To help deal with Hawaiʻi’s housing crisis, Gov. Josh Green signed into law one bill that deals with the rising cost of property insurance and another that expands essential resources for youth and young adults facing homelessness.
With an increase in local and national environmental disasters, Senate Bill 1044 (Act 296) aims to stabilize the state’s property insurance market as premiums skyrocket and coverage options decrease.
The law will expand the powers of the Hawaiʻi Property Insurance Association to provide extra insurance options for those unable to obtain coverage.
“After the Lahaina fires and the difficulty insuring ourselves, it turned the condo market upside down,” Green said. “We went through a thoughtful process to address the property insurance gap.”
The signing comes a day after a 95-acre wildfire on the west side of Oʻahu burned two Māʻili homes and forced the evacuation of residents in area neighborhoods.
“These are hard, stressful times for everyone, especially those who have lost everything,” Senate Commerce and Consumer Protection Committee Chair Jarrett Keohokalole said. “It is a reminder of how vulnerable we all are to disaster.
“But it also highlights the importance of insurance. I am very grateful to address this silent crisis that is pushing residents to the brink with skyrocketing insurance rates with nowhere else to turn.”
Rep. Scot Z. Matayoshi, chair of the House Consumer Protection and Commerce Committee, said insurance companies told him the reason rates for condominiums are so high is due to high-impact repairs needed from water loss and deferred maintenance.
The bill contains a pilot program to provide condo owners with low-interest loans to make specific high-impact repairs that should lower insurance premiums and raise unit values.
“We targeted this bill to help the average condominium building, not the luxury high-rises,” Matayoshi said. “While the bill is an answer for the short term, the long-term solution comes from the loan program.”
In August 2024, Green issued an emergency proclamation to temporarily reactivate the Hawaiʻi Hurricane Relief Fund, which was formed in 1993 in response to private insurers withdrawing from the hurricane market after the devastation caused by Hurricane ʻIniki.
As time passed and private insurers resumed offering hurricane coverage, the relief fund ceased operation and remained dormant. But the Lahaina wildfire renewed the need for it.
Now, Act 296 reactivates the relief fund through law to provide insurance coverage in scenarios where the private market fails to do so. Beginning June 24, the relief fund is accepting applications by condominium and townhouse Associations of Apartment Owners.
“This is open to any condominium association, not just high-rises. It includes town homes and single-family homes, as long as they get commercial property insurance in the state,” said Jerry Bump, the State Insurance Commissioner.
To be eligible, a condo association must have been previously denied hurricane coverage by at least two state-licensed insurance companies operating in Hawaiʻi and have buildings with a total insured value exceeding $10 million.
This is excess coverage that can only cover the portion of losses above $10 million. The associations must purchase separate primary insurance to cover hurricane losses up to $10 million.
The relief fund has received about 80 applications and has issued 10 policies within the first week.
“We’re hearing anecdotes that these associations have seen a considerable amount of savings,” Bump said.
The Hawaiʻi Hurricane Relief Fund only applies to hurricane insurance. For all other perils, condo associations must go through the Hawaiʻi Property Insurance Association, which is setting up a program expected to begin accepting applications in the fourth quarter of the year.
In other legislation, Green signed House Bill 613 (Act 297) to expand essential resources for youth and young adults facing homelessness.
The measure makes the Safe Places for Youth program permanent, providing 24-hour access to shelter, mental health care, education support, and job training for homeless youth.
“As everyone knows, we have a homeless crisis in our state, and too often, young individuals suffer the most, especially those in the LGBTQ community,” Green said. “Many have found themselves forced out of the home and struggling with great challenges in life.
“Now there will be spots throughout the state, mostly on Oʻahu for now, where youth can find support directly that will guide them through a warm hand-off to services.”
Through the joint efforts of state and county departments, those in need of further support will be connected to nonprofit institutions with the expertise to offer long-term support and shelter. Services will expand on Hawaiʻi Island and Oʻahu, with plans to expand statewide so the most vulnerable youth have a lifeline to feel safe.
“Youth in need can text or walk in and receive family-strengthening services for reunification or transitional services for youth unable to return to families,” said Rep. Lisa Marten, chair of the House Committee on Human Services and Homelessness. “The program provides behavioral health services and job training, help that all young people need so they can become self-sufficient and thriving members of communities.”
Reports on this program will be submitted to the State Legislature, with appropriations of $871,016 for fiscal year 2026 and $1.8 million for fiscal year 2027.
“This is how we break the cycle of homelessness, by investing in people, especially our youth,” Green said. “We are shaping a future where everyone has a chance to thrive. This program shows what is possible when a community comes together with a purpose.”
Slideshows on the insurance stabilization bill and the bill relating to houseless youth can be found with more details.