A Hawaiʻi County Council proposal that would allow residential housing in industrial-commercial mixed-use zones has been postponed multiple times, leaving its sponsor uncertain why the measure has yet to advance despite what he described as early council support.
Bill 63, Draft 2, introduced by Councilman Dennis Onishi in fall 2025, would allow single-family homes, duplexes and multi-family dwellings in areas zoned Industrial-Commercial Mixed Use, known as MCX. The bill is intended to expand housing opportunities by allowing people to live closer to where they work, a change supporters say could also reduce traffic congestion.
“I’m proposing Bill 63 to help increase housing for our workers who can walk to work and help reduce traffic on our roadways,” Onishi told Aloha State Daily.
Onishi said the proposal is aimed at properties that already have an established commercial or industrial use, allowing a dwelling for an owner or employee rather than opening the door to large-scale residential development. He said the concept reflects older land-use patterns in Hawaiʻi.
“If you look back in the days, Downtown Hilo had family shops on the bottom of their building, and their housing was above their shops,” he told ASD.
The bill amends Chapter 25 of the Hawaiʻi County Code and would impose density limits of one dwelling unit per 1,250 square feet of land for duplex and multi-family housing. All residential construction would require plan approval, and projects would need to maintain a minimum 200-foot setback from properties zoned for general industrial use. The Planning Director would retain authority to require larger buffers when necessary.
Onishi added that support appeared strong when the bill passed out of committee, but opposition surfaced later after concerns were raised by the Kona Action Committee. Those concerns focused on compatibility issues, including livability and proximity to industrial activity.
Civil Defense officials also opposed the measure, citing safety concerns. Onishi said those objections prompted revisions to the bill, including the addition of the 200-foot setback requirement and more narrowly tailored language referring to dwellings rather than broad residential development.
Despite those changes, Onishi told ASD some councilmembers continued to interpret the bill as allowing large apartment or condominium projects throughout MCX zones, which he said does not reflect the proposal’s intent.
“We always talking about shortage of housing and this would help,” Onishi said.
A central goal of the bill is to reduce traffic along congested routes such as the Hilo to Puna corridor. Allowing people to live where they work, Onishi said, could reduce long commutes while helping residents avoid high rents.
Under the proposal, the number of dwellings allowed would depend on lot size and existing use. Planned unit developments would still require Planning Commission approval, with limited flexibility on zoning standards such as height, yard and site area requirements.
Onishi also credited county planning staff for helping shape the measure.
“I would like to thank the Planning Director Jeff Darrow for his support and vision,” he told ASD.
The bill has been postponed four times since clearing committee. Council action was delayed on Oct. 22, Nov. 19, Dec. 3, and again on Wednesday, pushing the measure to the council’s Feb. 4 meeting. Onishi said he has not been given a clear explanation for the repeated postponements.
If approved, the ordinance would take effect immediately and includes a severability clause to ensure the remainder of the law remains in effect if individual provisions are challenged.
For the latest news of Hawai‘i, sign up here for our free Daily Edition newsletter.
