Opinion: Hawaii's Additional Federal Housing Grant

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Governor Green released another press release about Hawaii increasing federal funding for more housing in the state. On July 3, 2024, the Governor's office released a statement about Hawaii receiving a $6.6 Million federal grant to help with the housing supply in Hawaii.

It was a bipartisan legislation spearheaded by Brian Schatz called the "Yes In My Backyard" legislation. It's a funding bank to help the state help Hawaii residents build houses in the state. The state wants to build more homes in urban and commercial areas.

Senator Schatz secured another #$100 Million for the new grant program for the Transportation, Housing, and Urban development sector.

July 3, 2024, Governor Green's news release:

"These policies include increasing density, reducing minimum lot sizes, creating transit-oriented development zones, streamlining or shortening permitting processes and timelines, expanding by-right multifamily zoned areas, allowing accessory dwelling units on lots with single-family homes, eliminating or relaxing residential property height limitations, eliminating or reducing off-street parking requirements and allowing the conversion of vacant retail and office space into residential housing."

Look at the part of the news release that mentions "increasing density, reducing minimum lot sizes, relaxing residential property height limitations, and reducing off-street parking requirements."

If you recall, neighbors on Sierra Drive were fighting against monster homes in their community. The current news release seems to counter it by "relaxing residential property height limitations and reducing off-street parking requirements."

The news release mentions the need for "a collaboration between federal, state, and community partners to maximize federal funding for the state of Hawai'i."

Suppose you own a home in an older neighborhood with relaxed property height requirements. In that case, the likelihood a developer will build a monster house in the older community is likely because of the reduced residential policies. That means that the property taxes of the residents of the neighboring homes will increase.

Final Thoughts

Developers are in it to make money. If policies are not checked and monitored, the newly relaxed housing requirements could backfire on older residents or property owners in rural and urban areas.