Hawaii-2024-HB673-Introduced

SECTION 1. The legislature finds that Hawaii has been struggling with the issue of affordable housing for decades. Challenges range from land and infrastructure costs to funding, over-regulation, and permitting. According to the department of business, economic development, and tourism report "Measuring Housing Demand in Hawaii, 2015-2025", the forecast demand for additional housing units in the counties totals 64,693 during the 2015-2025 period. The legislature recognizes the immense housing supply problem in the State and that creative solutions are needed to build more housing at all price points.

The legislature recognizes that the land use commission is responsible for the classification of certain land parcels into the urban, rural, agricultural, and conservation districts. The land use commission also acts on land use district boundary amendment petitions involving the reclassification of lands in the conservation district, land areas greater than fifteen acres, and lands delineated as important agricultural lands.

Enabling the counties to reclassify certain lands intended for affordable housing development will make larger scale projects economically feasible for infrastructure to be built, such as a water treatment plant or connectivity to an existing sewer system, which are added costs that smaller projects cannot absorb. Opening up land for affordable housing projects will also facilitate the State's goal of increasing the supply of much needed affordable housing while being budget neutral to the State.

The purpose of this Act is to allow the counties to reclassify lands that are fifteen to one hundred acres in certain rural, urban, and agricultural districts in which at least fifty per cent of the housing units on the land to be classified are set aside for persons and families with incomes at or below one hundred forty per cent of the area median income.

SECTION 2. Section 205-3.1, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

"(a) [~~District~~] Except for lands under subsection (b)(3), district boundary amendments involving lands in the conservation district, land areas greater than fifteen acres, or lands delineated as important agricultural lands shall be processed by the land use commission pursuant to section 205-4.

(b) Any department or agency of the State, and department or agency of the county in which the land is situated, or any person with a property interest in the land sought to be reclassified may petition the appropriate county land use decision-making authority of the county in which the land is situated for a change in the boundary of a district involving lands [~~less~~]:

(1) Less than fifteen acres presently in the rural and urban districts [~~and lands less~~];

(2) Less than fifteen acres in the agricultural district that are not designated as important agricultural lands[.]; and

(3) Fifteen to one hundred acres in the rural and urban districts and fifteen to one hundred acres in the agricultural district that are not designated as important agricultural lands; provided that at least fifty per cent of the housing units on the land sought to be reclassified under this paragraph are set aside for persons and families with incomes at or below one hundred forty per cent of the area median income.

(c) District boundary amendments involving land areas [~~of fifteen acres or less, except as provided~~] described in subsection (b)[,] shall be determined by the appropriate county land use decision-making authority for the district and shall not require consideration by the land use commission pursuant to section 205-4; provided that such boundary amendments and approved uses are consistent with this chapter. The appropriate county land use decision-making authority may consolidate proceedings to amend state land use district boundaries pursuant to this subsection, with county proceedings to amend the general plan, development plan, zoning of the affected land, or such other proceedings. Appropriate ordinances and rules to allow consolidation of such proceedings may be developed by the county land use decision-making authority."

SECTION 3. Section 205-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any department or agency of the State, any department or agency of the county in which the land is situated, or any person with a property interest in the land sought to be reclassified, may petition the land use commission for a change in the boundary of a district. This section applies to all petitions for changes in district boundaries of lands within conservation districts, lands designated or sought to be designated as important agricultural lands, and lands greater than fifteen acres in the agricultural, rural, and urban districts, except as provided in [~~section~~] sections 201H-38[.] and 205-3.1(b)(3). The land use commission shall adopt rules pursuant to chapter 91 to implement section 201H-38."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	673
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII