HawaiiSB 20612025–2026 Regular Session (Year 2)SenateWALLET

RELATING TO RESIDENTIAL CONDOMINIUMS.

Sponsored By: Stanley Chang (Democratic)

Signed by Governor

Summary

Clarifies the Ninety-Nine Year Leasehold Program by: (1) allowing the Hawaii Community Development Authority to prohibit renting, advertising for rent, or using for any other purpose other than owner-occupied residential use a residential condominium unit, by rule, rather than statutorily; (2) exempting the design, development, and construction contracts from procurement requirements, subject to prevailing wage requirements for laborers and mechanics; (3) requiring HCDA to adopt rules to implement an initial sales period during which residential condominium units are offered only to eligible buyers for owner-occupied residential use; (4) authorizing the sale of a residential condominium unit that is not subject to an income restriction and was not sold within a certain period to be sold to other buyers, as determined by rule by HCDA, without an owner-occupancy requirement; (5) requiring HCDA to adopt rules that require at least sixty per cent of residential condominium units to be income restricted; and (6) requiring HCDA to establish rules to require buyback pricing similar to other state agencies' existing pricing formulas. Effective 7/1/3000. (HD2)

HCDAAffordable HousingNinety-Nine Year Leasehold ProgramCondominium UnitsOwner‑Occupied Residential UseHSG, CPC

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

More units reserved for income-qualified buyers

At least 60% of the units must go to buyers whose income is no more than 140% of area median income. For the first 60 days after the initial offering, units are offered only to eligible buyers who plan to live there. The Hawaii Community Development Authority sets how long buyers must live in their units and may add other requirements. After 60 days, an unsold unit with no income restriction may be sold to another buyer chosen by the Authority, without an owner-occupancy requirement.

New limits for condo owners

Buyers generally must be qualified Hawaii residents and use the unit as a home. The buyer and spouse generally cannot own other real property while the buyer owns the unit; rules may make exceptions to the residency and home-use requirements. If the buyer or spouse acquires other property, or the buyer gains a qualifying right to live in trust-held property, the buyer has six months to sell the leasehold to an eligible buyer or dispose of that property or interest. The Authority must strictly enforce owner occupancy, including a ban on renting or subleasing unless its rules allow an exception. The law also removes a separate statutory rental ban and changes the definition of owner-occupied use. When an owner sells, the Authority has a right of first refusal, and its buyback price rules must be similar to formulas used by other state agencies.

Prevailing wages for condo project workers

Design, development, and construction contracts for residential condominium units in an urban redevelopment site are exempt from state procurement rules under chapter 103D. Laborers and mechanics on these projects must still receive the prevailing wage. The law does not state the wage amount.

Sponsors & Cosponsors

Sponsor

  • Stanley Chang

    Democratic • Senate

Cosponsors

  • Kurt Fevella

    Republican • Senate

  • Michelle N. Kidani

    Democratic • Senate

  • Sharon Y. Moriwaki

    Democratic • Senate

  • Joy A. San Buenaventura

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 193 • No: 18

House vote • 5/6/2026

House Floor Vote

Yes: 45 • No: 6

House vote • 4/29/2026

The Conference Committee recommends that the measure be Passed, with Amendments....

Yes: 3 • No: 0

Senate vote • 4/29/2026

The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....

Yes: 2 • No: 0

House vote • 4/14/2026

House Floor Vote

Yes: 43 • No: 7

House vote • 4/9/2026

The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 9 • No: 2

House vote • 3/30/2026

Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC...

Yes: 45 • No: 1

House vote • 3/25/2026

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 7 • No: 2

Senate vote • 3/10/2026

Senate Floor Vote

Yes: 25 • No: 0

Senate vote • 2/26/2026

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 4 • No: 0

Senate vote • 2/17/2026

The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 5 • No: 0

Senate vote • 2/17/2026

The committee(s) on WLA recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 5 • No: 0

Bill Text

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