Bill Text: HI HB1730 | 2024 | Regular Session | Introduced
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2024-01-24 - Referred to WAL/HSG, FIN, referral sheet 1 [HB1730 Detail]
Download: Hawaii-2024-HB1730-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1730 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is an inexpensive solution to the housing crisis caused by the 2023 Maui wildfires. According to January 2024 estimates, approximately six thousand people displaced by the Maui wildfires continue to need long-term housing.
The legislature further finds that incentivizing the construction of low-cost accessory dwelling units, commonly known as ADUs, will help to reduce the housing shortage. 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 less restrictions, particularly the absence of the requirement that the unit be rented to a family member only. Accessory dwelling units also cost less than traditional housing units because there is no need to purchase additional land for the structure and construction costs are considerably less. For example, building a public housing unit costs between $300,000 and $400,000, whereas building an eight hundred square foot accessory dwelling unit costs less than half as much.
Accordingly, the purpose of this Act is to mitigate the present housing crisis by establishing 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 four years of renting the accessory dwelling 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. The accessory dwelling unit housing
development program shall apply to any accessory dwelling unit constructed on
an island with a population of more than one hundred thousand, but less than
one hundred seventy-five thousand.
(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 in the amount of three dollars from the authority for each dollar contributed by the homeowner, up to a maximum contribution of $75,000 per accessory dwelling unit from the authority.
§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 four 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 five 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 needs 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 accessory dwelling unit special fund 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 sum 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.
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INTRODUCED BY: |
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Report Title:
Housing; Accessory Dwelling Unit; HCDA; Appropriation; General Fund Expenditure Ceiling Exceeded
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 on an island with a population of more than 150,000, but less than 175,000. Exempts those accessory dwelling units from general excise tax for the first 4 years of rental. Appropriates moneys. Declares that the appropriation exceeds the state general fund expenditure ceiling for 2024-2025.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
