Maui County will need to revise accessory dwelling ordinance to comply with new state law

A new state law aimed at easing Hawaiʻi’s severe housing shortage is set to impose changes in the way counties permit accessory dwellings on residential properties.

Currently, Maui County allows construction of two accessory dwellings, known as ʻohana units, on Maui island residential properties 7,500 square feet or larger. Only one ʻohana is allowed on residential lots on Molokaʻi and Lānaʻi.

To comply with a new state requirement recently signed into law by Gov. Josh Green, Maui County will need to allow ʻohana units on all residential properties within all of Maui County, regardless of lot size or island location. This will require the Maui County Council to pass legislation.

Senate Bill 3202, now Act 39 relating to urban development, mandates that no later than Dec. 31, 2026, the counties adopt or amend an ordinance to allow at least two accessory dwellings, subject to certain restrictions, on all residentially zoned lots.

The law prohibits private covenants for residentially zoned lots within an urban district from limiting the number of accessory dwelling units below the amount set by state law. It also requires any administrative authority to act on any application for subdivision, consolidation or resubdivision for certain parcels to be vested in the director of the county agency responsible for land use or another county officer.

The law does not stop a county from denying a permit for an accessory dwelling if utility infrastructure is insufficient to provide service for the additional demand of more housing.

Senate Bill 3202 was signed among a half-dozen bills to “move the needle on unlocking more housing across the state through permitting reform and by increasing financing for more affordable projects,” Green said.

The other bills signed into law were:

House Bill 1760: It enables the Hawai‘i Housing Finance and Development Corp. and counties to implement a bond volume cap recycling program, using prior years’ tax-exempt private activity bond volume, while preserving the current volume cap to support affordable housing development.  

House Bill 1925: It establishes and funds the Hawai‘i State Planning Act Phase II Task Force, continuing the work of the previous task force to guide long-range state development and housing policy solutions. 

House Bill 2090: It directs counties to allow adaptive reuse of existing commercial buildings through their ordinances, increasing housing inventory by repurposing underused commercial spaces and office buildings.  

Senate Bill 2066: It provides an alternative pathway for housing projects to seek exemptions from certain state laws and rules, expediting the regulatory process to increase affordable housing units. 

Senate Bill 2133: It authorizes the HHFDC to issue bonds for housing project infrastructure, financing the development of regional state infrastructure projects, particularly in transit-oriented development areas.