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We are not in a housing crisis. There is no such thing as a permanent crisis.

We have a structural land and housing grab on our hands that requires broad, sweeping changes to the system. In the meantime, let’s not pass housing policies that deepen inequality by asking Native Hawaiians and locals to subsidize foreign and military ownership of land and homes.

Unfortunately, that is exactly what the Honolulu City Council did last week when it voted to forego property tax revenue for military personnel. Bill 91 encourages more active military to purchase a home in Hawaii, creating uneven advantages for military at the expense of local residents who rely on lower state incomes.

Many active military in Hawaii are likely not Hawaii state residents and are disproportionately likely to move out of state after their duty station in Hawaii. Thus, Bill 91 would disproportionately benefit likely out-of-state residents and shift an additional burden to local residents to make up in the unknown millions in lost property tax revenue.

We already face large budget shortfalls and need revenue for rail and aging infrastructure. A move to have less money in city tax revenues to benefit only military who own homes is unconscionable given the state of housing for locals.

It is unbelievable that during a severe housing shortage, the Honolulu City Council and Chair Ernie Martin did this absent data indicating military members need tax assistance. Military incentives already provide active military a competitive advantage to state residents in the rental market.

For example, military members benefit from down payment-free financing and lower competitive mortgage rates. Our taxes also pay for their cushy housing allowances. Now, military are more able to use these incentives to purchase a house as an investment.

Slap In The Face

This is a slap in the face to Native Hawaiians and struggling local women and families who have demonstrated huge need, but will now be further subsidizing tax breaks to military members.

Acting to provide tax breaks to the benefit of a small group of taxpayers that do not demonstrate need for assistance shows politicians are making self-serving decisions that do not benefit those most in need, especially Native Hawaiians. This also shows a lack of genuine commitment to addressing the structural issues that produce our housing crisis.

Data shows huge disparity in home ownership rates for Native Hawaiians, and indicates local residents continue to only be able to purchase much lower value properties compared to out-of-state residents. We need property tax changes that incentivize local homeownership and property used for longterm rentals, not continuing to incentivize the purchase of homes by non-residents and likely non-owner occupied units.

We cannot afford to let this bill pass.

Ultimately, incentivizing the military to purchase land and homes while here in Hawaii regardless of their income facilitates increased militarization and conversion to feudalism in Hawaii. Again, Native Hawaiians and locals are asked to subsidize military ownership of lands, while remaining a subservient class paying through rents the mortgages of military landlords who have moved on after their temporary station in Hawaii. Hawaiian lands and people are for the enrichment of military and investor class wallets.

Although most of us did not have knowledge of this bill being put into motion or aren’t able to afford taking off from work to attend the hearings, it is not too late to protect our housing supply. Mayor Kirk Caldwell has until Thursday to veto this damaging bill.

I believe that he will choose to stand with local families against the council’s misguided leadership. As we are already 24,000 housing units short, this bill will further exacerbate our existing housing climate. We cannot afford to let this bill pass. 

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