THE SENATE	S.B. NO.	1146
TWENTY-NINTH LEGISLATURE, 2017		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO SCHOOL IMPACT FEES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that a shortage of affordable housing, for sale or rent, exists in Hawaii, and that the high cost of construction could be a deterrent to private development of affordable housing units.  The legislature further finds that school impact fees can significantly raise the costs of new housing development projects.  For example, in 2016, the department of education estimated that it would need a school impact fee of $9,374 per new unit constructed in the proposed school impact district from Kalihi to Ala Moana to help cover land and construction costs for new or expanded schools in the area.  The legislature additionally finds that implementing this fee would increase the overall costs for construction of housing, possibly further hindering development of affordable housing units.

     The legislature also finds that as the city and county of Honolulu constructs a rail transit system, increasing affordable housing along the rail line benefits those individuals and families with lower incomes, including those who are unable to purchase their own vehicles, by providing convenient access to public transportation.  The legislature further finds that exempting affordable housing units constructed in a county with a population greater than five hundred thousand from school impact fee requirements will promote the development of affordable housing in Hawaii.

     The purpose of this Act is to exempt new housing units that are reserved for persons or families with incomes up to eighty per cent of the area median income from school impact fee requirements.

     SECTION 2.  Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The following shall be exempt from this section:

     (1)  Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;

     (2)  Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;

     (3)  Any form of housing units reserved for persons or families with incomes up to eighty per cent of the area median income located in a county with a population greater than five hundred thousand;

    [(3)] (4)  All nonresidential development; and

    [(4)] (5)  Any development with an executed education contribution agreement or other like document with the department for the contribution of school sites or payment of fees for school land or school construction."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

 

 

Report Title:

Department of Education; Affordable Housing

 

Description:

Exempts housing developments reserved for persons or families with incomes up to 80% of the area median income located in a county having a population greater than 500,000 from school impact fee requirements.  Effective 7/1/2050.  (SD2)

 

 

 

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