SB67 amends Hawaii’s county zoning law to bar inclusionary zoning requirements for a specific category of housing: units offered exclusively for sale or rent in perpetuity to Hawaii residents who are owner-occupants or renters and who do not own other real property. In practical terms, the bill creates an exemption from county rules that would otherwise require a portion of a development to be reserved at below-market prices. The measure defines “inclusionary zoning requirement” as any requirement to set aside a fraction of a housing development for below-market sale or rent.
The bill also restates and reorganizes several existing county zoning authorities in Section 46-4 of the Hawaii Revised Statutes, including general zoning powers, nonconforming-use rules, two-unit allowances on residential lots, group living protections, plantation community housing, medical cannabis land use, and subdivision authority for fully zoned residential parcels in the state urban district. The new inclusionary zoning exemption is added as subsection (h), making it part of the state’s county zoning framework and limiting county and other local regulatory authority in this area.
Impact
SB67 would directly amend section 46-4, Hawaii Revised Statutes, to preempt county ordinances, rules, or other laws that impose inclusionary zoning requirements on qualifying perpetually affordable housing reserved for Hawaii residents who occupy the unit and do not own other real property. The practical effect is to narrow county land-use authority over affordable-housing set-asides for this class of projects, while leaving other zoning powers intact. Developers of qualifying projects would no longer be subject to local inclusionary zoning mandates, and counties would need to exempt such projects from those requirements.
Sentiment
The available legislative history suggests generally favorable treatment in committee. The Senate Housing Committee passed the bill with amendments on February 5, 2025, by a 3-0 vote, indicating unanimous support among those voting at that stage. The bill’s findings and purpose section frame the measure as a response to Hawaii’s affordable housing shortage and the outmigration of residents, which aligns it with broader housing-supply and local-resident-retention goals.
Contention
The main policy tension is between county land-use autonomy and state-level efforts to encourage housing for local residents. Supporters appear to view inclusionary zoning as a barrier to producing perpetually affordable housing for Hawaii residents, especially owner-occupants and renters without other property. Potential opponents or critics would likely focus on the loss of county flexibility to require affordable units in new developments and on whether exempting these projects from inclusionary zoning could reduce the overall supply of below-market units available through mixed-income development. No committee transcript is available here, so specific objections are not recorded in the provided materials.