H.B. 1730 Summary

• Establishes the Accessory Dwelling Unit (ADU) Housing Development Program administered by the Hawaii Community Development Authority to provide matching funds for ADU construction on islands with populations between 100,000 and 175,000.

• Provides matching funds of $3 from the authority for every $1 contributed by homeowners, with a maximum state contribution of $75,000 per ADU.

• Exempts ADU rental income from general excise tax for the first four years of rental, with tax savings required to be passed to renters without rent increases.

• Creates the Accessory Dwelling Unit Housing Development Special Fund to receive legislative appropriations and public/private contributions to award matching funds.

• Appropriates unspecified amounts from general revenues for fiscal year 2024-2025 and declares the appropriations exceed the state general fund expenditure ceiling; effective July 1, 2024.