Continue ADU fee waivers to encourage growth in homebuilding

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu City Council Committee on Housing, Sustainability, Economy, and Health on Feb. 11, 2025.

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Feb. 11, 2025, 1 p.m.
Honolulu Hale

To: Honolulu City Council Committee on Housing, Sustainability, Economy and Health
       Matt Weyer, Chair
       Radiant Cordero, Vice Chair

From: Grassroot Institute of Hawaii
            Ted Kefalas, Director of Strategic Campaigns

RE: Bill 63 (2024) — RELATING TO ACCESSORY DWELLING UNITS

Aloha Chair Weyer, Vice-Chair Cordero and other members of the Council,

The Grassroot Institute of Hawaii supports Bill 63 (2024), which would continue for five years, starting July 1, 2025, Honolulu County’s waiver of certain fees for accessory dwelling unit construction — specifically wastewater system facility charges and building permit, plan review, grading, grubbing and stockpiling fees.

These upfront costs can discourage homeowners from adding accessory dwellings to their backyards, or from converting their single-family homes into two units. Bill 63 would help mitigate this disincentive.

As Grassroot pointed out in its report “How to facilitate more homebuilding in Hawaii,” Honolulu, Kaua‘i and Maui counties all offer some type of financial incentive for ADU construction, and Bill 63 would keep Honolulu’s incentives in place for another five years.

In addition, the bill aligns with the state’s Act 39, which mandates that the counties legalize at least two ADUs per lot in certain residential areas.

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii

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