Hawaiʻi wants to purchase voluntary deed restrictions to preserve more homes for locals

Under the proposed bills, willing Hawaiʻi resident homeowners and homebuyers would sell deed restrictions on their properties to a county. Those homeowners cannot own other deed-restricted properties, though the counties could require additional qualifications when they set up their programs.

The participants would then agree to permanently deed restrict their properties so they can only be owned or rented by individuals who work an average of 30 hours or more per week for a local employer. Individuals who are retired, involuntarily unemployed or have a disability could also live in those homes so long as they previously met that requirement.

This deed restriction would remain in place even if the property is sold or transferred to another, thus creating a perpetual source of locals-only housing.

Under the Kamaʻāina Homes Program, participants could use the proceeds for anything, like to renovate their home, put towards a down payment or to pay for a child’s education. But under the ADU program, their proceeds must be used to help them build an ADU.

The counties would determine how much they’d pay for the deed restriction purchases, though Evslin expects they would negotiate with each participating property owner to determine the specific amount. Participating homes would be exempt from the state conveyance tax when sold.

Arjuna Heim, director of housing policy at Hawaiʻi Appleseed Center for Law and Economic Justice, said that the Hawaiʻi proposals would empower residents to directly contribute to addressing Hawaiʻi’s housing challenges and prioritize housing as a place for people to live and grow, rather than as a means for speculation.

“I want local homeowners to get involved in solving this crisis,” she said. “You say housing affordability is one of the biggest issues on your mind. We’re losing our younger generation to the mainland for better opportunity, cheaper lifestyle. Here’s your chance.”