Senate Committee on Housing advances bill to transfer Kapolei roads to Honolulu after HHFDC reports $60 million negotiation

The Senate Committee on Housing voted Feb. 11 to pass with amendments Senate Bill 662, which would require the Hawaii Housing Finance and Development Corporation (HHFDC) to transfer public roads in the villages of Kapolei to the City and County of Honolulu by Jan. 1, 2026, and would authorize county police officers to enforce the statewide traffic code on public streets and highways within the county.

The committee adopted the chair’s recommendation to pass the bill with amendments after hearing testimony in support from local organizations and the City and County of Honolulu. The vote was recorded as unanimous among members present: the chair (aye), Vice Chair Hashimoto (aye), Senator Aquino (aye), Senator Kanuha (aye) and Senator Fevella (aye).

Dean Minakami, director of the Hawaii Housing Finance and Development Corporation, told the committee that HHFDC had engaged in high-level negotiations with the City and County of Honolulu in which the city had agreed in principle to accept $60,000,000 in exchange for dedicating the roads. "We were in negotiations with the city for HHFDC to transfer maintenance responsibilities to look at the roads to the roads and infrastructure to the city for $60,000,000 but there never was any MOA or agreements drafted to effectuate this agreement," Minakami said. He said negotiations were paused after HHFDC learned of related bills introduced in the Legislature.

Minakami said those related measures — which he identified during testimony as "Senate Bill 15 35 and HB 800" — prompted HHFDC to avoid preempting legislative action. He told the committee that if the bills do not pass, HHFDC would resume negotiations with the city. "Then we'll continue negotiations and, you know, $60,000,000 is a lot, but it is less than our estimate that we would incur to rehab those roads and still would be a preferable alternative than to for us to do it ourselves," Minakami said, adding that staff time saved is another potential benefit: "Right now, we have at least 3 staff working on what we have working Kapolei. Those staff could be, reassigned to other tasks."

The committee noted in its recommendation and committee report that HHFDC negotiations could be an incentive for a prompt dedication and transfer of maintenance responsibilities. The chair’s recommendation to pass with amendments referenced those negotiations in the committee report.

No motion proponent or seconder was recorded on the transcript; the committee proceeded on the chair’s recommendation and adopted the recommendation by recorded voice votes. The committee did not specify further implementation dates beyond the bill’s Jan. 1, 2026 effective date in the bill text as described at the hearing.

The committee adjourned after concluding decision making on SB 662 and other measures; the bill will proceed through regular legislative process and any further committee reports or floor calendar scheduling will be posted by the Legislature.