The bill directly modifies Chapter 201H of the Hawaii Revised Statutes, creating a revolving fund specifically for the construction of accessory dwelling units. The revolving fund will provide grants to eligible property owners, ensuring that new rental units are offered at rates below the market level. To qualify for funding, applicants must be owner-occupants and commit to specific usage and compliance requirements, including avoiding renting units as transient vacation rentals or converting them into condos for a designated period.
SB2032, known as the Accessory Dwelling Unit Construction Grant Program, is designed to address housing shortages in Hawaii by providing funding to private property owners for the construction of accessory dwelling units (ADUs) on their properties. This program aims to increase the availability of below-market rental units in the state, thereby enhancing the affordable housing landscape. The bill assigns administration responsibility to the Hawaii Housing Finance and Development Corporation (HHFDC) and outlines the necessary criteria and conditions for applicants seeking funding.
Potential areas of contention surrounding SB2032 may include the eligibility restrictions established by the grant conditions, which require applicants to be resident owner-occupants. Critics might argue this could exclude a segment of property owners and limit the program's reach. Furthermore, the bill mandates local counties to provide matching subsidies through property tax credits, which may raise concerns about the financial implications for local governments and the equitable distribution of funds. Another aspect for discussion could involve balancing the rapid housing development with maintaining neighborhood standards and community cohesion.