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Department of Land Management seeks Chapter 38 overhaul to speed leasing for affordable housing
Summary
The Department of Land Management briefed the zoning committee on planned revisions to ROH Chapter 38 to expand competitive selection tools beyond RFPs, increase council participation and shorten timelines for city leases that support affordable housing; DLM will pilot an RFQ for a portfolio of city parcels under the governor's emergency housing
The Department of Land Management (DLM) briefed the Committee on Zoning on Jan. 16 about proposed revisions to Revised Ordinances of Honolulu Chapter 38 (leasing and concessions). DLM said the chapter is outdated, slows city leasing for public‑purpose projects and limits the city’s ability to select tenants using criteria beyond highest bid.
What DLM proposed and why
DLM Director‑designate Kat Tashner told the committee that Chapter 38 has not been materially updated since 1978 and that the city’s current default method (request for proposals where the high bid often wins) prioritizes revenue rather than broader public priorities. DLM said it seeks statutory changes to: separate leasing rules from concessions; expand the toolbox of competitive selection methods to include any competitive selection process (for example, requests for qualifications, RFQs); increase council notification and participation (bringing more leases to council for approval and reporting annually on transactions where council approval is not required); and technical housekeeping edits.
DLM also emphasized speed: past city ground‑lease transactions supporting affordable housing have taken years (documented examples showed solicitation‑to‑lease timelines averaging multiple years and in some cases exceeding five years). DLM proposed Chapter 38 amendments so the city can move more quickly on redevelopment of underutilized properties for housing and related public purposes.
Pilot and near‑term work
As a pilot under the governor’s emergency proclamation on housing, DLM said it will issue an RFQ in January 2025 seeking a development partner to design, build, operate and maintain affordable housing on a portfolio of four city properties. DLM expects to issue additional RFQs through 2025 to activate underutilized city land but said permanent Chapter 38 revisions are necessary to sustain and expand that work beyond the emergency proclamation.
Why it matters
DLM said the revisions would give the city greater flexibility to favor community outcomes (affordability, services, cultural uses) and shorten timelines for delivering housing on city land. Committee members asked for draft language and an early bill so council and stakeholders can review proposed changes before a formal hearing; DLM said the proposed revisions were in final internal review and will be submitted for council consideration.
Next steps
DLM will finalize internal review and transmit proposed Chapter 38 amendments to the council; the department said it welcomes council input and expects the pilot RFQ to go live in January 2025 under the emergency proclamation to test the new selection approaches.
