Bill Text: HI SB3261 | 2022 | Regular Session | Amended
Bill Title: Relating To Housing.
Spectrum: Strong Partisan Bill (Democrat 10-1)
Status: (Engrossed - Dead) 2022-03-18 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with Representative(s) Kapela, Kong, Perruso voting aye with reservations; none voting no (0) and Representative(s) Branco, Ilagan, McKelvey, Ohno excused (4). [SB3261 Detail]
Download: Hawaii-2022-SB3261-Amended.html
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THE SENATE |
S.B. NO. |
3261 |
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THIRTY-FIRST LEGISLATURE, 2022 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. The legislature finds that the cost and availability of housing in the State are significant challenges facing Hawaii residents. Although Hawaii has the tenth highest median wage nationally, living expenses are two-thirds higher than the rest of the nation, with the cost of housing being a major contributing factor. According to the Honolulu Board of Realtors, by August 2021 the median price for a single-family home on Oahu had risen to $1,050,000, while the median price for condominiums on Oahu had risen to $500,000. With a simple mortgage calculator and using conservative assumptions on interest rates and down payment amounts, a household needs to earn at least $200,000 annually to afford to buy a median-priced home on Oahu in 2021, making homeownership out of reach for many of Hawaii's residents, especially first-time buyers.
Because of the many barriers hindering the
production of new housing, such as geographic limitations, lack of major
infrastructure, construction costs, and government regulation, the State and
housing developers have not been able to produce enough housing for Hawaii
residents. According to a 2015 report
from the department of business, economic development, and tourism, the projected
long-run estimate of demand for total new housing in Hawaii is between 64,700
to 66,000 for the 2015 to 2025 period. The legislature has responded through the
passage of various legislation. During
the regular session of 2016, the legislature passed a bill enacted as Act 127,
Session Laws of Hawaii 2016, that, among other things, established a goal of
developing or vesting the development of at least 22,500 affordable rental
housing units ready for occupancy by the end of 2026. During the regular session of 2017, the
legislature passed a bill enacted as Act 54, Session Laws of Hawaii 2017, to expand
the types of rental housing projects that can be exempt from general excise
tax, thereby encouraging the development of rental housing projects targeted
for occupancy by households at or below the one hundred forty per cent area
median income level. During the regular session
of 2018, the legislature passed a bill enacted as Act 39, Session Laws of
Hawaii 2018, that, among other things, provides an estimated total value of
$570,000,000 to address Hawaii's affordable rental housing crisis and is expected
to generate more than twenty-five thousand affordable units by the year 2030.
Despite these efforts, the amount of new construction of housing, especially for low- to middle-income families, continues to be inadequate as the supply of housing remains constrained while demand for housing increases. This lack of supply leads to higher housing prices and rents for households of all income levels, leaving all tenants with less disposable income, increasing the personal stress on buyers and renters, and exacerbating overcrowding and homelessness. Given these consequences, the lack of affordable housing requires the concentrated attention of state government at the highest level.
The legislature further finds that Singapore faced a housing crisis in the 1940s through 1960s but was subsequently able to provide nearly one million residential units for its citizens. The housing and development board--the government entity responsible for the rapid increase in housing development -- plans, develops, and constructs the housing units, including commercial, recreational, and social amenities. The result is that units built by the housing and development board house eighty per cent of the resident population and that, overall, ninety per cent of the resident population are owners of their units. Through government loans, subsidies, and grants and the use of money saved through a government-run mandatory savings program, residents are able to purchase residential units at an affordable price, including options to upgrade to a better living environment in the future.
The legislature further finds that with Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of properties along the transit line, with approximately two thousand acres under the jurisdiction of various departments, the State must be proactive in establishing a unified vision and approach toward redevelopment of its properties to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to:
(1) Address critical housing needs
in the State by significantly increasing the supply of high density housing;
(2) Establish
the ALOHA homes program to facilitate the creation of low-cost leasehold homes
for sale to Hawaii residents on state-owned land near public transit stations;
(3) Authorize
the Hawaii housing finance and development corporation to sell the leasehold
interest in residential condominium units located on state lands for lease
terms of ninety-nine years;
(4) Direct
the Hawaii housing finance and development corporation to conduct a study and form
a working group on the implementation of the ALOHA homes program; and
(5) Appropriate
funds to the department of business, economic development, and tourism for the Hawaii
housing finance and development corporation to implement the ALOHA homes program.
PART II
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by amending part II as follows:
1. By designating section 201H-31 to 201H-34.5 as subpart A, entitled "General Provisions";
2. By designating sections 201H-35 to 201H-70 as subpart B, entitled "Development Programs"; and
3. By adding two new subparts to be appropriately designated and to read:
" . aloha Homes Program
§201H-A
Definitions. As used in this subpart, the following
terms have the following meanings, unless the context indicates a different
meaning or intent:
"ALOHA" means affordable, locally
owned homes for all.
"ALOHA home" means a residential unit within an urban redevelopment site.
"Commercial project" means an undertaking involving commercial or light industrial development, which includes a mixed-use development where commercial or light industrial facilities may be built into, adjacent to, under, or above residential units.
"Multipurpose project" means a project consisting of any combination of a commercial project, redevelopment project, or residential project.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy, but does not include renting or subleasing by the owner of an ALOHA home to any tenant or sublessee of any kind.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, or residential project.
"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.
"Public facilities" includes streets, utility and service corridors, and utility lines where applicable, sufficient to adequately service developable improvements in an urban redevelopment site, sites for schools, parks, parking garages, sidewalks, pedestrian ways, and other community facilities. "Public facilities" also includes public highways, as described in section 264-1, storm drainage systems, water systems, street lighting systems, off-street parking facilities, sanitary sewerage systems, facilities to address climate change and sea level rise, as well as the land required for these facilities. "Public facilities" also includes any facility owned and operated by a public agency and having a useful life of at least five years.
"Public transit station" means:
(1) A station connected to a locally preferred alternative for a mass transit project; or
(2) For the city and county of Honolulu, a station of the Honolulu rail transit system.
"Redevelopment project" means an undertaking for the acquisition, clearance, replanning, reconstruction, and rehabilitation, or a combination of these and other methods, of an area for a residential project, for an incidental commercial project, and for other facilities incidental or appurtenant thereto, pursuant to and in accordance with this subpart.
The term "acquisition, clearance, replanning, reconstruction, and rehabilitation" includes renewal, redevelopment, conservation, restoration, or improvement, or any combination thereof.
"Residential project" means a project or that portion of a multipurpose project, including residential dwelling units, designed and intended for the purpose of providing housing and any facilities as may be incidental or appurtenant thereto.
§201H-B
ALOHA homes program. There is established the ALOHA homes
program for the purpose of providing low-cost, high density leasehold homes for
sale to Hawaii residents on state‑owned lands within a one-mile radius of
a public transit station.
§201H-C Urban redevelopment sites; established; boundaries. There shall be established urban redevelopment sites that shall include all state-owned land within a one-mile radius of a public transit station in a county having a population greater than five hundred thousand.
§201H-D Rules; guidelines. (a) The corporation shall adopt rules pursuant to chapter 91 on health, safety, building, planning, zoning, and land use, which shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction thereon. Rules adopted under this section shall follow existing law, rules, ordinances, and regulations as closely as is consistent with standards meeting minimum requirements of good design, pleasant amenities, health, safety, and coordinated development. The corporation may provide that lands within urban redevelopment sites shall not be developed beyond existing uses or that improvements thereon shall not be demolished or substantially reconstructed or provide other restrictions on the use of the lands.
(b) The following shall be the principles generally governing the corporation's action in urban redevelopment sites:
(1) The program seeks to produce a significant amount of housing to meet demand from local residents;
(2) Each development may include facilities to replace any facilities that must be removed for the development's construction;
(3) Developments shall endeavor to be financially sustainable; provided that additional appropriations may be required for infrastructure development and other purposes;
(4) The corporation shall consider the infrastructure burden of each development and the impact of the development on the education system, and any mitigation actions, prior to construction;
(5) The corporation may build infrastructure beyond that which exists in any development under this subpart and may sell the infrastructure capacity to private sector developers;
(6) The corporation may build common area facilities for any development undertaken pursuant to this subpart, which shall be paid through the sales of ALOHA homes units;
(7) Developments shall result in communities that permit an appropriate land mixture of residential, commercial, and other uses. In view of the innovative nature of the mixed-use approach, urban design policies shall be established for the public and private sectors in the proper development of urban redevelopment sites; provided that any of the corporation's proposed actions in urban redevelopment sites that are subject to chapter 343 shall comply with chapter 343 and any federal environmental requirements; provided further that the corporation may engage in any studies or coordinative activities permitted in this subpart that affect areas lying outside urban redevelopment sites where the corporation, in its discretion, decides that those activities are necessary to implement the intent of this subpart. The studies or coordinative activities shall be limited to facility systems, resident and industrial relocation, and other activities engaged in with the counties and appropriate state agencies. The corporation may engage in construction activities outside of urban redevelopment sites; provided that the construction relates to infrastructure development or residential or business relocation activities; provided further that the construction shall comply with the general plan, development plan, ordinances, and rules of the county in which the urban redevelopment site is located;
(8) Activities shall be located so as to provide primary reliance on public transportation and pedestrian and bicycle facilities for internal circulation within urban redevelopment sites or designated subareas;
(9) Where compatible, land use activities within urban redevelopment sites, to the greatest possible extent, shall be mixed horizontally within blocks or other land areas and vertically as integral units of multi‑purpose structures;
(10) Development shall prioritize maximizing density; provided that development may require a mixture of densities, building types, and configurations in accordance with appropriate urban design guidelines and vertical and horizontal integration of residents of varying incomes, ages, and family groups that reflect the diversity of Hawaii.
(11) Development shall provide necessary community facilities, such as parks, community meeting places, child care centers, schools, educational facilities, libraries, and other services, within and adjacent to residential development; provided that any school that is provided by the corporation as a necessary community facility shall be exempt from school size requirements, as calculated by recent school site area averages pursuant to section 302A-1602;
(12) Public facilities within urban redevelopment sites shall be planned, located, and developed so as to support the redevelopment policies for the sites established by this subpart and plans and rules adopted pursuant to it;
(13) Development shall be designed, to the extent possible, to minimize traffic, parking, the use of private automobiles, and noise;
(14) Development shall be subject to chapter 104;
(15) On-site and off-site infrastructure funded by the State or county, as applicable, shall be brought to the development site; provided that the State and respective county may be reimbursed for its infrastructure contributions with proceeds from the sale of ALOHA homes;
(16) Development shall include the establishment of a building operating and maintenance program, together with the funding to cover its cost; and
(17) Development shall be designed and constructed in consultation and partnership with private developers.
(c) ALOHA homes within urban redevelopment sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use; provided that the corporation, by rule, shall establish penalties for violations of this subsection up to and including forced sale of an ALOHA home.
(d) The design and development contracts for ALOHA homes shall be subject to chapter 103D.
(e) The corporation, in the interest of sustainability, shall recoup expenses through the sales of the leasehold interest of ALOHA homes and other revenue sources, including the leasing of commercial space.
§201H-E Sale of the leasehold interest of ALOHA homes; rules; guidelines. (a) The corporation shall adopt rules, pursuant to chapter 91, for the sale of the leasehold interest of ALOHA homes under its control within urban redevelopment sites; provided that each lease shall be for a term of ninety‑nine years. The rules shall include the following requirements for an eligible buyer or owner of an ALOHA home within an urban redevelopment site:
(1) The person shall be a qualified resident of the State, as defined in section 201H-32;
(2) The person shall not use the ALOHA home for any purpose other than owner-occupied residential use; and
(3) The person, or the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential and non-residential property, beneficial ownership of trusts, and co‑ownership or fractional ownership, while owning an ALOHA home in an urban redevelopment site; provided that an eligible buyer may own real property up to six months after closing on the purchase of an ALOHA home; provided further that an owner of an ALOHA home in the process of selling the ALOHA home may own other real property up to six months prior to closing on the sale of the ALOHA home to an eligible buyer;
provided that the rules under this subsection shall not include any requirements or limitations related to an individual's income but may include preferences related to an individual's income; provided further that no rules under this subsection shall prohibit the establishment or use of additional subsidies for low-income households to purchase ALOHA homes. The rules shall include strict enforcement of owner-occupancy, including a prohibition on renting or subleasing an ALOHA home to any tenant or sublessee. Enforcement of the owner-occupancy condition may include requirements for the use of facial recognition, fingerprint authorization, or retina scan technologies, in‑person verification of owner-occupants, and prevention of access to all unauthorized persons. The corporation may also establish rules for a minimum number of days residents must be physically present on the premises and a maximum number of days non-residents may have access to the premises.
(b) The median ALOHA homes within urban redevelopment sites shall be priced at the minimum levels necessary to ensure that the development is sustainable for the State and counties. The median ALOHA homes price shall be adjusted annually for inflation, as reported in the Consumer Price Index for urban Hawaii published by the Bureau of Labor Statistics of the United States Department of Labor.
(c) The corporation shall establish waitlists for each residential development for eligible buyers to determine the order in which ALOHA homes shall be sold.
Waitlist priorities may include:
(1) School, college, or university affiliation if the residential property is a redeveloped school, college, or university;
(2) Proximity of an eligible buyer's existing residence to an ALOHA home within the urban redevelopment site;
(3) Household income level or ability to otherwise purchase a home; and
(4) Other criteria based on the impact that the development has on the eligible buyer.
Waitlists shall be established in consultation and coordination with existing affordable housing programs administered by each county.
(d) ALOHA homes within urban redevelopment sites shall be sold only to other eligible buyers.
(e) A homeowner of an ALOHA home may sell the homeowner's ALOHA home; provided that the corporation shall have the right of first refusal to purchase the ALOHA home at a price that is determined by the corporation using the price at which the homeowner purchased the ALOHA home as the cost basis, adjusted for inflation, as determined by the department of business, economic development, and tourism using the Consumer Price Index for All Urban Consumers for Honolulu, and may include a percentage of the appreciation, if any, in value of the unit based on an appraisal obtained by the corporation. The corporation may use funds from the dwelling unit and affordable homeownership revolving funds for the purposes of this subpart. If the corporation does not exercise its right to purchase the ALOHA home, the ALOHA home may be sold by the homeowner to an eligible buyer; provided that the price at which a homeowner may sell an ALOHA home shall be limited by the corporation in accordance with a consistent formula to be established by the corporation. Upon the death of the owner of an ALOHA home, the ALOHA home may be transferred to the deceased's heir by devise or as any other real property under existing law.
(f) Any ALOHA home developed and sold under this subpart shall not be subject to sections 201H-47, 201H-49, 201H-50, and 201H-51.
§201H-F Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the corporation for the purposes of this subpart, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may convey or lease those lands to the corporation upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding the foregoing, no public lands
shall be conveyed or leased to the corporation pursuant to this section if the
conveyance or lease would impair any covenant between the State or any county or
any department or board thereof and the holders of bonds issued by the State or
that county, department, or board.
§201H-G Acquisition of real property from a county.
Notwithstanding the provision of any law
or charter, any county, by resolution of its county council, without public
auction, sealed bids, or public notice, may sell, lease, grant, or convey to
the corporation any real property owned by it that the corporation certifies to
be necessary for the purposes of this subpart. The sale, lease, grant, or conveyance shall be
made with or without consideration and upon terms and conditions as may be
agreed upon by the county and the corporation. Certification shall be evidenced by a formal request
from the corporation. Before the sale, lease,
grant, or conveyance may be made to the corporation, a public hearing shall be
held by the county council to consider the same. Notice of the hearing shall be published at
least six days before the date set for the hearing in the publication and in the
manner as may be designated by the county council.
§201H-H Condemnation of real property. The corporation, upon making a finding that it
is necessary to acquire any real property for its immediate or future use for
the purposes of this subpart, may acquire the property, including property
already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for
any other public use without the consent of the corporation. No award of compensation shall be increased by
reason of any increase in the value of real property caused by the designation
of the urban redevelopment site or plan adopted pursuant to a designation, or
the actual or proposed acquisition, use, or disposition of any other real property
by the corporation.
§201H-I Construction contracts. The construction contracts for ALOHA homes
shall be subject to chapter 103D.
§201H-J Lease of projects. Notwithstanding any law to the contrary, the corporation,
without recourse to public auction or public notice for sealed bids, may lease
for a term not exceeding sixty-five years all or any portion of the real or
personal property constituting a commercial project to any person, upon terms
and conditions as may be approved by the corporation; provided that all revenues
generated from the lease shall be used to support the purpose of the ALOHA homes
program.
§201H-K Dedication for public facilities as condition
to development. The corporation shall establish rules
requiring dedication for public facilities of land or facilities by developers
as a condition of developing real property within urban redevelopment
sites. Where state and county public
facilities dedication laws, ordinances, or rules differ, the provision for greater
dedication shall prevail.
§201H-L ALOHA homes revolving fund. There is established the ALOHA homes revolving
fund to be administered by the corporation. All receipts and revenues of the corporation collected
pursuant to this subpart shall be deposited into the revolving fund. Proceeds from the fund shall be used for the purposes
of this subpart.
§201H-M Assistance by state and county agencies. Any state or county agency, upon request of
the corporation, may render services for the purposes of this subpart.
§201H-N
Lands no longer needed. Lands acquired by the corporation from another
government agency that are no longer needed for the ALOHA homes program by the
corporation shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private
party that are owned by the corporation and designated for the ALOHA homes program
but are subsequently no longer needed for the ALOHA homes program shall be retained
by the corporation.
§201H-O
Rules. The corporation may
adopt rules pursuant to chapter 91 that are necessary for the purposes of this
subpart.
. Leasehold Condominiums on State Lands
§201H-P Leasehold condominiums on state lands. (a) The corporation may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this subpart on state land to a "qualified resident", as defined in section 201H‑32.
(b) The term of the lease may be for ninety-nine years, and the corporation may extend or modify the fixed rental period of the lease or extend the term of the lease.
(c) The sale of leasehold units shall be subject to sections 201H-47, 201H-49, and 201H-50, except for units sold at fair market value.
(d) The powers conferred upon the corporation by this section shall be in addition and supplemental to the powers conferred by any other law, and nothing in this section shall be construed as limiting any powers, rights, privileges, or immunities so conferred."
SECTION 3. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Exemption of sale of leasehold interest for ALOHA home units. In addition to the amounts exempt under section 237-24, this chapter shall not apply to amounts received from the sale of a leasehold interest in an ALOHA home under chapter 201H, part II, subpart ."
SECTION 4. Section 171-2, Hawaii Revised Statutes, is amended to read as follows:
"§171-2 Definition of public
lands. "Public
lands" means all lands or interest therein in the State classed as government
or crown lands previous to August 15, 1895, or acquired or reserved by the government
upon or subsequent to that date by purchase, exchange, escheat, or the exercise
of the right of eminent domain, or in any other manner; including lands accreted
after May 20, 2003, and not otherwise awarded, submerged lands, and lands beneath
tidal waters that are suitable for reclamation, together with reclaimed lands that
have been given the status of public lands under this chapter, except:
(1) Lands designated in section 203 of the Hawaiian
Homes Commission Act, 1920, as amended;
(2) Lands set aside pursuant to law for the use of
the United States;
(3) Lands being used for roads and streets;
(4) Lands to which the United States relinquished the
absolute fee and ownership under section 91 of the Hawaiian Organic Act prior to
the admission of Hawaii as a state of the United States unless subsequently placed
under the control of the board of land and natural resources and given the status
of public lands in accordance with the state constitution, the Hawaiian Homes Commission
Act, 1920, as amended, or other laws;
(5) Lands to which the University of Hawaii holds title;
(6) [Lands] Non-ceded lands set aside by
the governor to the Hawaii housing finance and development corporation or lands
to which the Hawaii housing finance and development corporation in its corporate
capacity holds title;
(7) Lands to which the Hawaii community development
authority in its corporate capacity holds title;
(8) Lands set aside by the governor to the Hawaii public
housing authority or lands to which the Hawaii public housing authority in its corporate
capacity holds title;
(9) Lands to which the department of agriculture holds
title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys
loaned or to recover debts otherwise owed the department under chapter 167;
(10) Lands that are set aside by the governor to the
Aloha Tower development corporation, lands leased to the Aloha Tower development
corporation by any department or agency of the State, or lands to which the Aloha
Tower development corporation holds title in its corporate capacity;
(11) Lands that are set aside by the governor to the
agribusiness development corporation, lands leased to the agribusiness development
corporation by any department or agency of the State, or lands to which the agribusiness
development corporation in its corporate capacity holds title;
(12) Lands to which the Hawaii technology development
corporation in its corporate capacity holds title;
(13) Lands to which the department of education holds
title;
(14) Lands to which the stadium authority holds title;
and
[[](15)[]] Lands to which the school facilities authority
holds title;
provided that, except as otherwise limited under federal law and except for state land used as an airport as defined in section 262-1, public lands shall include the air rights over any portion of state land upon which a county mass transit project is developed after July 11, 2005; provided further that if the lands pursuant to paragraph (14) are no longer needed for the stadium development district or related purposes, the lands shall be returned to the public land trust administered by the department."
SECTION 5. Section 171-64.7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) This section applies to all lands or interest therein owned or under the control of state departments and agencies classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or any other manner, including accreted lands not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, including:
(1) Land set aside pursuant to law for the use of the United States;
(2) Land to which the United States relinquished the absolute fee and ownership under section 91 of the Organic Act prior to the admission of Hawaii as a state of the United States;
(3) Land to which the University of Hawaii holds title;
(4) [Land] Non-ceded
lands set aside by the governor to the Hawaii housing finance and development corporation
or lands to which the Hawaii housing finance and development corporation in
its corporate capacity holds title;
(5) Land to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;
(6) Land that is set aside by the governor to the Aloha Tower development corporation or land to which the Aloha Tower development corporation holds title in its corporate capacity;
(7) Land that is set aside by the governor to the agribusiness development corporation or land to which the agribusiness development corporation in its corporate capacity holds title;
(8) Land to which the Hawaii technology development corporation in its corporate capacity holds title;
(9) Land to which the department of education holds title;
(10) Land to which the Hawaii public housing authority in its corporate capacity holds title;
(11) Land to which the stadium authority holds title; and
[[](12)[]] Land to which the school facilities authority holds
title."
SECTION 6. Section 201H-191, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is created a dwelling unit revolving fund. The funds appropriated for the purpose of the dwelling unit revolving fund and all moneys received or collected by the corporation for the purpose of the revolving fund shall be deposited in the revolving fund. The proceeds in the revolving fund shall be used to reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund, for the necessary expenses in administering housing development programs, including for the repurchase of ALOHA homes pursuant to subsection 201H-E(e), and regional state infrastructure programs, and for carrying out the purposes of housing development programs and regional state infrastructure programs, including but not limited to the expansion of community facilities and regional state infrastructure constructed in conjunction with housing and mixed-use transit‑oriented development projects, permanent primary or secondary financing, and supplementing building costs, federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for housing projects."
SECTION 7. Section 201H-206, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established an affordable homeownership
revolving fund to be administered by the corporation for the purpose of
providing, in whole or in part, loans to nonprofit community development
financial institutions [and], nonprofit housing development
organizations for the development of affordable homeownership housing projects[.],
and the Hawaii housing finance and development corporation for the purpose of repurchasing
ALOHA homes pursuant to subsection 201H-E(e)."
SECTION 8. 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) All nonresidential development;
(4) Any development with an executed education contribution
agreement or other like document with the authority or the department for the contribution
of school sites or payment of fees for school land or school construction; [and]
(5) Any form of housing developed by the
department of Hawaiian home lands for use by beneficiaries of the Hawaiian Homes
Commission Act, 1920, as amended[.]; and
(6) Any form of development by the Hawaii housing finance and development corporation pursuant to chapter 201H, part II, subpart ."
PART III
SECTION 9. (a) The Hawaii housing finance and development corporation shall conduct a detailed market study of leasehold housing in the State.
(b) The study shall examine buyer preferences regarding leasehold and fee simple housing.
(c) The Hawaii housing finance and development corporation shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2023.
SECTION 10. (a) The Hawaii housing finance and development corporation shall convene a working group to study the implementation of the ALOHA homes program.
(b) The working group shall consist of members to be appointed by the executive director of the Hawaii housing finance and development corporation.
(c) The working group shall submit a report to
the legislature of its progress, findings, and recommendations, including any
proposed legislation, no later than twenty days prior to the convening of the
regular session of 2024.
(d)
The working group shall dissolve on June 30, 2024.
(e) For the purpose of this Act, "ALOHA
homes program" means the program established in section 2 of this Act.
PART IV
SECTION 11. There
is appropriated out of the general revenues of the State of Hawaii the sum of $
or so much thereof as may be necessary for fiscal year 2022-2023 to be
deposited into the ALOHA homes revolving fund established pursuant to section 201H-L,
Hawaii Revised Statutes.
SECTION 12. There
is appropriated out of the ALOHA homes revolving fund established pursuant to
section 201H-L, Hawaii Revised Statutes, the sum of $
or so much thereof as may be necessary for fiscal year 2022-2023 for the purposes
for which the revolving fund is established.
The sum appropriated shall be expended by
the Hawaii housing finance and development corporation for the purposes of this
Act.
SECTION 13. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for the Hawaii housing finance and development corporation to:
(1) Fund one full-time equivalent (1.0 FTE) program manager position, one full-time equivalent (1.0 FTE) compliance specialist position, one full-time equivalent (1.0 FTE) fiscal clerk position, and five other full-time equivalent (5.0 FTE) positions for the ALOHA homes program; and
(2) Fund software and hardware for the ALOHA homes program.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
PART V
SECTION 14. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 16. This Act shall take effect on July 1, 2050;
provided that the amendments made to section 302A-1603(b), Hawaii Revised
Statutes, by this Act shall not be repealed when that section is reenacted on
July 1, 2024, by section 6 of Act 197, Sessions Laws of Hawaii 2021.
Report Title:
HHFDC; Affordable Housing; ALOHA Homes; Public Land Exemptions; Appropriations
Description:
Establishes the ALOHA homes program to develop low-cost homes on state-owned and county-owned land in urban redevelopment sites to be sold in leasehold by the Hawaii Housing Finance and Development Corporation to qualified residents. Exempts certain land from the definition of "public lands." Requires the Hawaii Housing Finance and Development Corporation to gain legislative approval before disposing of certain lands. Provides for the disposition of lands that are acquired by the Hawaii Housing Finance and Development Corporation but no longer needed for the ALOHA homes program. Directs the Hawaii Housing Finance and Development Corporation to conduct a study of the market depth for leasehold housing. Directs the Hawaii Housing Finance and Development Corporation to convene a working group to study the implementation of the ALOHA homes program. Appropriates moneys. Effective 7/1/2050. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
