In a decisive move to tackle the ongoing housing crisis, Honolulu Mayor Rick Blangiardi has signed Bill 3 (2024) into law, enhancing incentives for developers to construct much-needed rental housing projects across the city. This new legislation aims to address the persistent challenges faced by the housing market, including high construction costs and supply chain disruptions.

Bill 3, which was unanimously approved by the Honolulu City Council on August 7, significantly increases post-construction grant amounts for privately financed rental housing projects. The updated incentives are designed to make these projects more financially viable amidst a complex construction environment characterized by elevated interest rates and escalating construction expenses.

Under the new law, developers will receive increased financial support as follows:

Mayor Blangiardi highlighted the importance of this legislative action in a social media post, stating, “Today, we signed into law Bill 3 (2024), which greatly enhances incentives to developers to help generate rental housing projects amid an ongoing housing crisis that is impacting cities nationwide. This bill will create rental properties on the market that are actually affordable for hard-working people who want their own place to live and the dignity that comes with that.”

The Mayor emphasized that this new bill builds upon the framework established by Bill 1 (2021), the first piece of legislation from his administration aimed at addressing housing affordability. “Bill 3 increases the incentives initially provided under our administration’s very first piece of legislation, Bill 1 (2021),” Mayor Blangiardi noted. He also expressed gratitude to the Honolulu City Council for their role in crafting this innovative solution, stating, “I am proud of our leadership team and deeply grateful to our partners at the Honolulu City Council for developing creative solutions to a challenging issue that impacts all of us.”

The ordinance is effective immediately, marking a significant step forward in Honolulu’s efforts to alleviate the pressures of the housing crisis and provide more affordable living options for its residents.