Hawaii
Hawaii legislature aims to alter affordable-housing program, possibly at expense of counties – West Hawaii Today
Hawaii lawmakers recently decided to create a new incentive for affordable housing development under a state program, but it could have a bigger negative effect on affordable housing required by counties.
The Legislature passed a bill, which if enacted, would give developers credits for affordable units completed under a state program that already has incentives that include exemptions to general excise taxes, county development fees, height limits and density in return for making at least 50% or 60% of a project affordable for moderate-income households.
Such credits could be used by developers so they don’t have to build affordable housing required by counties as part of market-priced housing projects.
The legislation, Senate Bill 1170, was primarily pushed by the Hawaii chapter of NAIOP, a national commercial real estate trade association whose members include developers. Several individual developers also testified in support of the bill.
Opposing the bill were the the City and County of Honolulu’s Office of Housing, the city Department of Planning and Permitting, and Hawaii County’s Office of Housing and Community Development.
The state Office of Planning and Sustainable Development expressed concern with SB 1170, and said that the bill’s stated goal won’t be achieved if the bill is enacted.
NAIOP claims that higher interest rates and other development costs have made the state’s 201H affordable housing program “nearly unusable” by developers.
By adding credits to the program’s existing incentives, a 201H project developer could theoretically monetize credits to help finance a 201H project, perhaps by selling credits to another developer that needs to satisfy a county affordable housing requirement.
The state agency administering the 201H program disputes NAIOP’s claim about developers not using the program, which is known by its chapter number in Hawaii Revised Statutes.
“While we recognize the concern that a high-interest rate environment may negatively impact affordable housing production in Hawaii, HHFDC is processing 201H applications this year when interest rates are higher than they have been in a number of years,” the Hawaii Housing Finance and Development Corp. said in a statement Friday. “In fact, the number of 201H applications that we’ve processed is actually consistent, if not higher, than in recent years.”
In written testimony while SB 1170 was being considered by lawmakers, HHFDC did not take a position for or against the bill. Instead, the agency informed lawmakers that it shares the concern about high interest rates negatively affecting affordable housing production in Hawaii, but that it defers to counties for judgment on issuing credits for 201H projects.
DPP Director Dawn Takeuchi Apuna said in written testimony that SB 1170 would benefit developers at a detrimental cost to county affordable housing programs and policies.
“We oppose this bill because it creates credit value that developers can sell or use themselves to fulfill affordable housing requirements imposed by the counties,” she said. “It amounts to ‘double dipping,’ developers of 201H projects receive fee waivers and exemptions, as well as the monetary value of credits.”
Susan Kunz, Hawaii County’s housing administrator, said in written testimony that giving developers affordable housing credits for 201H projects won’t expand the supply of housing but will undermine the county’s ability to do so.
Under SB 1170, 201H projects that receive federal or state tax credits that require units be reserved for households with low incomes would not be eligible for affordable housing credits.
Another limitation under the bill is that credits will only be available through July 1, 2031.
HHFDC said in its statement that enacting SB 1170 may result in more 201H project applications, but that it is difficult to forecast how many more. Enacting the bill also could benefit 201H projects already planned, including Kuilei Place and Pahoa Ridge.
Kuilei Place is a planned 43-story tower complex in Moiliili with 1,005 condominiums being developed by Kobayashi Group and BlackSand Capital.
In return for making 603 Kuilei Place units, 60% of the total, affordable to households with moderate and high-moderate incomes, the developer received benefits that included about $12 million in city fee exemptions plus building height and density beyond what zoning permits in the area.
Kobayashi Group testified in favor of SB 1170.
Pahoa Ridge is a 211-unit tower planned near Old Waialae Road. Benefits approved under 201H for Pahoa Ridge in January include density, height and lot coverage bonuses. The tower is to be about five times more dense, can exceed the area’s 150-foot height limit by rising 210 feet and can cover 85% of the lot instead of a maximum 40% under zoning.
One of the developers of Pahoa Ridge, Form Partners, testified in favor of SB 1170, saying that the cost to produce affordable homes is well above what they can be sold for.
Lawmakers hardly engaged in public discussion of the bill during two committee hearings in the Senate and two in the House.
A joint House-Senate conference committee meeting to agree upon a final draft of the bill resulted in one concession to counties. The committee on April 26 amended the bill so that 201H credits may be applied to satisfy only up to 50% of affordable housing obligations imposed by a county unless a county wants to allow more.
Final votes approving SB 1170 on May 1 were 46-5 in the House and 22-2 in the Senate.
Gov. Josh Green has until July 10 to sign bills into law or let them become law without his signature. For Green to veto any bills, he must give notice to the Legislature of such intent by June 25.
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Everyone Says Oahu’s Overcrowded. We Drove 20 Minutes Past Haleiwa And Found Beautiful Empty Beaches
Most visitors think Oahu’s North Shore stops at Haleiwa because that is where traffic builds to pandemonium, where beach parking fills earlier than you can imagine, and where sitting in your car between the familiar lineup of surf breaks and food trucks largely defines the experience. Once people have crawled through and found a place to stand at Waimea or Sunset, the mental box gets checked, and the car points back toward Honolulu fast, as if everything worth seeing has already been seen. But it hasn’t.
Instead of turning around at Haleiwa, we continued west on Farrington Highway and watched the storefronts fall away in the rearview mirror. The line of rental cars thinned fast as the road narrowed and the mountains got closer to the pavement. On the ocean side, long stretches of sand opened up, and within a few miles, we were seeing more wind in the ironwood trees than cars on the road or people on the beach.
Most visitors leaving Haleiwa head east toward Sunset Beach and Pipeline, where traffic stacks up endlessly and parking lots overflow. We went the other way. Out toward Mokuleia, the commercial North Shore disappears fast, and what replaces it is space. There are no visitors circling for stalls and no steady lines at food trucks. You can pull over without searching for the one open spot in a packed lot, and entire sections of beach sit quietly without the usual cluster.
Dillingham Airfield and the working North Shore.
One of the first landmarks after Mokule’ia Beach (which we will write about soon) is what most people still call Dillingham Airfield, though its official name is Kawaihapai Airfield. It is owned by the U.S. Army and managed by the State of Hawaii Department of Transportation under a 50-year lease, and it has been operated as a military installation since the 1920s, with HDOT taking over management in 1962. HDOT leases 272 acres of the 650-acre Dillingham Military Reservation and operates the single 9,000-foot runway, with the civilian side used heavily for gliders and skydiving while the Army retains first priority for air/land operations and uses the field for helicopter night-vision training.
As we drove past, it did not feel like a visitor attraction at all, even though you can spot the roadside signs for glider rides and skydiving. A small single-engine plane rolled down the runway and lifted off against the Waianae Mountains, then a glider followed, towed upward before separating and moving almost silently above the coastline. It is one of those North Shore scenes that makes you slow down without thinking about it, because it looks like real working Oahu rather than the marketed version, with runway, mountains, and open water all in the same frame and very few people around to make it feel like a production.
Camps that have been here for generations.
Close to the airfield are two oceanfront camps that rarely enter any typical Oahu visitor’s plans. The first is Camp Mokuleia, which sits along the shoreline and is owned by the Episcopal Church. If you’re not on a retreat, you can rent a campsite or tentalo on the beach. A little farther west is YMCA Camp Erdman, which opened in 1926 and is approaching its 100th anniversary, still renting oceanfront cabins and yurts to the public.
The accommodations are straightforward, with sand steps away from the doors and long views of the horizon. This is not a resort strip, and you won’t find any valet stands or infinity pools. Families gather around grills, kids move freely between cabins and the beach, while the ocean feels part of the daily backdrop more than it is an Instagram photo opportunity.
Camp Mokuleia tentalos start at $100 a night. Camp Erdman yurts and cabins range from $250-$450 per night for up to 6 guests. For context, the average vacation rental in the Mokuleia area lists above $500 a night.
The shoreline here is not known for calm, protected swimming, and currents can be strong without lifeguard towers stationed every few hundred yards. The beach also has a lot of coral, which keeps swimmers more limited than some other beaches. And that fact alone keeps casual beach traffic lighter, and it helps explain why this stretch feels so different from busier Oahu North Shore stops. The camps and the character of the water belong to the same landscape, shaped more by geography than by commercial branding.

Where the pavement ends.
Eventually, Farrington Highway reaches a gravel lot where the pavement stops and a locked gate marks the entrance to the Mokuleia section of Kaena Point State Park. There is no visitor center funneling people through an entrance plaza. Instead, there is open sky, steady trade winds, and a handful of parked cars facing a dirt road that continues on foot toward the westernmost tip of Oahu, where you can meet the road that comes from the other side. This is truly a part of Oahu that most visitors never see.
Hikers follow the old railroad route for roughly 2.7 miles to Kaena Point itself, where seabirds nest behind protective fencing and monk seals are sometimes seen along the shore. The trail is exposed, hot, and largely flat, with no services and little shade, which naturally limits casual foot traffic. Consider not trying it in the middle of the day. But, standing at the end of the paved road, with the Waianae Mountains behind you and nothing but raw coastline ahead, feels less like arriving at any Oahu attraction and more like standing at the literal end of the island.
What stood out most was how little competition there was for space. There were only a few cars in the lot when we arrived, and long portions of the beach were untouched compared with the chaotic churn nearby at Haleiwa. It was a bit windy, the mountains anchored one side of the horizon, and the coastline extended westward without any indication that you were sharing it with scattered other people.
If you have been to the North Shore more than once and believe you have already seen it, have you ever kept driving past Haleiwa until the pavement runs out? It’s worth the drive.
Photo Credits: © Beat of Hawaii at Kaena Point State Park, Oahu.
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