HB 422 (HD1 SD2 CD1)
May 2, 2025
Remove School Impact Fees & Lower Home Costs
Status as of 5/2/25:
This bill has successfully passed final floor votes. It now will go to the Governor to sign into law.
Why Hawaiʻi YIMBY Supports This Bill:
Ineffective impact fees are a burdensome tax that adds significant costs to new homes that get passed on to the owners and renters. In addition, some impact fees may not collect enough funds or be used effectively to offset the impacts of the new homes on the surrounding community. The result: Increased home prices without addressing the impacts on the community.
These additional upfront costs can result in new homes being unnecessarily more expensive, or not getting built at all. There are better ways for the state to fund our public school facilities that don't significantly increase the cost of housing or decrease the supply of new housing.
Bill Description:
- Repeals the construction cost component of school impact fees.
- Exempts government housing developments, affordable housing units and projects, and Hawaiian home lands housing from school impact fees.
- Requires the School Facilities Authority to adopt rules governing fee collection. Increases the minimum number of units in a development to trigger land dedication provisions of the land component impact fee.
- Requires a report to the Legislature on program efficacy. Sunsets 7/1/2029. (CD1)
This page will be updated periodically throughout the legislative session. For the most up-to-date status, please visit the bill's page on the Hawai'i State Legislature's website.
