Bill 7 ADUs in Honolulu (LUO Sec. 21-5.730) require a recorded covenant restricting use to long-term residential rental (180+ day leases) but do not require owner occupancy of the principal dwelling. Traditional Ohana units (LUO Sec. 21-5.700) historically were intended for extended family but the LUO does not impose a formal owner-occupancy mandate on Ohana units either.
Unlike many mainland cities, Honolulu's Bill 7 ADU program does not require owner occupancy on the lot. The program does require a recorded restrictive covenant under LUO Sec. 21-5.730 limiting the ADU to long-term rental use, defined as a lease term of 180 days or longer. The covenant runs with the land for the life of the structure. Ohana Dwelling Units under LUO Sec. 21-5.700 were originally created in 1981 to allow multigenerational housing and lack a strict owner-occupancy requirement in current code language. However, both Ohana and ADUs are conditioned on the property remaining a single legal lot (no separate sale of the accessory unit) because Hawaii's condominium property regime statute (HRS Chapter 514B) is the only path to separate ownership and is not permitted as a workaround for ADU subdivision. Hawaii HOA covenants (regulated under HRS Chapter 421J for community associations and HRS Chapter 514B for condos) may impose owner-occupancy requirements that go beyond city law.
Operating a Bill 7 ADU outside long-term rental terms violates the recorded covenant and triggers Notice of Violation, daily civil fines under LUO Sec. 21-2.150, and Bill 89 STR enforcement (fines up to $10,000 per day). Selling an ADU separately from the principal dwelling violates LUO single-lot requirements. HOA covenant violations are enforced civilly per community documents.
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See how Honolulu's adu owner occupancy rules stack up against other locations.
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