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Bill

SB 2190

RELATING TO INCLUSIONARY ZONING.

2026 Regular Session Introduced by Stanley Chang and 3 co-sponsors

Hawaii bill mandating developers include affordable units in new residential projects or pay into affordable housing funds to address housing shortage.

The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 3 Aye(s): Senator(s) Chang, Hashimoto, Elefante; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Rhoads, Fevella.
#counties #development #exemption #housing #inclusionaryzoning
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Bill Summary · SB 2190

Legislative bill overview

SB 2190 requires developers to include a percentage of affordable housing units in new residential projects or contribute to affordable housing funds as an alternative. This inclusionary zoning mandate aims to integrate affordable housing throughout Hawaii's communities rather than concentrating it in specific areas.

Why is this important

Hawaii faces a severe affordable housing shortage, with median home prices far exceeding median incomes. Inclusionary zoning policies attempt to address this by distributing affordable units across neighborhoods, improving economic diversity and reducing homelessness. However, implementation significantly affects development costs and housing supply.

Potential points of contention

  • Development costs and feasibility: Requiring affordable units increases project expenses, potentially reducing overall housing production, delaying projects, or pricing developers out of certain markets
  • Percentage requirements and flexibility: Disputes may arise over what affordability percentage is required and whether exemptions or alternatives (like in-lieu fees) are adequately flexible for different project types and locations
  • Long-term affordability terms: Disagreement over how long units must remain affordable (5 years vs. 30+ years) affects both developer profitability and actual community benefit
  • Funding mechanism clarity: Questions about how in-lieu fees are calculated, collected, and allocated to ensure genuine affordable housing production rather than developer subsidies
  • Market impact: Debate over whether mandates will reduce private development investment or shift it to other states/counties

Compiled from official sources — confirm details with the bill’s official record.

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