Council advances measure to enhance TOD communities
Honolulu's Bill 21 pushes sustainable transit-oriented housing near rail stations
Private builders who seek zoning incentives like density and height bonuses or financial incentives like monetary grants from the city to construct transit-oriented development projects near Skyline stations will first need to give more back to surrounding communities, new city-initiated legislation dictates.
If adopted, Bill 21 would amend Honolulu's TOD ordinance for so-called "community benefits" offered to such developers in TOD special districts. Those benefits include more walkable neighborhoods, more open space and parks, more mixed-use housing, more streetscape improvements and more transportation options.
Greater heights and density bonuses - such as building more units or adding more floors to a housing project - would also be granted to developers who offer amenities within TOD special districts. Such projects would be built within approximately a half-mile of rail stations.
The bill would implement more application requirements for TOD developments as well.
Builders would have to show the project's overall urban design concept, building height and density, the use of its active open space as well as active ground-floor uses such as shops and restaurants, among others.
In particular, Bill 21 focuses on projects that add a hotel component - in this case, the community benefits proposed must offer more affordable housing options, the measure indicates.
Developers will need to meet the following minimum requirements:
For-sale affordable dwelling units must be sold to households earning 120% or below of the area median income, or AMI. At least one-half of those units must be sold to households earning 100% or below of the AMI.
For-rental affordable dwelling units must be rented to households earning 80% or below of the AMI.
The affordable dwelling units must remain affordable for a minimum period of 30 years.
Based on state data for 2025, 120% AMI means an annual income of $108,600 for one person, or $155,150 a year for a family of four. Those earning 80% AMI equates to $85,150 annually for one person, while a four-person family earns $121,600 a year.
Bill 21 also adds "gray water reuse systems" to the mix.
The state Department of Health states gray water from sinks, tub and shower drains, and clothes washers are estimated to be 50% to 80% of the total residential wastewater generated. This wastewater stream may also be reused to meet part of the fresh water demand for landscaping.
The Council on Wednesday passed Bill 21 in its first of three readings.
Before the vote, Board of Water Supply Manager and Chief Engineer Ernie Lau said his agency supports Bill 21's proposal to add more gray water reuse systems to new TOD projects.
"This will really help our precious wai, and our fresh water resources for our community," Lau said. "We need to look at all different ways to conserve water to extend our resources, in light of the challenges we see what's happening with the climate."
He alluded to the two Kona-low storms that caused widespread destruction across Oahu and other parts of the state in the past two weeks. "I think we are faced with a time where extremes will be the new norm for us to deal with. That could include drought," Lau said. "So I really strongly support this bill."
In written testimony, Waianae resident Jonathan Huynh stated Bill 21 "represents a critical step toward creating more sustainable, livable communities that reduce vehicle dependency while providing housing options and transportation choices for all residents.
"The affordable housing requirements for hotel projects are particularly important, ensuring that tourism development contributes to addressing our housing shortage," Huynh wrote. "The focus on active ground floor uses creates pedestrian-friendly environments that support local businesses and neighborhood vitality."
But Huynh recommended "several amendments" to Bill 21. "Expand affordable housing requirements to include residential projects seeking height or density bonuses, not just hotel projects," he wrote. "Strengthen transportation demand management with specific requirements for car-sharing, bicycle parking, unbundled parking, and transit pass provision."
Huynh noted streets should also feature "protected bicycle lanes, traffic calming measures, and universal accessibility features" for the disabled.
Bill 21 is expected to undergo further Council committee review.
