S.B. 779 Summary

• Requires each county to authorize construction of specified annual housing units between fiscal year 2021-2022 and 2024-2025: Honolulu (2,217 units), Hawaii County (1,330 units), Maui County (1,040 units), and Kauai County (428 units).

• Reduces a county's transient accommodation tax revenue allocation by 1% for each fiscal year the county fails to authorize the required number of new housing units, beginning the following fiscal year.

• Allows counties to recoup revenue reductions at a rate of 1% per year if the county meets or exceeds the required housing unit authorizations in subsequent years.

• Addresses Hawaii's projected housing shortage of 50,156 homes needed by 2025 by requiring proactive county-level housing production rather than reactive project-by-project approvals.

• Effective July 1, 2021 and repeals June 30, 2025.