Bill > SB1133

This bill addresses housing affordability in Hawaii by introducing two key mechanisms for counties significantly impacted by housing stock destruction from disasters. First, the bill authorizes eligible counties (those where over 1% of housing stock was destroyed or rendered uninhabitable) to establish a rental unit price ceiling ordinance that limits annual rental price increases based on the Consumer Price Index (CPI) for rent of primary residences. Starting August 1, 2025, these counties must calculate and publish the maximum allowable rental price increase for the following twelve months, which can be zero if the CPI indicates no increase or a decrease. Second, the bill creates a long-term residential lease tax credit for landlords who offer leases of one year or longer in counties with such ordinances, providing a financial incentive for offering stable, affordable housing. The tax credit can be claimed for each dwelling unit leased to a non-immediate family member and can be carried forward for up to three taxable years. The legislation aims to address housing instability, particularly in areas like Maui that were devastated by wildfires, by balancing tenant protections with landlord incentives and promoting long-term, predictable rental housing. The bill will take effect on July 1, 2050, with the tax credit provisions applying to taxable years beginning after December 31, 2025.

Business and Industry, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1133&year=2026