Hawaii Republicans have plans this session to attack state’s housing crisis

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HONOLULU (KHON2) — According to local Republican lawmakers, a recent survey found that 91% of adults say buying a home in Hawaii is a problem.

45% of young adults are considering leaving the state in the next five years because of the high cost of living. But lawmakers say there are some simple solutions that can help.

New Kapolei housing plan to bring hundreds of rentals for families

When it comes to how affordable housing projects are done right now, real estate developer Peter Savio pulled no punches.

“If you leave today’s meeting with any idea at all, rental buildings are evil,” said Peter Savio, real estate developer.

Savio’s been in the Hawaii real estate market for 45 years. He says he has a few simple solutions to solve the state’s housing crisis. They will be the keys to some of the Hawaii Republican lawmakers’ initiatives this session.

“When families are priced out, we lose teachers, we lose first responders, we lose service workers, we lose entrepreneurs, and we lose cultural stewards who make Hawaii home,” said Rep. Diamond Garcia, Ewa-Kapolei.

First, ban mainland companies from owning affordable housing projects. Savio says right now, none are locally owned.

Second, create a local housing market where homeowners can opt in, and properties are priced based on wages instead of fair market value.

The last piece – allow homeowners the same tax write-offs as investors. Fees such as maintenance and utilities. However, changing the tax code would come from Congress. Savio says that, still, Hawaii lawmakers could make the change locally first.

“We’re killing ourselves because of our inaction and lack of knowledge about real estate and how to make it work,” said Savio.

$214 million project to build 302 new affordable homes in Kalihi

“There’s no silver bullet,” said Sen. Troy Hashimoto, Senate Housing Committee Vice-Chair. “But it’s all working in the direction that we’re making sure that local families can afford to stay here in Hawaii.”

Hashimoto says the housing committee is looking at bills dealing with financing, funding and speeding up the permitting process.

Republican lawmakers know they will need a lot of support from across the aisle for any of their ideas to happen. But they say they’re starting to gain momentum.

“There was a change after the federal administration switched,” said Sen. Brenton Awa, Kaneohe-Kunia Camp. “We started seeing so much federal cuts and people being iced out. We had departments coming to our office trying to look for recommendation letters through us.”

“Absolutely, I think we have to work across party lines, especially on this issue of housing,” said Hashimoto. “And I think that it’s something we always want to understand what their thoughts are, and we try to incorporate it for the best way forward for people.”

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