RELATING TO INCLUSIONARY ZONING.

SB2190

THE SENATE

S.B. NO.

2190

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

R
ELATING TO
INCLUSIONARY ZONING
.

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

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SECTION
1
.
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The legislature finds that the State is
experiencing an affordable housing shortage.
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The lack of affordable housing is a major barrier to recruiting and
retaining a skilled workforce, and one of the primary reasons why Hawaii
residents are forced to move to more affordable communities in the continental
United States.
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This trend has severely and
negatively affected local families and communities that are now separated because
residents have been driven out of the State to search for more affordable housing
options.
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Furthermore, newly available
housing units are often purchased by wealthy residents of other states or
countries, which can leave many local residents "priced out" and can
overwhelm the local market with vacation homes that are often vacant.

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The legislature further finds that
inclusionary zoning is a county-level practice that requires a typically small
percentage of units in a new housing development to be reserved for individuals
earning incomes within a specified range, but the length of time that the unit
is required to be deed-restricted as "affordable" is typically
limited.
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Inclusionary zoning
requirements by counties, therefore, should not apply to housing that is
offered exclusively for sale or rent in perpetuity to certain residents of the
State.

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Accordingly, to preserve local communities,
the purpose of this Act is to prohibit any law, ordinance, or rule from
imposing an inclusionary zoning requirement on housing offered exclusively for
sale or rent in perpetuity to buyers or renters who are residents of the State,
are owner- or renter-occupants, and do not own any other real property.

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SECTION
2
.
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Section 46-4, Hawaii Revised Statutes, is
amended to read as follows:

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"
�46-4
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County zoning.
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(a)
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This section and any ordinance, rule, or regulation adopted in
accordance with this section shall apply to lands not contained within the
forest reserve boundaries as established on January 31, 1957, or as
subsequently amended.

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Zoning
in all counties shall be accomplished within the framework of a long-range,
comprehensive general plan prepared or being prepared to guide the overall
future development of the county.
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Zoning
shall be one of the tools available to the county to put the general plan into
effect in an orderly manner.
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Zoning in
the counties of Hawaii, Maui, and Kauai means the establishment of districts of
[
such
]
a
number, shape, and area, and the adoption of regulations
for each district, to carry out the purposes of this section.
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In establishing or regulating the districts,
full consideration shall be given to all available data as to soil
classification and physical use capabilities of the land to allow and encourage
the most beneficial use of the land consonant with good zoning practices.
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The zoning power granted in this section shall
be exercised by ordinance, which may relate to:

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(1)
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The areas [
within
]
in
which
agriculture, forestry, industry, trade, and business may be conducted;

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(2)
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The areas in which residential uses may be
regulated or prohibited;

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(3)
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The areas bordering natural watercourses,
channels, and streams, in which trades or industries, filling or dumping,
erection of structures, and the location of buildings may be prohibited or
restricted;

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(4)
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The areas in which particular uses may be
subjected to special restrictions;

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(5)
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The location of buildings and structures
designed for specific uses and designation of uses for which buildings and
structures may not be used or altered;

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(6)
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The location, height, bulk, number of stories,
and size of buildings and other structures;

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(7)
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The location of roads, schools, and recreation
areas;

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(8)
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Building setback lines and future street
lines;

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(9)
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The density and distribution of population;

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(10)
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The percentage of a lot that may be occupied,
size of yards, courts, and other open spaces;

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(11)
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Minimum and maximum lot sizes;

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(12)
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The time, place, manner, and duration in which
uses of land and structures may take place; and

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(13)
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Other regulations the boards or council of any
county find necessary and proper to permit and encourage the orderly
development of land resources within their jurisdictions.

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The
council of any county shall prescribe rules, regulations, and administrative
procedures and provide personnel it finds necessary to enforce this section and
any ordinance enacted in accordance with this section.
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The ordinances may be enforced by appropriate
fines and penalties, civil or criminal, or by court order at the suit of the
county or the owner or owners of real estate directly affected by the
ordinances.

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Any
civil fine or penalty provided by ordinance under this section may be imposed
by the district court, or by the zoning agency after an opportunity for a
hearing pursuant to chapter 91.
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The
proceeding shall not be a prerequisite for any injunctive relief ordered by the
circuit court.

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Nothing
in this section shall invalidate any zoning ordinance or regulation adopted by
any county or other agency of government pursuant to the statutes in effect
before July 1, 1957.

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The
powers granted in this section shall be liberally construed in favor of the
county exercising them, and in a manner that promotes the orderly development
of each county or city and county in accordance with a long-range,
comprehensive general plan to ensure the greatest benefit for the State as a
whole.
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This section shall not be
construed to limit or repeal any powers of any county to achieve these ends
through zoning and building regulations, except insofar as forest and water
reserve zones are concerned and as provided in subsections (c), (d), (g), and
section 46-4.8.

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Neither
this section nor any ordinance enacted pursuant to this section shall prohibit
the continued lawful use of any building or premises for any trade, industrial,
residential, agricultural, or other purpose for which the building or premises
is used at the time this section or the ordinance takes effect; provided that a
zoning ordinance may provide for elimination of nonconforming uses as the uses
are discontinued, or for the amortization or phasing out of nonconforming uses
or signs over a reasonable period of time in commercial, industrial, resort,
and apartment zoned areas only.
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In no
event shall the amortization or phasing out of nonconforming uses apply to any
existing building or premises used for residential (single-family or duplex) or
agricultural uses; provided that uses that include the furnishing or offering
of transient accommodations shall not be considered residential or agricultural
uses and may be phased out or amortized in any zoning district by county zoning
regulations; provided further that a zoning ordinance may provide that
transient accommodations may be furnished to a transient for a period of less
than one hundred eighty consecutive days.
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Nothing in this section shall affect or impair the powers and duties of
the director of transportation as set forth in chapter 262.

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For purposes of this subsection,
"transient accommodations" has the same meaning as defined in section
237D-1.
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"Transient
accommodations" includes uses that require the payment of transient accommodations
taxes
.

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(b)
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Any final order of a zoning agency
established under this section may be appealed to the circuit court of the
circuit in which the land in question is found.
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The appeal shall be in accordance with the Hawaii rules of civil
procedure.

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(c)
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Except as provided in section 46-4.8, each
county may adopt reasonable standards to allow the construction of two
single-family dwelling units on any lot where a residential dwelling unit is
permitted.

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(d)
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Neither this section nor any other law,
county ordinance, or rule shall prohibit group living in facilities with eight
or fewer residents for purposes or functions that are licensed, certified,
registered, or monitored by the State; provided that a resident manager or a
resident supervisor and the resident manager's or resident supervisor's family
shall not be included in this resident count.
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These group living facilities shall meet all applicable county
requirements not inconsistent with the intent of this subsection, including but
not limited to building height, setback, maximum lot coverage, parking, and
floor area requirements.

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(e)
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Neither this section nor any other law,
county ordinance, or rule shall prohibit the use of land for employee housing
and community buildings in plantation community subdivisions as defined in
section 205-4.5(a)(12); in addition, no zoning ordinance shall provide for the
elimination, amortization, or phasing out of plantation community subdivisions
as a nonconforming use.

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(f)
�
Neither this section nor any other law,
county ordinance, or rule shall prohibit the use of land for medical cannabis
production centers or medical cannabis dispensaries established and licensed
pursuant to chapter 329D; provided that the land is otherwise zoned for
agriculture, manufacturing, or retail purposes.

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(g)
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Notwithstanding any other law, county
charter, county ordinance, or rule, any administrative authority to accept,
reject, and approve or deny any application for subdivision, consolidation, or
resubdivision of a parcel of land that has been fully zoned for residential use
within the state urban district designated pursuant to section 205-2 shall be
vested with the director of the county agency responsible for land use or a
single county officer designated by ordinance; provided that:

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(1)
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The parcel of land being subdivided is
not located on a site that is:

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(A)
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Designated as important agricultural
land pursuant to part III of chapter 205;

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(B)
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On wetlands, as defined in the United
States Fish and Wildlife Service Manual, Part 660 FW2;

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(C)
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Within a floodplain as determined by
maps adopted by the Federal Emergency Management Agency;

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(D)
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A habitat for protected or endangered
species;

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(E)
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Within a state historic district:

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(i)
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Listed on the Hawaii register of
historic places or national register of historic places;

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(ii)
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Listed as a historic property on the
Hawaii register of historic places or the national register of historic places;
or

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(iii)
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During the period after a nomination
for listing on the Hawaii register of historic places or national register of
historic places is submitted to the department of land and natural [resources']
state historic preservation division and before the Hawaii historic places
review board has rendered a decision; or

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(F)
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Within lava zone 1 or lava zone 2, as
designated by the United States Geological Survey;

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(2)
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Any approval under this subsection shall be
consistent with all county zoning, development standards, and requirements
pursuant to part II of chapter 205A; and

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(3)
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This subsection shall not apply to county
powers within special management areas delineated pursuant to part II of
chapter 205A.

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Neither
this subsection, any permit issued in accordance with this subsection, [
or
structures
]
nor any structure
developed pursuant to this subsection
shall create any vested rights for any applicant, permit holder, or land owner.

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(h)
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Neither this section nor any other law,
county ordinance, or rule shall impose an inclusionary zoning requirement on
housing offered exclusively for sale or rent in perpetuity to buyers or renters
who:

����
(1)
�
Are
residents of the State;

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(2)
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Are owner-occupants or renters; and

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(3)
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Do not own any other real property.

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As
used in this subsection, "inclusionary zoning requirement" means any
requirement to set aside a fraction of a housing development to be sold or
rented at below market prices.
"

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SECTION
3.
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This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

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SECTION
4.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION
5.
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This Act shall take effect on July 1,
2050.

INTRODUCED
BY:

_____________________________

Report Title:

Housing;
Development; Counties; Inclusionary Zoning; Exemption

Description:

Prohibits
any law, ordinance, or rule from imposing an inclusionary zoning requirement on
housing offered exclusively for sale or rent in perpetuity to buyers or renters
who are residents of the State, are owner-occupants or renters, and do not own
any other real property.
�
Effective
7/1/2050.

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