Review of supplemental‑dwelling pilot finds modest uptake; staff urge electronic workflow and wider outreach

DHHL planning staff and Homestead Services presented an evaluation of the supplemental‑dwelling unit (SDU) pilot program on Sept. 16 and recommended process improvements intended to speed approvals and increase uptake.

Planner Nancy McPherson summarized the pilot’s history: rulemaking began in 2019, administrative rules were adopted in December 2021, and the pilot opened for applications in January 2023. Staff said they sought to limit the pilot to residential homestead lots and to include all islands after beneficiaries requested statewide access.

Nancy said applications to date were modest, mostly from O‘ahu, Maui and Molokai, and that review times were often long because the department lacks an end‑to‑end electronic workflow. “Our suggestions are we really get an electronic workflow going,” Nancy said, recommending a fillable online application integrated with the department’s modernization effort.

Staff recommended cross‑training planners and land‑development reviewers, pursuing memoranda of understanding with counties so county permit reviews occur after DHHL approval, and publishing clear online guidance for applicants. The planning office said it will re‑evaluate the pilot in 2027.

Chair Watson and other commissioners tied the SDU discussion to the homelessness issue. The chair urged staff to work with the state’s homeless initiatives and to explore using funding streams (including state and federal) to incentivize SDU construction as part of a broader housing strategy.

Ending: Staff said they will continue outreach, track application metrics and incorporate SDU workflow into DHHL’s modernization plans.