Bill Text: HI SB2279 | 2020 | Regular Session | Introduced
Bill Title: Relating To Affordable Housing.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Engrossed - Dead) 2020-03-09 - Referred to HSG, JUD, FIN, referral sheet 36 [SB2279 Detail]
Download: Hawaii-2020-SB2279-Introduced.html
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THE SENATE |
S.B. NO. |
2279 |
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THIRTIETH LEGISLATURE, 2020 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to affordable housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is a severe shortage of affordable rental housing in the county of Maui, particularly in the western part of the island of Maui. To help address this issue, the legislature passed Act 150, Session Laws of Hawaii 2018 (Act 150), to appropriate funds in support of both the Front Street Apartments and Lealii affordable housing projects in Lahaina, Maui. By passing Act 98, Session Laws of Hawaii 2019 (Act 98), the legislature also sought to help ensure the continued availability of affordable rental housing in Maui county by preserving the affordability of the Front Street Apartments and appropriating funds to expedite and complete the Lealii affordable housing project in Lahaina, Maui.
The legislature also finds that since the passage of both Act 150 and Act 98, the Hawaii housing finance and development corporation has acquired the leased fee interest in the Front Street Apartments project as required in sections 2 and 4 of Act 98.
Additionally, the legislature finds that the developers of the Lealii affordable rental housing project in Lahaina, Maui, have submitted their 201H application to the Maui county council for approval of the necessary land use entitlements to proceed with development. Due to the pending nature of this application, a modest extension of the deadline set forth in section 6 of Act 98 may be necessary so that the land use entitlements included in this application can be granted.
Under Act 150, as amended by Act 98, the Hawaii housing finance and development corporation must initiate condemnation proceedings unless, by December 31, 2019, it renegotiates the ground lease for the Front Street Apartments project or issues a new ground lease on terms acceptable to the Hawaii housing finance and development corporation. However, a pending lawsuit filed in federal court on behalf of the tenants of Front Street Apartments has made it virtually impossible to obtain an accurate appraisal of the value of the ground lease. The legislature finds that, without an accurate appraisal, neither condemnation by the Hawaii housing finance and development corporation nor a negotiated ground lease agreement are possible. The state constitution requires payment of fair market value under the condemnation process. Similarly, a renegotiated ground lease also requires an accurate appraisal to assess the reasonableness of a lessee's proposal. Thus, an extension of the December 31, 2019 deadline is necessary.
The purpose of this Act is to extend the aforementioned deadlines and help ensure the continued availability of affordable rental housing in Maui county at the Front Street Apartments and Lealii affordable housing projects in Lahaina.
SECTION 2. Act 150, Session Laws of Hawaii 2018, as amended by Act 98, Session Laws of Hawaii 2019, is amended by amending section 1 to read as follows:
"SECTION
1. The Hawaii housing finance and
development corporation shall institute proceedings for the condemnation of the
ground lease for the Front Street Apartments affordable housing project
pursuant to chapter 101, Hawaii Revised Statutes, unless the corporation has renegotiated
the ground lease or issued a new ground lease on terms acceptable to the corporation
by [December 31, 2019.] ."
SECTION 3. Act 98, Session Laws of Hawaii 2019, is amended by amending section 6 to read as follows:
"SECTION
6. There is appropriated out of the rental
housing revolving fund the sum of $37,000,000 or so much thereof as may be
necessary for fiscal year 2019-2020 to expedite and complete the construction
of the Lealii affordable housing project in Lahaina, Maui, by 2022; provided
that if the project does not obtain necessary land use entitlements by [April
30, 2020,] June 30, 2020, the appropriated funds shall be returned
to the rental housing revolving fund.
The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
HHFDC; Affordable Housing; Front Street Apartments; Lealii Affordable Housing Project; Appropriation Extension
Description:
Extends the deadline for the Hawaii Housing Finance and Development Corporation to exercise its power of eminent domain to acquire the Front Street Apartments affordable housing project on Maui unless the ground lease is renegotiated or a new ground lease is issued. Extends the deadline to obtain land use approvals for the Lealii affordable housing project on Maui.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
