‘Community benefits agreements’ would further burden homebuilding

RE: P141 — RELATING TO COMMUNITY BENEFITS AGREEMENTS

Aloha Chair Szewczyk, Vice-Chair Yamamoto and other members of the Commission,

The Grassroot Institute of Hawaii opposes P141, which would require “community benefits agreements” as a condition of city approval for certain development projects.

This proposal could slow the approval process for much-needed housing and likely increase housing costs.

Every new requirement imposed on housing projects must be paid for by the homebuilders and ultimately the  homebuyers or renters. A recent study by the Economic Research Organization at the University of Hawai‘i found that complying with various regulations already accounts for 58% of the cost to build new condo units in Hawaii.^[1]

In particular, this proposal would increase costs because it would subject developments to negotiation with area neighborhood boards, the members of which might make unreasonable demands in the required community benefits agreements.

If the demands were too high, the math might no longer work for the projects and the homebuilders would walk away entirely.

Meanwhile, the city already requires as a condition of approval for certain residential projects that the homebuilders provide amenities that benefit surrounding neighborhoods — such as land for use as parks.^[2]

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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^[1] Justin Tyndall and Emi Kim, “Why are Condominiums so Expensive in Hawai‘i?” Economic Research Organization at the University of Hawai‘i, May 2024, p. 11.
^[2] “Chapter 22, Article 7: Parks And Playgrounds,” Revised Ordinances of Honolulu, accessed Jan. 7, 2026.