Hawaii-2024-HB2007-Amended

SECTION 1. The legislature finds that there is a severe housing shortage in Hawaii. The legislature further finds that some religious institutions, educational institutions, and medical institutions are willing to convert a portion of their land to provide housing. It is not the intent of the legislature to allow fly-by-night developers to create one of these types of institutions solely to circumvent the normal development process.

The purpose of this Act is to allow religious institutions, educational institutions, and medical institutions to build dwelling units on lands zoned within the state urban land use district, under certain conditions.

SECTION 2. Section 46-4, Hawaii Revised Statutes, is amended to read as follows:

"§46-4 County zoning. (a) This section and any ordinance, rule, or regulation adopted in accordance with this section shall apply to lands not contained within the forest reserve boundaries as established on January 31, 1957, or as subsequently amended.

Zoning in all counties shall be accomplished within the framework of a long-range, comprehensive general plan prepared or being prepared to guide the overall future development of the county. Zoning shall be one of the tools available to the county to put the general plan into effect in an orderly manner. Zoning in the counties of Hawaii, Maui, and Kauai means the establishment of districts of such number, shape, and area, and the adoption of regulations for each district to carry out the purposes of this section. In establishing or regulating the districts, full consideration shall be given to all available data as to soil classification and physical use capabilities of the land to allow and encourage the most beneficial use of the land consonant with good zoning practices. The zoning power granted [~~herein~~] in this section shall be exercised by ordinance, which may relate to:

(1) The areas within which agriculture, forestry, industry, trade, and business may be conducted;

(2) The areas in which residential uses may be regulated or prohibited;

(3) The areas bordering natural watercourses, channels, and streams, in which trades or industries, filling or dumping, erection of structures, and the location of buildings may be prohibited or restricted;

(4) The areas in which particular uses may be subjected to special restrictions;

(5) The location of buildings and structures designed for specific uses and designation of uses for which buildings and structures [~~may~~] shall not be used or altered;

(6) The location, height, bulk, number of stories, and size of buildings and other structures;

(7) The location of roads, schools, and recreation areas;

(8) Building setback lines and future street lines;

(9) The density and distribution of population;

(10) The percentage of a lot that may be occupied, size of yards, courts, and other open spaces;

(11) Minimum and maximum lot sizes; and

(12) Other regulations the boards or [~~city~~] council of any county find necessary and proper to permit and encourage the orderly development of land resources within their jurisdictions.

The council of any county shall prescribe rules, regulations, and administrative procedures and provide personnel it finds necessary to enforce this section and any ordinance enacted in accordance with this section. The ordinances may be enforced by appropriate fines and penalties, civil or criminal, or by court order at the suit of the county or the owner or owners of real estate directly affected by the ordinances.

Any civil fine or penalty provided by ordinance under this section may be imposed by the district court, or by the zoning agency after an opportunity for a hearing pursuant to chapter 91. The proceeding shall not be a prerequisite for any injunctive relief ordered by the circuit court.

Nothing in this section shall invalidate any zoning ordinance or regulation adopted by any county or other agency of government pursuant to the statutes in effect [~~prior to~~] before July 1, 1957.

The powers granted [~~herein~~] in this section shall be liberally construed in favor of the county exercising them, and in [~~such~~] a manner [~~as to promote~~] that promotes the orderly development of each county or city and county in accordance with a long-range, comprehensive general plan to ensure the greatest benefit for the State as a whole. This section shall not be construed to limit or repeal any powers of any county to achieve these ends through zoning and building regulations, except insofar as forest and water reserve zones are concerned and as provided in subsections (c) and [~~(d).~~] (e).

Neither this section nor any ordinance enacted pursuant to this section shall prohibit the continued lawful use of any building or premises for any trade, industrial, residential, agricultural, or other purpose for which the building or premises is used at the time this section or the ordinance takes effect; provided that a zoning ordinance may provide for elimination of nonconforming uses as the uses are discontinued, or for the amortization or phasing out of nonconforming uses or signs over a reasonable period of time in commercial, industrial, resort, and apartment zoned areas only. In no event shall [~~such~~] the amortization or phasing out of nonconforming uses apply to any existing building or premises used for residential (single-family or duplex) or agricultural uses. Nothing in this section shall affect or impair the powers and duties of the director of transportation as set forth in chapter 262.

(b) Any final order of a zoning agency established under this section may be appealed to the circuit court of the circuit in which the land in question is found. The appeal shall be in accordance with the Hawaii rules of civil procedure.

(c) Each county may adopt reasonable standards to allow the construction of two single-family dwelling units on any lot where a residential dwelling unit is permitted.

(d) Notwithstanding any law, ordinance, or standard to the contrary, a religious institution, educational institution, or medical institution may build dwelling units on a parcel of land the institution has owned before January 1, 2024, and that is within the state urban land use district; provided that a county may impose development standards as authorized under this section; provided further that a county shall allow for at least ten dwelling units per acre; provided further that this subsection shall not apply to industrial areas, hazardous areas, county powers within special management areas delineated pursuant to part II of chapter 205A, or areas zoned for one primary dwelling unit or less per acre.

Any proposed dwelling units developed pursuant to this subsection shall be:

(1) Less than fifteen acres and no greater than fifty per cent of the parcel area;

(2) Used for homeless services or long-term rentals, as defined by each county; and

(3) Retained by the a religious institution, educational institution, or medical institution for so long as the institution remains in existence.

As used in this subsection:

"Educational institution" means any private educational organization that has been granted tax-exempt status under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

"Medical institution" means any organization that has a certificate of need pursuant to part V of chapter 323D and been incorporated in the State as a nonprofit corporation and that has continuously operated and will be operated exclusively to provide, or to contribute to the support of, organizations or institutions organized and operated exclusively to provide hospital, medical, research, or therapeutic services to the public.

"Religious institution" means any religious institution or organization that has been granted tax-exempt status under section 501(c)(3) of the Internal Revenue Code 1986, as amended; does not restrict membership to persons on the basis of race, color, or ancestry; and has no part of its earnings inured to any private shareholder or individual.

[~~(d)~~] (e) Neither this section nor any other law, county ordinance, or rule shall prohibit group living in facilities with eight or fewer residents for purposes or functions that are licensed, certified, registered, or monitored by the State; provided that a resident manager or a resident supervisor and the resident manager's or resident supervisor's family shall not be included in this resident count. These group living facilities shall meet all applicable county requirements not inconsistent with the intent of this subsection, including but not limited to building height, setback, maximum lot coverage, parking, and floor area requirements.

[~~(e)~~] (f) Neither this section nor any other law, county ordinance, or rule shall prohibit the use of land for employee housing and community buildings in plantation community subdivisions as defined in section 205-4.5(a)(12); in addition, no zoning ordinance shall provide for the elimination, amortization, or phasing out of plantation community subdivisions as a nonconforming use.

[~~(f)~~] (g) Neither this section nor any other law, county ordinance, or rule shall prohibit the use of land for medical cannabis production centers or medical cannabis dispensaries established and licensed pursuant to chapter 329D; provided that the land is otherwise zoned for agriculture, manufacturing, or retail purposes."

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, 3000; provided that on January 1, 2034, this Act shall be repealed and section 46-4, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act.

HOUSE OF REPRESENTATIVES	H.B. NO.	2007
THIRTY-SECOND LEGISLATURE, 2024		H.D. 3
STATE OF HAWAII