Bill > HB740

This bill establishes the Accessory Dwelling Unit (ADU) Financing and Deed Restriction Program to help homeowners and homebuyers construct additional housing units on their properties with specific occupancy restrictions. The program allows the Hawaii Housing Finance and Development Corporation to allocate funds to counties to purchase equity and deed restrictions for accessory dwelling units, with a maximum annual allocation of $2,000,000. Eligible participants must be state residents, at least 18 years old, own no other real property, and agree to specific occupancy requirements. The deed restrictions mandate that the units must be occupied by people who work an average of 30 hours per week at a qualified local business, are temporarily unemployed, retired, or have a disability. The program prioritizes government employees as tenants and requires that initial leases be for at least six months. Homeowners participating in the program must repay the corporation a prorated share of the accessory dwelling unit's appraised value within 15 years or upon property sale. The bill also provides tax exemptions and modifications to various state statutes to support the program's implementation. The program is set to sunset on January 1, 2031, with a requirement for the Hawaii Housing Finance and Development Corporation to submit an evaluation report to the legislature before then.

Budget and Finance, Housing and Urban Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=740&year=2026