SB 491 Summary

• Establishes an Accessory Dwelling Unit (ADU) Financing and Deed Restriction Program administered by the Hawaii Housing Finance and Development Corporation to allocate funds to counties for purchasing equity and deed restrictions on ADU properties.

• Allows counties to use allocated funds to finance construction costs, development costs, and closing costs for eligible homeowners and homebuyers constructing ADUs on their primary residences.

• Requires deed restrictions to run perpetually with the land, mandating that at least one owner-occupant or tenant work an average of 30+ hours per week at a qualified Hawaii business or meet alternative qualifications (unemployment, retirement, disability).

• Exempts conveyance tax for properties with county-owned deed restrictions under the program for taxable years beginning January 1, 2026, and exempts such properties from environmental impact statement requirements.

• Effective date is July 1, 2050, except conveyance tax exemptions which apply beginning January 1, 2026.