Remove time restriction on leasing of owner-built houses

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Housing on Feb. 18, 2026.
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Feb. 18, 2026, 10 a.m.
Hawaii State Capitol
Conference Room 430 and Videoconference

To: House Committee on Housing
       Rep. Luke Evslin, Chair
       Rep. Tyson Miyake, Vice Chair

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

RE: TESTIMONY IN SUPPORT OF HB1743 — RELATING TO THE OWNER-BUILDER EXEMPTION

Aloha Chair, Vice Chair and other Committee members,

The Grassroot Institute of Hawaii supports HB1743, which would remove leasing restrictions for homeowners who act as their own contractors on construction projects.

So-called owner-builders currently can build homes for themselves or their families on their own land, but they cannot either sell or lease the structures within a year of construction. 

The state of California allows owner-builders to lease homes under its owner-builder exemption,[1] so there is already some precedent for this type of change.

Removing this bit of red tape would help Hawaii homeowners who are interested in building extra units on their land, and it would complement many of the other strategies being implemented to ease the state’s housing shortage.

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Cal. Bus. & Prof. Code § 7044., accessed Jan. 22, 2026.

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