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HCDA urges changes to 99‑year leasehold pilot to make units marketable; lawmakers press for clearer owner‑occupancy rules
Summary
HCDA told the House Housing Committee that Act 97's strict owner‑occupancy rules made its Kakaako demonstration project financially infeasible; the agency proposed capping owner‑occupancy at 60% of units and allowing up to 40% market sales, backed by $15 million in state equity. Lawmakers pressed for clarity on resale, enforcement and affordability levels.
Craig Nakamoto, executive director of the Hawaii Community Development Authority, told the House Housing Committee on Feb. 13 that Act 97 (2023) mandated owner‑occupancy "in perpetuity" for the HCDA demonstration project and that requirement, together with higher construction costs, made presales impractical. HCDA proposed amending HRS chapter 206E so owner‑occupancy rules would apply to 60% of units rather than 100%, while up to 40% of units could be sold at market rates to improve the project’s feasibility.
Why it matters: HCDA is seeking to make the Kakaako demonstration project viable without losing the goal of creating permanently…
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