HawaiiHawaii condo program reserves homes for buyers within income limits
The Hawaii Community Development Authority must reserve at least 60% of condos in its 99-year lease program for buyers earning up to 140% of the local income midpoint.
What it does
At least 60% of program condos must go to buyers earning up to 140% of the local income midpoint. Condos without income limits that remain unsold after 60 days may go to buyers who need not live there.
Covered buyers must meet Hawaii residency rules and live in their condos, unless rules allow exceptions. If buyers or spouses acquire other property, they must resolve the conflicting ownership within six months.
Contracts to design, develop, and build program condos are exempt from state purchasing rules. Laborers and mechanics on construction sites must receive the state’s required prevailing pay rate.
Owners may sell their condo lease rights, but the authority gets the first chance to buy. Its buyback pricing must follow formulas similar to those used by other state agencies.
Argument forReserving at least 60% of homes for buyers within income limits could help those households compete for a home.
Argument againstSelling homes without income limits to buyers who need not live there after 60 days could leave fewer options for resident homebuyers.
More detail
The Hawaii Community Development Authority must adopt rules reserving homes for buyers within income limits and giving eligible residents the first chance to buy. These rules cover condos under the authority’s control at urban redevelopment sites, sold with 99-year leases. At least 60% of condos must be sold to individuals or households earning up to 140% of the area’s median income, the local income midpoint. Initial offers must go only to eligible buyers who will live there. Condos without income limits that remain unsold after 60 days may go to other buyers allowed by the authority, without requiring them to live there. The exclusive sales period runs for 60 days from the initial offering. The law took effect upon approval on June 8, 2026.
The authority must adopt buyer eligibility rules and enforce requirements for owners to live in covered condos, unless its rules allow an exception. These eligibility rules cover condos set aside for owners to live in. Buyers must meet Hawaii residency requirements and live in the condo, except as allowed by rule. Renting or subleasing is prohibited unless exempted by rule. The buyer and the buyer’s spouse cannot own other real property, including shared ownership or property held through a trust. If either acquires other property or a trust interest allowing occupancy, the buyer must sell the condo lease to an eligible buyer or dispose of the other property or interest. The six-month deadline starts when the other property or interest is purchased or acquired. The authority sets how long owner occupancy is required.
Design, development, and construction contracts are exempt from state purchasing rules, provided covered construction workers receive the required prevailing wage. The exemption covers contracts for residential condos at urban redevelopment sites. Every laborer and mechanic working on the condo construction site must receive the prevailing wage, the required pay rate set by the state labor director.
The authority must adopt rules requiring buyback price formulas similar to those used by other state agencies. These rules cover sales and inheritance of condo lease rights at urban redevelopment sites. The authority gets the first chance to buy an owner’s condo lease rights for a period and price it determines. If the authority declines, the owner may sell to an eligible buyer. An heir must meet buyer requirements to keep inherited lease rights. Otherwise, the heir must sell them to an eligible buyer.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 9Act 121, 06/08/2026 (Gov. Msg. No. 1221).Latest
- Jun 9Act 121, on 06/08/2026 (Gov. Msg. No. 1221).Became Law
- May 8Received notice of passage on Final Reading in House (Hse. Com. No. 888).Minor
- May 8Enrolled to Governor.To Governor
- May 6Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.Major
- Vote recorded Passed Final Reading as amended in CD 1. Result: pass.Lower
- May 6Passed Final Reading as amended in CD 1 with Representative(s) Reyes Oda voting aye with reservations; Representative(s) Alcos, Cochran, Garcia, Iwamoto, Kong, Muraoka voting no (6) and none excused (0).Major
- May 6Received notice of Final Reading (Sen. Com. No. 816).Minor
- Apr 29The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 2 Aye(s): Senator(s) Lee, C., Chang; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Keohokalole.Minor
- Vote recorded The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
- Vote recorded The Conference Committee recommends that the measure be Passed, with Amendments. Result: pass.Lower
- Apr 29The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Evslin, Matayoshi, Pierick; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
- Apr 29Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 83-26).
- Apr 2948 Hrs. Notice (as amended CD 1) 05-06-26.
- Apr 29Reported from Conference Committee (Conf Com. Rep. No. 83-26) as amended in (CD 1).
- Apr 29Forty-eight (48) hours notice Wednesday, 05-06-26.
- Apr 28Conference Committee Meeting will reconvene on Wednesday 04-29-26 10:45AM in conference room 224.
- Apr 27Bill scheduled for Conference Committee Meeting on Tuesday, 04-28-26 10:45AM in conference room 224.
- Apr 21Senate Conferees Appointed: Lee, C. Chairs; Chang, Keohokalole Co-Chairs.
- Apr 21Received notice of Senate conferees (Sen. Com. No. 718).Minor
- Apr 20House Conferees Appointed: Evslin, Matayoshi Co-Chairs; Pierick.
- Apr 20Received notice of appointment of House conferees (Hse. Com. No. 787).Minor
- Apr 16Received from House (Hse. Com. No. 617).Minor
- Apr 16Senate disagrees with House amendments.Minor
- Apr 16Received notice of disagreement (Sen. Com. No. 710).Minor
- Apr 14Passed Third Reading as amended in HD 2 with none voting aye with reservations; Representative(s) Amato, Cochran, Garcia, Gedeon, Iwamoto, Kong, Muraoka voting no (7) and Representative(s) Quinlan excused (1). Transmitted to Senate.Passed House
- Vote recorded Passed Third Reading as amended in HD 2. Result: pass.Lower
- Apr 10Reported from CPC (Stand. Com. Rep. No. 2124-26) as amended in HD 2, recommending passage on Third Reading.
- Apr 10Forty-eight (48) hours notice Tuesday, 04-14-26.
- Apr 9The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Matayoshi, Grandinetti, Chun, Ilagan, Ichiyama, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; 2 Noes: Representative(s) Iwamoto, Kong; and Excused: none.Minor
- Vote recorded The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
- Apr 7Bill scheduled to be heard by CPC on Thursday, 04-09-26 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
- Mar 30Reported from HSG (Stand. Com. Rep. No. 1517-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
- Vote recorded Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC. Result: pass.Lower
- Mar 30Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; Representative(s) Pierick voting no (1) and Representative(s) Cochran, Lowen, Perruso, Quinlan excused (4).Minor
- Mar 25The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka; Ayes with reservations: none; 2 Noes: Representative(s) Cochran, Pierick; and Excused: none.Minor
- Vote recorded The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
- Mar 20The committee(s) on HSG recommend(s) that the measure be deferred until 03-25-26.Minor
- Mar 20Bill scheduled for decision making on Wednesday, 03-25-26 10:00AM in conference room 430 VIA VIDEOCONFERENCE.
- Mar 17Bill scheduled to be heard by HSG on Friday, 03-20-26 9:00AM in House conference room 430 VIA VIDEOCONFERENCE.
- Mar 12Pass First ReadingMinor
- Mar 12Referred to HSG, CPC, referral sheet 17Minor
- Mar 10Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: Senator(s) McKelvey. Noes, 0 (none). Excused, 0 (none). Transmitted to House.Passed Senate
- Vote recorded Report Adopted; Passed Third Reading, as amended (SD 2). Result: pass.Upper
- Mar 10Received from Senate (Sen. Com. No. 160) in amended form (SD 2).Minor
- Mar 6Reported from CPN (Stand. Com. Rep. No. 2917) with recommendation of passage on Third Reading, as amended (SD 2).
- Mar 648 Hrs. Notice 03-10-26.
- Feb 26The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, Awa; Aye(s) with reservations: Senator(s) McKelvey ; 0 No(es): none; and 1 Excused: Senator(s) Lamosao.Minor
- Vote recorded The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
- Feb 20Reported from WLA/HOU (Stand. Com. Rep. No. 2597) with recommendation of passage on Second Reading, as amended (SD 1) and referral to CPN.
- Feb 20Report adopted; Passed Second Reading, as amended (SD 1) and referred to CPN.Minor
- Feb 20The committee(s) on CPN will hold a public decision making on 02-26-26 9:45AM; Conference Room 229 & Videoconference.
- Feb 17The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Elefante, Rhoads, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
- Vote recorded The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
- Vote recorded The committee(s) on WLA recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
- Feb 17The committee(s) on WLA recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WLA were as follows: 5 Aye(s): Senator(s) Lee, C., Inouye, Chang, Lamosao, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
- Feb 13The committee(s) on WLA/HOU has scheduled a public hearing on 02-17-26 1:00PM; Conference Room 225 & Videoconference.
- Jan 22Referred to WLA/HOU, CPN.Minor
- Jan 21Introduced and passed First Reading.Minor
- Jan 14Pending Introduction.Introduced
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