HB 421 Hawaii House · 2025 Regular Session

RELATING TO CONTRACTORS.

Summary

Repeals the leasing restriction on owner-builders who obtain an owner-builder exemption to act as their own contractor and who build or improve residential or farm buildings or structures on property they own or lease and do not offer the buildings or structures for sale. Requires an owner or lessee to provide signed written notice that the structure for lease or sublease was built or improved by an individual who is not a licensed contractor. Effective 7/1/3000. (HD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 16, 2025 Last action Feb 13, 2025

Maddy AI version diff · 1 comparison

What changed between versions

HB421 → HB421_HD1 · 6 edits

MODERATE

This bill removes restrictions that prevented owner-builders from leasing residential structures they built themselves, allowing them to convert single-family homes into multi-family rental units. The changes expand housing supply options while maintaining safety requirements through licensing rules for electrical/plumbing work and worker protections.

Scope change

Expands applicability from prohibiting owner-builder leasing to allowing it, with specific exceptions for properties sold to employees and small construction projects under $10,000.

ELIGIBILITY

Removed the prohibition on owner-builders leasing residential structures they built, allowing them to participate in addressing the housing shortage.

REQUIREMENT

Added requirement for owner-builders to provide written notice to tenants that the structure was built by an unlicensed contractor when offering for lease.

EXEMPTIONS

Created exemptions for properties sold to employees, construction under $10,000, and unforeseen hardships like unemployment or bankruptcy.

DEFINITION

Added definition of 'completion' as the date of final inspection approval by the county.

ENFORCEMENT

Established a three-year ban on owner-builder registration for violations and created a rebuttable presumption after multiple exemptions within two years.

TIMELINE

Set effective date to July 1, 3000, likely a placeholder for future legislative action.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 13, 2025

Committee

Reported from HSG (Stand. Com. Rep. No. 582) as amended in HD 1, recommending passage on Second Reading and referral to CPC.

lower

Feb 12, 2025

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka, Pierick; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Cochran.

lower

Jan 21, 2025

Committee

Referred to HSG, CPC, referral sheet 1

lower

Jan 17, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 16, 2025

Introduced

Pending introduction.

lower

8 primary · 1 co-sponsor