Informing the Legislature that on July 8, 2026, the Governor signed the following bill into law: HB1741 HD2 SD1 CD1 (ACT 211).

This bill, signed into law on July 8, 2026, requires Hawaiian counties to conduct specific studies before implementing or changing rules that mandate developers build affordable housing units. Under the new law, any requirement forcing developers to include affordable units is treated legally as a fee, meaning counties must prove the rule is necessary and financially feasible before adopting it. If a county wants to set an affordable housing requirement above ten percent, it must provide written evidence showing the rule is proportional and won't make projects unbuildable. These new rules aim to ensure that policies requiring affordable housing are based on data and do not inadvertently reduce the overall supply of homes available to residents.