Council adopts code change to allow county to use portion of GET for housing infrastructure, adds roadways to allowable costs

The Hawaii County Council voted March 19, 2025, to amend county code (Bill 27) to permit the county to use revenues from its general excise tax (G.E.T.) surcharge for county‑appropriated housing infrastructure costs. The action implements language expanded by the state Legislature (Act 30) to allow counties to use the surcharge for housing infrastructure in addition to prior transportation uses.

Councilmember Kristen Kurkowitz, who introduced the measure with Chair Inaba, said the change "does not dedicate any funding. This merely provides our county the opportunity to pull this lever and invest in housing infrastructure." She described the vote as clearing a legal path to consider directing G.E.T. surcharge revenues to affordable and workforce housing during upcoming budget deliberations.

Vice Chair Amy Onishi proposed and the council approved an amendment to explicitly add "roadways, curbs and gutters" to the definition of housing infrastructure costs. Onishi said the amendment responds to practical concerns raised during recent affordable‑housing projects, where roadway construction and standard improvements became points of debate. Housing Administrator Keo Costa told the council she was "completely supportive of infrastructure for affordable housing" and agreed roads are among multiple infrastructure needs projects commonly require.

Finance Director Diane Nakagawa and Corporation Counsel reviewed the statute during the meeting. Counsel noted Act 30 requires county‑appropriated housing infrastructure costs to be used by counties and contains a limitation that counties that use surcharge revenues for housing infrastructure "shall not pass on those housing infrastructure costs to the developer of a housing project." Council members discussed whether the bill could be read narrowly in a way that might limit eligible uses; attorneys and staff advised the language tracks state law and that the amendment simply clarified that curbs and gutters are included.

Debate and context

Council members expressed differing priorities for the finite G.E.T. surcharge stream. Some argued for continuing investments in mass transit and transportation while others urged using some of the funding to reduce infrastructure costs for county‑sponsored housing projects. Councilmember Kurkowitz noted the funding opportunity is time‑limited by state law and urged the county to consider whether to allocate a portion of the revenue toward housing infrastructure during budget season.

Council members also requested further details about the mechanics of applying funds to private or county projects; Housing Administrator Costa said county projects often need infrastructure funding and that additional mechanisms would be required to enable private developers to access county infrastructure dollars if that were the policy choice.

Votes and outcome

Councilmember Kurkowitz moved Bill 27 on second and final reading; Vice Chair Onishi’s amendment (communication 119.1) was adopted by roll call. The main motion passed on second and final reading with a majority vote; the clerk recorded five votes in favor, one no vote, and two absences in that roll call.

What it means going forward

The ordinance does not appropriate money immediately. Instead, it authorizes the county to use G.E.T. surcharge revenues for housing infrastructure within the limits of state law. Any decision to allocate funds would be made in future budgeting processes. Council members asked staff to provide follow‑up information about existing county housing funds and how G.E.T. revenues might complement those resources.

Ending

The council’s vote gives Hawaii County the statutory option to use local G.E.T. surcharge revenues for housing infrastructure projects, including roadways, curbs and gutters. Councilmembers signaled they would address the policy tradeoffs and potential funding levels during the upcoming budget cycle.