The Hawaii Supreme Court's recent decision regarding Governor Josh Green's emergency proclamations on housing has brought a mix of relief and caution to the state's business community. The ruling, as detailed in a recent editorial by the Honolulu Star-Advertiser, affirms the governor's capacity to issue directives under emergency conditions. However, it also reinforces the crucial checks and balances of the judicial system, confirming the court's power to review and restrict emergency decrees that overstep the bounds of Hawaii's intended limitations on executive power.
The court's decision stems from legal challenges to the governor's repeated emergency proclamations aimed at accelerating affordable housing construction. Governor Green initially declared a state of emergency in July 2023, suspending various laws to expedite housing projects, a move that has undergone several iterations. Aloha State Daily reported that the Supreme Court sided with plaintiffs who contested the proclamations. One contention was that a lack of affordable housing, while a serious issue, does not constitute an emergency sufficient to justify invoking emergency powers. The plaintiffs also argued against the Governor's authority to modify state and county laws.
This ruling has significant implications for real estate developers and investors. While the court validated the current emergency proclamation, it also set a precedent for future emergency declarations. Any future proclamations will likely face greater scrutiny, potentially affecting the timeline and scope of housing projects. This could lead to increased caution among investors and developers as they navigate the regulatory environment.
Furthermore, the ruling emphasizes the ongoing debate over the balance between executive power and legal constraints. Blaze Lovell from Civil Beat highlighted that the court is putting “guardrails” on the governor’s powers. The court aims to ensure that emergency measures are narrowly tailored to address the specific crisis, rather than broadly suspending existing laws. Erika Engle's news release, provided by the Hawaii Attorney General, indicated that the court held that the emergency proclamations are legal. The decision also aligns with the Governor's commitment to building more affordable housing, a goal that is reiterated by Governor Green.
For entrepreneurs and professionals in Hawaii's real estate and construction sectors, this ruling underscores the importance of understanding the legal landscape. Developers should consult with legal experts to ensure their projects comply with existing regulations, while also remaining aware of potential challenges and changes in the law.
