Can I Condo a Guest House, Additional Rental Unit, Ohana or Accessory Dwelling Unit (ADU)?
The primary concern with a condominium with a guest house, additional rental unit (“ARU”), ohana unit, and accessory dwelling unit (“ADU”) is that your respective county may place restrictions on properties containing those structures.
The City and County of Honolulu prohibits property with an ohana or ADU to be submitted to condominium. There may also be conditions that are attached to either type of unit that restricts your right as the developer; for example, the ability to expand the ADU or rent out the ohana or ADU. Ohanas and ADUs pose a special concern that developers should be fully aware of before committing the property containing the ohana or ADU to the condominium process.
Kauai County in October of 2024, passed ordinance 1166, which prohibits the submission of a property with a guest house as a separate condominium unit pursuant to Chapter 8, Section 8-1.4 (i)(4), Kauai County Code 1987.
“4) A guest house shall never be separated in ownership from the ownership of its primary dwelling by any owner or any heir, successor. or assign of any owner, including but not limited to submitting the lot or any portion thereof to a condominium property regime (CPR)”
This mirrors the existing ordinance in section 8-30.1(a)(3), Kauai County Code 1987 for additional rental units.
“(3) Neither the owner or owners, nor the heirs, successors or assigns of the owner or owners will submit the lot or any portion thereof to a condominium property regime under the provisions of Hawai’i Revised Statutes, Chapter 514A and 514B, to separate the ownership of an Additional Rental Unit from the ownership of its primary dwelling unit.”
Kauai properties with guest houses and ARUs can be submitted to condominium, but the guest houses and ARUs must remain in the same unit as their respective primary dwelling unit. Guest houses and ARUs are also not permitted to be separated into their own condominium unit via amending the declaration.
Please contact your respective county’s permit, building, or planning department for information on any restrictions.
Revised 2/21/2025