HB 1743 Hawaii House · 2026 Regular Session

RELATING TO THE OWNER-BUILDER EXEMPTION.

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 a residential structure offered 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 2026

Committee Review

Floor Vote

Governor

Introduced Jan 20, 2026 Last action Feb 19, 2026

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What changed between versions

HB1743 → HB1743_HD1 · 5 edits

MODERATE

This bill amends the owner-builder exemption in Hawaii to allow homeowners to lease out properties they built themselves, addressing a shortage of affordable rental housing. It removes the previous ban on leasing such properties but adds a requirement for owners to provide signed written notice to tenants that the home was built by an unlicensed individual. The bill also updates the legal definition of 'completion' to the date of final inspection and clarifies that these exemptions do not apply to agricultural buildings.

Scope change

The bill expands the scope of the owner-builder exemption by removing the prohibition on leasing residential structures built by the owner, whereas the previous version strictly prohibited leasing.

ELIGIBILITY

Removed the restriction preventing owner-builders from leasing their residential structures, allowing them to rent out homes they built themselves.

REQUIREMENT

Added a new requirement for owners or lessees to provide a signed, dated written notice to tenants stating the structure was built or improved by an unlicensed contractor.

DEFINITION

Changed the definition of 'completion' from the date of final inspection approval by the county to the date of final inspection approval by the county (clarified in the new text), and added a new subsection regarding the recovery fund.

ENFORCEMENT

Updated the disclosure statement provided to applicants to reflect the new leasing allowance and the requirement for written notice to tenants.

TIMELINE

Set the effective date of the Act to July 1, 3000.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 19, 2026

Committee

Reported from HSG (Stand. Com. Rep. No. 563-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC.

lower

Feb 18, 2026

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka, Pierick; Ayes with reservations: Representative(s) Cochran; Noes: none; and Excused: none.

lower

Jan 26, 2026

Committee

Referred to HSG, CPC, referral sheet 1

lower

Jan 21, 2026

Introduced

Introduced and Pass First Reading.

lower

Jan 20, 2026

Introduced

Prefiled.

lower

2 primary · 0 co-sponsors