HONOLULU — Private developers will now be eligible for higher post-construction grant amounts for rental housing projects thanks to a new law designed to help offset high interest rates, supply chain shortages, increased construction costs and other barriers to increasing the city’s rental housing inventory.

What You Need To Know

  • Honolulu Mayor Rick Blangiardi enacted Bill 3 at a signing ceremony Tuesday at Honolulu Hale as part of his administration’s ongoing efforts to address the local housing crisis
  • The measure, introduced by council member Tyler Dos Santos-Tam, was unanimously approved by the Honolulu City Council earlier this month
  • The measure increases incentives originally created under Bill 1 (2021), the first piece of legislation submitted by the Blangiardi’s administration
  • Council member Matt Weyer called Bill 3 'another tool in the toolkit to help us to respond to our housing crisis'

Honolulu Mayor Rick Blangiardi enacted Bill 3 at a signing ceremony Tuesday at Honolulu Hale as part of his administration’s ongoing efforts to address the local housing crisis.

“This bill will create rental properties on the market that are actually affordable for hard-working people who want their own place to live and the dignity that comes with that,” Blangiardi said. “This bill will also help mitigate the exorbitant costs that are forcing too many of our loved ones to leave their homes and families here on Oahu. I am proud of our leadership team and deeply grateful to our partners at the Honolulu City Council for developing creative solutions to a challenging issue that impacts all of us.”

The measure, introduced by council member Tyler Dos Santos-Tam, was unanimously approved by the Honolulu City Council earlier this month.

Under the new law, private developers can be awarded grants of $40 per square foot for units under 300 square feet or $12,000 per unit for units that are 300 square feet or larger.

The measure increases incentives originally created under Bill 1 (2021), the first piece of legislation submitted by the Blangiardi’s administration. Under that bill, incentives were tied to area median income, with units rented to households earning between 60% and 100% of AMI eligible for grants of $15 per square foot up to $9,000 per unit. Units rented to households earning less than 60% of AMI were eligible for grants of $15 per square foot, up to $15,000 per unit.

“Every day, housing prices increase,” Dos Santos-Tam said. “Every day, it becomes more difficult for our residents to live here. We can’t solve the housing crisis without building more housing that local people can afford. That starts with Bill 3. It creates hundreds of affordable units for our young people, our workers, our local families.”

Council member Matt Weyer called Bill 3 “another tool in the toolkit to help us to respond to our housing crisis.”

“As a small grant program, it supports the creation of units on otherwise hard to develop parcels in the urban core,” Weyer said. “Building on and rehabilitating these smaller parcels allows for us to maintain the character of our neighborhoods while maximizing the potential for housing. This is not just about increasing the number of housing units; it’s about reimagining how we use our existing spaces to create sustainable communities that keep families here on Oahu.”

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.