Blog HB 422 (HD1)

Remove School Impact Fees & Lower Home Costs

Feb. 14, 2025

Status as of 2/14/25:

This bill has passed out of its first committee (HSG) with amendments and is currently awaiting a hearing by the House FIN committee.

Why Hawaiʻi YIMBY Supports This Bill:

Ineffective impact fees are a burdensome tax that adds significant costs to new homes that get passed on to the owners and renters. In addition, some impact fees may not collect enough funds or be used effectively to offset the impacts of the new homes on the surrounding community. The result: Increased home prices without addressing the impacts on the community.

These additional upfront costs can result in new homes being unnecessarily more expensive, or not getting built at all. There are better ways for the state to fund our public school facilities that don't significantly increase the cost housing or decrease the supply of new housing.

Bill Description:

  • Repeals school impact fees.
  • Abolishes and transfers unencumbered balances of the school impact fee subaccounts and certain fair share contribution accounts to School Facilities Special Fund. Effective 7/1/3000. (HD1)

This page will be updated periodically throughout the legislative session. For the most up-to-date status, please visit the bill's page on the Hawai'i State Legislature's website.