Hawaii-2012-SB12-Introduced

SECTION 1. The legislature finds that rapid transit systems address traffic congestion and offer expanded mobility options. Rapid transit systems can be a major influence in regional and neighborhood economic development, strongly influencing where development, redevelopment, and revitalization occur. In addition, transit systems promote affordable housing. Development around transit stations is relatively more intense mixed use development, which reduces the costs of constructing affordable housing, especially since less parking is provided. With daily goods and services located within walking distance, households located near transit stations can considerably reduce transportation costs.

The legislature further finds that if insufficient incentives are provided for affordable housing, the "gentrification" of the neighborhood may occur, resulting in significantly more expensive market housing replacing existing affordable housing. Therefore, it is important that transit-oriented development be encouraged to provide new affordable housing and retain existing affordable housing.

The purpose of this Act is to:

(1) Authorize the Hawaii housing and finance development corporation to facilitate the delivery of affordable housing as part of transit-oriented development by making grants-in-aid to counties to expedite permit processing through the use of county third party review programs; and

(2) Make an appropriation to the Hawaii housing and finance development corporation to make grants-in-aid to counties in accordance with this Act.

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

"§201H‑ Expedited approval of county permits for affordable housing; transit-oriented development. (a) The corporation shall encourage the development of affordable housing, as defined in section 201H-57, that is located in or near transit-oriented development. The corporation shall collaborate with county permitting agencies to facilitate the timely processing of county permits with the appropriate county agency responsible for approving, monitoring, and enforcing the terms and conditions of the permit in accordance with the permit plan.

(b) For purposes of this section, the corporation may make grants-in-aid to counties from moneys appropriated by the legislature for a county to contract with third parties to conduct reviews and certifications of county permit applications."

SECTION 3. Section 201H-32, Hawaii Revised Statutes, is amended as follows:

1. By adding a new definition to be appropriately inserted and to read:

""Transit-oriented development" refers to a mixed-use residential or commercial area designed to maximize access to public transportation. A transit-oriented development may incorporate features to encourage transit ridership. A transit-oriented development includes a transit station or stop surrounded by affordable housing development."

2. By amending the definition of "develop" or "development" to read:

""Develop" or "development" means the planning, financing and acquisition of real and personal property; demolition of existing structures and clearance of real property; construction, reconstruction, alteration, or repairing of approaches, streets, sidewalks, utilities, and services, or other site improvements; construction, reconstruction, repair, remodeling, extension, equipment, or furnishing of buildings or other structures; or any combination of the foregoing, of any housing project. It also includes any and all undertakings necessary therefor, and the acquisition of any housing, in whole or in part[.], including undertakings to facilitate transit-oriented development that includes affordable housing development."

SECTION 4. 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 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for the Hawaii housing finance and development corporation to make grants-in-aid to appropriate county agencies for the sole purpose of contracting for the third party review and certification of county permit applications to expedite the processing and issuance of building permits for affordable housing projects that are certified by a county to be part of a transit-oriented development; provided that the grants-in-aid for third party review shall be limited to not more than $10,000 per affordable housing unit; and provided further that:

(1) Each affordable housing project includes a minimum of thirty units, with no less than half of the total units dedicated to affordable housing units for rent or sale; and

(2) Priority in awarding grants shall be given to housing development projects in the following order of priority:

(A) Those that reserve at least fifty per cent of the total number of units for households with incomes at or below eighty per cent of the median family income, notwithstanding the definition of affordable housing under section 201H-57, Hawaii Revised Statutes; and

(B) Those that offer affordable housing units to qualifying households that are dislocated as a result of redevelopment.

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

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2011.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	12
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII