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Bill 2979: Employee housing bill’s strict requirements could limit its effectiveness

March 10, 2026, 9 a.m.
Lihue Civic Center, Mo’ikeha Building

To: Kauai Planning Commission
      Gerald Ako, Chair
      Helen Cox, Vice Chair

From: Grassroot Institute of Hawaii
          Jonathan Helton, Policy Analyst

RE: Bill 2979 — RELATING TO USES IN DISTRICTS

Aloha Chair Ako, Vice Chair Hox and other commissioners,

The Grassroot Institute of Hawaii offers comments on Bill 2979, which would create the new uses of “employee dormitory” and “group housing dormitory” and set up application requirements for them.

The bill also specifies that these uses would be allowed by right in commercial zones and with a use permit approved by the Kauai Planning Commission in residential, resort, agricultural, open and university zones.

Grassroot believes this legislation could open opportunities for business owners to create more housing for their employees, and it would be especially helpful for businesses that rely on seasonal or rotational workers who live on-island for only part of the year.

However, the proposed application requirements appear to be more strict than the standards that already exist for multi-family dwellings, boarding houses and dormitories. As such, the bill might not have much of an impact. Instead, builders might opt to construct shelter for their employees — where such housing is legal — under those uses rather than the uses proposed by the bill.

Thank you for the opportunity to testify.

Jonathan Helton
Policy Analyst
Grassroot Institute of Hawaii

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