Federal housing reform requires action in Hawai‘i
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On July 11, 2026, the U.S. Congress passed the 21st Century ROAD to Housing Act, a major bill intended to increase housing availability nationwide. Hawai‘i’s state and local governments must now update their policies to take advantage of the new federal regulations and funding opportunities the law provides.
Perry Arrasmith of Housing Hawaiʻi’s Future explained that the act simplifies home construction by reducing red tape at the state and county levels.
The new law specifically addresses regulations that have historically disadvantaged manufactured homes, and requires Hawai‘i to legalize manufactured housing without steel chassis by the 2027 legislative session. It also encourages streamlined building standards, like allowing apartment buildings to be constructed with a single stairway, a practice previously illegal in many locations. The federal government will offer financial incentives to states and counties that increase housing supply, including a potential $200 million “Innovation Fund” and grants to revitalize vacant buildings.
However, communities that fail to act risk losing Community Development Block Grant funding. HUD will also publish a list of best practices for zoning and building, and require local governments to clearly identify land suitable for new housing construction. Arrasmith urges Hawai‘i leaders to proactively update laws to capture these opportunities and avoid falling behind.
