Governor Green Signs $2.1B Affordable Housing Package Targeting 25,000 New Units

Governor Josh Green signed a landmark $2.1 billion affordable housing package on Monday, calling it the most aggressive housing investment in Hawaii’s history and pledging to deliver 25,000 new affordable units across the state by 2032.

The package, assembled from seven separate bills passed during the legislative session, includes $800 million in state bonds for direct construction, $500 million in tax credits for private developers who build units affordable to families earning below 80 percent of area median income, and $300 million for infrastructure improvements needed to unlock housing-zoned land.

“Hawaii families are drowning in housing costs,” Green said at a signing ceremony at a Kapolei construction site. “One in three working families spends more than half their income on rent. This package says: enough. We’re building our way out.”

The centerpiece is a new state agency, the Hawaii Housing Production Authority, which will have streamlined permitting powers to cut through the bureaucratic delays that have plagued housing projects for decades. The authority can override county zoning restrictions for projects that meet affordability criteria — a provision that drew fierce opposition from neighborhood boards but ultimately survived legislative negotiations.

The package also includes $200 million for converting underutilized state-owned land into housing, starting with surplus parcels near the Honolulu airport and in Kalihi. An additional $300 million will fund rental assistance and down payment programs for teachers, first responders, and healthcare workers.

Housing advocates praised the package but cautioned that execution will determine its success. The Hawaii Appleseed Center estimated that the state needs 50,000 affordable units to close its current housing gap, meaning the 25,000-unit target addresses only half the shortfall.