Case Introduces Bipartisan Measure To Boost Affordable Housing Nationwide In Areas Designated For Transit Oriented DevelopmentThe bill would give an additional incentive to Hawaii and other high-cost non-contiguous jurisdictions including Alaska and the U.S. Territories
Washington, DC,
July 16, 2026
(Washington, DC) – U.S. Representative Ed Case (HI-01), joined by Delegate James Moylan (Guam), has co-introduced his bipartisan Transit Oriented Development Act to drive greater development of affordable housing in areas designated for transit oriented development such as along the Honolulu Skyline.
“Far too many of our keiki and kamaʻāina find themselves priced out of the communities they call home. To truly address affordability, we must not only increase the supply of housing but do so in ways that reflect the unique economic realities of our communities and lower overall living costs for families. That means building housing that is attainable, affordable, well-located and connected to jobs and services.” Case added: “One of the most important federal tools we have to do that is the Low-Income Housing Tax Credit, which has long been one of our nation's most successful programs for financing affordable rental housing. Yet the current allocation structure does not always reflect the significant differences in housing costs and development challenges that exist across the country. Because allocations are based principally on population, communities facing exceptionally high housing costs—including Hawaiʻi and other non-contiguous jurisdictions—often face greater difficulty producing affordable housing despite having substantial need.” “For families on Guam, the challenge isn’t just finding affordable housing—it’s finding housing that keeps them connected to jobs, schools, healthcare, and essential services,” said Delegate Moylan. “As America’s westernmost territory, we face unique development constraints and higher construction costs. This bipartisan legislation recognizes those realities by strengthening incentives to build affordable housing in communities where transportation and opportunity come together. I’m proud to co-lead this effort because it helps ensure federal housing policy works not only for the mainland, but for Guam and all of our island communities as well.” "Increasing the TOD basis boost would significantly improve project feasibility around our lands in East Kapolei, including next to the Ka Makana Aliʻi Shopping Center, as well as in Moanalua Kai,” said Kali Watson, director of the Department of Hawaiian Home Lands. "The additional 25% basis boost would generate approximately $38,000 to $58,000 in additional equity per housing unit, or roughly $3.8 to $5.8 million for a 100-unit project. This would substantially reduce the financing gap and allow more housing for beneficiaries and further revenue-generating opportunities to advance the mission of the Hawaiian Homes Commission Act of 1920." “I am pleased to support the reintroduction of the TOD legislation that I originally introduced in the 117th Congress in collaboration with Congressman Case,” said Kaialiʻi Kahele, Chairman of the Office of Hawaiian Affairs (OHA) and former U.S. Congressman for the Second District of Hawaiʻi. “The enhanced basis adjustment aligns with OHA’s strategic presence within the Iwilei–Kapālama Transit-Oriented Development area, including the proposed Kūwili Skyline Station, and provides an incentive for OHA’s future mixed-use development plans that integrate cultural revitalization, community services, and sustainable revenue generation.” "The City is laying the foundation for one of Hawaiʻi's largest transit-oriented redevelopment efforts through the master planning of the Iwilei-Kūwili district, where our long-term vision includes more than 2,500 affordable homes surrounding the future Kūwili Skyline Station,” said Kevin D. Auger, Director, City and County of Honolulu Department of Housing and Land Management. “Delivering projects of this scale requires strategic land assembly, strong public-private partnerships, and financing tools that reflect the realities of building affordable housing in high-cost communities like Honolulu. Legislation that strengthens the Low-Income Housing Tax Credit for transit-oriented development would provide another important tool to help communities advance these critical housing initiatives and create more affordable homes near transit." "Congressman Case's Transit-Oriented Development Act recognizes that affordable housing and high-quality public transportation go hand in hand,” said Roger Morton, Director, City and County of Honolulu Department of Transportation Services. “For Honolulu, this legislation complements our investment in Skyline by encouraging more affordable housing near transit, reducing transportation costs for working families, and creating more connected, sustainable communities. We appreciate Congressman Case's leadership in advancing this practical approach for Hawaiʻi." “The Transit Oriented Development Act will help create a safer, more resilient, equitable, reliable, and efficient transportation system, said Mark Garrity, Executive Director of the Oahu Metropolitan Planning Organization (Oahu MPO). “OahuMPO strongly supports this critical legislation.” "This is simple and smart legislation that will stimulate affordable housing development along side of the transportation infrastructure that the government has invested in,” said Craig Watase, Chief Executive Officer of Mark Development, a developer of affordable housing in Hawaiʻi. “This will be a major factor in project feasibility of many affordable housing projects." Case continued: “Our Transit Oriented Development Act takes a targeted approach to addressing that challenge. The bill provides an enhanced Low-Income Housing Tax Credit incentive for affordable housing developments located within designated transit oriented development areas. This includes places that are already served by rail, bus, harbor or waterway transportation and are zoned for higher-density development. “By encouraging affordable housing near existing transportation infrastructure, we can help reduce transportation costs for residents, improve access to jobs and essential services and support more efficient and sustainable community growth.” Text of the Transit Oriented Development Act of 2026 is here ###
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