Mayor Kirk Caldwell has signed a bill into law that aims to increase the supply of rental units in Honolulu by allowing certain homeowners to establish an extra living unit on their property.

According to the city Department of Planning and Permitting, over 100,000 homeowners may be eligible to build these units — known as accessory dwelling units — or convert existing structures.

Honolulu already allows “ohana units” to be built on certain properties and rented to family members, but the new law allows those to be converted into ADUs.

The ordinance is the first major policy change connected to Caldwell’s draft housing strategy was announced a year ago.

Council members Ron Menor, Trevor Ozawa, Brandon Elefante and Ikaika Anderson joined Caldwell and advocates for the bill at the Fasi Municipal Building on Monday morning for the signing.

Click here to read more about the measure and the mayor’s upcoming housing strategy.

For more details about the new law, read the bill text.