Editorial: Hope on horizon for more housing

Might this be the year that Hawaii truly moves forward in providing affordable housing to its residents? With as much as $1 billion in overall funding for housing under discussion as the state Legislature reaches its home stretch, it’s possible. “I’m hopeful,” says state Rep. Nadine Nakamura, Housing Committee chairwoman.

Statewide, tens of thousands of housing units are needed to meet demand, and the bulk of these really should be affordable for those earning Hawaii’s median income or less. We also need housing for those who are at risk for homelessness, or who now live on the streets or hidden away in camps scattered across the islands.

We need creative, low-cost tiny homes, affordable rentals for families, seniors and working singles, and paths to ownership for Hawaii’s workers. The needs are varied; so are the solutions.

The attention-getter in this legislative session has been a move to allocate $600 million for the Department of Hawaiian Home Lands. With this funding, DHHL says it could deliver 2,910 homestead lots on Oahu, Maui, Molokai, Hawaii island and Kauai by 2028. House Bill 2511 has moved to conference, and Nakamura is confident in its prospects.

“We’re asking the DHHL to be creative in how these funds are used,” she said. That recognizes the fact that nimble processes are needed to get people housed quickly. Nakamura suggests partnerships with the private sector, or outright grants to recipients as possibilities.

Also promising: Senate Bill 2372 could allocate as much as $300 million to the state’s Rental Housing Revolving Fund — the largest infusion of funds as yet. Exact funding figures won’t be attached until the bill comes out of conference, but $300 million would meet a need for workforce housing, financing construction of 1,938 new affordable rental homes and rehabilitation of 800 rentals.

To help would-be homeowners, this bill also proposes a $10 million infusion for a Dwelling Unit Revolving Fund Equity Pilot Program. It would essentially subsidize home ownership by paying part of the purchase price of a home. The state would hold equity in these homes and could recoup its payment if the properties are sold. Nakamura said it might help as many as 1,000 would-be buyers.

“We have a responsibility to fill the gap,” Nakamura says, and she’s right.

State Sen. Stanley Chang’s “Aloha Homes” proposal to build leasehold condos on state- and county-owned land — a high-concentration project modeled after one in Singapore — did not fare so well in the Legislature this year. A study by the Appleseed Center for Law and Economic Justice found it unfeasible for Hawaii, as leasehold properties lose value over time. Nevertheless, some version of this vision to create dense, urban homes on public land should be pursued, as soon as the next session.

Hawaii will be getting $2.8 billion in federal infrastructure funding in the coming years — and this can be leveraged to reduce the cost of developing affordable housing.

“Infrastructure always increases the cost of housing,” Nakamura said. She calls for “laser focus” on the issue, to make maximum use of the funding where it’s needed most.

The Senate’s draft of the state budget includes $15 million to fund the Ohana Zones Pilot Program. That’s a piece of the solution, too, as the privately developed Kama‘oku tiny home community project in Kalaeloa shows.

To see any progress made in providing stable housing for those most in need is encouraging. We need more of that. We also need state- and county-funded projects to fill the many gaps.

In the Honolulu Star-Advertiser’s “Spotlight Hawaii” webcast Monday, Gov. David Ige said seeing planned affordable housing projects through on a statewide basis was a primary focus as he winds up his final year in office. Should he sign these major pieces of legislation to fund affordable housing, residents struggling to keep a roof over their heads might see real relief in this decade.