, such that there is no net loss in total residential capacity in the county."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

Counties; Reduction in Housing; Maintaining Residential Capacity

Description:

Authorizes a county to reduce the number of housing units that may be built within any geographical area of the county only if the county increases the number of housing units that may be built elsewhere in the county, such that there is no net loss in residential capacity in the county.  Effective 7/1/2050.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2996

Honolulu, Hawaii

RE:     S.B. No. 2192

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No. 2192, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize a county to reduce the number of housing units that may be built within any geographical area of the county only if the county increases the number of housing units that may be built elsewhere in the county, such that there is no net loss in residential capacity in the county.

     Your Committee received testimony in support of this measure from AARP Hawaiʻi and the Grassroots Institute of Hawaii.

     Your Committee received comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu.

     Your Committee finds that the State faces a significant housing deficit, and even well-intended downzoning or reduction of the number of housing units allowed to be built in an area can exacerbate housing shortages, drive up costs, and limit future housing options.  Your Committee believes that requiring any reduction in allowable housing units to be offset elsewhere in the county will prevent a net loss of overall residential capacity for that county.  This measure safeguards countywide residential capacity and ensures that the counties' land use decisions do not further restrict the State's housing supply.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2192, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

STAND. COM. REP. NO. 2458

Honolulu, Hawaii

RE:     S.B. No. 2192

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Housing and Energy and Intergovernmental Affairs, to which was referred S.B. No. 2192 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

     The purpose and intent of this measure is to authorize a county to reduce the number of housing units that may be built within any geographical area of the county only if the county increases the number of housing units that may be built elsewhere in the county, such that there is no net loss in residential capacity in the county.

     Your Committees received testimony in support of this measure from the Grassroot Institute of Hawaii.

     Your Committees received testimony in opposition to this measure from one individual.

     Your Committees received comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu.

     Your Committees find that downzoning is a mechanism through which a county amends existing zoning ordinances to reduce the allowable density in an area.  While downzoning can be an important tool for county agencies to control the development of an area, it often has detrimental effects on the State's housing supply.  However, a county can offset these effects by strategically upzoning some areas to compensate for downzoning in other areas.  This measure will help to ensure that counties appropriately compensate for downzoning to avoid significant reductions in the State's housing supply and to prevent further exacerbating the housing shortage.

     Your Committees have amended this measure by:

     (1)  Amending section 1 to provide additional findings on the history and effects of downzoning in the State;

     (2)  Making it effective upon its approval; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Housing and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2192, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2192, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Housing and Energy and Intergovernmental Affairs,