For years, Hawaii's businesses and developers have faced a significant hurdle: a protracted and complex permitting process. However, recent legislative actions signal a potential turning point, offering a brighter outlook for those seeking to navigate the state's regulatory landscape.
The Grassroot Institute's analysis highlights the significance of recent legislative efforts. Specifically, SB66, often referred to as the “shot clock” bill, is slated to take effect on July 1, 2026. This bill mandates that counties establish a process for expedited permit approvals. If a county fails to make a decision within 60 days, applicants building a house may become eligible for an expedited permit. This measure aims to introduce much-needed efficiency into the system and provide developers with a clearer timeline.
The impacts of these reforms could be substantial. Aloha State Daily reported that average wait times in Honolulu were as high as 465 days for permits issued between January 1 and April 1 of this year, excluding same-day permits. For entrepreneurs and investors, these delays can translate to increased costs, stalled projects, and lost opportunities. Streamlining the permitting process can help address these specific issues. Furthermore, the state's ongoing historic review process has often contributed to permit delays. With the signing of SB15, the state's definition of “historic property” has been expanded to include that a structure must “meet the criteria for being entered into the Hawaii register of historic places.” This helps clarify the processes.
While these changes offer a promising outlook, it's critical to recognize the issues. The Land Use Commission provides interpretations that take about 60 days to process. The implementation of these reforms will require vigilance and ongoing efforts from all stakeholders, including state and county agencies as well as the business community. However, the recent legislative actions represent a significant step toward a more efficient and predictable environment for business and development in Hawaii.
