Aloha friends,
Because it’s a “hot topic” with potentially significant implications AND because my position differs from that of some friends and allies who I deeply respect – I’ve updated my previous post explaining my rationale (on 10/12) and am also including the below published in the StarAdvertiser which I had previously not read, AND in case you missed it, here again is my list of Council candidates that have my support.
The actual “ballot language” for Con Am #2 is here.
Bill 3219 that authorized the Con AM #2 is here.
“Our View” from StarAdvertiser Editorial Board: Voters should enable city-linked ‘RISE bonds’
Sept. 27, 2026
In the Nov. 3 general election, Hawaii voters will be asked to approve or deny an amendment to the state Constitution allowing counties to issue “housing infrastructure growth bonds,” in districts needing housing-related public improvements. The correct answer is “yes” — voters should approve the amendment.
The ballot question reads, “Shall the Hawaii State Constitution be amended to authorize counties to issue housing infrastructure growth bonds, the repayment of which shall be secured solely by the incremental increase in real property tax revenues attributable to the increase in assessed real property values within a designated district established for housing-related public improvements?”
Don’t be intimidated by the legalese: Give counties this power, which reduces the cost and complexity of adding new housing.
Housing infrastructure growth bonds are an efficient way to prep for new housing development. They essentially borrow against higher property taxes that will be collected within the boundaries of a specific development district that is created, using the money to plan and pay for roads, water, power and sewage systems in that district under one project umbrella.
The constitutional amendment was placed on the ballot by the Legislature, with Senate Bill 3219. As the bill states, Hawaii faces a severe, ongoing shortage of housing for local residents. However, a continuing obstacle to new home- building has been the expense of adding homes on land that isn’t set up with basic infrastructure, leading development to take place in a piecemeal, inadequate and often inequitable process.
Counties seeking to issue a standard development bond today are required to account for money generated as debt, then stay within their own municipal debt limits — a restraint that doesn’t fit for growth bonds, since their purpose is to isolate the bond debt from public obligations paid for by all taxpayers. As a result, most development in Hawaii takes place in fragmented pieces — small project by small project, costing more and taking longer than using a master plan would.
That’s partly why housing development hasn’t kept pace with the urgent demand for homes, especially in neighborhoods where growth would complement the advance of Skyline. Rail is envisioned as a spark for transit-oriented development (TOD) in zones like Halawa, Kapalama and Iwilei — but aging or inadequate infrastructure creates a costly hurdle.
To bridge this gap, the constitutional amendment — “ConAm No. 2” — will allow counties to raise money for infrastructure by self-financing — issuing bonds that are paid back from higher taxes in a special district. This is known as tax increment financing (TIF).
To help voters get familiar with the idea, the state calls these tax-increment-financed bonds RISE (“Resilient Infrastructure for Shelter and Equity”) bonds. To use RISE bonds, counties can establish TOD zones or master-planned community districts where infrastructure is urgently needed, issue bonds to pay for upfront public infrastructure — the roads, sewers and water lines — and get the work done without repeated rounds of permittings. As homes and improvements are built, properties rise in value, and that incremental increase generates tax revenue used to repay the bonds.
Approving ConAm 2 will not raise property taxes on residents, and it will not authorize the use of funds from existing property tax revenue. That typically appeals to homeowners who want to support affordable housing, but don’t want their own homes becoming less affordable. Tax-increment bonds are used in 48 other states.
The principal benefit to local residents is simple: more affordable homes, built faster. Using TIF for infrastructure can reduce the cost of constructing new homes by up to 30%, industry experts report — and lower development costs translate into lower purchase prices and rents. Done right, it’s a sustainable solution, generating housing around transit hubs without taking away from general funds for public services elsewhere.
The benefits are clear, but there are potential pitfalls in TIF, or RISE bonds. TIF projects may collapse if a developer pulls out, or if property values don’t rise — or if market downturns or other roadblocks delay construction, raising costs and delaying benefits. Careful vetting of specific projects will be required.
This amendment allows RISE bonds to be issued only for public improvements within defined housing development zones or public housing-related infrastructure. The constitutional amendment won’t grant automatic approval to any project; and, each proposed district and bond issue will require a full review, public hearings and approval by the county council. Further, counties can structure agreements so that developers or investors must absorb risks or cover revenue shortfalls — incentivizing “on-time, on-budget” development and protecting public funds.
Approving ConAm 2 gives our local county governments a proven, self-sustaining financial tool to build foundational infrastructure Hawaii desperately needs. By voting “Yes,” voters can help ensure that local households, and future generations can afford to live — and stay — in Hawaii.
Honolulu StarAdvertiser “Our View” from editorial board
