Why It Matters
Hawaii’s Big Island is grappling with a critical housing and homelessness crisis as a dedicated funding mechanism faces expiration. The Homelessness and Housing Fund, which supplies $9 million annually to combat the island’s escalating housing shortage, is set to sunset in June 2027 — forcing county leaders to decide whether to extend or allow the program to lapse at a moment when rental costs have surged nearly 50 percent in seven years.
What Happened
The Hawaii County Council is currently deciding whether to continue the Homelessness and Housing Fund past its scheduled June 2027 expiration date. The fund, financed through property taxes on nonresident housing including vacation rentals, vacant properties, and investment properties, has become a cornerstone of the island’s response to homelessness and housing instability.
The fund supports an array of services designed to address root causes and immediate needs: safe overnight sleeping programs, emergency shelters, permanent supportive housing, street outreach, long-term housing solutions, mental health care, substance abuse treatment, rental assistance, and housing stabilization services.
Council member Jennifer Kagiwada, who represents District 2, is among the voices weighing the fund’s continuation as the council deliberates the decision.
By the Numbers
$9 million — annual funding from the Homelessness and Housing Fund
50% — rental rate increase on Hawaii Island since 2019
2 households — became homeless for every 1 placed into permanent housing on Hawaii Island in 2025
9% — homelessness increase connected to $100 monthly rent increases, according to a 2020 U.S. Government Accountability Office analysis
June 2027 — scheduled sunset date for the Homelessness and Housing Fund
Zoom Out
Hawaii Island’s homelessness challenge reflects a nationwide pattern linking rental affordability to housing instability. Federal research has established that housing cost escalation drives homelessness at predictable rates — the GAO’s 2020 analysis found that each $100 monthly rent increase correlates with a 9 percent rise in homelessness. Hawaii Island’s 50 percent rental increase since 2019 far exceeds that threshold, suggesting the island’s homelessness crisis is likely outpacing the capacity of current interventions.
The dynamic playing out on the Big Island mirrors broader struggles across high-cost housing markets nationwide, where jurisdictions are experimenting with dedicated funding streams — often financed through property taxes on vacation rentals and investment properties — to offset the displacement pressures of tourism and speculative investment. The fund’s structure reflects a deliberate policy choice to recapture revenue from nonresident housing markets to support local stabilization efforts.
What’s Next
The county council must vote on whether to extend the fund’s life beyond June 2027. If the council allows the fund to expire as scheduled, the island would lose its primary dedicated revenue stream for homelessness prevention and permanent supportive housing — a loss that would come as the rental market continues to tighten and homelessness rates remain elevated. The decision will likely reshape the island’s approach to housing policy and resource allocation in the years ahead.