Hawaii Governor Josh Green’s State of the State Address Focuses on Maui Recovery and Housing Needs

Hawaii Governor Josh Green delivered his annual State of the State address on January 23, 2024, to a gathering of lawmakers and guests at the Hawaii State Capitol in Honolulu. The speech, which focused heavily on helping Maui recover from the devastating wildfires that ravaged the historic coastal town of Lahaina in August 2023, brought tears to the eyes of many in attendance.

The wildfire, fueled by hurricane-force winds, claimed the lives of 100 people and destroyed thousands of homes and buildings. In his address, Green acknowledged the efforts of those who rushed to Maui’s aid after the disaster and led the assembly in a moment of silence for the victims.

The most pressing need on Maui is the provision of stable long-term housing for the approximately 5,000 residents who have been displaced and are currently staying in hotel rooms due to the lack of affordable rental options on the island. Green aims to have all 5,000 residents moved into long-term housing by March 1, 2024. To achieve this goal, he is encouraging owners of vacation rentals to make their units available to wildfire evacuees. The Federal Emergency Management Agency and charitable organizations will cover the rental costs.

More broadly, Green proposed a two-year “tax amnesty” to encourage owners of vacation rentals around the state to sell to owner-occupants or long-term rental landlords. Participants in this program would be exempt from capital gains, conveyance, and general excise taxes. Green stated that he intends to put “a lot of pressure” on short-term rentals, as he believes they are not suitable for the local population.

The housing shortage and high housing costs in Hawaii are affecting workers in various fields, including nurses currently on strike at the state’s only pediatric hospital. In addition to his efforts to address the immediate housing needs, Green asked the Legislature to allocate $373 million in the budget for infrastructure and housing.

Green also revisited the idea of imposing a fee on travelers to help pay for environmental upkeep, suggesting a $25 “climate impact fee” for each family visiting Hawaii when they check in to their hotel or short-term rental. This would raise approximately $68 million annually.

Democratic House leaders identified common priorities with the governor, particularly on affordable housing, mental health care, and climate change. House Finance Committee Chairperson Rep. Kyle Yamashita indicated that he would look into the details of the governor’s tax amnesty plan but was open to the idea. House Speaker Scott Saiki stated that the House would cooperate with the governor.

The Hawaii fires, which killed 100 people and destroyed thousands of homes and buildings, have been a significant story in the state. The cause of the fire is still under investigation, but some have suggested that power lines that were not properly maintained by the government may have contributed to the disaster.

The recovery efforts and housing needs in Maui are just one aspect of the challenges facing Hawaii. The state, which is already one of the most expensive places to live in the United States, continues to grapple with issues related to affordable housing, mental health care, climate change, and environmental sustainability. As the governor and the legislature work together to address these challenges, they will undoubtedly face difficult decisions and complex issues.

In conclusion, Hawaii Governor Josh Green’s State of the State address focused on the recovery efforts in Maui following the devastating wildfires and the urgent need for stable long-term housing for the displaced residents. Green proposed various initiatives to encourage the sale of vacation rentals to owner-occupants and long-term rental landlords, as well as a $25 “climate impact fee” for travelers. The governor’s priorities, which also include infrastructure and housing funding, mental health care, and climate change, reflect the complex challenges facing the state. As the recovery efforts continue and the legislature works to address these issues, Hawaii will undoubtedly face both opportunities and challenges in the months and years ahead.