HI HB2550

Establishes an accessory dwelling unit (ADU) grant program within the Hawaii Housing Finance and Development Corporation to provide grants up to $50,000 per eligible homeowner for development costs and non-recurring closing costs associated with ADU construction.

Defines eligible homeowners as U.S. citizens or resident aliens, bona fide Hawaii residents, at least 18 years old, financing ADU construction on their primary residential property, and meeting other corporation-established qualifications.

Requires grant recipients to have an approved construction loan and deposits grant proceeds into managed escrow accounts, with third-party verification that funds are used for eligible development costs before release to the construction loan.

Creates an accessory dwelling unit grant revolving fund to be administered by the corporation, funded through legislative appropriations, private contributions, grant repayments, program fees, and other sources.

Grants must be repaid to the corporation upon sale of the home, and the corporation may establish fees and premiums necessary for program administration with collections deposited into the revolving fund.