Advocacy
Legislative Agendas
2025 Legislative Agenda
For the 2025 state legislative session, Holomua Collaborative continues to support important bills that help keep all local working families in Hawai‘i by making sure they can afford to stay. This year, our Policy Agenda includes eleven bills and three budget requests to advance these goals.
These bills propose a State-funded initiative that partners HHFDC with counties to purchase voluntary deed restrictions from homeowners and homebuyers. These restrictions will run with the land in perpetuity. This program will ensure properties remain attainable and accessible to local residents as primary residences, with the requirement that both owner-occupants and renters of record work locally. This prevents homes from being lost to non-resident buyers or short-term vacation rentals.
Hawai‘i’s housing crisis is fueled by a lack of supply, and accessory dwelling units (ADUs) offer a promising solution. However, many homeowners can not afford to build them. These bills create a financing program to cover a portion of ADU construction and development costs in exchange for a perpetual deed restriction on the ADU and main property. The restriction ensures that both properties are reserved for Hawai‘i residents who work locally.
Hawai‘i needs more affordable housing, especially along transit-oriented development (TOD) corridors, and it needs to be built faster. One major roadblock is the time and cost associated with completing environmental impact statements (EIS), which delay projects.
This bill proposes that the State fund and complete EISs for designated TOD corridors, providing home builders with ready-to-use reports. With a dedicated funding source and clear direction on who completes the EIS, builders can move projects forward more quickly, saving money and increasing the supply of affordable housing for local families.
The Enterprise Zone Program drives economic growth and job creation by offering tax relief, fee waivers, and permitting assistance to businesses in areas that need it most. However, outdated rules prevent many certain local manufacturers from participating. Currently, manufacturers must sell 50.1% of their products to wholesalers within the Enterprise Zone to qualify—a rule created before the rise of direct-to-retail business models.
Additionally, businesses that process agricultural products are eligible for the Enterprise Zone Program, not including the processing of value-added agriculture products.
These bills propose expanding the length of time that a business can participate in the Enterprise Zone Program, and expanding the business activities eligible for the Enterprise Zone Program to include:
- Local manufacturers that sell their products directly to consumers in the Enterprise Zone;
- The processing of value-added agricultural products; and
- The provision of professional services by health care professionals in health care related sectors.
Starting a business in Hawai‘i is expensive, with high up-front costs often discouraging new entrepreneurs. While existing State programs focus on assisting expanding businesses, there is limited support for start-ups.
These bills propose a State-backed Start-up Business Loan Program to finance working capital, construction, or equipment to businesses less than three years old. The loans will have favorable terms to businesses with limited financial history. By supporting entrepreneurs, this initiative would boost the local economy, create jobs, and foster economic diversification and resilience.
(SB1040)
Medical debt affects 15% of Hawai‘i families, with unpaid bills totaling $500 million as of early 2024. These debts, often sold to collections agencies for pennies on the dollar, weigh heavily on working families, limiting their access to credit and financial stability.
This bill establishes a partnership between the State and a national nonprofit to purchase and cancel this medical debt, directly benefiting local residents. By addressing this issue, we can lift the burden from those most in need, support families’ financial recovery, and free up healthcare providers to focus on patient care instead of collections.
The following bills (#7-11) are selected parts of the overall Policy of “Rental Housing Revolving Fund Reform.” Each of these bills serve to make loans grants from the Rental Housing Revolving Fund more efficient and broadly effectively.
This bill would create the Housing Efficiency and Innovation Subaccount within the RHRF, specifically for providing loans to housing projects intended for local residents on land owned or developed by the State or a County, prioritizing projects that require the lowest amount of State funding per housing unit annually. This subaccount would be an efficient mechanism to quickly and cost-effectively develop housing for local working families without needing to compete for funding with the other crucial RHRF priority projects.
(HB432)
This bill would establish a mixed-income subaccount within the Rental Housing Revolving Fund that targets workforce rental housing projects for persons and families with incomes at or below 140% of the area median income. This subaccount would be an efficient mechanism to quickly and cost-effectively develop housing for local working families without needing to compete for funding with the other crucial RHRF priority projects.
(SB41)
This bill would allocate ten per cent of conveyance tax collections to the Dwelling Unit Revolving Fund, and remove the annual cap ($38,000,000) on conveyance taxes paid into the Rental Housing Revolving Fund.
(SB165)
This bill would require the definition of “qualified nonprofit housing trust” to specify these trusts exclusively serve HHFDC qualified residents (US citizen or resident alien, 18 years or older, domiciled in Hawaii, has a gross income sufficient to qualify for a loan to purchase a unit, and does not own a majority interest in real estate suitable for dwelling).
Budget Requests (HB300)
The State Building Code Council (SBCC) is a critical volunteer group responsible for updating Hawai‘i’s building codes, including fire safety, structural integrity, and emergency shelter standards. Despite its essential role, the SBCC has operated without funding for staff or operating costs since its creation in 2007, even though full-time positions are authorized by statute. This lack of resources has caused missed statutory deadlines, creating uncertainty and increasing costs for home builders and businesses alike.
By fully funding and staffing the SBCC, we can move toward timely code updates, reduce housing and commercial development costs, and provide greater predictability for builders.
Hawai‘i’s state government is experiencing a 27% vacancy rate for civil service positions, with nearly 30% of employees eligible to retire within five years. One contributing factor is the outdated system of 1,400+ civil service class specifications, which form the basis for 17,000+ position descriptions. These materials need modernization to reflect current workforce needs and attract a broader pool of applicants.
This policy proposes funding to update these class specifications, making it easier to recruit qualified candidates and address the vacancy gap. A modernized system will help strengthen the government workforce and ensure reliable services for Hawai‘i’s residents.
Tax filing costs can eat into the refunds low-income workers rely on, with many paying fees to preparers like TurboTax or H&R Block. In 2025, a free program called Direct File will allow families in 24 states to prepare and file federal and state taxes at no cost. Hawai‘i’s Department of Taxation is already set up with the same vendor supporting this program.
2024 Legislative Agenda
For the 2024 state legislative session, Holomua Collaborative supported important bills that help keep all local working families in Hawai‘i by making sure they can afford to stay. The policies we’re advancing were informed by over twenty in-person cross-sector convenings that were held in the summer and fall of 2023, bringing together representatives of the government, for-profit, non-profit, and labor sectors. The description of each of the bills we supported also lists the organization that was the lead advocate for the bill.
The program consists of two bills, described in more detail below: (1) an educator workforce housing bill; and (2) a remote work bill. Together, the bills aim to modernize state employment by strengthening efforts to build homes for our public school employees, while simultaneously connecting remote job opportunities within state government with areas of the state that have access to more affordable housing, particularly in rural and neighbor island areas.
State Employment Modernization Program: Educator Workforce Housing Bill
- Hawai‘i faces a shortage of over a thousand licensed teachers a year, posing a challenge to the education system. The scarcity of educators is exacerbated by our lower-than-national-average teacher salaries when adjusted for the high cost of living in the state.
- Housing costs represent a substantial portion of each teacher’s paycheck, contributing to the financial strain on educators. Given the high cost of living in Hawai‘i, providing housing options that Department of Education (DOE) employees can afford is crucial for recruiting and retaining educators in the public school system.
- The bill focuses on creating affordable housing options specifically for educators. By facilitating the construction of educator workforce housing in–among other places–underutilized DOE property, the bill aims to ease the financial burden on our public school educators.
- Lead organization: Holomua Collaborative
State Employment Modernization Program: Remote Work Bill
- The Department of Human Resources Development (DHRD) recently reported that nearly 4,000 of 17,000 civil service positions in the state executive branch were vacant as of November 2022, not including the University of Hawai‘i system or the DOE. And as recently as January 2024, according to Civil Beat, “more than 1 in 4 civil service positions in state government was vacant last month, a statistic that is spurring complaints from the public about eroding levels of service.”
- This bill addresses this crisis through a three-pronged approach: (1) identifying suitable state government jobs in the executive branch for remote work; (2) pinpointing areas in the state where housing is affordable but good-paying jobs are scarce; and (3) connecting remote state government jobs with Hawai‘i workers in these economically advantageous regions.
- What the state can gain from this is decreased vacancies in state government, which will result in improved operations for everything from benefits services to permitting applications and more. And in the process, it has the potential to keep local residents in their own communities, while lowering their cost of living.
- Lead organization: Holomua Collaborative
- The Hawai‘i State Plan, a crucial policy document, establishes standards and policies guiding local and state agencies. Established in 1978, it plays a crucial role in resource allocation, coordinating plans across federal, state, and county levels, and integrating major state and county activities. In 2018, the Office of Planning and Sustainable Development completed Phase I of the comprehensive review of the Hawai‘i State Planning Act. A Phase II update was recommended, but never begun.
- The State (and rest of world) are facing numerous complex, interlocking challenges that are increasing in speed and scale. These challenges require solutions and approaches that are cross-sector and collaborative. This bill aims to use the opportunity to update and modernize the State Planning Act (HRS 226) to address these complex challenges.
- It proposes establishing a task force representing government, for-profit, nonprofit, and labor sectors to begin the Phase II update that was referenced in the 2018 phase I update of the State Planning Act. This second phase will refine and guide the implementation of recommendations for the Act’s update, refreshing the State Plan as a key part of the solution to these challenges.
- Lead organization: Holomua Collaborative
- The goal of the starter homes bill is to enable the construction of smaller and more affordable homes suitable for first-time buyers, kupuna, and empty nesters looking to downsize.
- Existing zoning regulations in Hawai‘i pose significant barriers to building smaller, more affordable homes for local families. The requirement of a minimum lot size of 5,000 square feet in most areas exacerbates the cost of building a single-family home, making it financially challenging for many families. This zoning approach has inadvertently led to the creation of larger, more expensive homes.
- The limited availability of land, coupled with minimum lot size requirements, guarantees higher housing prices that are unaffordable to most.This has resulted in the displacement of long-time local families, as housing options become increasingly unattainable. The need for a solution is critical to addressing the housing affordability crisis and keeping local families in Hawai‘i.
- The bill, by allowing multiple small homes on existing lots, aims to reduce home costs for local working families, helping them stay in Hawai‘i. Encouraging housing in urban areas helps protect open and agricultural spaces. It is important to note that even with the proposed changes, no new building can occur unless sufficient infrastructure is present, ensuring responsible development.
- Lead Organizations: Office of Representative Luke Evslin, Housing Hawaii’s Future, Hawai‘i Zoning Atlas, Hawai‘i YIMBY, Grassroot Institute, Holomua Collaborative
- Many older condominiums in Hawai‘i face a significant safety challenge due to the lack of fire sprinklers, and retrofitting them can be financially burdensome.
- Over 281 high-rise residential buildings, primarily condominiums developed before 1975, have failed safety evaluations because of the absence of fire sprinklers or other safety requirements. The high cost of installing fire sprinklers has been a major barrier to ensuring the safety of residents in these older condominiums.
- Commercial Property Assessed Clean Energy and Resiliency (C-PACER) financing, introduced in 2022, provides an alternative financing option that covers 100% of qualified capital improvement costs. With terms matching the useful life of the installed equipment, this financing option offers more affordable payments compared to typical equipment loans. However, the eligibility of condominiums for C-PACER financing is currently restricted.
- The bill extends C-PACER eligibility to condominiums, particularly addressing the costly retrofitting of older condominiums with fire sprinklers (triggered by incidents like the Marco Polo building fire). This extension would help ease the financial burdens on residents, especially those with lower incomes, by spreading retrofit costs across the system’s useful life. This would reduce condo assessments, enhance safety standards, and increase the likelihood that residents can afford to remain in their homes.
- Lead Organizations: Hawai‘i Green Infrastructure Authority
- This bill offers a common-sense solution to address cost-of-living challenges in Hawai‘i by improving efficiency, reducing costs, and ensuring safety in home building.
- Currently, building codes are updated every three years, leading to a complex and time-consuming process for stakeholders to interpret and implement new codes.
- The proposed change to a six-year code cycle would allow for a more efficient and cost-effective process. After an initial period of adjustment and clarification, stakeholders would have four to five years to submit, review, and approve plans, reducing the need for repeated submissions and corrections. This streamlined process would lead to lower home building costs and ultimately lower home prices for local residents.
- Moreover, the extended code cycle would provide counties with more time to suggest amendments tailored to their specific needs, such as building materials and standards suited to their geography and climate. This approach maintains safety standards while reducing unnecessary costs.
- Lead Organizations: Building Industry Association, American Council of Engineering Companies, American Institute of Architects, General Contractors Association
- To address child poverty, the American Rescue Plan Act of 2021 increased the federal child tax credit from $2,000 to $3,600 for qualifying children under the age of six and $3,000 for other qualifying children under the age of 18. It also allowed the credit to be distributed monthly.
- The expanded federal child tax credit succeeded in reducing child poverty. The U.S. child poverty rate fell 40% to its lowest level in 2021, according to the U.S. Census Bureau. The temporary credit lifted nearly 3 million children out of poverty and reduced the number of households that reported not having enough food.
- But even though these provisions lifted millions of families and their children out of poverty, they expired at the end of 2021. Since then, at least fourteen states have enacted their own child tax credit. Hawai‘i is in a good position to follow the lead of many other states and help fill this gap with an innovative, evidence-based program that will lift people out of poverty, while benefiting the broader economy as well.
- Lead organizations: Hawai‘i Appleseed Center for Law and Economic Justice
- Hawai‘i is having an increasingly difficult time retaining and recruiting infant and toddler child care workers. Between 2018 and 2020, the state witnessed a 20% decline in its child care workforce. The departure of child care workers not only affects the individual professionals but also poses a threat to the viability of child care providers. As workers leave, it becomes increasingly difficult for child care facilities to remain open, leading to a diminishing supply of child care services while demand continues to rise.
- The current disparity between the demand for child care services and the available supply has created financial strain for both families and child care facilities. And this disparity between supply and demand for child care is why families struggle to pay for facilities that charge $20,000 per year per child, because that is what they must do to stay afloat. The economic unsustainability of the child care workforce’s current wages further exacerbates this situation.
- The bill seeks to establish a child care provider subsidy and bonus program to address the challenges faced by the early child care workforce in Hawai‘i. By appropriating funds for this program, the bill aims to adequately compensate and retain child care workers in all licensed and registered child care provider settings. This initiative addresses the workforce shortage, improves retention, and ensures the sustainability of child care providers.
- Lead organizations: Hawai‘i Children’s Action Network Speaks! and the Hawai‘i Early Childhood Advocacy Alliance
2023 Legislative Agenda
For the 2023 state legislative session, Holomua Collaborative supported important bills that help make Hawai‘i affordable for all working families. The description of each of the bills we are supported also lists the organization that was the lead advocate for the bill.
- HB 233 / SB 357
- To address child poverty, the American Rescue Plan Act of 2021 increased the federal child tax credit from $2,000 to $3,600 for qualifying children under the age of six and $3,000 for other qualifying children under the age of 18. It also allowed the credit to be distributed monthly.
- The expanded federal child tax credit succeeded in reducing child poverty. The U.S. child poverty rate fell 46% to its lowest level in 2021, according to the U.S. Census Bureau. The temporary credit lifted nearly 4 million children out of poverty and reduced the number of households that reported not having enough food .
- But even though these provisions lifted millions of families and their children out of poverty, they expired at the end of 2021. Since then, at least twelve states have enacted their own child tax credit. Hawai‘i is in a good position to follow the lead of many other states and help fill this gap with an innovative, evidence-based program that will lift people out of poverty, while benefiting the broader economy as well.
- Lead organization: Hawai‘i Tax Fairness Coalition
- HB 391 / HB 547 / SB 312
- The purpose of the infant and toddler child care workforce subsidy pilot program is to have the Department of Human Services develop a two-year child care worker subsidy pilot program to retain the existing early child care workforce in infant and toddler center settings and appropriate funds for the program.
- The RAND Corporation recently noted that wages and salaries for early educators in Hawai‘i are not competitive. Median hourly wages are estimated at $13-$17 per hour currently, while the living wage estimate in Hawai‘i is $28.50 per hour. This is unsustainable and it is why, between 2018 and 2020, Hawai‘i lost 20% of its child care workforce. When child care workers leave the profession, it becomes harder for child care providers to stay open. This ultimately makes it harder for families to get child care as demand increases while supply shrinks. And this disparity between supply and demand for child care is why child care has become so expensive.
- This pilot program is the type of innovative, collaborative, evidence-based program that can break this cycle and put us on a path to greater affordability both for child care workers and for those who need access to child care.
- Lead organizations: Hawai‘i Children’s Action Network Speaks! and the Hawai‘i Early Childhood Advocacy Alliance
- SB 87 / HB 361
- The Green Jobs Youth Corps was created as an innovative way to connect people with good jobs following the unemployment crisis that was sparked by the COVID-19 pandemic. Since then, the Green Jobs Youth Corps has become a meaningful part of Hawaii’s attempt to diversify our economy, keep people working in their own communities, and improve the state’s environmental resilience.
- With initial federal government funding through COVID relief money and subsequent additional funding provided by the state, the Green Jobs Youth Corps has involved over seventy different employers in both the for-profit and non-profit sectors. And all of these employers are involved in sustainable energy, conservation, or sustainable agriculture.
- The partnership between these private sector employers and the state and federal government has proved to be a wise investment of government resources. It is estimated that the first $5 million in government funds invested in this program will produce $18.4 million in positive socioeconomic impact.
- Lead organization: KUPU
- HB 241 / SB 1126
- The cost of full-time child care has risen and the cost increase should be reflected in the income tax credits allowed for expenses for household and dependent care services. Full-time child care programs allow parents to obtain and retain secure, stable employment, which increases the economic well-being of the family as a whole.
- Right now the average cost of child care in Hawai‘i is more than $13,000 per year. And currently the state credit covers a percentage of qualifying care expenses, but it is limited to $2,400 for one child/dependent and $4,800 for two/children dependents.
- This bill would double the tax credit amount that most taxpayers could claim for the cost of child or dependent care.
- Lead organization: Hawai‘i Tax Fairness Coalition
- Final Report of the Commission to Improve Standards of Conduct
- The Commission to Improve Standards of Conduct, which was formed at the request of Speaker Scott Saiki and the State House of Representatives after high-profile corruption cases last year, ultimately recommended 28 bills and three resolutions to be considered this year by the state legislature.
- As the report from the Commission noted, Hawai‘i is at a critical juncture in regard to restoring public trust in government and reforming areas of the law related to issues such as corruption, fraud, ethics, elections, and campaign finance.
- This is a pivotal point in time and there is now a tremendous opportunity to mend the relationship between the public and its government.
- Lead organization: The State Ethics Commission, The Campaign Spending Commission, League of Women Voters
- HB 1049
- This bill makes Hawai‘i more affordable using a variety of approaches, including:
- Adding a new tax credit for teacher’s expenses;
- Adjusting annually the income tax brackets, personal exemption and standard deduction amounts, dependent care credit, household renters credit, and refundable food/excise credits by a cost-of-living adjustment factor;
- Increasing the amounts for the income tax brackets, personal exemption amount and standard deduction amounts for tax year 2023;
- Increasing the adjusted gross income amounts for the qualification of low-income credits; and
- Increasing the amount of the credits that assist working families.
- Lead organization: The office of Governor Josh Green