Bill > SR126

This resolution requests the University of Hawaii Economic Research Organization (UHERO) to conduct a comprehensive study on the potential impacts of using taxation and eminent domain to address Hawaii's housing crisis. The study aims to explore how these policy tools might affect housing prices, availability, and the overall state economy, particularly in relation to vacant and surplus housing and properties owned by institutional investors. The resolution highlights significant housing challenges in Hawaii, including high out-of-state property ownership (approximately 20% statewide), a statewide housing vacancy rate of 14% (nearly 50% higher than the national average), and the negative effects of institutional investors purchasing homes primarily for rental purposes. UHERO is specifically asked to assess the potential legal and administrative feasibility of implementing taxation and condemnation programs, and to submit a detailed report with findings and recommendations to the Legislature at least 40 days before the 2026 Regular Session. The study would examine potential strategies such as imposing taxes on short-term property sales, vacant properties, and excessive rent increases, as well as exploring the use of eminent domain to acquire and repurpose vacant properties as affordable housing, drawing inspiration from historical precedents like the Land Reform Act of 1967.

Education

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SR&billnumber=126&year=2025