Bill 27 would waive certain fees for homeowners to create an accessory dwelling unit (ADU), a move that could save homeowners up to $10,000. Drafted by the Department of Planning and Permitting (DPP), the measure would waive all building permit, grading, and inspection fees, and wastewater facility charges for two years. It would also permanently waive parking-dedication requirements for ADUs.
The Honolulu Board of Water Supply sets its fees through a separate rate process, but has agreed to work on similar incentives.
Mayor Kirk Caldwell hopes that the temporary fee waiver will encourage homeowners who are considering adding a second unit on their property, or converting part of an existing structure, to act now. The mayor is also challenging contractors and designers to come up with cost-effective designs that would help homeowners to take advantage of these time-limited incentives. ADUs are just one part of the mayor’s plan to provide affordable rental housing on Oahu.
The mayor likens this initiative to the photovoltaic efforts years ago. The DPP waived building permit fees for photovoltaic building permits in 2007 as an incentive to the PV industry and residents to install the energy-saving systems. The waiver was a huge success, and the number of PV permits skyrocketed over a five-year period. The waiver was discontinued in 2013, but the popularity of PV systems continues to grow.
Homeowners who applied for an ADU permit and have already paid the fees will be refunded the fees should this measure be approved and signed into law. Those seeking an after-the-fact building permit to convert an illegally constructed structure into a legal ADU will not be eligible for the fee waiver.
