HI HB1317

Establishes a Workforce Housing Regulatory Sandbox Program administered by the Hawaii Housing Finance and Development Corporation to allow developers to test innovative housing solutions with waived or modified permitting processes, zoning requirements, and infrastructure fees

Creates an advisory council chaired by the Office of Planning and Sustainable Development director, including state and county agency representatives, cultural experts, environmental advisors, and housing industry representatives to provide guidance and oversight

Targets households earning 60-140% of area median income, requiring units to remain affordable for at least 10 years with deed restrictions prohibiting short-term rentals and mandating full-time occupancy by legal U.S. residents with at least one adult working 30+ hours weekly in Hawaii

Appropriates $5,000,000 for fiscal year 2025-2026 and $5,000,000 for fiscal year 2026-2027 for program establishment, administration, staffing, and project support

Requires annual reports to the legislature on approved projects, regulatory modifications granted, and outcomes related to affordability and construction timelines; program sunsets June 30, 2030