HB 1170 Summary

• Establishes the Accessory Dwelling Unit Housing Development Program administered by the Hawaii Community Development Authority to provide matching funds (up to a maximum amount specified) to homeowners who construct accessory dwelling units in conformity with county requirements.

• Creates the Accessory Dwelling Unit Housing Development Special Fund to receive legislative appropriations, public and private contributions, interest earnings, and other funding sources for the matching funds program.

• Exempts rental income from accessory dwelling units funded under the program from general excise tax for the first three years of rental, provided the tax savings are passed through to renters without increasing rent prices.

• Requires owners to maintain records clearly identifying the accessory dwelling unit address, construction completion date, rental payment dates, and amounts of taxes exempted during the exemption period.

• Appropriates unspecified sums from general revenues for fiscal years 2023-2024 and 2024-2025 to the special fund, with matching funds to be expended by the Hawaii Community Development Authority; effective July 1, 2023.