Housing

This bill prohibits counties from requiring minimum parking spaces for certain developments starting July 1, 2027. The law applies to local governments that currently enforce parking mandates for new construction projects. The restriction remains in effect until July 1, 3000, giving it a very long-term duration. The measure aims to give developers more flexibility in designing parking solutions without being forced to meet specific minimum requirements.

Establishes a limited right of first refusal for the Department of Hawaiian Home Lands with respect to county real property tax sales. Requires advance notice from the counties to the Department of Hawaiian Home Lands of qualifying properties. (SD1)

For taxable years beginning after 12/31/2026, applies the retail or higher general excise tax or use tax rate to purchases or imports of new motor vehicles by rental car companies. Appropriates funds to establish a position in the Department of Taxation. Effective 7/1/2050. (SD1)

Clarifies the process by which the Hawaii Community Development Authority may approve residential development on certain parcels of Kakaako Makai. Raises the building height limit and the maximum floor area ratio on certain parcels in the area. Requires a certain percentage of the residential units developed on certain parcels to be allocated to households at or below a certain income level in perpetuity, with priority given to certain essential workforce in the area. Limits the sale of residential units developed in certain residential developments to prospective owner-occupants. Requires the Office of Hawaiian Affairs to determine a Kakaako Makai association fee to be collected from residents, tenants, and lessees of certain parcels to be deposited into a special account in the Office of Hawaiian Affairs Special Fund to fund various services and projects in the Kakaako Makai area. (SD1)

HB 1088 exempts housing developed by the Department of Hawaiian Home Lands (DHHL) from school impact fees. This applies to new DHHL housing projects, removing a fee typically required to fund school infrastructure. The exemption takes effect on July 1, 3000, directly affecting DHHL developments by eliminating this cost. The bill focuses on modifying fee requirements for DHHL housing without altering other school funding mechanisms.

Exempts transfers of Hawaiian Home Lands from transfer restrictions for real property under housing development programs of the Hawaii Housing Finance and Development Corporation. Effective 7/1/3000. (SD1)

Establishes an excise tax on certain taxpayers who own excess single-family residences for failure to sell those residences. Establishes and allocates excise tax revenues to the Housing Downpayment Trust Fund. Requires annual reports to the Legislature. Applies to taxable years beginning after 12/31/2026. Effective 7/1/2050. (SD2)