Three major real estate bills covering the state building-code cycle, rules for factory-built homes and a proposal to change how real estate investment trusts are taxed have stalled in the Hawaii Legislature as lawmakers race toward the May 8 adjournment. The measures were pitched by supporters as ways to speed housing supply or shore up state revenue, but they have not cleared final hurdles. With fewer than seven days left in the session, the window for conference committees or last-minute floor action is getting tight.
Reported stall as session winds down
As reported by Pacific Business News, the three measures have been largely inactive since March and are now seen as unlikely to make it onto the schedule before sine die. The outlet described the stalled bills as among the session’s biggest real estate priorities.
The bills, briefly
HB1725 would lock in which edition of the Hawaii State Building Code applies for the life of a permit and would change the adoption cadence from a two-year cycle to a six-year cycle, a move supporters say would prevent costly mid-project rework. The measure’s text and committee history are available on LegiScan.
HB2606 seeks to establish a working group within the State Building Code Council to design an off-site construction program for pre-built or manufactured housing and to provide funding for pre-approved plan sets. The bill tracked as HB2606 passed the House and later moved into conference, according to its public tracking page on LegiScan.
REIT tax change raises fiscal stakes
Senate Bill 2362 would disallow the dividends-paid deduction for real estate investment trusts, and the bill’s fiscal note estimates the change could recover roughly $26.8 million in 2026. That estimate and the bill language appear in the official bill text posted by the Hawaii Legislature. Reporting and analysis have long argued that REIT taxation is a potential revenue source for the state; see Honolulu Civil Beat for background on that debate.
What happens before May 8
The Legislature is scheduled to adjourn sine die on May 8, leaving a narrow window for conference committees or floor votes to resolve outstanding differences. That date appears on the 2026 session calendar published by the Legislative Reference Bureau, which sets the deadlines that govern the remaining work. If measures fail to clear both chambers before adjournment, sponsors would need to refile them next year or pursue administrative fixes where possible.
For homeowners, builders and renters across the islands, the stalled measures reach into core concerns: permit predictability, faster and cheaper housing options and how outside investment in local property is taxed. Whatever happens in the final days of the session, the policy priorities these bills spotlighted are likely to be back on the table next year.
