Office of the Governor – News Release – Gov. Green Signs Bills to Tackle Housing Bottlenecks and Fund Nonprofits

“Today represents the full scope of what policymaking is all about,” said Governor Green. “Sometimes, it takes many sessions to pass legislation and show foresight for long-term change. Other times, it is about the flexibility to pivot quickly when urgent challenges arise. Signing these two bills reflect both ends of that spectrum and truly demonstrates the best of what this bill signing period stands for.”

HB 420: RELATING TO REMEDIES

A recent UHERO report indicates a surge in litigation related to construction defect claims, which has resulted in costly and time-consuming delays of housing projects across the state. These delays, in turn, leave many awaiting construction in limbo and drive up the cost of housing, all of which have major implications throughout the state’s housing pipeline. House Bill 420 (Act 308) amends the Contractor Repair Act and Statute of Repose to address the exploitative litigation practices currently hindering Hawai‘i’s housing market.

“This bill is a couple years in the making, and today’s signing marks a step toward removing roadblocks for affordable, accessible housing in Hawai‘i,” said Governor Green. “HB 420 is a solution-based measure that tackles one of many contributing factors to our rising cost of living in the islands. It supports a broad range of stakeholders across the housing market, helping to move projects forward and bring real relief to our communities.”

HB 420 aims to streamline and improve the efficiency of the Hawai‘i Contractor Repair Act for its proper utilization in lieu of litigation. Amendments to the act provide defined timelines and processes related to the notice of claims between claimants and contractors, including the acceptance or rejection of contractor’s offer of settlement or authorized repair. To support prompt repair and remediation, the measure establishes standardized requirements that must be included in a construction of defect claim to ensure contractors are given sufficient evidence to address the matter.

The bill further establishes clear timelines regarding inspections, testing, and mediation to provide homeowners and contractors with a comprehensive roadmap for remedies.

Together with these procedural improvements, the bill includes provision to deter unnecessary litigation through clarifying the statute of repose and limitation periods. HB 420 clarifies the applicability of the 10-year statute of repose, which applies to all actions, including contracts, torts or statutory claims. Pre-filing of a lawsuit is not to occur more than six months before the litigation or repose period ends.

“HB 420 is a meaningful step forward for Hawai‘i’s communities because it helps with the process of getting homes repaired and built faster, without getting caught up in long, costly lawsuits,” said Senator Jarrett Keohokālole (Senate District 24 – Kāne‘ohe, Kailua), who chairs the Senate Commerce and Consumer Protection Committee. “By encouraging builders and homeowners to work together early on, this law protects families from unnecessary delays and high costs, helping to make housing more affordable and accessible for everyone across the islands.”

“HB 420 is about restoring balance and fairness to the construction defect process,” said Representative Lisa Marten. “For too long, certain legal strategies have delayed critical repairs and driven up costs. This bill strengthens protections for both homeowners and builders by requiring a good-faith opportunity to inspect and repair before litigation begins. It’s a practical fix that helps move housing projects forward and ensures we’re not putting unnecessary barriers in the way of affordable housing in Hawai‘i.”

“We sincerely thank Governor Josh Green for signing HB 420 into law. This legislation brings critical reform to the Contractor Repair Act by prioritizing cooperation and timely resolution over costly and prolonged litigation,” said D.R. Horton Hawai‘i Division President Tracy Tonaki on behalf of Housing No Kākou. “HB 420 strengthens consumer protections by prioritizing cooperation before litigation so that we can collectively preserve access to essential government backed loan programs, ensure legitimate repairs are made in a timely manner and continue to build much needed housing for Hawai‘i’s families.”

SB 933: RELATING TO THE STATE BUDGET

Senate Bill 933 (Act 310) serves as a targeted measure to support Hawai‘i’s nonprofit sector. Due to the federal funding freeze, many valuable nonprofits that provide essential community services, including child care, housing services, and healthcare, will be adversely affected and face significant reductions in funding.

To help offset these losses, SB 933 appropriates $50 million for fiscal year 2026 to fund  grants-in-aid for non-profit organizations across Hawai‘i. The Office of Community Services, within the Department of Labor and Industrial Relations, will oversee the selection and distribution of these grant awards.

“It is not fair that organizations dedicated to supporting the people of Hawai‘i are being forced to scale back due to federal funding cuts,” said Governor Green. “This state funding is a critical lifeline — not just for the nonprofits themselves, but for the individuals and families who depend on the essential services they provide everyday. We are stepping in to ensure our communities do not lose access to the care and support they need.”

A selection committee will be established to evaluate applications from non-profit organizations that demonstrate a termination or reduction of funding, or whose beneficiaries have been adversely impacted by the changes in federal funding.

To carry out the provision of the bill and to assist with the distribution of grants, the measure establishes temporary full-time positions within the Office of Community Services. Through this measure, the Office of Community Service authorizes the to contract the services of Aloha United Way, Inc. to provide administrative support and assist in the distribution of grant awards.

“This investment is more than just funding—it’s a vote of confidence in Hawai‘i’s nonprofit sector” said Michelle Bartell, President & CEO, Aloha United Way. “We’re grateful to the State Legislature for acting swiftly and to HANO for their tireless advocacy. Together, we’re helping ensure essential services remain strong and responsive for those who rely on them every day.”

“Senate Bill 933 is a timely and targeted response to protect the nonprofits that form the backbone of our communities,” said Senator Troy Hashimoto (Senate District 5 – Wailuku, Kahului, Waihe‘e, Waikapu Mauka, Wai‘ehu). “As federal funding declines, it’s our responsibility to make sure that vital services like childcare, housing and healthcare continue to be accessible to those who need them the most. This law helps keep critical support systems intact for Hawai‘i’s families.”

“We recognize the vital role that nonprofit organizations play in the health and resilience of our communities in Hawai‘i,” said Representative Daniel Holt. “SB 933 responds to an urgent need, ensuring essential services like childcare, housing, and healthcare remain accessible despite federal funding cuts. This measure reflects our collective commitment to mālama our communities and support those who serve them every day.”

The complete list of bills signed include the following. Click the link to see full details of the bill enacted into law.

HB 431 (ACT 309) RELATING TO HOUSING

Video of the bill signing can be seen here and here.
Photos of the bill signing ceremony, courtesy Office of the Governor, will be uploaded here.