Bill 11 Would Force Honolulu to Publish Every Incentive Going to Affordable Housing Developers

The Honolulu City Council is moving forward with legislation that would require the city to publicly report every financial incentive and tax break granted to affordable housing developers, a move supporters say brings long-overdue transparency to a system that has operated largely behind closed doors.

Bill 11, which advanced out of committee this week, would mandate the Department of Housing and Land Management publish detailed semi-annual reports listing all development incentives, including tax increment financing deals, fee waivers, and density bonuses granted to projects containing affordable housing units.

The measure has sparked heated debate among Council members, affordable housing advocates, and developers, with critics arguing the additional reporting requirements could slow down an already sluggish approval process for desperately needed housing projects.

“Honolulu residents deserve to know how their tax dollars are being used and what deals the city is cutting behind closed doors,” said Councilmember Sarah Kim, who introduced the legislation. “We’re talking about millions in public subsidies with very little oversight or public accountability.”

The push for transparency comes amid growing scrutiny of Honolulu’s affordable housing policies, particularly as projects in Kakaako and other prime development areas have struggled to deliver promised affordable units while receiving substantial public incentives.

What the Bill Would Require

Under the proposed legislation, the city would need to publish reports every six months detailing each incentive granted to developers, including the project name, location, type and value of incentives, and the number of affordable units committed.

The reports would also track whether developers are meeting their affordable housing commitments and include details on any modifications to original agreements.

Currently, information about development incentives is scattered across multiple city departments and often requires public records requests to access, making it difficult for residents and advocates to track how public resources are being used.

Developer Concerns

The Building Industry Association of Hawaii has expressed concerns that the additional reporting requirements could create bureaucratic delays in a system already criticized for lengthy approval processes.

“We support transparency, but we’re worried this could add another layer of red tape when we should be focused on getting more affordable housing built quickly,” said BIA executive director Lisa Martinez. “Every month of delay means higher construction costs and fewer units ultimately delivered.”

Some developers working on projects in Downtown Honolulu and Kakaako worry the public reporting could complicate negotiations with the city and make it harder to structure deals that work for both affordable housing goals and project economics.

Reform Advocates Push Back

Housing advocates counter that transparency is essential for ensuring public incentives actually serve their intended purpose of creating more affordable housing options for local families.

They point to several high-profile cases where developers received substantial city incentives but later reduced their affordable housing commitments or converted units to market rate after fulfilling minimum requirements.

“We’ve seen too many cases where developers get the benefits upfront but residents don’t see the affordable housing they were promised,” said Common Cause Hawaii director Jessica Wong. “This bill would give the public the information they need to hold both developers and city officials accountable.”

Political Dynamics

The legislation has exposed divisions within the Council over how to balance transparency with the urgent need to increase housing production in Honolulu’s expensive market.

Several Council members expressed support for the transparency goals while raising concerns about potential unintended consequences for housing development.

The measure is expected to come up for a full Council vote within the next month, with both sides lobbying intensively for support.

What’s Next

If passed, the new reporting requirements would take effect within six months, giving the Department of Housing and Land Management time to develop systems for tracking and publishing the required information.

The legislation represents part of a broader push for government transparency in Honolulu, following similar measures requiring disclosure of city spending on consulting contracts and economic development incentives.

For Honolulu residents struggling with housing costs that rank among the highest in the nation, the debate over Bill 11 highlights the ongoing tension between the need for more affordable housing and ensuring public resources are used effectively to achieve that goal.