Bill Text: HI SB16 | 2011 | Regular Session | Amended
Bill Title: Transit-Oriented Development; Loan Guaranty
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-15 - (S) Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB16 Detail]
Download: Hawaii-2011-SB16-Amended.html
|
THE SENATE |
S.B. NO. |
16 |
|
TWENTY-SIXTH LEGISLATURE, 2011 |
S.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO TRANSIT-ORIENTED DEVELOPMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that in addition to increasing mobility, rapid transit can be a significant contributor to more sustainable living in Hawaii. Rapid transit can stimulate more compact development around transit stations, thereby reducing the pressure for urban sprawl. Community benefits, such as open plazas, and community focal points can also be components of transit-oriented development. Residents living close to transit stations can realize significant savings in transportation costs, as well as the benefits of having daily supportive uses, such as grocery stores, within walking distance.
However, transit-oriented developments are often associated with higher risk because of the multiple sources of financing required, the added costs of providing more community benefits, and requirements that the community benefits be provided sooner, rather than later. These risks make affordable housing that is a part of transit-oriented development more difficult to develop.
The purpose of this Act is to encourage affordable housing as part of transit-oriented development by offering loan guaranties.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§201H- Transit-oriented development; affordable housing; loan guaranty. (a) The corporation may guarantee loans made by commercial lenders authorized to do business in this State to developers for the purpose of developing and implementing transit-oriented development projects that include affordable housing; provided that the executive director shall determine that:
(1) The transit-oriented development projects are located within a transit-oriented development zone designated by the respective county; and
(2) The commercial lender has completed its due diligence in approving the loan, including ensuring adequate collateral.
The corporation may impose other conditions that the executive director deems reasonable to implement the loan guaranty.
(b) In addition to the conditions that the executive director may impose under subsection (a), any loan guaranty made pursuant to this section shall meet the following conditions:
(1) For any loan that finances operating costs, the maximum term of the loan shall be ten years;
(2) For any loan that finances capital improvement costs, the maximum term of the loan shall be twenty years;
(3) The interest rate charged on any loan shall be one per cent below the commercial lender's prime rate for as long as the loan guaranty is in effect;
(4) The loan guaranty may be up to eighty-five per cent of the outstanding principal amount of any single loan, but shall not include any fees or accrued interest associated with the loan or its collection; and
(5) The total principal amount of the guaranteed portion of all loans outstanding at any time shall not exceed $10,000,000.
(c) The corporation may adopt rules pursuant to chapter 91 for the purposes of this section.
(d) As used in this section, "transit-oriented development" means land use projects of relatively intense concentration involving a mixture of uses that depend upon and support transit ridership."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2011.
Report Title:
Transit-Oriented Development; Loan Guaranty
Description:
Establishes a loan guaranty for transit-oriented development projects that include affordable housing; limits the total principal amount of the guaranteed portion of all loans outstanding at any time to $10,000,000. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
