Hawaii 2024 Regular Session

Hawaii House Bill HB2333 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	HOUSE OF REPRESENTATIVES H.B. NO. 2333 THIRTY-SECOND LEGISLATURE, 2024 STATE OF HAWAII A BILL FOR AN ACT Relating to Housing. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
2	2
3	3	HOUSE OF REPRESENTATIVES H.B. NO. 2333
4	4	THIRTY-SECOND LEGISLATURE, 2024
5	5	STATE OF HAWAII
6	6
7	7	HOUSE OF REPRESENTATIVES
8	8
9	9	H.B. NO.
10	10
11	11	2333
12	12
13	13	THIRTY-SECOND LEGISLATURE, 2024
14	14
15	15
16	16
17	17	STATE OF HAWAII
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31	A BILL FOR AN ACT
32	32
33	33
34	34
35	35
36	36
37	37	Relating to Housing.
38	38
39	39
40	40
41	41
42	42
43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
44	44
45	45
46	46
47	47	SECTION 1. The legislature finds that in 2023, affordable housing was declared an emergency in the state, citing Hawaii's housing supply as the most expensive in the nation. It has been estimated that 50,000 homes are needed in the next five years to address our housing crisis. The legislature further finds that there is an inexpensive remedy for our extensive housing supply shortage. Incentivizing the construction of low-cost accessory dwelling units, commonly known as ADUs, is a greatly underutilized solution to spur affordable housing development. An accessory dwelling unit is a separate additional living unit either attached or detached from the primary residential unit. Accessory dwelling units provide a legal alternative to illegal rental units and are similar to ohana dwelling units, but with fewer restrictions, particularly the absence of the requirement the unit be rented to a family member only. The legislature finds accessory dwelling units cost substantially less than traditional housing units because there is no need to purchase additional land for the structure and construction costs are considerably lower. For example, a public housing unit costs between $300,000 and $400,000 whereas an eight hundred square foot accessory dwelling unit costs less than half as much. The legislature additionally finds that the August 2023 Maui wildfires, which either destroyed or made uninhabitable over 3,700 residential structures, further exacerbated the state's housing crisis, making it more important than ever to adopt out-of-the-box solutions. The purpose of this Act is to establish a program to encourage the construction of accessory dwelling units by providing a subsidy for the construction costs plus a general excise tax exemption for the first three years of renting the unit. SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows: "PART . accessory dwelling unit Housing development program 206E-A Accessory dwelling unit housing development program. (a) There is established the accessory dwelling unit housing development program to provide matching funds to promote the construction of accessory dwelling units throughout the State. (b) Notwithstanding any other law to the contrary, the authority shall promote and administer the accessory dwelling unit housing development program. (c) The authority shall adopt rules without regard to chapter 91 to implement the accessory dwelling unit housing development program; provided that pursuant to the rules, the program shall award: (1) Matching funds for homeowners who construct or contract to construct an accessory dwelling unit in conformity with applicable county accessory dwelling unit requirements; and (2) Matching funds on a one-to-one basis, up to a maximum of $ per accessory dwelling unit. §206E-B Accessory dwelling unit housing development program special fund. (a) There shall be established the accessory dwelling unit housing development special fund into which shall be deposited: (1) Appropriations made by the legislature to the fund; (2) All contributions from public or private partners; (3) All interest earned on or accrued to moneys deposited in the special fund; and (4) Any other moneys made available to the special fund from other sources. (b) Moneys in the fund shall be expended by the authority to award matching funds for the accessory dwelling unit housing development program." SECTION 3. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§237- Accessory dwelling unit exemption. (a) Notwithstanding any law to the contrary, taxes under this chapter shall not be due on income generated by rental sales of any accessory dwelling unit funded pursuant to section 206E-A for the first three years that the accessory dwelling unit is rented by the owner of the accessory dwelling unit; provided that: (1) This section shall not apply more than four years after the construction of the accessory dwelling unit; and (2) The tax liability savings generated by this section shall be passed on by the owner of the accessory dwelling unit to the renter without any increase in rent price. (b) The owner of the accessory dwelling unit shall not be required to obtain a special license, a permit, or other documentation of sales during the exemption period; provided that the owner's records shall clearly identify the address of the accessory dwelling unit, the date the construction is completed, the dates of rents owed and paid, and the amount of taxes exempted by this section." SECTION 4. In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ , or per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriations made in this Act are necessary to serve the public interest and to meet the need provided for by this Act. SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for deposit into the accessory dwelling unit special fund. SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 to provide matching funds for the accessory dwelling unit housing development program. The sums appropriated shall be expended by the Hawaii community development authority for the purposes of this Act. SECTION 7. In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act. SECTION 8. New statutory material is underscored. SECTION 9. This Act shall take effect on July 1, 2024. INTRODUCED BY: _____________________________
48	48
49	49	SECTION 1. The legislature finds that in 2023, affordable housing was declared an emergency in the state, citing Hawaii's housing supply as the most expensive in the nation. It has been estimated that 50,000 homes are needed in the next five years to address our housing crisis.
50	50
51	51	The legislature further finds that there is an inexpensive remedy for our extensive housing supply shortage. Incentivizing the construction of low-cost accessory dwelling units, commonly known as ADUs, is a greatly underutilized solution to spur affordable housing development. An accessory dwelling unit is a separate additional living unit either attached or detached from the primary residential unit. Accessory dwelling units provide a legal alternative to illegal rental units and are similar to ohana dwelling units, but with fewer restrictions, particularly the absence of the requirement the unit be rented to a family member only.
52	52
53	53	The legislature finds accessory dwelling units cost substantially less than traditional housing units because there is no need to purchase additional land for the structure and construction costs are considerably lower. For example, a public housing unit costs between $300,000 and $400,000 whereas an eight hundred square foot accessory dwelling unit costs less than half as much.
54	54
55	55	The legislature additionally finds that the August 2023 Maui wildfires, which either destroyed or made uninhabitable over 3,700 residential structures, further exacerbated the state's housing crisis, making it more important than ever to adopt out-of-the-box solutions.
56	56
57	57	The purpose of this Act is to establish a program to encourage the construction of accessory dwelling units by providing a subsidy for the construction costs plus a general excise tax exemption for the first three years of renting the unit.
58	58
59	59	SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
60	60
61	61	"PART . accessory dwelling unit Housing development program
62	62
63	63	206E-A Accessory dwelling unit housing development program. (a) There is established the accessory dwelling unit housing development program to provide matching funds to promote the construction of accessory dwelling units throughout the State.
64	64
65	65	(b) Notwithstanding any other law to the contrary, the authority shall promote and administer the accessory dwelling unit housing development program.
66	66
67	67	(c) The authority shall adopt rules without regard to chapter 91 to implement the accessory dwelling unit housing development program; provided that pursuant to the rules, the program shall award:
68	68
69	69	(1) Matching funds for homeowners who construct or contract to construct an accessory dwelling unit in conformity with applicable county accessory dwelling unit requirements; and
70	70
71	71	(2) Matching funds on a one-to-one basis, up to a maximum of $ per accessory dwelling unit.
72	72
73	73	§206E-B Accessory dwelling unit housing development program special fund. (a) There shall be established the accessory dwelling unit housing development special fund into which shall be deposited:
74	74
75	75	(1) Appropriations made by the legislature to the fund;
76	76
77	77	(2) All contributions from public or private partners;
78	78
79	79	(3) All interest earned on or accrued to moneys deposited in the special fund; and
80	80
81	81	(4) Any other moneys made available to the special fund from other sources.
82	82
83	83	(b) Moneys in the fund shall be expended by the authority to award matching funds for the accessory dwelling unit housing development program."
84	84
85	85	SECTION 3. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
86	86
87	87	"§237- Accessory dwelling unit exemption. (a) Notwithstanding any law to the contrary, taxes under this chapter shall not be due on income generated by rental sales of any accessory dwelling unit funded pursuant to section 206E-A for the first three years that the accessory dwelling unit is rented by the owner of the accessory dwelling unit; provided that:
88	88
89	89	(1) This section shall not apply more than four years after the construction of the accessory dwelling unit; and
90	90
91	91	(2) The tax liability savings generated by this section shall be passed on by the owner of the accessory dwelling unit to the renter without any increase in rent price.
92	92
93	93	(b) The owner of the accessory dwelling unit shall not be required to obtain a special license, a permit, or other documentation of sales during the exemption period; provided that the owner's records shall clearly identify the address of the accessory dwelling unit, the date the construction is completed, the dates of rents owed and paid, and the amount of taxes exempted by this section."
94	94
95	95	SECTION 4. In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ , or per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriations made in this Act are necessary to serve the public interest and to meet the need provided for by this Act.
96	96
97	97	SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for deposit into the accessory dwelling unit special fund.
98	98
99	99	SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 to provide matching funds for the accessory dwelling unit housing development program.
100	100
101	101	The sums appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.
102	102
103	103	SECTION 7. In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
104	104
105	105	SECTION 8. New statutory material is underscored.
106	106
107	107	SECTION 9. This Act shall take effect on July 1, 2024.
108	108
109	109
110	110
111	111	INTRODUCED BY: _____________________________
112	112
113	113	INTRODUCED BY:
114	114
115	115	_____________________________
116	116
117	117
118	118
119	119
120	120
121	121	Report Title: Housing; Accessory Dwelling Unit; HCDA; Appropriation Description: Establishes the accessory dwelling unit housing development program with the Hawaii Community Development Authority to award subsidies to individuals who build accessory dwelling units. Exempts those accessory dwelling units from general excise tax for the first 3 years of rental. Appropriates moneys. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
122	122
123	123
124	124
125	125
126	126
127	127	Report Title:
128	128
129	129	Housing; Accessory Dwelling Unit; HCDA; Appropriation
130	130
131	131
132	132
133	133	Description:
134	134
135	135	Establishes the accessory dwelling unit housing development program with the Hawaii Community Development Authority to award subsidies to individuals who build accessory dwelling units. Exempts those accessory dwelling units from general excise tax for the first 3 years of rental. Appropriates moneys.
136	136
137	137
138	138
139	139
140	140
141	141
142	142
143	143	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.