Honolulu City Council defers affordable housing bill

Bill 15 aimed to amend city's affordable housing requirements, but was postponed after developer concerns

Published on Feb. 6, 2026

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The Honolulu City Council has deferred a measure, Bill 15, that sought to amend the city's affordable housing requirements to allow below-market-rate for-sale and rental units to be sold or leased more quickly. The bill was introduced in January but was postponed this week after the Council Chair, Tommy Waters, requested the deferral to meet with homebuilders and developers to get their feedback.

Why it matters

Honolulu, like many cities, is grappling with a shortage of affordable housing for working families. The proposed changes in Bill 15 were aimed at streamlining the development process and encouraging more housing production, but faced pushback from the development community who were concerned it could erode long-term affordability safeguards.

The details

Bill 15 sought to repeal affordability requirements for certain planned housing developments, including transit-oriented development (TOD) projects. Currently, TOD projects must have 10% of total units remain affordable for a minimum of 30 years, or 20% affordable for 10 years, or 30% affordable for 5 years. Bill 15 would have removed the 30-year affordability option. It also aimed to amend bonus height or density rules and marketing period requirements for affordable units. The bill was introduced after a local developer, Avalon Group, requested the Council modify the 30-year affordability requirement for its Sky Ala Moana project, as the developer was unable to sell many of the affordable studio units.

  • Bill 15 was introduced on January 22, 2026.
  • The bill passed its first Council reading on January 28, 2026.
  • The Council's Zoning and Planning Committee voted to defer Bill 15 on February 6, 2026.

The players

Tommy Waters

Honolulu City Council Chair who introduced Bill 15.

Esther Kia'aina

Chair of the Council's Zoning and Planning Committee.

Avalon Group LLC

A local developer that owns the Sky Ala Moana project and requested modifications to the 30-year affordability requirement.

Elizabeth Krueger

Chief of the land use permits division at the Honolulu Department of Planning and Permitting.

Roseann Freitas

CEO of the Building Industry Association of Hawaii, which opposed Bill 15.

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What they’re saying

“Since first reading (of Bill 15), I've met with homebuilders and developers to try to get an opinion on whether or not we should go forward with this. But I do want to suggest that we defer the measure.”

— Tommy Waters, Honolulu City Council Chair (Honolulu Star-Advertiser)

“I think that the idea of a 30-year affordability period was not to keep people in the same unit for 30 years. I think it was to make sure that when it changes hands during that 30-year period it remains an affordable unit.”

— Elizabeth Krueger, Chief of the land use permits division, Honolulu Department of Planning and Permitting (Honolulu Star-Advertiser)

“At a time when Honolulu continues to face a severe shortage of housing that is affordable to working families, preserving durable affordability requirements is critical. Adjustments to program rules may be appropriate, but they should be crafted carefully to avoid eroding the long-term effectiveness of the city's affordable housing strategies.”

— Roseann Freitas, CEO, Building Industry Association of Hawaii (Honolulu Star-Advertiser)

What’s next

The Honolulu City Council is expected to discuss two other affordable housing measures, Bills 14 and 17, which were also introduced in January 2026.

The takeaway

This deferral of Bill 15 highlights the delicate balance Honolulu must strike between streamlining affordable housing development and preserving long-term affordability safeguards. As the city grapples with a housing shortage, policymakers will need to carefully consider the concerns of both the development community and affordable housing advocates to craft effective solutions.