Hawaii-2021-SB43-Amended

SECTION 1. The legislature finds that there is currently a statewide housing crisis that is negatively impacting the quality of life of Hawaii's residents. The overall lack of supply of housing at all price points on the islands is causing residents to move out of the State to more affordable markets. It is also contributing to the increased number of homeless individuals and families across the State.

There is a need to coordinate and focus the efforts among all government agencies on increasing the supply of housing at all price points, especially at affordable price points for those individuals having a household income at or below one hundred forty per cent of area median income.

Presently, a unique opportunity exists to build more housing units on state-owned lands along the rail transit corridor. While these units would not be sold in fee simple, the State may provide ninety-nine-year leasehold condominiums for projects built on state-owned lands.

The legislature recognizes that there also exists a need to allow for more construction on private lands throughout the State since the housing crisis cannot be solved solely by development on government lands.

The legislature further finds that the existing government structure regarding development of housing at the state and county levels, which was developed at the time of statehood, is cumbersome and not proactive in addressing the existing housing problems. Further, the dual level land entitlement and land zoning system in Hawaii is reactive, not proactive, in addressing the need for more housing.

The legislature finds that in order to appropriately respond to the statewide need for more housing at all price points, there needs to be a centralized authority in government that can coordinate the government's resources to respond to the housing shortage.

SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H- Housing coordinator; appointment; duties. (a) The governor shall appoint, and may remove, a housing coordinator who shall be:

(1) Attached to the Hawaii housing finance and development corporation for administrative purposes;

(2) Exempt from chapter 76; and

(3) Responsible for organizing and maintaining a housing opportunity working group that shall:

(A) Comprise representatives of state agencies identified by the housing coordinator as having jurisdiction over matters related to housing development;

(B) Discuss and make recommendations for coordination of state resources to maximize efficiency relating to housing development;

(C) Meet as often as the housing coordinator recommends; provided that the housing opportunity working group shall meet no less than once each month; and

(D) Submit an annual report to the governor and legislature of the housing opportunity working group's efforts and progress, no later than twenty days prior to the convening of each regular session.

(b) The housing coordinator shall develop, advocate for, and implement policies to address the State's housing shortage by:

(1) Analyzing solutions and programs to address the State's need for housing that is affordable for all economic segments of the State, including programs or proposals regarding:

(A) Financing, acquisition, rehabilitation, preservation, conversion, or construction of housing;

(B) Use of publicly owned lands and buildings as sites for affordable housing;

(D) Stimulation of cooperation among public entities and the private sector in the development of housing;

(E) Equitable geographic distribution of housing for all economic segments;

(F) Examination and adaptation of successful housing policies from jurisdictions both nationally and internationally;

(G) Unique circumstances for special needs populations;

(H) Provision of infrastructure for existing and future housing needs;

(I) Preservation and enhancement of the character of the State's unique cultures and communities;

(J) Correction of distortions in the housing market;

(K) Prevention of the erosion of housing stock, including erosion caused by speculation, transient accommodations, or short-term vacation rentals; and

(L) Diversity of communities across the State;

(2) Considering homeownership and rental housing as viable options for the provision of housing;

(3) Considering various types of residential construction and innovation housing options, including manufactured housing;

(4) Reviewing, evaluating, and making recommendations regarding existing and proposed housing programs and initiatives, including tax policies, land use policies, and financing programs;

(5) Incorporating feedback and concerns from all stakeholders in the State's housing crisis;

(6) Attracting and retaining future residents and industries through the provision of abundant and affordable housing;

(7) Engaging and educating the public on housing policies and programs;

(8) Facilitating the housing development process by serving as a guide for housing developers through all parts of the housing development process;

(9) Encouraging state and county housing agencies to explore the potential or expanded use of both development and hold mechanisms, including community land trusts, land banks, and ground leases, to preserve public lands for affordable housing under long term leases or in perpetuity;

(10) Gathering and collecting information regarding any existing challenges of developing more housing in Hawaii; and

(11) Collaborating with various state and county agencies involved in various aspects of housing development, including infrastructure, and developing strategies, whether project-specific, regional, or statewide, that will promote an increase in the supply of housing at all price points.

(c) The housing coordinator shall be a member of the state employees' retirement system and shall be included under the operations of the federal social security program or any other state or federal employee benefit program generally applicable to officers and employees of the State."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $200,000 or so much thereof as may be necessary for fiscal year 2021-2022 and the same sum or so much thereof as may be necessary for fiscal year 2022-2023 to establish one permanent full-time equivalent (1.0 FTE) housing coordinator position that is administratively attached to the Hawaii housing finance and development corporation.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2021.

THE SENATE	S.B. NO.	43
THIRTY-FIRST LEGISLATURE, 2021		S.D. 1
STATE OF HAWAII