Hawaii’s construction industry is pushing Question 2, a constitutional amendment on construction financing that would let roads, bridges and water systems for housing projects be paid for with RISE bonds instead of upfront developer cash. Stanford Carr, a leading local developer, said the current approach can force builders to carry the cost before homes rise.
“I can go broke just because of the cost of the infrastructure that you need to front load because the infrastructure needs to be built first before you can build the homes,” Carr said. He also said the financing would create jobs, housing and the infrastructure needed to build more homes.
Rise Together Hawaii, a PAC formed by a coalition of development groups, has started commercials for the amendment. Andrew Perreira, representing Pacific Resource Partnership, said at a hearing in March that “By having the infrastructure put in place by government through these types of creative financing you can lower the cost of housing by about 30 percent and that directly benefits our people.”
Farrington Highway and Hoopili
The proposal is built around a shift in how construction costs get paid. Before the amendment proposal, housing developers had to pay for roads, bridges and water systems upfront. The widening of Farrington Highway is being paid for by the developer of Hoopili and folded into the cost of the homes, a model supporters say leaves less room to keep prices down.
Carr said one potential beneficiary is the new Aloha Stadium and entertainment and housing district he is developing. Lawmakers agreed to put the amendment on the ballot for voter approval, and supporters are now trying to explain the issue before Oahu voters face 20 proposed amendments to the Honolulu City Charter on their ballots.
Blank votes and Question 2
That ballot setup is where the campaign gets difficult. Carr said, “We’re concerned that, you know, it’s complicated,” and Colin Moore said blank votes count against amendments in Hawaii because a majority of all votes cast is required. Moore said, “And what they don’t want is for folks to just leave that ballot blank because the way you pass amendments in Hawaii is you need a majority of all votes cast. So those blank votes account against it.”
Supporters are betting that a clearer explanation of Question 2 will keep the amendment from being skipped. They also know the financing structure has to overcome the simple risk of confusion: if voters leave it blank, that counts the same as voting no under the rule Moore described.
Carr said, “And so we’re going on a very aggressive campaign to educate the registered voters on why, and this is so important and why we need this.”
Across the campaign, the practical pitch is straightforward. If voters approve Question 2, the construction industry says RISE bonds could move the cost of infrastructure away from the first homes in a project and onto future property taxes generated inside an improvement district, giving builders more room to start projects without carrying every road and utility cost first.
