Senate committees pass amended SB534 easing OHA residential development in Kakaʻako Makai with environmental and affordability conditions

The Senate Committee on Water and Land and the Committee on Hawaiian Affairs voted Feb. 3 to pass SB534 with amendments that set environmental-review, remediation, height and affordability conditions for proposed residential development on Office of Hawaiian Affairs (OHA) parcels in Kakaʻako Makai.

The measure, as amended by the committees, lets the Hawaii Community Development Authority (HCDA) approve residential projects on OHA-owned parcels within Kakaʻako Makai provided an applicant completes an environmental impact statement (EIS) and obtains Department of Health documentation verifying hazardous-substance remediation. The amendments also limit eligible parcels to those owned by OHA, set a maximum building height of 400 feet, cap maximum floor area ratio (FAR) at 10 and require that a majority — ‘‘50% plus 1’’ unit — be reserved as affordable to households at or below 140% of area median income (AMI) in perpetuity.

The committees said their changes also clarify HCDA hearing requirements and preserve public hearings and community feedback on any OHA proposal. The measure adds language directing that OHA establish and deposit any Kakaʻako Makai association fees into an OHA special fund; the attorney general warned that such a fee could be construed as a tax and asked the Judiciary and Ways and Means committees to review the provision.

Why this matters: Kakaʻako Makai is privately and publicly owned waterfront land near Honolulu’s urban core. The amendments aim to enable development of hundreds to thousands of housing units on OHA parcels while adding explicit environmental and affordability safeguards. Supporters say the package balances development, remediation and Native Hawaiian beneficiary benefits; some lawmakers cautioned about eligibility thresholds and enforcement.

Key amendments and…