Bill > HB1741

This bill, effective July 1, 3000, reclassifies county inclusionary mandates, which require developers to include a certain percentage of affordable housing in their projects, as a form of "development exaction" and treats them as "housing affordability impact fees." It prohibits counties from enforcing these mandates under certain conditions, particularly for non-luxury residential or mixed-use developments that don't receive special zoning increases, unless the county can prove the mandate is constitutionally sound (essential nexus and rough proportionality) and won't increase market-rate housing prices or suppress production, or if the county provides offsetting incentives. For luxury projects or those receiving discretionary zoning increases, inclusionary mandates are allowed only if a needs assessment study demonstrates their necessity and proportionality, and the mandate doesn't exceed specific cost limits. The bill also establishes stricter requirements for these needs assessment studies, demanding detailed data, analysis of various housing types, and feasibility assessments with and without the mandate, while exempting certain types of construction like resort or vacation rentals and projects by state housing authorities.

Agriculture and Natural Resources, Housing and Urban Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1741&year=2026