Frequently Asked Questions (FAQ)
The details in this FAQ are based on the current version of the bill. As the legislative process moves forward, some aspects may evolve. We will update this page as new information becomes available.
A deed restriction is a legally binding agreement that limits how a property can be used. In this case, the limitation relates to who gets to live in the home; at least one occupant must call the home their primary residence and they must work for a local employer at least 30 hours a week.
Yes! There’s a lot of precedent for this. Many other locations across the country have already started just this type of program. Additionally, Hawai‘i homebuyers routinely buy homes that have restrictions on them in the form of Covenants, Conditions, and Restrictions (CC&Rs). CC&Rs limit everything from home size to color to how many cars can be parked outside and are used routinely in Hawai‘i.
To apply for the funds from the County, eligible participants must be U.S. citizens or resident aliens, Hawai`i residents, at least 18 years old, and agree to the deed restriction requirements. They must not own other property with a deed restriction under this program.
Occupants must work an average of 30 hours or more per week at a qualified employer within the State.
The County that buys the deed restriction owns it. This is similar to when the county or state owns an easement on private land.
The deed restriction runs with the land in perpetuity (lasting forever). This means a dedicated stock of housing for our local workforce and families remains stable and accessible for future generations.
The County that purchased the deed restriction could choose to sell it in the future if necessary. While this type of circumstance is rare it could occur, for example, because of environmental factors affecting the property.
Compliance is key and Counties can pursue legal action when violations are discovered.
If someone is found violating the deed restriction, the Program can seek “specific performance” through the courts. In simple terms, this means they can ask a judge to order the property owner to fix the violation by doing exactly what the deed restriction requires – like moving back into the home if they weren’t living there, or selling or renting to a qualified Kama`āina buyer if they improperly rented it out. The court can also require the violator to pay fines for violating the restrictions.
This enforcement helps ensure the homes remain available for their intended purpose: providing attainable homeownership and rental opportunities for local workforce.
The deed restriction runs with the property, so any new owner will need to follow the limitations set by the deed restriction.
