Kauai County, HI Accessory Structures: ADU Impact Fees (2026)
Key Facts
- Fund
- Housing Development Fund No. 512
- Appropriation set aside
- $113,200 for FRC assistance
- Repayment if violation within 1 year
- 100% of ARU subsidy
- Repayment if violation within 5 years
- 10% of ARU subsidy
- Security for repayment
- Lien on the property
- Administering agency
- County Housing Agency
Summary
On Kaua'i (Kaua'i County), owners adding an Additional Rental Unit (ARU) can tap a County-funded subsidy to help pay the Facilities Reserve Charge, but taking affordable-rental credit and later dropping out triggers a sliding repayment secured by a lien on the property.
Additional Rental Unit (ARU) Subsidy; Purpose. There is hereby established and created an account to be known as the "Additional Rental Unit (ARU) Subsidy" within the Housing Development Fund (Fund No. 512) for the purpose of subsidizing efforts associated with the Facilities Reserve Charge (FRC). ... Appropriation of Funds. An appropriation of $113,200 from the Housing Development Fund shall be set aside to assist property owners with efforts associated with the Facilities Reserve Charge. ... Any violation of the affordable housing restrictions required by the Housing Agency may result in an ARU Subsidy Repayment as follows: Number of days in Affordable Rental Program Percent of ARU Subsidy Repayment Less than or equal to 365 days (1 year) 100% ... Less than or equal to ... 1,825 days (5 years) 10% Repayment. The ARU Subsidy Repayment constitutes a lien upon the real property in which the ARU is situated.
Full Breakdown
Kaua'i County Code § 8-30.1(g) creates the Additional Rental Unit (ARU) Subsidy account inside the Housing Development Fund (Fund No. 512) specifically to offset the Facilities Reserve Charge (FRC), the impact-style fee tied to ARU construction. The Council set aside a $113,200 appropriation from the Housing Development Fund to assist property owners with FRC costs, and any unspent balance does not lapse at fiscal year end; annual top-ups require Council approval, and the money can be used for no purpose other than what the section lists.
The County Housing Agency certifies whether an applicant qualifies, processing ARU Subsidy applications first come, first served subject to funding availability, and must send copies of every application, whatever the certification result, to the Planning Department and both the Public Works Wastewater Division and Building Division before any fee is waived. The catch is the repayment schedule: if the Housing Agency's affordable-rental restrictions are later violated, the owner owes back a percentage of the subsidy keyed to how long the unit stayed in the Affordable Rental Program, ranging from 100% repayment inside the first year down to 10% if the violation comes after five years.
That ARU Subsidy Repayment becomes a lien on the real property, recordable in the land record system, and if unpaid the County can pursue foreclosure and recover its full collection costs including reasonable attorneys' fees. The Kaua'i County Housing Agency was directed to write implementing rules within 12 months of the ordinance, and the section does not preempt any other Kaua'i County Code 1987 provision touching ARUs.
Violations & Fines
Failing to maintain the ARU as an affordable rental for the certified term does not void the subsidy outright; instead it converts to a debt under the repayment table (100% down to 10% depending on elapsed time), which the County secures as a lien on the property under § 8-30.1(g). Unpaid amounts can be pursued through foreclosure, and the owner bears the County's collection costs and reasonable attorneys' fees on top of the repayment itself.
Frequently Asked Questions
What does the Kaua'i ARU Subsidy actually pay for?
What happens if I stop renting my ARU as affordable housing?
Who reviews my ARU Subsidy application on Kaua'i?
Can the County collect if I never pay the repayment?
Sources & Official References
Other rules in Kauai County
Compare Kauai County to another location·View the Hawaii accessory structures overview
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