Hawaii Act 34 bars using a condominium regime to split off farm employee housing
Hawaii Act 34 bars using a condominium regime to split off farm employee housing
2026-09-10 · Hawaii · Legislation
Hawaii’s newest agricultural-land statute contains a one-line prohibition aimed squarely at the condominium property regime. Act 34 (2026) defines and permits farm employee housing in the state agricultural district — and then says the fee owner may not use chapter 514B to separate that housing from the farm. Signed May 26, 2026, effective the same day.12
The prohibition
The clause sits inside the new farm-employee-housing provision of HRS § 205-4.5:
“provided further that no fee owner of the farm dwelling shall submit any portion thereof to a condominium property regime to separate the ownership of the farm employee housing units from the farm dwelling pursuant to chapter 514B”
This is a category of land on which a CPR may not be formed for a stated purpose. That is unusual drafting, and it is not accidental.
What is now permitted
New § 205-4.5(a)(4)(B) defines “farm employee housing” as “one or more residential dwelling units accessory to the farm operation that may be attached to or detached from the primary farm dwelling.” Two limits attach:
- “Each residential dwelling unit shall not exceed eight hundred square feet of habitable area under roof”; and
- “A county may limit occupancy of each residential dwelling unit to agricultural employees who are actively engaged in the farm operation and their immediate family members.”
The Act also redefines “farm dwelling” — dropping “single-family” and replacing the old income test with “where agricultural activity is occurring” — and permits agricultural tourism on the same parcel only where it is “secondary and incidental to an agricultural activity” and does “not occur within farm employee housing units.”
Why a condominium statute shows up in an agriculture bill
Because in Hawaii the condominium property regime has a second life as a land-division device. Chapter 514B lets an owner carve a parcel into separately conveyable units without going through county subdivision review — and on agricultural land that has produced the long-running practice known locally as the “ag CPR”: a farm parcel divided into condominium units that function, in the market, as house lots.
Act 34’s drafters plainly saw that a newly legalized category of accessory dwellings on ag land was a fresh supply of CPR-able units. The proviso closes it before it opens.
What it means for association practice
For existing associations: nothing. No AOAO obligation changes, no ch. 421J association obligation changes, and no existing regime is disturbed. The Act is prospective and it is about formation.
For anyone advising on formation: a new no-go zone. A landowner who builds farm employee housing under this Act cannot then submit it — or “any portion thereof” — to a regime that separates its ownership from the farm dwelling. The phrase “any portion thereof” is broad enough to be worth reading carefully before structuring anything nearby.
For resale and title work. A parcel carrying farm employee housing built under the 2026 definition has a statutory characteristic that a pre-2026 ag parcel does not. That is a title and disclosure question on any transaction touching agricultural land with accessory units.
The 800-square-foot number, and what it excludes
Eight hundred square feet of habitable area under roof is a real constraint — it is a one- or small two-bedroom unit, not a house. Combined with the optional county occupancy restriction to “agricultural employees who are actively engaged in the farm operation and their immediate family members,” the design intent is clear: worker housing that stays worker housing, and does not become a separately salable residence.
Note that the occupancy restriction is permissive. “A county may limit occupancy” means the answer differs by island, and a landowner has to check the county ordinance rather than the statute.
The agricultural-tourism carve-out
The Act permits agricultural tourism on the parcel where it is “secondary and incidental to an agricultural activity,” but expressly bars it from occurring “within farm employee housing units.” Read together with the CPR bar, the pattern is consistent: the units may not be converted into a separate business or a separate ownership interest.
What to watch
County implementation. The occupancy limit, and the permitting that will actually govern how many of these units a farm can build, are county decisions the Act invites rather than makes. Watch also whether the 2027 session is asked to extend the CPR prohibition to other categories of agricultural accessory dwelling — this is the first time the Legislature has written the bar into a specific housing definition rather than legislating about CPRs generally.
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