Bill > HB421

This bill addresses Hawaii's housing shortage by removing restrictions on owner-builders who want to lease residential structures they have personally constructed or improved. Currently, Hawaii is one of only seven states that prohibit owner-builders from leasing structures they have built themselves. The bill amends existing law to allow owner-builders who obtain an exemption to act as their own contractor to build or improve residential or farm buildings on property they own or lease, and then potentially lease those structures. Key provisions require that owner-builders who use this exemption must supervise construction, hire licensed subcontractors for specialized work, ensure compliance with building codes, and provide a signed written notice to future lessees stating the structure was built by an individual who is not a licensed contractor. The bill mandates that owner-builders maintain detailed records of construction, including permits, contracts, and proof of payments, and makes them responsible for appropriate tax withholdings and workers' compensation for non-licensed workers. Additionally, the bill includes penalties for violating the exemption's terms, such as being prohibited from registering as an owner-builder for three years. The goal is to provide more flexibility for property owners and potentially increase the availability of affordable rental housing in Hawaii.

Business and Industry, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=421&year=2026