HI HB740

Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program under the Hawaii Housing Finance and Development Corporation, allowing the corporation to allocate funds from the rental housing revolving fund to counties for purchasing equity and deed restrictions from eligible homeowners

Counties may receive up to $2,000,000 per year to help finance construction costs, development costs, and closing costs for accessory dwelling units, with county contributions capped at 8% of appraised property value

Requires deed restrictions to run with the land in perpetuity, mandating that all dwelling units on participating properties be occupied by owner-occupants or tenants who work at least 30 hours per week at a qualified Hawaii business, are involuntarily unemployed for less than 365 days, are retired (age 65+), or have a disability

Homeowners must repay the corporation's prorated share of appraised value with appreciation within 15 years or upon sale, and if property is sold to a nonresident or rented to a nonresident, the corporation may claim 50% of appreciation at sale

Program takes effect July 1, 2050, with a sunset date of January 1, 2031; requires HHFDC to submit an evaluation report to the legislature by 2031