The City is actively working to streamline the housing development process and make the most of public lands to deliver much-needed affordable housing for our residents. A key part of this effort is modernizing Revised Ordinances of Honolulu Chapter 38, which governs how the City leases public lands. While Chapter 38 was designed to ensure fairness and transparency, its current structure has made it challenging to move projects forward efficiently.
To improve this process, DLM’s draft bill to amend Chapter 38 was officially sent to the Honolulu City Council in February 2025. If approved, these amendments will provide a more flexible and responsive approach to leasing City-owned lands for affordable housing, ensuring projects can be delivered in a timely and effective manner.
Improving the City’s Leasing Process for Housing Development
Chapter 38 plays an important role in regulating how the City leases its lands, but over time, its limited application and rigid and lengthy process has created inefficiencies. These requirements have made it difficult to quickly advance housing projects, even when strong development partners are available, sometimes taking over seven years from the date of solicitation to the date a lease is executed.
Recognizing the need for greater efficiency without compromising transparency, DLM has proposed amendments that will allow the City to be more efficient, proactive, and involved in structuring agreements with qualified development partners. These changes are expected to dramatically improve timelines while maintaining accountability and public input.
Key Amendments to Chapter 38
DLM’s proposed amendments aim to simplify and speed up the process for leasing public lands while ensuring transparency and accountability. Key proposed changes include:
- More Leasing Options: The City would now have the flexibility to use different leasing methods such as Requests for Qualifications (RFQs) and Requests for Proposals (RFPs) instead of relying solely on a bidding process where the highest or lowest bidder wins.
- Expanded Support for Community Development: Leasing eligibility would now extend beyond narrowly defined organizations, such as blind vendors and animal welfare groups, to include a broader range of community and economic development organizations, such as child care operators and a wide range of nonprofits.
- Faster Approval Process: City Council approval would no longer be required for a limited set of leases, including leases with a term under ten years to nonprofits and community development organizations, reducing bureaucratic hurdles. To ensure transparency even for leases without City Council approval, the City would be required to submit annual reports to the Council detailing all leasing activities where prior approval was not needed.
- Stronger Public Benefit Requirements: Leases longer than ten years would include at least $125,000 in property improvements or equivalent services to the City, unless a waiver of this requirement would be considered in the public’s interest.
Parkway Village at Kapolei: A Model for Success
Parkway Village at Kapolei stands as a prime example of what can be achieved when public lands are effectively leveraged. This $199 million project transformed an underutilized City site into a vibrant affordable housing community that serves over 400 families with rents starting at just $597. Developed through collaborative partnerships and adaptive strategies, it offers an array of amenities—green spaces, recreation rooms, ample parking, and laundry facilities—while also hosting Hawai‘i’s first privately developed public charter preschool and a hydroponic Freight Farm that promotes sustainability. The successes and challenges of Parkway Village have directly informed proposed amendments aimed at creating a more flexible leasing process, underscoring its transformative impact on meeting Hawai‘i’s affordable housing needs.
Interim Action: Leveraging Governor Josh Green’s Emergency Proclamation
While the proposed amendments move through the legislative process, the City is taking decisive interim action. In collaboration with Governor Green’s office and the State Attorney General’s Office, the City expanded the Emergency Proclamation on housing in October 2024 to expressly permit a waiver of Chapter 38. This waiver allows the City to temporarily bypass procedural requirements and issue Requests for Qualifications (RFQs) instead of Requests for Proposals (RFPs).
Early pilot RFQ initiatives—such as the one issued on January 31st covering four properties—have already demonstrated the benefits of this approach. These pilots have:
- Reduced administrative delays
- Accelerated partner selection
- Set a benchmark for faster project commencement without compromising project quality or community oversight
Once the Chapter 38 amendments are approved—expected in spring 2025—this improved process will become permanent.
Why RFQs Matter: More Flexibility, Better Results
Switching from RFPs to RFQs has provided significant benefits in how the City partners with developers to build affordable housing. RFQs allow the City to:
- Select development partners based on qualifications and expertise, ensuring projects are completed by experienced, capable teams.
- Tailor agreements to fit the specific needs of each project, making the process more adaptive and efficient.
- Significantly reduce the time and cost in preparing and reviewing proposals, while potentially increasing competition.
- Reduce administrative delays, allowing projects to move forward faster without compromising oversight.
Momentum is Building: The First RFQ is Already Out
The City is committed to leveraging public lands to increase the supply of affordable housing. On January 31st, we issued the first RFQ covering four of our targeted properties, marking the beginning of a comprehensive, citywide rollout. This initiative not only streamlines the development process but also sets the stage for an ambitious expansion of affordable housing.
We have identified ten properties in the City’s portfolio that, combined, total 35 acres of land—a resource we believe can conservatively accommodate close to 2,600 housing units. These carefully selected sites offer significant potential and represent a critical component of our broader strategy to maximize public land for community benefit.
What Can You Do?
Your voice is crucial in shaping Honolulu’s future. Here’s how you can get involved and support the proposed reforms:
- Submit Your Testimony: Share your thoughts and experiences by submitting testimony during the legislative review process. Your input can help city leaders understand the community’s needs and concerns. Visit the Honolulu City Council website or your local council member’s office for guidance on how to submit your testimony.
- Stay Informed: Follow updates on the legislative process through official channels such as the City’s website, newsletters, and social media. Look for announcements regarding key dates and new opportunities to contribute.
As we build on this initial momentum, our commitment is clear: every RFQ brings us one step closer to transforming underutilized City lands into vibrant, affordable neighborhoods. This initiative is not merely a policy shift—it’s a bold, actionable step toward reshaping Honolulu’s future. By harnessing the potential of these 35 acres, we are poised to address our housing challenges head-on, providing safe, affordable homes that meet the needs of our community.