Kauai’s New Bill 2933: Key Changes for Agricultural Land and Guest Houses

For those who own or are considering purchasing agricultural (AG) land on Kauai, there’s exciting news! Bill 2933 has passed, bringing significant changes that could impact property development and housing options. Here’s what you need to know:

What’s New with Bill 2933?

Historically, Kauai allowed additional dwelling units (ADUs) and rental units on residential-zoned properties if they met certain requirements (setbacks, lot size, sewer capacity, etc.). However, AG-zoned properties had more restrictions, particularly regarding guest houses and additional dwellings.

Bill 2933 introduces a major change for AG land by allowing one additional guest house per primary dwelling (called “farm dwellings”) on AG-zoned parcels. Previously, many AG properties could only have one guest house, and in cases where properties were subdivided (CPR’d), guest house rights were restricted to just one unit. Now, the new law allows every farm dwelling (house on AG land) to have its own guest house.

What’s New About Guest Houses?

1. Increased Size:
   • The size of guest houses has increased from 500 square feet to 800 square feet. This provides more living space for family members or long-term residents.
2. Kitchen Allowed:
   • Guest houses can now include a kitchen, making them more functional for multigenerational living.
3. Limitations on Use:
   • Guest houses cannot be sold separately from the main dwelling.
   • They cannot be used for short-term rentals. The intention is to provide housing for local families and promote long-term residency, rather than turning these properties into short-term vacation rentals.

Why This Change is Significant

The intent behind Bill 2933 is to create more housing options for local families while still preserving Kauai’s agricultural economy and rural character. By allowing an additional guest house per farm dwelling, the law promotes multigenerational living, enabling families to live together on the same property and support agricultural lifestyles.

However, the law still maintains Kauai’s focus on agriculture and sustainable land use, as guest houses cannot be used for commercial purposes like short-term rentals. This is a crucial point for preserving the island’s rural charm and agricultural landscape.

Considerations and Limitations

While this new law presents opportunities, there are several practical considerations:

1. Wastewater:
   Properties will still need to meet wastewater requirements, which may limit where guest houses can be added. If infrastructure is not available, development could be restricted.
2. Existing Guest Houses:
   If a property already has a guest house or an additional dwelling unit (ADU), no additional guest house can be built under this law. So, if you’re planning to expand, you’ll need to account for any existing structures.
3. Impact on AG Land:
   While the bill is aimed at increasing housing availability for locals, there are concerns that it could lead to urbanization of agricultural land. However, given that most AG land is not used for commercial farming, proponents argue that this change strikes a balance between preserving agriculture and addressing the housing needs of Kauai’s residents.

What This Means for You

• For AG Landowners: If you own AG land and want to build additional housing for family members or long-term residents, this law now gives you more flexibility. You can add a guest house for every farm dwelling on the property (subject to meeting infrastructure requirements, CPR rules, and subdivision rules).
• For Potential Buyers: If you’re looking to buy AG land, this law could make properties more appealing, especially if you need multiple dwellings.

Final Thoughts

Bill 2933 marks a shift in Kauai’s approach to managing agricultural land, balancing development with the island’s need for sustainable housing. While the new law opens up more possibilities for families and local residents, the restrictions on short-term rentals and the focus on long-term residency help ensure that the island’s rural and agricultural character is preserved. Whether you’re a current landowner or a prospective buyer, this bill offers exciting opportunities for those looking to live, work, and grow on Kauai’s agricultural lands.

See chart below for density allowances for farm dwellings on AG zoned parcels.

Check out my listing on Koolau, which is zoned AG and may be an ideal candidate for a guest house.

7473-E Koolau Rd, Kilauea HI, 96754