New pathways created toward homeownership in Hawai‘i with signing of Senate bill

Expanded pathways to homeownership are coming to local families with the signing of Senate Bill 2061 into law as part of the state’s ongoing efforts to address Hawaiʻi’s housing affordability crisis.

Hawai‘i Gov. Josh Green signed Act 121, which strengthens and clarifies the statutory framework governing Hawaiʻi’s Ninety-Nine Year Leasehold Program, an initiative designed to create affordable, owner-occupied condominium homes on state and county lands located in urban areas, according to a news release from the Hawai‘i State Senate.

“Act 121 reinforces the Legislature’s commitment to ensuring that housing developed under the program primarily benefits Hawaiʻi residents,” according to the release. “The law requires that at least 60% of residential units be affordable to households earning no more than 140% of the Area Median Income. These homes must be owner-occupied and sold to qualified local residents, helping to ensure that the benefits of the program remain focused on Hawaiʻi families.”

The legislation builds upon Act 97 (2025), which established the pilot leasehold condominium program within the Hawaiʻi Community Development Authority, and provides additional guidance needed to facilitate implementation of the program.

“Act 121 represents another important step toward restoring the dream of homeownership for local families,” said Sen. Stanley Chang, Chair of the Senate Housing Committee, and sponsor of the ALOHA Homes initiative (Affordable Locally-Owned Homes for All). “By leveraging public land and creating a new pathway to affordable ownership, we can help ensure that future generations have the opportunity to live, work, and build their lives in Hawaiʻi.”

The legislation supports the development of the Hawaiʻi Community Development Authority’s planned pilot project in Kakaʻako, located at the corner of Kapiʻolani Boulevard and Ward Avenue on O‘ahu. The project is expected to demonstrate how publicly owned land can be leveraged to provide attainable homeownership opportunities for local residents while preserving long-term public stewardship of valuable urban land, the release states.

The legislation also establishes clear eligibility requirements, strengthens owner-occupancy protections, and provides safeguards to preserve long-term housing affordability. These provisions reflect the Legislature’s intent that the program create stable homeownership opportunities for working families.

Act 121 embodies the public policy goals articulated by Chang to increase housing supply, promote attainable homeownership, encourage walkable urban communities, and utilize public lands in a manner that maximizes public benefit. By reducing the cost of land through long-term leasehold ownership, the program seeks to make homeownership accessible to households that might otherwise be priced out of Hawaiʻi’s housing market, according to the release.