Island Voices: Many ways to incentivize affordable housing

As the cost of living in Hawaii continues to rise, affordable housing has become a pressing issue for many residents. According to the 2018 Hawaii Housing Planning Study, the state has a shortage of approximately 17,000 affordable rental units, and the problem is only expected to get worse in the coming years as the population continues to grow.

While there are no easy solutions to this complex problem, there are several steps that lawmakers can take to quickly expand the availability of affordable housing in the state.

One approach is to incentivize the development of new affordable housing units. Research has shown that financial incentives, such as tax credits and grants, can be effective in encouraging developers to build affordable housing (Belsky, 2008). For example, the Low-Income Housing Tax Credit (LIHTC) program, which provides tax credits to developers who build affordable housing, has helped to create millions of affordable housing units across the United States (U.S. Department of Housing and Urban Development, 2020). By offering similar incentives in Hawaii, lawmakers could encourage developers to build more affordable housing units in the state.

Another option is to utilize vacant or underutilized properties for affordable housing. This could include repurposing abandoned buildings, converting commercial properties into residential units, or building new housing on vacant land. This approach has been successful in other cities, such as San Francisco, where the Mayor’s Office of Housing and Community Development has worked with nonprofit organizations to convert underutilized properties into affordable housing units (San Francisco Mayor’s Office of Housing and Community Development, 2021). In Hawaii, lawmakers could follow a similar approach, working with non-profits or other organizations to utilize vacant properties and create more affordable housing.

Lawmakers could also consider implementing inclusionary zoning policies, which require developers to set aside a certain percentage of units in new housing developments as affordable housing. These policies can help to ensure that new housing developments are more accessible to a diverse range of residents, rather than just those who can afford market-rate units (Smart Growth America, n.d.). Research has shown that inclusionary zoning policies can be effective in increasing the availability of affordable housing, particularly in high-cost areas (Belsky, 2008). By implementing inclusionary zoning policies in Hawaii, lawmakers could help to increase the supply of affordable housing units in the state.

Another option is to increase funding for rental assistance programs, such as Section 8 vouchers, which provide financial assistance to low-income individuals and families to help them afford rent.

These programs can be particularly helpful for those who are struggling to afford housing in the private market, and can help to prevent homelessness (U.S. Department of Housing and Urban Development, 2020). By increasing funding for rental assistance programs, lawmakers could help to make housing more affordable for low-income residents in Hawaii.

Finally, lawmakers could explore the use of tiny homes or other alternative housing options as a way to increase the availability of affordable housing. These options could be particularly useful for those who are unable to afford traditional housing or for those who prefer a more minimalist lifestyle (Tiny House Blog, 2021). While tiny homes have not yet been widely adopted in Hawaii, they have the potential to provide a unique and affordable housing option for residents of the state.

Overall, there are many ways that lawmakers can quickly expand affordable housing in Hawaii.

By incentivizing the development of new units, utilizing vacant properties, implementing inclusionary zoning policies, increasing funding for rental assistance programs, and exploring alternative housing options, lawmakers can work to make housing more accessible and affordable for all residents of the state.