HB1318 • 2026

RELATING TO AFFORDABLE HOUSING.

Housing

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: EVSLIN, MIYAKE, MORIKAWA
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The bill text does not provide specific details about the number of affected lands or potential impacts on housing prices.

Affordable Housing Land Exemption

The bill removes certain lands set aside by the Governor for affordable housing from the definition of 'public lands' and requires legislative approval before these lands can be sold or gifted.

What This Bill Does

Removes specific lands designated by the Governor to counties for the purpose of affordable housing from the list of public lands in Hawaii.
Requires that any sale or gift of these lands must have approval from the state legislature.

Who It Names or Affects

Governor of Hawaii
State Legislature
Counties in Hawaii

Terms To Know

Public Lands: Lands owned by the government and managed for public use.
Affordable Housing: Housing that is reasonably priced for people with lower incomes.

Limits and Unknowns

The bill does not specify how many lands will be affected or what the impact on housing prices might be.
It is unclear when and if this legislation will become law, as it is still in the legislative process.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: The amendment updates the definition of public lands in Hawaii Revised Statutes to include land set aside by the governor for affordable housing purposes.

Adds a new clause (17) to Section 171-2, which includes lands set aside by the governor to counties for affordable housing as defined in section 201H-57.

The amendment text is technical and does not provide details on how the new clause will be implemented or enforced.
It's unclear what specific changes this addition might bring beyond including a reference to affordable housing land set aside by the governor for counties.

HD2

Hawaii published version HD2

Plain English: The amendment changes how public lands can be used for affordable housing by allowing counties to manage these lands under specific conditions.

Adds a new provision that allows the governor to set aside state lands for county-managed affordable housing projects, provided these lands are managed according to public trust duties and obligations.

The amendment text does not specify how counties will be compensated or what happens if the land is no longer needed for affordable housing purposes.
Details on federal law limitations affecting this provision are not fully explained in the provided text.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-25 H
The committee(s) on FIN recommend(s) that the measure be deferred.
2025-02-21 H
Bill scheduled to be heard by FIN on Tuesday, 02-25-25 10:00AM in House conference room 308 VIA VIDEOCONFERENCE.
2025-02-14 H
Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Garcia voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).
2025-02-14 H
Reported from WAL (Stand. Com. Rep. No. 713) as amended in HD 2, recommending referral to FIN.
2025-02-13 H
The committee on WAL recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Hashem, Lamosao, Belatti, Ichiyama, Iwamoto, Morikawa, Shimizu, Souza; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Poepoe, Woodson.
2025-02-10 H
Bill scheduled to be heard by WAL on Thursday, 02-13-25 9:30AM in House conference room 411 VIA VIDEOCONFERENCE.
2025-02-06 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on WAL with Representative(s) Garcia voting aye with reservations; none voting no (0) and Representative(s) Ward excused (1).
2025-02-06 H
Reported from HSG (Stand. Com. Rep. No. 222) as amended in HD 1, recommending passage on Second Reading and referral to WAL.
2025-01-31 H
The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, La Chica, Pierick; Ayes with reservations: Representative(s) Muraoka; Noes: none; and 2 Excused: Representative(s) Cochran, Kitagawa.
2025-01-28 H
Bill scheduled to be heard by HSG on Friday, 01-31-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE.
2025-01-27 H
Referred to HSG,WAL, FIN, referral sheet 4
2025-01-23 H
Introduced and Pass First Reading.
2025-01-22 H
Pending introduction.

Official Summary Text

RELATING TO AFFORDABLE HOUSING.
Affordable Housing; Counties; Public Land; Exemption
Removes from the definition of "public lands" lands set aside by the Governor to the counties for the purpose of affordable housing. Specifies that lands set aside by the Governor to the counties for affordable housing require legislative approval for the sale or gift of such lands. Effective 7/1/3000. (HD2)

Current Bill Text

Read the full stored bill text

HB1318

HOUSE OF REPRESENTATIVES

H.B. NO.

1318

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to affordable housing
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1
.
�
Section 171-2,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�171-2
�
Definition of
public lands.
�

"Public lands" means all lands or interest therein in the
State classed as government or crown lands previous to August 15, 1895, or
acquired or reserved by the government upon or subsequent to that date by
purchase, exchange, escheat, or the exercise of the right of eminent domain, or
in any other manner; including lands accreted after May 20, 2003, and not
otherwise awarded, submerged lands, and lands beneath tidal waters that are
suitable for reclamation, together with reclaimed lands that have been given
the status of public lands under this chapter, except:

����
(1)
�
Lands designated in section 203 of the
Hawaiian Homes Commission Act, 1920, as amended;

����
(2)
�
Lands set aside pursuant to law for the use of
the United States;

����
(3)
�
Lands being used for roads and streets;

����
(4)
�
Lands to which the United States relinquished
the absolute fee and ownership under section 91 of the Hawaiian Organic Act
before the admission of Hawaii as a state of the United States unless
subsequently placed under the control of the board of land and natural
resources and given the status of public lands in accordance with the state
constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other
laws;

����
(5)
�
Lands to which the University of Hawaii holds
title;

����
(6)
�
Non-ceded lands set aside by the governor to
the Hawaii housing finance and development corporation or lands to which the
Hawaii housing finance and development corporation in its corporate capacity
holds title;

����
(7)
�
Lands to which the Hawaii community
development authority in its corporate capacity holds title;

����
(8)
�
Lands set aside
by the governor to the
Hawaii public housing authority or lands to which
the Hawaii public housing authority in its corporate capacity holds title;

����
(9)
�
Lands to which the department of agriculture
holds title by way of foreclosure, voluntary surrender, or otherwise, to
recover moneys loaned or to recover debts otherwise owed the department under
chapter 167;

���
(10)
�
Lands that are set aside by the governor to
the Aloha Tower development corporation, lands leased to the Aloha Tower
development corporation by any department or agency of the State, or lands to
which the Aloha Tower development corporation holds title in its corporate
capacity;

���
(11)
�
Lands that are set aside by the governor to
the agribusiness development corporation, lands leased to the agribusiness
development corporation by any department or agency of the State, or lands to
which the agribusiness development corporation in its corporate capacity holds
title;

���
(12)
�
Lands to which the Hawaii technology
development corporation in its corporate capacity holds title;

���
(13)
�
Lands to which the department of education
holds title;

���
(14)
�
Lands to which the stadium authority holds
title;

���
(15)
�
Lands
to which the school facilities authority holds title; [
and
]

���
(16)
�
Lands
that are set aside by the governor to the department of transportation, lands
leased to the department of transportation by any department or agency of the
State, or lands to which the department of transportation holds title;
and

���
(17)
�
Lands
set aside by the governor to the counties for the purpose of affordable housing;

provided that, except as otherwise limited under
federal law and except for state land used as an airport as defined in section
262-1, public lands shall include the air rights over any portion of state land
upon which a county mass transit project is developed after July 11, 2005;
provided further that if the lands pursuant to paragraph (6) are no longer
needed for housing finance and development purposes, the lands shall be
returned to the agency from which they were obtained; provided further that if
the lands pursuant to paragraph (14) are no longer needed for the stadium
development district or related purposes, the lands shall be returned to the
public land trust administered by the department."

����
SECTION
2
.
�
Section 171-73, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�171-73
�

Term, rent, and other conditions of residential leases.
�
(a)
�

Residential leases made by the board of land and natural resources may
be for an initial term of fifty-five years with the privilege of extension to
meet Federal Housing Administration requirements[
,
]
;
provided
that

the aggregate of the initial terms and extension shall [
in no event
]
not

exceed seventy-five years.
�
Residential
leases made by the board of land and natural resources for affordable housing may
be for an initial term of fifty-five years with the privilege of extension;
provided that the aggregate of the initial terms and extension shall not exceed
ninety-nine years.

����
(b)
�
[
It
]
Residential leases made by the
board of land and natural resources
may contain such terms and conditions
as the board may in its discretion determine, except that the following shall
in any event be complied with in each residential lease:

����
(1)
�
Rent and taxes.
�
The annual rent shall be not less than an
amount representing a fair return on the value of the premises at the inception
of the rental period under the lease, which value shall be determined by appraisers.
�
The lessee shall pay all real property taxes,
assessments for the lessee's pro rata share of the costs of the improvements of
the tract in which the land is located, and such other charges made against or
levied upon the lessee's premises.
�

"Value of premises" as used in this section means the fair
market value of the raw land, including in such value the pro rata share of the
cost of improvements only if the lessee has not already been assessed or has
not already paid the lessee's pro rata share thereof or if the State has not
assumed the costs.

����
(2)
�
Construction of residence.
�
Each residential lease shall contain
requirements that the lessee construct a residence upon the premises, pursuant
to plans and specifications approved by the board and using a licensed contractor,
within such time and having such minimum value or ground floor area as may be
determined by the board in its discretion.

����
(3)
�
Use.
�

Upon the completion of improvements upon the premises, the lessee shall
use and occupy the premises as the lessee's residence and shall not rent or use
for any business purposes the whole or any part of the premises, except with
the written consent of the board.

����
(4)
�
Alienation.
�

Each residential lease shall contain conditions prohibiting the lessee
from subletting or parting with the possession of the whole or any part of the
premises and from selling, assigning, transferring, or otherwise disposing of
or encumbering, except by way of mortgage as hereinafter permitted, any
interest in the lease or any improvements erected on the premises, except with
the written consent of the board.

����
(5)
�
Right of purchase.
�
Each residential lease shall also state that
no right or privilege of purchasing the fee title to the land demised shall be
created by the lease, except as provided in section 171-79, notwithstanding any
other provision of the law to the contrary.

����
(6)
�
Construction and mortgages.
�
Each residential lease shall provide that the
lessee may mortgage the lease and improvements only for the purpose of
financing the construction of a residence upon the premises or, after the
requirement of construction of a residence upon the premises has been
fulfilled, for the purpose of financing the purchase of the lease and
improvements.
�
The mortgages shall be
made only to recognized lending institutions and may provide for foreclosure
and for sale at the foreclosure to any purchaser, without regard to whether the
purchaser at the sale is qualified or disqualified to take a residential lease
under this part.
�
The mortgagee's
interest in any such mortgage shall be freely assignable.

����
(7)
�
Mortgage qualification.
�
The foregoing provisions to the contrary
notwithstanding, the board is authorized from time to time, upon the issuance
of any such lease to adopt or modify or eliminate any provision contained in
sections 171-70 to 171-83, to the extent necessary to qualify the lease for
mortgage lending or guaranty purposes with the Federal Housing Administration,
Federal National Mortgage Association, and Department of Veterans Affairs, and
their respective successors and assigns."

����
SECTION 3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 4.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Affordable
Housing; Board of Land and Natural Resources; Ninety-nine-year Residential Leases

Description:

Removes
from the definition of "public lands" lands set aside by the Governor
to the counties for the purpose of affordable housing.
�
Allows the Board of Land and Natural
Resources to issue residential leases for affordable housing with an aggregate
of initial terms and extension up to ninety-nine years.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.