Hawaii Voters Will Decide Future of RISE Infrastructure Bonds

A constitutional amendment on the November 2026 ballot could allow counties to fund water and sewer projects via property taxes.

Updated on Oct. 10, 2026 in Utilities

Hawaii Voters Will Decide Future of RISE Infrastructure Bonds

Live Poll

Will the proposed constitutional amendment in Hawaiʻi successfully fund new housing infrastructure without raising taxes?

Hawaii voters will decide in the November 2026 general election whether to authorize counties to issue RISE bonds for water, sewer, and drainage infrastructure. If passed, the measure would permit repayment through property tax revenue increases within redeveloped districts.

Why it matters

The amendment seeks to bypass current constraints that limit county general obligation debt to 15% of assessed real property value. By shifting to a tax-increment financing model, counties aim to accelerate housing development without raising taxes or impacting general debt limits.

The proposal addresses a housing deficit of 78,000 units, while the Iwilei-Kapālama district alone holds the potential for 27,500 new homes. Proponents at the RISE Together Hawaiʻi PAC have raised nearly $2 million to support the measure.

The players

RISE Together Hawaiʻi

A political action committee currently advocating for the passage of the infrastructure bond amendment.

Hawaiian Electric

The state's primary utility provider, which operates critical power infrastructure in the flood-prone Iwilei area.

The details

The policy would allow counties to issue bonds for infrastructure that are repaid exclusively by the resulting increase in property tax revenue in the project area. Crucially, counties are not held liable if tax revenue falls short, a risk illustrated by historical bond defaults in California. This model creates a new financial vehicle for urban infill, specifically targeting areas like Iwilei where infrastructure costs are estimated at $670 million.

2018: A wildfire caused bond defaults in Paradise, California.
2021: A Hawaiian Electric substation in Iwilei flooded.
2023: Analysts released a report detailing Iwilei infrastructure costs.
November 2026: General election voters will cast ballots on the constitutional amendment.

Market Landscape

Hawaii and Arizona are currently the only two states that prohibit this public financing model for infrastructure. This measure marks a structural departure from the 15% limit on county general obligation bond debt.

Operators in development and construction should monitor the November 2026 vote, as it could unlock $670 million in infrastructure funding for projects in districts like Iwilei. If approved, businesses should consult with counsel on how new tax-increment districts might affect future property tax obligations.

The takeaway

This amendment provides a mechanism for developers to access infrastructure funding without relying on standard county debt. Business owners should track the final ballot language to understand if their specific real estate holdings fall within the proposed districts for future tax-increment assessments.