The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu City Council on Oct. 1, 2025.
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Oct. 1, 2025, 10 a.m.
Honolulu Hale
To: Honolulu City Council
Tommy Waters, Chair
Andria Tupola, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: Resolution 25-171 — RELATING TO THE INCLUSION OF A PROPOSAL IN THE 2026 HAWAIʻI STATE ASSOCIATION OF COUNTIES LEGISLATIVE PACKAGE TO REPEAL COUNTY REQUIREMENTS RELATED TO ACCESSORY DWELLING UNITS ON RESIDENTIALLY ZONED LOTS
Aloha Chair Waters, Vice Chair Tupola and other members of the Council,
The Grassroot Institute of Hawaii opposes Resolution 25-171, which would request the Hawaii Association of Counties to include a bill to repeal Act 39 (2024) in its 2026 legislative package.
The resolution itself points out that Hawaii has “a lack of affordable housing” that has “risen to crisis levels,” but it is misguided in its attempt to repeal Act 39 (2024) — a landmark reform to Hawaii’s housing policy requiring each county to allow two accessory dwelling units per lot in residential areas and making changes to subdivision and impact fee rules.
Legalizing more small homes per lot is a critical tool cities across the world have used to combat housing shortages.[1] By allowing land costs to be divided across more homes, the acquisition and construction costs — and therefore sales prices — of new housing can be significantly reduced.
ADUs also empower homeowners to build extra dwellings on their properties to lease to family, friends and others, helping cover their mortgage, insurance and property tax costs associated with homeownership.
Repealing Act 39 (2024) would set Honolulu back in its existing housing policy goals as well. Earlier this year, the city extended its waiver of sewer and building permit-related fees for ADUs until 2030.[2]
Instead of asking for Act 39 (2024) to be repealed, the Council should revise Honolulu’s existing land use rules that discourage apartment buildings and impose unnecessary hearing requirements on simple projects.
If any members of the Council would like to talk further with Grassroot about how to make housing more abundant across Oahu, we would welcome the opportunity to engage with you.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Christina Plerhoples Stacy, Christopher Davis, Yonah Freemark, et al., “Land-Use Reforms and Housing Costs,” Urban Institute, March 29, 2023; Vicki Been, Ingrid Gould Ellen and Katherine M. O’Regan, “Supply Skepticism Revisited,” New York University Law and Economics Research Paper No. 24-12, Nov. 10, 2023; and Ryan Greenaway-McGrevy, “Can Zoning Reform Reduce Housing Costs? Evidence from Rents in Auckland,” University of Auckland Business School, Economic Policy Centre Working Paper No. 016, June 2023.
[2] Ordinance 25-12, signed March 12, 2025.
