Honolulu Hale Bill 7

Here are some of the features and incentives provided by Bill 7 

  • The building is not required to provide parking spaces according to a mandated ratio. This allows the developer to determine the optimum number of parking spaces that will yield the most apartments, given the demand in the market for parking stalls. Buildings near transit stations may offer fewer parking spaces than buildings without easy access to mass transit.
  • Building permit review will be expedited. The intent is to approve permit applications within 90 days through “check-the-box” permitting rather than discretionary permitting.
  • Fire safety is integrated into each building using cost saving strategies. Fire sprinklers can use domestic water lines as designed by a licensed mechanical engineer rather than dedicated fire sprinkler lines. Buildings that have fewer than 36 units can have one 45” staircase or two 36” staircases. Elevators are not required.

In addition to design allowances, there are financial incentives available to qualifying projects.

Park dedication requirements are waived, and wastewater system facility charges are waived (the capacity must be available). Plan review and building permit fees may be waived . The property may qualify for exemption from real property taxes during construction and marketing lease-up period for apartments that are to be rented to tenants who earn no more than 100% of the area median income at rents that are no more than area median rents. Exemption from real property tax can extend to 10 years for apartments that are rented to tenants who earn no more than 80% of the area median income at rents that are no more than 80% of area median rents.

Up to 20% of the apartments can be occupied by the owner or members of the owner’s family. The remaining units must be rented for no more than 100%of the area median rent to tenants who earn no more than 100% of area median income.

2019 HUD AMI (Area Median Income) for households in Honolulu

1 person $84.000
2 people $96,400
3 people $108,500
4 people $120,500 

2019 HUD maximum rents in Honolulu for 100% AMI households

Studio $2,260

One bedroom $2,411

Two bedroom $2,848 

Three bedroom $3,243 

Four bedroom $3,646

Not including utilities

For more information on Bill 7, contact:

Dianne Willoughby, Realtor