Bill Text: HI HB1960 | 2016 | Regular Session | Introduced
Bill Title: Affordable Housing; Lands Controlled by the State; Transit Stations
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2016-01-27 - Referred to WAL, JUD, FIN, referral sheet 2 [HB1960 Detail]
Download: Hawaii-2016-HB1960-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1960 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to lands controlled by the state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that a significant portion of State lands located adjacent to or near the planned rail transit stations in the city and county of Honolulu are owned by the department of land and natural resources and the Hawaii community development authority. The legislature further finds that it is in the public interest to promote mixed-use development of State lands adjacent or near the planned rail transit stations, including development for affordable housing, to foster economic development in those areas and help increase future transit ridership.
The legislature further finds that other states and municipalities have incentivized private developments on government-owned lands near transit stations through the negotiation of ninety-nine year lease terms to encourage long-term, sustainable development planning. However, at present, the maximum term for leases for State lands is sixty-five years.
The purpose of this Act is to authorize the department of land and natural resources and the Hawaii community development authority to negotiate and enter into leases with terms of up to ninety-nine years on parcels located within one-half mile of the city and county of Honolulu's planned rail-transit stations if affordable housing is included in the mixed-use development.
SECTION 2. Section 171-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Except as otherwise provided, the following restrictions shall apply to all leases:
(1) Options for renewal of terms are prohibited;
(2) No lease shall be for a longer term than sixty-five years, except:
(A) [in] In the case of a
residential leasehold which may provide for an initial term of fifty-five years
with the privilege of extension to meet the requirements of the Federal Housing
Administration, Federal National Mortgage Association, Federal Land Bank of
Berkeley, Federal Intermediate Credit Bank of Berkeley, Berkeley Bank for
Cooperatives, or Veterans Administration requirements; provided that the
aggregate of the initial term and extension shall in no event exceed
seventy-five years; and
(B) In the case of leases of lands located within one-half mile of a planned transit station of a high capacity transit corridor project, which may be for a term not to exceed ninety-nine years in duration; provided that affordable housing is included in the mixed-use development plan for the lands to be leased;
(3) No lease shall be made for any land under a lease which has more than two years to run;
(4) No lease shall be made to any person who is in arrears in the payment of taxes, rents, or other obligations owing the State or any county;
(5) No lease shall be transferable or assignable, except by devise, bequest, or intestate succession; provided that with the approval of the board of land and natural resources, the assignment and transfer of a lease or unit thereof may be made in accordance with current industry standards, as determined by the board; provided further that prior to the approval of any assignment of lease, the board shall have the right to review and approve the consideration to be paid by the assignee and may condition its consent to the assignment of the lease on payment by the lessee of a premium based on the amount by which the consideration for the assignment, whether by cash, credit, or otherwise, exceeds the depreciated cost of improvements and trade fixtures being transferred to the assignee; provided further that with respect to state agricultural leases, in the event of foreclosure or sale, the premium, if any, shall be assessed only after the encumbrances of record and any other advances made by the holder of a security interest are paid;
(6) The lessee shall not sublet the whole or any part of the demised premises except with the approval of the board; provided that prior to the approval, the board shall have the right to review and approve the rent to be charged to the sublessee; provided further that in the case where the lessee is required to pay rent based on a percentage of its gross receipts, the receipts of the sublessee shall be included as part of the lessee's gross receipts; provided further that the board shall have the right to review and, if necessary, revise the rent of the demised premises based upon the rental rate charged to the sublessee including the percentage rent, if applicable, and provided that the rent may not be revised downward;
(7) The lease shall be for a specific use or uses and shall not include waste lands, unless it is impractical to provide otherwise;
(8) Mineral and metallic rights and surface and ground water shall be reserved to the State; and
(9) No lease of public lands, including submerged lands, nor any extension of any such lease, shall be issued by the State to any person to construct, use, or maintain a sunbathing or swimming pier or to use the lands for such purposes, unless such lease, or any extension thereof, contains provisions permitting the general public to use the pier facilities on the public lands and requiring that a sign or signs be placed on the pier, clearly visible to the public, which indicates the public's right to the use of the pier. The board, at the earliest practicable date, and where legally possible, shall cause all existing leases to be amended to conform to this paragraph. The term "lease", for the purposes of this paragraph, includes month-to-month rental agreements and similar tenancies."
SECTION 3. Section 206E-14, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) [The] Except as provided
for ninety-nine year leases under section 171-36(a), the authority may,
without recourse to public auction, sell, or lease for a term not exceeding
sixty-five years, all or any portion of the real or personal property
constituting a redevelopment project to any person, upon such terms and
conditions as may be approved by the authority, if the authority finds that the
sale or lease is in conformity with the community development plan."
SECTION 4. Section 206E-31.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Notwithstanding any law to the
contrary, including [[]section[]] 206E-14, except as prohibited
by section 206E-31.5[,] and except as provided for ninety-nine year
leases under section 171-36(a), the authority may, without recourse to
public auction or public notice for sealed bids, lease for a term not exceeding
sixty-five years, all or any portion of the real or personal property
constituting a project to any person, upon such terms and conditions as may be
approved by the authority, if the authority finds that the lease is in
conformity with the community development plan."
SECTION 5. Any other law to the contrary notwithstanding, including chapters 171 and 206E, Hawaii Revised Statutes, the department of land and natural resources and the Hawaii community development authority are hereby authorized to negotiate and enter into lease agreements in accordance with the provisions and limitations of this Act.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect upon its approval; provided that on June 30, 2050, this Act shall be repealed and sections 171-36, 206E-14, and 206E-31.6, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act.
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INTRODUCED BY: |
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Report Title:
Affordable Housing; Lands Controlled by the State; Transit Stations
Description:
Authorizes the Department of Land and Natural Resources and the Hawaii Community Development Authority to negotiate and execute ninety-nine year leases on the Department's and Authority's lands located within one-half mile of the City and County of Honolulu's planned rail transit stations, provided that affordable housing is included in the development plan for the lands to be leased.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
