HB 1741 Hawaii House · 2026 Regular Session

RELATING TO HOUSING.

Summary

Deems a county inclusionary mandate as a form of development exaction and treats the mandate as a housing affordability impact fee. Provides parameters for a county's adoption or amendment of an inclusionary mandate for residential or mixed-use development. Establishes additional components for a needs assessment study for a county-imposed inclusionary mandate. Conditions the adoption or amendment of a county inclusionary mandate for residential or mixed-use development on written findings of essential nexus and rough proportionality and a determination of financial feasibility. (CD1)

Issues: ✗ Housing

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

May 2026

House Passage

May 2026

Senate Passage

May 2026

Signed into Law

Jul 2026

Introduced Jan 20, 2026 Signed Jul 9, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

HB1741_HD2 → HB1741_SD1 · 6 edits

MODERATE

This bill significantly simplifies Hawaii's rules on inclusionary housing mandates by removing a complex 'dual compliance' framework that previously protected affordable housing from price hikes while allowing stricter rules for luxury projects. The new version eliminates the specific exemptions for non-luxury, by-right housing and removes the requirement for counties to offer full cost offsets or prove no price increase for those projects. Instead, the bill imposes a blanket requirement for all residential projects to demonstrate 'essential nexus and rough proportionality' to justify any inclusionary mandate.

Scope change

The bill's scope was narrowed regarding exemptions; it removed the specific protections for low-density, non-luxury, and by-right housing projects that previously allowed them to avoid inclusionary mandates unless they received a density increase.

REQUIREMENT

Eliminated the requirement for counties to conduct feasibility studies showing that inclusionary mandates would not increase prices or suppress housing production for non-luxury, by-right projects.

Deleted the 'dual compliance framework' that allowed luxury projects to be subject to mandates while protecting affordable housing from price increases via full-offset incentives.

Added a general requirement that all inclusionary mandates must be supported by written findings demonstrating compliance with constitutional 'essential nexus and rough proportionality' standards.

ELIGIBILITY

Removed the specific exemption for projects that do not receive a discretionary increase in density, floor area ratio, or height, meaning all residential projects now face the same scrutiny.

TIMELINE

Changed the effective date of the bill from July 1, 3000, to July 1, 2050, likely to align with future legislative sessions or placeholder dates.

DEFINITION

Removed the detailed definition of 'luxury residential project' based on sales price, rent, density, and building type, as the specific luxury/non-luxury distinction is no longer the primary driver of the rules.

HB1741_CD1 → HB1741_HD1 · 7 edits

MODERATE

This bill fundamentally shifts the approach to affordable housing mandates from a 'fee-based' model to a 'supply-expansion' model. It removes the previous 10% threshold that allowed low-cost mandates without study and instead requires counties to prove that any new mandate will not raise home prices or stop construction. The bill explicitly exempts most standard housing projects from mandates unless they are luxury developments or receive special density bonuses, aiming to prioritize building more homes to lower overall costs.

Scope change

The bill significantly narrows the scope of inclusionary mandates. Previously, many standard residential projects could be subject to a 10% affordable housing requirement. Under the new version, mandates are generally prohibited for non-luxury, by-right housing projects. Mandates are now primarily allowed only for luxury projects or projects that receive discretionary increases in density, height, or floor area.

REQUIREMENT

Removed the previous 10% threshold that allowed counties to impose affordable housing requirements without conducting a financial feasibility study.

Changed the needs assessment study requirements to require proof that mandates will not increase home prices or suppress housing production, rather than just analyzing feasibility.

ELIGIBILITY

Added a general prohibition on inclusionary mandates for non-luxury, by-right housing projects unless specific conditions are met.

DEFINITION

Introduced a new definition of 'luxury residential project' based on high sales prices, high rents, low density, or single-family detached units.

ENFORCEMENT

Established a 'no-price-increase' standard, requiring counties to either prove mandates won't raise prices or provide incentives that fully offset compliance costs.

TIMELINE

Removed the July 1, 2029 effective date and replaced it with a distant future date of July 1, 3000, likely to allow for further legislative refinement before enforcement.

SCOPE

Added exemptions for resort/vacation-rental construction and clarified that the bill does not limit the actions of state housing finance corporations.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 6, 2026

Lower · Passed

Passed Final Reading as amended in CD 1 with Representative(s) Shimizu voting aye with reservations; Representative(s) Cochran, Grandinetti voting no (2) and none excused (0).

lower

May 6, 2026

Upper · Passed

Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none).

upper

May 1, 2026

Introduced

48 Hrs. Notice (as amended CD 1) 05-06-26

upper

May 1, 2026

Upper · Passed

Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 131-26).

upper

May 1, 2026

Lower · Passed

Reported from Conference Committee (Conf Com. Rep. No. 131-26) as amended in (CD 1).

lower

May 1, 2026

Lower · Passed

The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 4 Ayes: Representative(s) Evslin, Hashem, Tarnas, Miyake; Ayes with reservations: none; 1 Noes: Representative(s) Cochran; and 0 Excused: none.

lower

May 1, 2026

Upper · Passed

The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Wakai, Chang, Hashimoto; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Apr 30, 2026

Upper · Passed

Conference committee meeting to reconvene on 05-01-26 10:10AM; Conference Room 224.

upper

Apr 29, 2026

Upper · Passed

Conference committee meeting to reconvene on 04-30-26 10:10AM; Conference Room 224.

upper

Apr 28, 2026

Upper · Passed

Conference committee meeting to reconvene on 04-29-26 10:10AM; Conference Room 224.

upper

Apr 27, 2026

Lower · Passed

Bill scheduled for Conference Committee Meeting on Tuesday, 04-28-26 10:11AM in conference room 224.

lower

Apr 20, 2026

Committee

Re-referred to HSG, WAL, JHA, FIN, referral sheet 30

lower

Apr 16, 2026

Amended

House disagrees with Senate amendment (s).

lower

Apr 14, 2026

Introduced

Returned from Senate (Sen. Com. No. 617) in amended form (SD 1).

lower

Apr 14, 2026

Upper · Passed

Report adopted; Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Apr 9, 2026

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Apr 7, 2026

Upper · Passed

The committee(s) on WAM will hold a public decision making on 04-09-26 10:55AM; Conference Room 211 & Videoconference.

upper

Mar 25, 2026

Upper · Passed

Report adopted; Passed Second Reading and referred to WAM.

upper

Mar 25, 2026

Committee

Reported from EIG/HOU (Stand. Com. Rep. No. 3199) with recommendation of passage on Second Reading and referral to WAM.

upper

Mar 19, 2026

Upper · Passed

The committee(s) on HOU recommend(s) that the measure be PASSED, UNAMENDED. The votes in HOU were as follows: 3 Aye(s): Senator(s) Chang, Hashimoto, Rhoads; Aye(s) with reservations: none ; 2 No(es): Senator(s) Elefante, Fevella; and 0 Excused: none.

upper

Mar 19, 2026

Upper · Passed

The committee(s) on EIG recommend(s) that the measure be PASSED, UNAMENDED. The votes in EIG were as follows: 3 Aye(s): Senator(s) Wakai, Chang; Aye(s) with reservations: Senator(s) Richards ; 2 No(es): Senator(s) DeCoite, Fevella; and 0 Excused: none.

upper

Mar 16, 2026

Upper · Passed

The committee(s) on EIG/HOU has scheduled a public hearing on 03-19-26 3:02PM; Conference Room 224 & Videoconference.

upper

Mar 12, 2026

Committee

Referred to EIG/HOU, WAM.

upper

Mar 12, 2026

Introduced

Received from House (Hse. Com. No. 280).

upper

Mar 10, 2026

Lower · Passed

Passed Third Reading as amended in HD 2 with Representative(s) Grandinetti, Iwamoto, Matayoshi, Poepoe, Sayama, Shimizu voting aye with reservations; Representative(s) Cochran voting no (1) and none excused (0). Transmitted to Senate.

lower

Feb 26, 2026

Lower · Passed

The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Tarnas, Poepoe, Hashem, Kahaloa, Sayama, Takayama, Garcia; Ayes with reservations: none; 1 Noes: Representative(s) Shimizu; and 2 Excused: Representative(s) Belatti, Cochran.

lower

Feb 20, 2026

Lower · Passed

Report adopted; referred to the committee(s) on JHA with Representative(s) Shimizu voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1).

lower

Feb 20, 2026

Committee

Reported from WAL (Stand. Com. Rep. No. 718-26), recommending referral to JHA.

lower

Feb 19, 2026

Lower · Passed

The committee on WAL recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 9 Ayes: Representative(s) Hashem, Morikawa, Belatti, Ichiyama, Poepoe, Woodson, Souza; Ayes with reservations: Representative(s) Iwamoto, Shimizu; Noes: none; and Excused: none.

lower

Feb 9, 2026

Committee

Reported from HSG (Stand. Com. Rep. No. 112-26) as amended in HD 1, recommending passage on Second Reading and referral to WAL.

lower

Feb 4, 2026

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Cochran, Grandinetti, Kila, La Chica, Muraoka, Pierick; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Kitagawa.

lower

Jan 26, 2026

Committee

Referred to HSG, WAL, JHA, referral sheet 1

lower

Jan 21, 2026

Introduced

Introduced and Pass First Reading.

lower

Jan 20, 2026

Introduced

Prefiled.

lower

11 primary · 0 co-sponsors