Besides meeting the condition mentioned above, Developer has right to make decision on their own to sell houses to anyone including Chinese.
The member of City Council Anderson has no right to decide developers can not sell houses to Chinese, because Hawaii dose not has related laws stating developers can not sell houses to the foreigners, especially Chinese. Anderson's comment is illegal. 
1. racial discrimination
2.violate commercial equality
3. Push developers to cooperate with Union, has the chances of solicit and accept bribes

Therefore, this is main reason for program not accepted by the some members in city council. 
(3/4)