Blog 🆗 HB 740 (HD2 SD2)/ 🚫 SB 491 (SD1)

Kamaʻāina Workforce ADU Financing

April 3, 2025

HB Status as of 4/3/25:

This bill has successfully passed out of the House. This bill has passed the Senate HOU & WAM committees with amendments and is scheduled a third floor reading in the Senate on 4/8/25.

SB Status as of 2/28/25:

This bill has passed out of its first committee (HOU) with amendments however, was not heard by the Senate WAM committee by the first decking deadline. This bill is dead.

Why Hawaiʻi YIMBY Supports This Bill:

ADUs are an important type of housing that adds gentle density to existing, established neighborhoods. ADUs can house a young professional, a retired grandparent, and many other members of the community. However, many homeowners lack the money to build an ADU, despite having the willingness and space.

Concerns about ADUs being used solely as short-term investment properties, rather than a home to a long-term local member of the community persist.

This bill seeks to provide another financing option for eligible homeowners wanting to build an ADU through a voluntary deed restriction purchased by the county. The voluntary deed restriction would help create a stock of housing broadly dedicated to those who work and live in Hawaiʻi.

Bill Description:

  • Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties for the purchase of equity in an accessory dwelling unit by the State. Specifies eligible homeowners or homebuyers for the Program to finance construction costs, development costs, and non-reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on the property. Appropriates moneys for infrastructure projects. Sunsets 1/1/2031. Takes effect 7/1/2050. (SD2)

This page will be updated periodically throughout the legislative session. For the most up-to-date status, please visit the bill's page on the Hawai'i State Legislature's website.