HI SB1200

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 agencies, counties, environmental and cultural experts, nonprofits, and private developers to review projects and ensure compliance with environmental, cultural, and sustainability considerations.

Allows the corporation to temporarily waive or modify regulatory requirements including expedited permitting, reduced infrastructure fees, and flexible zoning for approved workforce housing projects.

Requires participating projects to maintain affordability for households earning 60-140% of area median income for 10 years, prohibit short-term rentals, restrict ownership to legal U.S. residents, and ensure at least one full-time employed adult per household.

Appropriates $5,000,000 for fiscal years 2025-2026 and 2026-2027 for program administration and support; requires annual legislative reports; program expires June 30, 2030.