Nakoa III v. Governor of the State of Hawai'i.

Hawaii Supreme Court·Decided September 11, 2025·No. SCAP-24-0000401·Published

Opinion

Electronically Filed

Supreme Court

SCAP-XX-XXXXXXX

11-SEP-2025

12:34 PM

Dkt. 36 OP

IN THE SUPREME COURT OF THE STATE OF HAWAIʻI ---o0o---

LEONARD K. NAKOA III, DANIEL PALAKIKO, TOM COFFMAN, LLEWELYN (BILLY) KAOHELAULIʻI, VAL TURALDE, ELIZABETH OKINAKA, TOM KEALIʻI KANAHELE, RUPERT ROWE, ELLEN EBATA, and JEFFREY LINDNER, Plaintiffs-Appellants,

vs.

GOVERNOR OF THE STATE OF HAWAIʻI, HAWAIʻI HOUSING FINANCE AND DEVELOPMENT CORPORATION, State of Hawaiʻi, Defendants-Appellees.

SCAP-XX-XXXXXXX

APPEAL FROM THE CIRCUIT COURT OF THE SECOND CIRCUIT (CAAP-XX-XXXXXXX; CASE NO. 2CSP-XX-XXXXXXX)

SEPTEMBER 11, 2025

RECKTENWALD, C.J., McKENNA, EDDINS, GINOZA, AND DEVENS, JJ.

OPINION OF THE COURT BY EDDINS, J.

This case concerns the scope of a governor’s executive powers under Hawaiʻi’s emergency management statute, Hawaiʻi Revised Statutes (HRS) chapter 127A. Plaintiffs challenge a series of emergency proclamations relating to affordable housing

issued by Governor Josh Green suspending various state law provisions and establishing emergency rules to expedite affordable housing project approval and construction. Since issuing the first proclamation in 2023, the governor has renewed the proclamations every sixty days. The most recent version of the affordable housing proclamation (the Fifteenth Proclamation) remains in effect today.

This case’s procedural posture presents several issues. We hold that the case is justiciable, Plaintiffs have standing, and Plaintiffs’ failure to strictly follow procedural requirements does not bar their suit. So we reach the merits.

We hold that a reviewing court will not disturb an emergency proclamation when (1) the emergency proclamation is rationally related to the health, safety, and welfare of the public, and (2) the executive action taken under the proclamation is reasonably necessary to address the emergency.

Applying this standard, the Sixth through Fifteenth proclamations are valid. These proclamations are rationally related to the health, safety, and welfare of the public, and the executive action taken under the proclamations are reasonably necessary to address the emergency situation. See HRS §§ 127A-1 (Supp. 2022); 127A-14(a) (Supp. 2019); Amdor v. Grisham, No. S-1-SC-40105, 2025 WL 718840, at *15-16 (N.M. Mar.

6, 2025); Worthington v. Fauver, 440 A.2d 1128, 1135 (N.J. 1982).

In contrast, the first five emergency proclamations’

measures addressing affordable housing exceed the governor’s emergency powers. Those proclamations were rationally related to the health, safety, and welfare of the public. But the executive action taken was not reasonably necessary to address the declared emergency. The early proclamations opened project certification to all housing projects, not just affordable housing. Those actions exceeded the governor’s HRS chapter 127A emergency powers.

I.

A. The Proclamations On July 17, 2023, Governor Josh Green issued a Proclamation Relating to Housing (First Proclamation), the first in a series of sixty-day emergency proclamations regarding affordable housing.

The proclamations, issued pursuant to HRS chapter 127A, declared affordable housing a state emergency, and suspended various state laws to expedite affordable housing approval and construction. These sixty-day proclamations were issued consecutively. This series of proclamations includes the governor’s July 2023 Proclamation Relating to Housing (First Proclamation), September 2023 Proclamation Relating to

Affordable Housing (Second Proclamation), and the Second Proclamation Relating to Affordable Housing (Third Proclamation) through the Fourteenth Proclamation Relating to Affordable Housing (Fifteenth Proclamation). The most recent proclamation, the Fifteenth Proclamation, expires on September 26, 2025.

The First Proclamation declared that “the severe shortfall of affordable housing had been recognized as early as 1935, when the Territory of Hawaiʻi passed Act 190, Session Laws of Hawaiʻi 1935, creating the Hawaiʻi Housing Authority.” This shortfall “has never been adequately addressed, contributing to a 1,200% increase in home prices over the last 45 years.” Thus, there is a “housing crisis” impacting, among other things, health, and the emigration-related loss of talented or essential workers, and Native Hawaiian residents. The First Proclamation also stated that it addressed “the need for an immediate and profound solution to Hawaiʻi’s housing shortage” and that “urgent action is needed to combat” decreasing population, and adverse social, economic, and health outcomes in the state.

The First Proclamation announced, “the current threat to the health, safety, and welfare of the people of the State of Hawaiʻi caused by the lack of affordable housing constitutes an emergency under [HRS § 127A-14], and warrants preemptive and protective actions.”

The First Proclamation established a State Lead Housing Officer (SLHO) position and the Build Beyond Barriers Working Group (Working Group). The Working Group was tasked with overseeing a project certification application process. Certified projects were not subject to state or county laws suspended under the proclamation.

The proclamation suspended twenty-two HRS chapters and statutory provisions. Relevant to Plaintiffs’ appeal, it suspended HRS chapter 6E (historic preservation), HRS chapter 103D (the procurement code, in relation to solicitation), HRS chapter 46 (general provisions related to county organization, including zoning), HRS chapter 76 (civil service), HRS chapter 343 (environmental impact statements), HRS § 201H-38 (2017) (housing exemptions), and HRS § 205-3.1(a) (2017) and § 205-4(a) (2017 & Supp. 2021) (Land Use Commission district boundary amendment provisions).

The proclamation issued rules to guide its suspension of laws. Citing HRS § 127A-25 (Supp. 2014), the proclamation established “Rules Relating to Project Certification Pursuant to the Governor’s Emergency Proclamation Relating to Housing” (Project Certification Rules) that defined terms, and described the Working Group’s state and non-state entity membership, the certification application process, project eligibility, development agreements, and project prioritization. Section 9

of the rules detailed the “application of suspended laws” for HRS chapters 6E, 46, 76, 103D, 343, and HRS §§ 205-3.1(a), 205- 4, and 201H-38(a).

On September 15, 2023, the governor issued his Proclamation Relating to Affordable Housing (Second Proclamation). The proclamation removed the SLHO position and directed the Director of the Office of Planning and Sustainable Development, Executive Director of the Hawaiʻi Public Housing Authority (HPHA), and the Hawaiʻi Housing Finance and Development Corporation (HHFDC) Executive Director to carry out the proclamation.

The governor later abolished the Build Beyond Barriers Working Group in his Sixth Proclamation issued in February 2024. He directed the HHFDC “to take appropriate action to support and carry out the intent and purposes of this Proclamation.”

The Plaintiffs’ case filings cover the first six proclamations related to affordable housing. To date, the governor has issued fifteen emergency proclamations. See Off. of the Governor, Fourteenth Proclamation Relating to Affordable Housing, accessible at https://governor.hawaii.gov/wp- content/uploads/2025/07/2507086-ATG_Fourteenth-Proclamation- Relating-to-Affordable-Housing.pdf [https://perma.cc/JT34-N5GS]. Because all emergency proclamations in this series are based on the same declared emergency, this opinion assesses all proclamations issued as of the date of this case’s judgment. We

take judicial notice of all emergency proclamations issued after this case began. B. Plaintiffs’ Claims A month after the First Proclamation issued, in August 2023, Plaintiffs filed a Petition for Writ of Quo Warranto against the State Lead Housing Officer and the Build Beyond Barriers Working Group. Later they filed a first amended petition.

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