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January 31, 2025
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New Coalition “Housing No Kākou” Launches to Tackle Hidden Threat to Housing Access
Statewide advertising campaign highlights how construction defect lawsuits are hurting homebuyers and homeowners
Honolulu, HI — A new coalition, Housing No Kākou, has launched to address a hidden but growing threat to homeownership in Hawaiʻi: the surge in construction defect litigation. Organized as a 501(c)(4), Housing No Kākou brings together affordable housing advocates, homebuilders, industry professionals, and labor unions to ensure local families can access housing without unnecessary legal barriers.
To raise awareness and build support for much needed legislative reforms to the Contractor Repair Act (CRA), Housing No Kākou is launching a statewide advertising campaign. The first ad, “Make A Home,” debuts this Friday and highlights a reality that many prospective first-time homebuyers face—being unable to secure a mortgage due to construction defect lawsuits.
Government-backed lenders, more commonly known as FHA, VA, Fannie Mae and Freddie Mac, which offer loans with very low down payment requirements, often cannot issue mortgage loans for condominiums involved in construction defect litigation. This leaves prospective first-time homebuyers with limited options, as private portfolio lending typically requires higher credit scores, higher interest rates, and higher down payment, typically as high as 20%. Meanwhile, for existing homeowners, lawsuits can delay much-needed legitimate repairs, leaving them stuck in long and drawn-out legal disputes.
The Hawaiʻi State Legislature is currently considering HB420, SB179, SB331, and SB1650, which would bring much-needed reforms to the CRA by streamlining the construction defect resolution process, requiring that contractors and homebuilders have the opportunity to address legitimate defects before litigation, and ensuring first-time homebuyers aren’t unintentionally locked out of mortgage financing.
“As a civil engineer who has worked closely with architects, contractors, and homebuilders, I’ve seen firsthand the challenges in building housing and the unintended consequences of bad policies,” said Greg Hiyakumoto, Board President of Housing No Kākou. “These lawsuits are making it harder for local families to buy homes. Housing No Kākou is committed to ensuring homebuyers aren’t caught in a system that pushes them out of the market.”
Housing No Kākou is dedicated to advocating for reforms that protect homeowners while ensuring that housing remains accessible for Hawaiʻi’s families. The coalition invites the public to learn more and join the movement at HousingNoKakou.com.
View “Make a Home” here.
For logos, click here.
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About Housing No Kākou
Housing No Kākou is a broad coalition united by a shared mission to remove the barriers to housing. We are affordable housing advocates, non-profit organizations, home builders, building industry professionals, community leaders, and organizations committed to promoting reforms that make homeownership attainable for prospective buyers and protect new homeowners from issues that threaten their overall quality of life. Learn more at www.HousingNoKakou.com.