Honolulu's ambitious Bill 7 program promised to revolutionize affordable housing development with 90-day permit approvals, but six years later, none of the more than 50 applications have met that deadline. The average approval time has stretched to nearly two years—longer than standard commercial projects the city processes.
The legislation, championed by former Council member Kym Pine and signed by then-Mayor Kirk Caldwell in May 2019, was designed to fast-track affordable housing with guaranteed three-month approvals. "Ninety days," Caldwell declared during the signing ceremony. "Quick, fast, and clean."
The reality has proven far different, according to Honolulu Civil Beat, which found that the median permitting time for commercial projects was nearly 13 months as of the first quarter of 2025. Developer Geena Thielen's three affordable housing projects took between 14 months and two years to get approved, despite her strong support for the program.
Department of Planning and Permitting officials cite understaffing, outdated technology and onerous regulations as primary obstacles, as reported by Civil Beat. Mayor Rick Blangiardi acknowledged that DPP is known to nitpick building plans, describing it as "indicative of a cultural problem within the agency" where "people got carried away with the power."
Critical Timeline Concerns
The 90-day deadline was considered crucial by advocates who argued that extended permitting delays could cause developers to lose low-interest loans tied to construction timelines. "The permit time was one of the key things," Pine told Civil Beat. "If they don't build according to a certain timeline, they could lose their low-interest loan."
Despite the permitting failures, Bill 7 has generated tangible results in other areas. The program has resulted in the development of a half-dozen affordable housing projects, all fully occupied, with permits approved for 573 units, according to Hawaii Business Magazine.
Success Stories Emerge
Construction is currently underway on a 90-unit development on Pensacola Street, while two projects with 51 total units have been completed and another eight projects with 236 total units are under construction. One completed project at 216 Olive Avenue in Wahiawā transformed the former site of seven dilapidated cottages built in the early 1920s into a four-story, 36-unit affordable rental building.
The legislation's other provisions have proven more successful, as detailed by Hawaii Business Magazine. Bill 7 relaxed zoning and building rules, allowing greater density, and offered significant incentives including property tax exemptions and waivers of wastewater and permitting fees.
Reform Efforts Underway
City officials haven't ignored the program's shortcomings. Last year, Honolulu enacted Bill 6, which allows certain licensed architects and engineers to self-certify that their affordable housing projects comply with building codes, meant to help alleviate DPP's backlog of permit applications, as reported by Hawaii Business Magazine.
The City Council is also considering Bill 3, which would provide upfront grants of up to $25,000 for units rented to households earning between 61% and 100% of area median income, or up to $35,000 for units serving lower-income families. Developer Paul Lam, who has built one 26-unit Bill 7 project and is working on eight others, called Bill 3 "a game-changer," noting "We're not getting enough government subsidy (under the current system)."
Housing Crisis Context
The Bill 7 struggles unfold against Honolulu's severe housing crisis, where the median sales price for a single-family home has risen to over $1.1 million, according to Civil Beat. Projects serve tenants with incomes at or below the area median income, which stands at $129,300 for a family of four in 2025.
Former council member Pine expressed disappointment with the permitting delays, telling Civil Beat: "Government screwed this up so badly during a good time to build," noting that favorable construction conditions during the program's early years have since been replaced by rising costs and interest rates. Bill 7 has been extended through May 19, 2031, giving the city more time to address systemic issues.
For developers like Thielen, who continues building affordable housing despite the frustrations, the potential remains worth pursuing. "We would be able to start sooner, finish sooner and have occupants in sooner if we could compress the permitting time," she noted—a goal that remains as relevant today as when Bill 7 was first signed into law.
