Establishes that manufactured homes are a permitted use by right on residentially zoned lots within the urban district. Limits the use of residential building design elements to deny or discourage otherwise code-compliant manufactured homes. Prohibits homeowners' associations and similar private governing bodies from enforcing covenants that actively or effectively prohibit otherwise lawful manufactured housing. Prohibits counties from requiring manufactured homes that comply with federal manufactured housing standards to also comply with the Hawaii state building code or a county building code. Specifies that a manufactured home is considered real property, requiring its transfer, conveyance, and mortgage to follow the same recording and enforcement requirements as other real property.