HR165

WHEREAS, Hawaii presently suffers from a critical housing shortage, with as many as 50,000 new housing units projected to be necessary statewide in just the next few years; and

WHEREAS, housing continues to become an increasing financial hardship, with the median price of a single-family home averaging $1,000,000 and a condominium averaging $500,000; and

WHEREAS, the cost of renting too continues to rise, with more and more of our younger generations projecting they will rent all their lives as high prices prohibit their ability to save enough for a down payment; and

WHEREAS, accessory dwelling units, often referred to as ADUs, are a legal alternative to illegal rental units and are similar to ohana dwelling units, but with less restrictions, particularly the absence of the requirement that the unit be rented to a family member only; and

WHEREAS, accessory dwelling units cost less than traditional housing units because there is no need to purchase additional land for the structure and construction costs are considerably less,

WHEREAS, promoting the construction of accessory dwelling units can offer a multitude of benefits, including alleviating our state's housing shortage, providing another affordable housing option, and allowing those who develop the unit to make extra income,

BE IT RESOLVED by the House of Representatives of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, that this body urges the Hawaii Housing Finance and Development Corporation to create a program that offers financial assistance for the private development of accessory dwelling units on a dollar to dollar match up to a maximum of $50,000; and

BE IT FURTHER RESOLVED that the program consider requiring the accessory dwelling unit be rented to a participant of IHS and for a period of at least two years; and

BE IT FURTHER RESOLVED that the State of Hawaii also consider a tax incentive, such as a tax holiday on the income generated by rental sales on an accessory dwelling unit for a period following the unit's initial use as an affordable rental; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Hawaii Housing Finance and Development Corporation, the Hawaii Department of Taxation, the Governor of the State of Hawaii, members of the House of Representatives of the State of Hawaii, and members of the Senate of the State of Hawaii.

	OFFERED BY:	_____________________________

Report Title:

Urging the Hawaii Housing and Finance Development Corporation to encourage the developments of accessory dwelling units abet Hawaii's housing crisis

HOUSE OF REPRESENTATIVES	H.R. NO.	165
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII