Imagine this: brand-new, affordable apartments sitting empty for nearly a year while homeless people sleep in the parking lot below. This is the infuriating reality in Oahu, where a city-subsidized housing project, PenseMetro, remains vacant despite being completed months ago. It’s a stark reminder of the tangled web of challenges plaguing affordable housing initiatives.
Last April, Mayor Rick Blangiardi celebrated the addition of 29 new rental units in Makiki, calling it a much-needed solution. “This is exactly what we know we need to create,” he declared. Fast forward to today, and those units are still unoccupied, awaiting final permits. But here’s where it gets controversial: while the city struggles to house its residents, the very program meant to address this crisis—Honolulu’s Bill 7—is under fire.
Bill 7, launched in 2019, incentivizes developers to build low-rise rental apartments by relaxing zoning standards and offering tax breaks, as long as 80% of units are affordable for those earning up to the area’s median income (around $106,000 for a single person). The program has already added 189 units to Oahu’s housing stock, with 16 more projects underway. Yet, some council members, like Esther Kiaʻāina and Scott Nishimoto, propose gutting it, citing concerns over building height limits and increased neighborhood activity. And this is the part most people miss: their proposal could halt fee exemptions, cap building heights, and shorten the program’s lifespan from 2030 to 2027.
Developers, housing advocates, and even U.S. Senator Brian Schatz argue that ending Bill 7 would worsen Oahu’s housing crisis, with the island projected to be short 25,000 units by next year. Schatz warned, “Oahu residents face an acute and worsening housing crisis, and people need all the help they can get from their government.”
Here’s the kicker: PenseMetro’s delays aren’t due to policy changes but a series of unexpected hurdles. Developer Don Huang cited issues like relocating power lines, ordering a transformer, and installing a smoke curtain for the elevator—all of which snowballed into months of delays. Even so, Huang defends Bill 7, calling it a success for small and medium-sized developers like himself.
But is the housing truly affordable? Nathaniel Char, Makiki Neighborhood Board chair, raises a valid point: PenseMetro’s projected rent for a studio has jumped from $1,400 in 2022 to $1,900 today, thanks to inflation and construction challenges. Is this still affordable for the median-income earner?
As the debate rages on, council member Andria Tupola promises an omnibus bill to revamp the program, ensuring it addresses concerns without killing it entirely. But the question remains: Can Oahu balance the need for affordable housing with neighborhood concerns? What do you think? Is Bill 7 worth saving, or is it time for a different approach? Let’s hear your thoughts in the comments!
