H.B. 1317 Summary

• Establishes the Workforce Housing Regulatory Sandbox Program administered by the Hawaii Housing Finance and Development Corporation to provide temporary regulatory flexibility for innovative workforce housing development.

• Creates an advisory council with representatives from state and county planning departments, environmental and cultural experts, and housing sector representatives to review projects and ensure compliance with environmental and cultural protections.

• Authorizes the regulatory sandbox to waive or temporarily modify permitting processes, reduce infrastructure capacity fees, and provide flexible zoning requirements for approved workforce housing projects serving households earning 60-140% of area median income.

• Requires workforce housing units to remain affordable for 10 years, prohibits short-term rentals for 10 years, and mandates that at least one adult per household work 30+ hours weekly in Hawaii; enforced through deed restrictions.

• Appropriates $5,000,000 for fiscal years 2025-2026 and 2026-2027 for program establishment and operation; requires annual legislative reports on project outcomes and program effectiveness; program sunsets June 30, 2030.