HONOLULU — Hawaii’s push to deliver more affordable housing just got a boost with a new law aimed at eliminating delays caused by lawsuits over construction defects.

In a bill-signing ceremony Wednesday, Governor Josh Green enacted the reform to the Contractor Repair Act, a move that supporters say will help keep housing projects on schedule and make repairs less costly for homeowners.

The law updates the Contractor Repair Act by creating clear timelines for resolving construction defect issues. Contractors and homeowners now have a defined process to fix problems without lengthy legal disputes, which lawmakers say have been used in the past to drive up costs and stall badly needed housing.

"It's backfiring, sort of, predatory attorneys who were sometimes taking advantage of that loophole and using cookie-cutter lawsuits across the board with no actual information about any existing defects and driving up the costs, which could delay projects and ironically, actually delay repairs that were sometimes desperately needed by the homeowners," said State Rep. Lisa Marten, who represents Waimānalo and Kailua.

"Also, it made it more difficult for homeowners to secure loans if there was pending litigation."

Protecting Homeowners and Affordable Housing

The new timelines are designed to stop unnecessary lawsuits that can stall both new housing developments and repairs to existing homes — especially in affordable housing communities where financing can be more fragile.

Supporters say the change is particularly important for first-time buyers, who often rely on government-backed loans to buy homes. Pending litigation over construction defects can derail these loans, making it harder for families to close on a purchase or refinance their mortgage.

Part of a Broader Housing Push

Governor Green’s administration has made expanding housing a top priority, pledging to cut red tape, boost workforce housing production, and help more families stay in Hawaii rather than leaving the islands due to sky-high housing costs.

Lawmakers backing the fix say it strikes a balance — keeping developers and contractors accountable for real construction flaws but closing loopholes that bad-faith lawsuits exploited at the expense of homeowners and the state’s housing supply.

What’s Next

With the new law in place, homeowners and builders will have a clearer, faster path to repairs, reducing the legal uncertainty that can hold up projects and add thousands of dollars to the cost of building or fixing a home.

Housing advocates say this change should help reduce barriers for new development, encourage builders to take on more projects, and help keep Hawaii’s housing stock safer and more affordable for local families.

Originally reported by Mark Ladao in Hawai Public Radio.