BillCam

THE SENATE

S.B. NO.

3104

THIRTIETH LEGISLATURE, 2020

S.D. 1

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO LAND DEVELOPMENT.

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

PART I

SECTION 1. The legislature finds that the State's population has declined each year over the past three years, an unprecedented situation that has not happened since Hawaii became a state in 1959. A significant portion of this population loss can be attributed to the State's high cost of living and lack of affordable dwellings. The legislature further finds that housing costs continue to rise, keeping homeownership outside the reach of many Hawaii residents.

Accordingly, the purpose of this Act is to provide solutions to expeditiously develop housing for working families in the State.

PART II

SECTION 2. The purpose of this part is to make amendments to chapter 201H, Hawaii Revised Statutes, to:

(1) Exempt from the definition of public land, lands set aside by the governor or leased by any state department or agency to the Hawaii housing finance and development corporation for a period not to exceed 99 years, for the primary purposes of developing affordable housing.

(2) Require the Hawaii housing finance and development corporation to identify state lands that can be developed for multi-unit dwellings;

(3) Authorize the issuance of $200,000,000 in general obligation bonds, with the proceeds used for the establishment of regional infrastructure with the primary purpose of supporting the development of housing on lands near or adjacent to the rail transit stations;

(4) Authorize the issuance of $75,000,000 in general obligation bonds for infrastructure for affordable housing in counties having a population of less than 500,000; and

(5) Require the Hawaii housing finance and development corporation to submit to the legislature by December 31, 2020, a program addressing the housing issues described below.

SECTION 3. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H- Residential projects on state lands; requirements. (a) The corporation shall transfer to the department of Hawaiian home lands or the office of Hawaiian affairs, housing units in residential projects developed on state lands set aside by the governor or leased by any state department or agency to the corporation as described in section 171-2(6); provided that the corporation shall establish rules pursuant to chapter 91 to determine the number of units or percentage of units to be transferred to the department of Hawaiian home lands or to the office of Hawaiian affairs; provided further that the corporation may not grant certificates of occupancy for any units prior to the implementation of these rules.

(b) Housing units in residential projects developed on state lands set aside by the governor or leased by any state department or agency to the corporation as described in section 171-2(6) shall be priced to be affordable to families making eighty per cent of area median income, provided that no income restrictions or first-time homebuyer requirements apply."

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 set aside by the governor or leased by any state department or agency to the Hawaii housing finance and development corporation for a period not to exceed ninety-nine years, for the primary purposes of developing affordable housing 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; and

(13) Lands to which the department of education 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."

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 that is set aside by the governor to the Hawaii housing finance and development corporation, land leased to the Hawaii housing finance and development corporation by any department or agency of the State, or land 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; and

(10) Land to which the Hawaii public housing authority in its corporate capacity holds title."

SECTION 6. (a) The Hawaii housing finance and development corporation shall submit a report to the legislature that:

(1) Identifies state lands that may be developed for multi-unit dwellings;

(2) Includes the estimated cost of planning, designing, and constructing multi-unit dwellings on the lands identified in paragraph (1), including the costs of installing necessary infrastructure; and

(3) Proposes a priority listing of the lands identified in paragraph (1) based on:

(A) Cost of development;

(B) Demand for affordable housing in the county in which the land is situated;

(D) Any other relevant factors.

(b) The Hawaii housing finance and development corporation shall submit the 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 2021.

(c) Each state or county agency shall provide to the Hawaii housing finance and development corporation any information the Hawaii housing finance and development corporation deems necessary to prepare the report required by this section.

SECTION 7. (a) The Hawaii housing finance and development corporation shall submit to the legislature a program that addresses housing concerns, including but not limited to:

(1) Producing enough housing units to meet the demand of Hawaii residents;

(2) Ensuring the lowest possible sales price of housing units;

(3) Limiting housing units to Hawaii residents who are owner-occupants and who own no other real property;

(4) Maximizing walkability and minimizing private vehicles and traffic;

(5) Minimizing short-term rentals;

(6) Including the interest of native Hawaiians;

(7) Enforcing chapter 104, Hawaii Revised Statutes, for construction of leasehold property;

(8) Maximizing availability to Hawaii residents at all income levels;

(9) Minimizing the financial burden to state taxpayers,

(10) Ensuring the excellence of maintenance and repairs;

(11) Prioritizing, as residents in the housing units, neighbors and residents impacted by the development;

(12) Preventing windfall profits at every resale to buyers who resell their unit; and

(13) Producing a demonstration project.

(b) The Hawaii housing finance and development corporation shall submit the program to the legislature no later than December 31, 2020.

SECTION 8. The director of finance is authorized to issue general obligation bonds in the sum of $275,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2020-2021 to be deposited into the dwelling unit revolving fund established pursuant to section 201H-191, Hawaii Revised Statutes.

SECTION 9. There is appropriated out of the dwelling unit revolving fund the sum of $200,000,000 or so much thereof as may be necessary for fiscal year 2020-2021 for the establishment of regional infrastructure for the primary purpose of supporting development of housing on lands located within one mile of a rail transit station, including lands owned by the University of Hawaii that are near or adjacent to the University of Hawaii West Oahu campus; provided that:

(1) The affordable housing infrastructure be used only for developments in which the majority of the square footage of the development is housing to be occupied, in perpetuity, by Hawaii residents who are owner-occupants of the housing units, who own no other real property;

(2) The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this part; and

(3) The appropriation shall not lapse at the end of the fiscal biennium for which the appropriation is made.

SECTION 10. There is appropriated out of the dwelling unit revolving fund the sum of $75,000,000 or so much thereof as may be necessary for fiscal year 2020-2021 for the establishment of infrastructure to support the development for affordable housing in counties with a population of less than 500,000; provided that:

(2) The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this part; and

(3) The appropriation shall not lapse at the end of the fiscal biennium for which the appropriation is made.

SECTION 11. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2019-2020 to establish three full-time equivalent (3.0 FTE) project manager positions.

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

PART III

SECTION 12. The purpose of this part is to authorize any person, including a state or county department or agency, to petition the appropriate county land use decision-making authority, rather than the land use commission, for a change in the boundary of a district involving land areas between fifteen acres and twenty-five acres where the majority of the square footage of the development will be for Hawaii residents who are owner-occupants and who own no other real property, in perpetuity.

SECTION 13. Chapter 205, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§205- Penalty. (a) Any petitioner for an amendment to a district boundary that:

(1) Violates; or

(2) Neglects, fails to conform to, or comply with this chapter or any lawful order of the land use commission may be subject to a civil penalty not to exceed $50,000 per day that the violation, neglect, or failure occurs, or reversion pursuant to section 205‑4(g), but not both. The civil penalty shall be assessed by the land use commission after a hearing in accordance with chapter 91.

(b) Upon written application filed within fifteen days after service of an order imposing a civil penalty pursuant to this section, the land use commission may remit or mitigate the penalty upon terms that it deems proper.

(c) If any civil penalty imposed pursuant to this section is not paid within a time period as the land use commission may direct, the attorney general shall institute a civil action for recovery of the civil penalty in circuit court."

SECTION 14. Section 201H-12, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The corporation may develop public land in an agricultural district subject to the prior approval of the land use commission, when developing lands greater than fifteen acres in size, and public land in a conservation district subject to the prior approval of the board of land and natural resources[.]; provided that the corporation may use the process established pursuant to section 205-3.1(e) to develop lands having an area between fifteen acres and twenty-five acres. The corporation shall not develop state monuments, historical sites, or parks. When the corporation proposes to develop public land, it shall file with the department of land and natural resources a petition setting forth the purpose for the development. The petition shall be conclusive proof that the intended use is a public use superior to that which the land has been appropriated."

SECTION 15. Section 205-3.1, Hawaii Revised Statutes, is amended to read as follows:

"§205-3.1 Amendments to district boundaries. (a) 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. District boundary amendments of all other lands greater than 15 acres shall be processed by the land use commission pursuant to section 205-4, except as provided in subsection (e).

(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 than fifteen acres presently in the rural and urban districts and lands less than fifteen acres in the agricultural district that are not designated as important agricultural lands.

(c) District boundary amendments involving land areas of fifteen acres or less, except as provided 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] the 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.

(d) The county land use decision-making authority shall serve a copy of the application for a district boundary amendment to the land use commission and the department of business, economic development, and tourism and shall notify the commission and the department of the time and place of the hearing and the proposed amendments scheduled to be heard at the hearing. A change in the state land use district boundaries pursuant to this subsection shall become effective on the day designated by the county land use decision-making authority in its decision. Within sixty days of the effective date of any decision to amend state land use district boundaries by the county land use decision-making authority, the decision and the description and map of the affected property shall be transmitted to the land use commission and the department of business, economic development, and tourism by the county planning director.

(e) Not withstanding any other provision of this section to the contrary, a person may petition the appropriate county decision making authority in the county in which the land is situated for a change in the boundary of a district involving lands that are not designated as important agricultural lands or with soil classified by the land study bureau's detailed land classification as overall (master) productivity rating class A or B and comprising twenty-five acres or less; provided that the majority of the square footage of the development for which the boundary change is sought shall be for Hawaii residents who are owner-occupants and who own no other real property, in perpetuity; provided further that the district boundary amendments shall be limited to lands contiguous to the urban district.

(f) Parceling of lands for development shall be prohibited for the purposes of subsection (e). If lands that have been parceled, or proposed to be parceled, are proposed for reclassification, the petition for reclassification shall be processed as lands greater than fifteen or twenty-five acres, pursuant to section 205-4.

(g) Before a county land use decision-making authority grants a petition for reclassification pursuant to subsection (e), the county land use decision-making authority shall make a clear finding, based on the evidence submitted, that the land subject to a petition for reclassification has not been parceled or proposed to be parceled. Any land that has parceled shall be reverted back to the land's original land use classification.

(h) As used in this section, "parceling" means the subdivision of lands greater than twenty-five acres into two or more parcels, more than one of which is then proposed for reclassification within a ten-year period from the date of the subdivision."

SECTION 16. Section 205-4, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(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(e). The land use commission shall adopt rules pursuant to chapter 91 to implement section 201H-38."

2. By amending subsection (g) to read:

"(g) Within a period of not more than three hundred sixty-five days after the proper filing of a petition, unless otherwise ordered by a court, or unless a time extension, which shall not exceed ninety days, is established by a two-thirds vote of the members of the commission, the commission, by filing findings of fact and conclusions of law, shall act to approve the petition, deny the petition, or to modify the petition by imposing conditions necessary to uphold the intent and spirit of this chapter or the policies and criteria established pursuant to section 205-17 or to assure substantial compliance with representations made by the petitioner in seeking a boundary change. The commission may provide by condition that absent substantial commencement of use of the land in accordance with [such representations,] representations made to the commission, or absent substantial compliance with the conditions imposed under this chapter, the commission, on its own motion or upon motion by any part or interested person, shall issue and serve upon the party bound by the condition an order to show cause why the property should not revert to its former land use classification or be changed to a more appropriate classification. [Such conditions,] If the commission finds that the petitioner's failure to adhere to or comply with the representations or conditions does not warrant reversion to the land's former land use classification, including by reason of ineligibility, the commission may:

(1) Record a notice of noncompliance on the land with the bureau of conveyances; or

(2) Modify the existing conditions or impose new conditions to ensure compliance with the decision and order.

All conditions imposed under this subsection, if any, shall run with the land and be recorded in the bureau of conveyances.

All motions requesting an order to show cause based on an alleged failure to perform a condition, representation, or commitment on the part of a petitioner, may be filed only by the commission or a person who was a party to the proceedings, including successful intervenors, that resulted in the reclassification."

PART IV

SECTION 17. The purpose of this part is to allow the department of land and natural resources state historic preservation division to delegate the responsibility of historic preservation project reviews to the respective counties.

SECTION 18. Section 6E-42, Hawaii Revised Statutes, is amended to read as follows:

"§6E-42 Review of proposed projects. (a) Except as provided in section 6E-42.2, before any agency or officer of the State or its political subdivisions approves any project involving a permit, license, certificate, land use change, subdivision, or other entitlement for use[, which] that may affect historic property, aviation artifacts, or a burial site, the agency or office shall advise the department and prior to any approval allow the department an opportunity for review and comment on the effect of the proposed project on historic properties, aviation artifacts, or burial sites, consistent with section 6E-43, including those listed in the Hawaii register of historic places. If:

(1) The proposed project consists of corridors or large land areas;

(2) Access to properties is restricted; or

(3) Circumstances dictate that construction be done in stages,

the department's review and comment may be based on a phased review of the project; provided that there shall be a programmatic agreement between the department and the project applicant that identifies each phase and the estimated timelines for each phase.

(b) The department shall inform the public of any project proposals submitted to it under this section that are not otherwise subject to the requirement of a public hearing or other public notification.

(c) The department may delegate responsibility for review and comment of projects pursuant to this section, and any administrative rules adopted thereunder, to the respective counties; provided that the department, in consultation with the office of Hawaiian Affairs, has certified that the county has:

(1) Adopted an ordinance to govern the county's review process in accordance with the procedures set forth in this chapter and the department's applicable administrative rules;

(2) Hired qualified professional staff who meet standards established by the department to conduct the reviews;

(3) Established sufficient internal organizational controls to ensure that the qualified professional staff can make independent determinations regarding the effects of projects on historic properties;

(4) Ensured that the qualified professional staff can function in a manner that does not create a conflict of interest or an appearance of a conflict of interest;

(5) Provided for appropriate public notification in a manner consistent with standards established by the department; and

(6) Entered into a written agreement with the department and the office of Hawaiian affairs memorializing the scope of delegation to the county;

provided that the delegation of authority shall automatically be suspended or terminated if the county fails to retain its qualified professional staff or if it becomes apparent that the county does not have sufficient staffing capacity to complete the delegated reviews in a timely manner.

(d) The department shall not delegate reviews or comments to the county for projects affecting properties listed in the Hawaii register of historic places or the national register of historic places, or for projects subject to review under section 6E-43.

(e) The department shall not delegate any of the responsibilities established by sections 6E-43, 6E-43.5 and 6E-43.6 as it relates to burials; nor shall the authority of the burial councils be diminished in any way.

(f) The department may establish a program to certify third-party individuals and organizations to review documents prior to submission of the documents to the department for review. Certification of third-party individuals and organizations shall require approval by the office of Hawaiian affairs. The department shall maintain a list of certified third-party reviewers. A review by a third party shall ensure that the information submitted is complete and complies with the department's documentation requirements and that any accompanying data and analysis supports recommendations made in the submission. All third-party reviews shall be conducted in accordance with the following requirements:

(1) The department shall select the third-party reviewers for each project;

(2) Third-party reviewerswho conduct the reviews shall meet professional qualifications and standards established by the department;

(3) Third-party reviewers that apply for certification shall demonstrate that they have established sufficient internal organizational controls to ensure that the qualified professional staff can make independent determinations regarding the effects of projects on historic properties and can function in a manner that does not create a conflict of interest or an appearance of a conflict of interest; and

(4) Third-party reviewers that precede the department's review shall be independent from the individual or organization that drafted or generated the documents.

[(c)] (g) The department shall adopt rules in accordance with chapter 91 to implement this section."

PART V

SECTION 19. The purpose of this part is to establish the office of the housing advocate, which shall be funded by the dwelling unit revolving fund.

SECTION 20. The Hawaii Revised Statutes is amended by adding a new chapter to title 13 to be appropriately designated and to read as follows:

"CHAPTER

HOUSING ADVOCATE

§ ‑1 Office of the housing advocate; qualifications; duties. (a) There is established the office of the housing advocate, to be placed within the department of business, economic development, and tourism for administrative purposes only. The office shall be headed by the housing advocate and funded by the dwelling unit revolving fund established pursuant to section 201H-191. The housing advocate shall be appointed by the governor to serve a term of four years concurrent with the term of the governor. This appointment shall not be subject to senate confirmation.

(b) The housing advocate shall develop, advocate for, and implement policies to solve Hawaii'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 but not limited to programs or proposals regarding the:

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

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

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

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

(F) Examination of successful housing policies from jurisdictions, nationally and internationally, and methods to adapt these policies to the State;

(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 due to speculation, transient accommodations and short-term vacation rentals, and other phenomena; 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 but not limited to manufactured housing;

(4) Reviewing, evaluating, and making recommendations regarding existing and proposed housing programs and initiatives, including but not limited to 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 generations and industries through the provision of abundant and affordable housing;

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

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

(9) Establishing a consolidated permit application and process to facilitate the expedited processing of affordable housing development projects;

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

(c) The housing advocate may set aside lands belonging to any State agency to any of the Hawaii housing finance and development corporation, the Hawaii public housing authority, or the department of Hawaiian home lands, subject to legislative approval."

SECTION 21. 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]:

(1) To reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund[, for];

(2) For the necessary expenses in administering housing development programs and regional state infrastructure programs[, and for carrying];

(3) To carry 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[.]; and

(4) To fund the office of the housing advocate pursuant to section -1."

SECTION 22. One full-time equivalent (1.0 FTE) position within the department of business, economic development, and tourism shall be transferred to the office of the housing advocate established pursuant to section 16 of this part to establish one full-time equivalent (1.0 FTE) position of the housing advocate; provided that the position shall be funded by the dwelling unit revolving fund pursuant to section 201H-191, Hawaii Revised Statutes.

PART VI

SECTION 23. The purpose of this part is to remove the statutory cap on the amount of conveyance tax revenues that are deposited into the rental housing revolving fund each fiscal year.

SECTION 24. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

(1) Ten per cent or $6,800,000, whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; and

(2) Fifty per cent [or $38,000,000, whichever is less,] shall be paid into the rental housing revolving fund established by section 201H-202."

PART VII

SECTION 25. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 26. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 27. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 28. This Act shall take effect on July 1, 3000.

Report Title:

Affordable Housing; HHFDC; Lease of State Lands; Boundary Amendments; SHPD; Historic Preservation; Counties; Condominiums; Rental Housing Revolving Fund; Appropriation

Description:

Exempts from the definition of public lands, lands set aside by the governor or leased by any state department or agency to the Hawaii housing finance and development corporation for a period not to exceed ninety-nine years, for the primary purposes of developing affordable housing. Requires the Hawaii Housing Finance and Development Corporation to submit a report to the legislature that identifies all state lands that may be developed for multi-unit dwellings. Requires the Hawaii Housing Finance and Development Corporation to submit a program to the Legislature by December 31, 2020, which addresses various housing concerns, including the steps necessary to end the State's housing shortage. Authorizes the issuance of $200,000,000 in general obligation bonds, with the proceeds used for the establishment of infrastructure to support the development of housing on lands near the University of Hawaii West Oahu campus. Authorizes the issuance of $75,000,000 in general obligation bonds, with the proceeds used for affordable housing infrastructure in counties with a resident population of 500,000 or less. Appropriates $500,000 for 3 full time equivalent (FTE) project manager positions. Authorizes a state or county department or agency to petition the appropriate county land use decision-making authority, rather than the Land Use Commission, for a change in the boundary of a district involving land areas between 15 acres and 25 acres where the majority of the square footage of the development will be for affordable housing. Authorizes the State Historic Preservation Division to delegate the responsibility of historic preservation project reviews to the impacted county. Establishes the Office of the Housing Advocate. Removes the existing statutory cap on the amount of conveyance tax revenues that are deposited into the rental housing revolving fund each fiscal year. Defective date 7/1/3000. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.