Bill Text: HI HB988 | 2024 | Regular Session | Introduced
Bill Title: Relating To The Hawaii Community Development Authority.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-12-11 - Carried over to 2024 Regular Session. [HB988 Detail]
Download: Hawaii-2024-HB988-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
988 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The
legislature has for several years acknowledged that there exists a need for
housing statewide. Given the acute lack
of housing, a multi-pronged approach is necessary to meet the current and
future housing demands in the state.
Development of housing units, affordable at all levels of income, as
well as ownership types (rental, for sale leasehold, for sale fee simple) must
be explored to meet the current and future demands.
Leasehold
housing units tend to be more affordable than fee simple housing units, if the
land on which housing is developed is owned by the state and leased to a
developer for housing development.
Developing multi-family housing units on a lot lowers the cost of land
for the development, which in turn will lower the sales price of the housing
units. Because the cost of leasehold
land is lower than fee simple land and paid over a longer period, it further
reduces the land cost and makes the housing units even more affordable. Because the land will be in leasehold, the
state will continue to be the fee owner of the land. Therefore, encouraging development of for
sale leasehold housing units is a viable strategy in meeting housing
demand. However, the term of the lease
needs to be long enough to make for sale leasehold housing units attractive to
buyers as well as lenders. Typically, a
ninety-nine-year lease is considered to be adequate to attract both lenders and
buyers.
Given
its experience and expertise in developing affordable housing in Kakaako, the
Hawaii community development authority is ideally suited for developing for
sale leasehold housing units in community development districts. Therefore, the purpose of this Act is to
provide additional means to increase the supply of housing in Hawaii by
allowing the Hawaii community development authority to lease real property for
a term of ninety-nine years.
SECTION
2. Section 206E-14, Hawaii Revised
Statutes, is amended to read as follows:
"§206E-14 Sale or lease of redevelopment projects. (a) The
authority may, without recourse to public auction, sell, or lease for a term
not exceeding [sixty-five] ninety-nine years, all or any portion
of the real or personal property, except that leases of lands that were
classed as crown lands previous to August 15, 1895, shall have a term not
exceeding sixty-five years, constituting a redevelopment project to any
person, upon such terms and conditions as may be approved by the authority, if
the authority finds that the sale or lease is in conformity with the community
development plan.
For
the stadium development district, leases shall not exceed a term of ninety-nine
years.
(b) In the case of residential projects or
redevelopment projects, the terms of the sale shall provide for the repurchase
of the property by the authority at its option, in the event that the
purchaser, if other than a state agency, desires to sell the property within
ten years, provided that this requirement may be waived by the authority if the
authority determines that a waiver will not be contrary to the community
development plan. The authority shall
establish at the time of original sale a formula setting forth a basis for a
repurchase price based on market considerations including but not being limited
to interest rates, land values, construction costs, and federal tax laws.
If
the purchaser in a residential project is a state agency, the authority may
include as a term of the sale a provision for the repurchase of the property in
conformance with this section.
(c) The Hawaii community development authority may promulgate rules
under chapter 91 relating to sales by unit purchasers in a residential
leasehold project."
SECTION
3. Statutory material to
be repealed is bracketed and stricken.
New statutory material is underscored.
SECTION
4. This Act shall take
effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Affordable Housing; Hawaii Community Development Authority; Lease of State Land
Description:
Increases options to build affordable housing in Hawaii Community Development Authority districts by increasing the permissible lease term to ninety-nine years. Prohibits the Hawaii Community Development Authority from encumbering lands that were classed as crown lands previous to August 15, 1895, in leases longer than sixty-five years.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
