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Legalize more mixed-use zoning to expand Big Isle housing options

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Hawai’i County Council Committee on Oct. 22, 2025.
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Oct. 22, 2025, 9 a.m.
Hawai‘i County Council Chambers in Hilo

To: Hawai‘i County Council
       Holeka Goro Inaba, Chair
       Dennis “Fresh” Onishi, Vice Chair

From: Grassroot Institute of Hawaii
            Jonathan Helton, Policy Analyst

RE: Bill 63 (2025) — RELATING TO DWELLINGS

Aloha Chair Inaba, Vice Chair Onishi and other members of the Council,

The Grassroot Institute of Hawaii supports Bill 63 (2025), which would make single-family, double-family and multifamily dwellings by-right permitted uses in the county’s industrial-commercial mixed-use zoning districts.

Under the bill, double-family and multifamily dwellings would be allowed at a maximum density of one unit per 1,250 square feet of land area. Single-family dwellings would not face this same density restriction.

These are the same standards under which single-family, double-family and multifamily dwellings are allowed in Hawai‘i County’s neighborhood commercial, village commercial and general commercial zoning districts.

Grassroot supports legalizing more mixed-use zoning because it would expand housing options.

According to estimates from the Hawaii Research and Economic Analysis Division, Hawaii County needs 6,665 new housing units built between 2025 and 2035 just to keep up with demand.[1] Authorizing more mixed-use construction could help make a dent in this shortfall.

This measure would also align Hawai‘i County’s zoning code with the state’s Act 37 (2024), which made residential uses a permitted use in all commercial zones statewide.

Buildings that contain both housing and businesses also promote walkable neighborhoods and all the benefits that come with them. As Grassroot pointed out in a 2023 policy brief: “Studies show that walkable neighborhoods also yield positive health outcomes. People lose weight, cardiovascular disease declines, and people report being happier.”[2]

Thank you for the opportunity to testify.

Jonathan Helton
Policy Analyst|
Grassroot Institute of Hawaii
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[1] Rene Kamita, “Hawai‘i Housing Demand: 2025-2035,” Research and Economic Analysis Division, Hawaii Department of Business, Economic Development and Tourism, March 2024, p. 11.
[2] Jonathan Helton, “How to facilitate more homebuilding in Hawaii,” Grassroot Institute of Hawaii, December 2023, p. 16.

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