HONOLULU (AP) — A year and a half after Honolulu Mayor Kirk Caldwell signed the city’s accessory dwelling unit into law, nearly 150 applications have been approved for permits allowing homeowners to have the units on their property.
City officials hope the 2015 law enabling homeowners to build the units for family members or renters will help create more affordable rentals amid Oahu’s housing crisis, The Honolulu Star-Advertiser reported.
The city provides qualified homeowners with financial incentives for having the units and waives up to $10,000 in fees for homebuilders, including a $6,624 sewage connection charge.
The number of Honolulu-area homeowners interested in the program has grown, with more than 1,200 homeowners submitting precheck forms to find out if their lot qualifies for the addition.
Studies have pointed to the development of accessory dwelling units as an effective strategy in increasing affordable housing and curbing homelessness. The units are more likely to offer cheaper rents than a typical single-family home, according to the Institute of Urban and Regional Development at the University of California, Berkeley.
“There is at least modest evidence that on-site secondary unit landlords appear to offer rents at a discount to their tenants,” the University of California study said.
Honolulu’s 145 permit approvals represent less than 1 percent of 105,000 residential lots that meet the minimum lot size for accessory dwellings on Oahu.
Urban-planning expert Tom Dinell said more should be done to ensure residents are aware of the accessory dwelling options.
“It’s really a matter of marketing, of getting the city together with the banks that provide loans. and the contractors,” said Dinell, professor emeritus of the University of Hawaii’s Department of Urban and Regional Planning. “Goodness knows, we have an extreme shortage of rental housing right now.”
Costs associated with building and finishing an accessory dwelling, maintenance and interest paid yearly are tax-deductible as a business. Those interested in building the units can also select from designs that have already been preapproved by the city to save time and money.
One builder, Jeremy Pearl, said he has five preapproved models reviewed by the city ranging from one- to three-bedroom units that can be installed in one to two weeks. Prices range from $70,000 to $170,000.
On Maui, accessory dwellings were allowed for use as rentals as early as 1993. The island now has more than 4,800 properties with accessory dwellings.