The state Senate’s Housing Committee deferred a bill Tuesday that would have paid Hawaii homeowners and homebuyers to restrict occupants to locally employed residents, instead approving a bill to promote the construction of more accessory dwelling units, commonly known as ohana units, for workforce housing.

House Bill 740 would establish the Accessory Dwelling Unit Financing and Deed Restriction Program to provide funding to the counties to distribute grants to eligible homeowners or homebuyers to construct ADUs with the condition that occupants of the property, including those living in primary or secondary units, must be employed, or use to be employed, at least 30 hours per week at a local business.

The amended version of HB 740 defines ADUs as a “second dwelling unit that includes its own kitchen, bedroom and bathroom facilities, and is attached or detached from the primary dwelling unit.”

The Senate’s approval of the measure ended the momentum for HB 739, which would have established the Kama‘aina Homes Program allowing counties to pay homeowners or homebuyers a sum of money under the condition that the home be occupied by at least one owner-occupant or tenant who works, or used to work, at a local business for at least 30 hours a week.

Sen. Stanley Chang (D, Hawaii Kai-Kahala-Diamond Head), who chairs the Senate Housing Committee, told the Honolulu Star-Advertiser on Tuesday that HB 740 will be the “vehicle” for advancing the goals of both bills to increase the inventory of affordable workplace housing.

At Tuesday’s public hearing, Chang said he appreciates the efforts to encourage more ADUs in Hawaii and wants the state to focus on the construction of new units rather than converting existing ones.

“We need to shift away from a model where the state gives away money and never gets it back,” Chang said at the hearing. “The state needs to act as an investor that realizes a gain, an appreciation on the investment of its funds, which are, after all, taxpayer funds.”

While both bills worked to enable the creation of more housing for the local workforce, Chang told the Star-Advertiser that HB 740 is one potential solution to creating low-cost financing for ADU construction statewide.

“If the state spends a lot of money and no new housing is built, then I don’t think we’re getting any closer to solving the housing shortage,” he said.

Chang noted during the hearing that similar grant programs already exist, citing Maui County’s ‘Ohana Assistance Pilot Project, which launched in July and provides grants of up to $100,000 to homeowners to design and construct attached or detached ADUs with a 10-year deed restriction to provide workforce housing.

HB 740 is supported by a number of organizations, including the Hawaii Appleseed Center for Law and Economic Justice. In written testimony the center’s director of housing policy, Arjuna Heim, said the bill addresses financial barriers to constructing ADUs, which typically cost about $250 to $350 per square foot to build.

The deed restriction, which was also a feature of the deferred HB 739, is a key aspect of HB 740, according to Heim.

“The deed restriction requirements ensuring occupancy by local workers, maintaining employment within the county, demonstrate a thoughtful approach to preserving housing for Hawai‘i’s working families,” Heim said in written testimony. “This helps prevent the conversion of these units to vacation rentals or investment properties and help establish a locals-only market.”

Joshua Wisch, president and executive director of the nonprofit Holomua Collaborative, which focuses on making Hawaii more affordable for working families, was a staunch supporter of HB 739 and said he was disappointed the bill was deferred.

“We’ll have to see what was retained in the Senate draft before we can determine any future support,” Wisch said in a statement to the Star-Advertiser.

“We still believe (the Kama‘aina Homes Program) can help create a dedicated and permanent housing supply for local working families, and are already exploring ways to lift the program up at a county level, come back to the Legislature next session or find other avenues to pursue it,” he said.

A 2023 report by the University of Hawaii Economic Research Organization found that 20% of Hawaii residents had enough income to afford a single-family home costing $875,000.

Another recent study by Holomua Collaborative, which surveyed 1,500 local workers with middle- to upper-middle incomes, found that 70% of respondents said they will or might relocate to a less expensive state in the coming years, with housing costs a major issue. Twenty-seven percent said they would move out of Hawaii within the next five years.

The list of annual state holidays in Hawaii could grow by one under legislation that easily passed a milestone last week.

State senators voted 25-0 to approve and send to the House of Representatives a bill that would make Nov. 28 La Ku‘oko‘a, or Hawaiian Independence Day, as Hawaii’s 14th official state holiday.

The Legislature in 2023 passed a bill to designate Nov. 28 as La Ku‘oko‘a to celebrate a historical recognition of the kingdom of Hawaii’s independence dating to 1843. But that measure, which became Act 11, did not make the day a state holiday.

Now state lawmakers, via Senate Bill 614, are considering elevating La Ku‘oko‘a to an official holiday.

“We celebrate Fourth of July, American Independence Day, as an official state holiday,” Sen. Kurt Fevella, a Republican who introduced the bill with two Democratic colleagues, Sens. Stanley Chang and Carol Fukunaga, said in the Senate chamber preceding Tuesday’s vote.

“It’s a day when 13 American colonies separated from Great Britain,” said Fevella (R, Ewa Beach-Ocean Pointe-­Iroquois Point). “But why haven’t we celebrated when Hawaii became a sovereign nation as a state holiday? … Colleagues, let’s stand together for the Independence Day of our Hawaii nei.”

Testimony on SB 614 has been near-unanimously supportive, with written comments from about 35 people, the state Office of Hawaiian Affairs and the Association of Hawaiian Civic Clubs.

Reese Flores, a Native Hawaiian student at the University of Hawaii, told two Senate committees during a Feb. 13 public hearing that La Ku‘oko‘a is an important part of Hawaiian history that deserves recognition.

“We should be reminded that our ancestors fought and sought independence to keep our nation sovereign,” she said.

On Nov. 28, 1843, Great Britain and France formally recognized, under a joint Anglo-Franco Proclamation, the kingdom of Hawaii as an independent nation — 50 years before the 1893 overthrow of the monarchy that preceded Hawaii’s 1898 annexation by the United States.

The intent of SB 614 is stated to “recognize the compelling history of Hawaiian independence and memorialize the injustice of the overthrow of the Hawaiian Kingdom.”

According to OHA, La Ku‘oko‘a, which literally means Independence Day, was celebrated as a national public holiday under the kingdom of Hawaii and then later by a provisional government, the republic of Hawaii and the territory of Hawaii.

OHA said in written testimony that La Ku‘oko‘a merits joining Prince Jonah Kuhio Kalaniana‘ole Day, celebrated annually on March 26, and King Kamehameha I Day, observed annually on June 11, as Hawaiian cultural state holidays instituted by Hawaii lawmakers.

Hawaii also observes Statehood Day as an official holiday annually on the third Friday in August to mark its 1959 admission as the country’s 50th state.

Beighlee Vidinha, a Native Hawaiian student at UH, said during the Feb. 13 hearing that La Ku‘oko‘a is part of the identity of Hawaiians as sovereign people before identities as American citizens.

“If we can honor Statehood Day and American Independence Day as state or federal holidays, we can honor La Ku‘oko‘a, an important indication of our independence and sovereignty as people,” she said.

Kimmer Horsen testified at the same hearing to say in part that La Ku‘oko‘a as a state holiday would help educate children, newcomers and tourists about Hawaii’s history.

“A bill for terminating Statehood Day would also be wise, as a suggestion,” she said. “This is a step in the right direction for true Hawaiian kingdom independence.”

The only person to testify against the bill was Kenneth Conklin, a longtime opponent of the Hawaiian sovereignty movement.

Conklin, in written testimony, characterized the bill as using a “182-year-old historical footnote” to give a small boost to “Hawaiian pride” at a large cost in money and undelivered government services.

Luis Salaveria, director of the state Department of Budget and Finance, said in written testimony for a Feb. 28 Senate committee hearing on the bill that the loss of state labor and productivity for one day is valued at about $18.3 million from payroll expenses, including Social Security, Medicare and pension costs.

Wilbert Holck, chief negotiator with the state Office of Collective Bargaining, said in written testimony that enacting a law to make La Ku‘oko‘a a state holiday would have no effect on public workers unless such a day off work were negotiated and agreed upon mutually.

Nov. 28 is already a state holiday every five to six years when it aligns with Thanksgiving as the fourth Thursday in November. That happened in 2019 and 2024, and will happen again next in 2030.

Current official state holidays

>> New Year’s Day

>> Martin Luther King Jr. Day

>> Presidents Day

>> Prince Jonah Kuhio Kalaniana‘ole Day

>> Good Friday

>> Memorial Day

>> King Kamehameha I Day

>> Independence Day

>> Statehood Day

>> Labor Day

>> Veterans Day

>> Thanksgiving Day

>> Christmas Day

Senate Bill 529 SD1 relating to education seeks to appropriate funds to expand the Hoʻākea Program, an educational initiative that integrates Hawaiian cultural practices with academic subjects to engage students and promote environmental stewardship.

Senate Vice President Michelle N. Kidani (District 18 – Mililani Town, Waipi‘o Gentry, Crestview, Waikele, portion of Waipahu, Village Park, Royal Kunia) who chairs the Senate Committee on Education (EDU) announced the Senate’s passage of the bill as it continues on a path forward this legislative session.

“Programs like Ho‘ākea create meaningful learning experiences for students that bridge culture, community, and education, fostering a deeper connection to their heritage and building a stronger sense of identity and responsibility,” said Kidani. “By incorporating traditional knowledge with modern curriculum, this initiative empowers our keiki to become the next generation of leaders.”

“The impact of Ho‘ākea has truly been profound for our students, our families and our communities,” said Hawaiʻi State Department of Education (HIDOE) Superintendent Keith Hayashi. “Through hands-on learning stations, the mission of Hoʻākea is to inspire students to embrace the ‘Navigator Mindset’ and become the leaders, stewards, and critical thinkers that can navigate us into a better future.” 

According to Nainoa Thompson, Pwo Navigator and CEO of Polynesian Voyaging Society, “education is everything, it will determine our future of what we teach our children. I’ve seen the impact when there’s a bridge that’s created between the power of communities and families, and Ho‘ākea is that bridge to teachers who are the bridge to our schools.”

Amy Hānaialiʻi Gilliom, Hui O Wa‘a Kaulua President, vocalist and songwriter, shared her strong support, writing,“using foundational values and perspectives of waʻa and ʻāina, students learn about, explore, and troubleshoot issues they experience daily – like coastal erosion, water and food security, emergency preparedness, and community resilience. Connecting place, culture, and history to core subjects like math, science, and social studies engage their natural curiosity and excitement to learn.” 

The bill now moves to the House for consideration.