Bill Text: HI SB2699 | 2014 | Regular Session | Amended

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Bill Title: Hawaii Community Development Authority; Affordable Housing; Reserved Housing

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2014-03-14 - Re-referred to FIN, referral sheet 35 [SB2699 Detail]

Download: Hawaii-2014-SB2699-Amended.html

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THE SENATE	S.B. NO.	2699
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY'S AFFORDABLE HOUSING REQUIREMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the Hawaii community development authority was established to meet "vast, unmet community needs," including "a lack of suitable affordable housing."  The legislature further finds that in the thirty-seven years since the establishment of the authority, although the need for affordable housing in Honolulu has grown to its greatest extent ever, the authority has added only a limited amount of affordable housing.  Currently, over ninety per cent of the units under consideration for approval by the authority are intended for households earning the Honolulu median income or higher, which is not "affordable housing."

     Moreover, the legislature finds that the authority has ignored the legislature's charge to define "reserved housing" as "affordable housing" under section 206E-4(18), Hawaii Revised Statutes, and as "low- or moderate-income" housing under section 206E-101, Hawaii Revised Statutes.  Instead, the authority has redefined "reserved housing" as up to one hundred forty per cent of the area median income, "as determined by the United States Department of Housing and Urban Development" under section 15-218-32(a), Hawaii Administrative Rules, even though the Department of Housing and Urban Development defines "low income" as below sixty per cent of area median income and "moderate income" as below eighty per cent of area median income.  Similarly, the authority improperly defines "workforce housing" as housing available to residents earning between one hundred per cent and one hundred forty per cent of area median income under section 15-218-55, Hawaii Administrative Rules, which is also contrary to the Department of Housing and Urban Development's definitions of "low- or moderate-income" housing.

     Furthermore, the legislature finds that in Kakaako, the authority is approving development projects for an offshore market that will increase congestion in Honolulu while straining local infrastructure.  These policies stand in contrast to the objectives of the city and county of Honolulu, which currently requires affordable housing units for new developments to comprise at least ten per cent of units priced below eighty per cent of area median income and twenty per cent of units priced below one hundred twenty per cent of area median income, and imposes strict prohibitions against reselling or renting homes at market rates (also known as "flipping") over a fixed buyback period.  The authority has failed to adopt policies that encourage affordable housing, in the process drawing development toward Kakaako that, were it to occur elsewhere in Honolulu, would be required to provide affordable housing.

     In addition, the legislature finds that city policies work to build affordable housing and, therefore, determines that under the existing circumstances, the authority should be required to adopt affordable housing rules at least as strict and restrictive as those adopted by the city and county of Honolulu.

     The purpose of this Act is to bring the authority's policy on affordable housing into greater conformity with the affordable housing policies of the city and county of Honolulu.

     SECTION 2.  Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:

     "§206E-4  Powers; generally.  Except as otherwise limited by this chapter, the authority may:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at pleasure;

     (3)  Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

     (4)  Make and alter bylaws for its organization and internal management;

     (5)  Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

     (6)  Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;

     (7)  Prepare or cause to be prepared a community development plan for all designated community development districts;

     (8)  Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

     (9)  Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

    (10)  By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project that the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

    (11)  Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;

    (12)  Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on terms and conditions as it deems advisable;

    (13)  Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify the plans, specifications, designs, or estimates;

    (14)  Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (15)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (16)  Contract for and accept gifts or grants in any form from any public agency or from any other source;

    (17)  Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter; and

    (18)  Allow satisfaction of [any] affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located inside or outside the geographic boundaries of the authority's jurisdiction; provided that the authority shall not permit any person to make cash payments in lieu of providing reserved housing, except to account for any fractional unit that results after calculating the percentage requirement against residential floor space or total number of units developed.  The substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site.  The authority shall establish the following priority in the development of reserved housing:

         (A)  Within the community development district;

         (B)  Within areas immediately surrounding the community development district;

         (C)  Areas within the central urban core;

         (D)  In outlying areas within the same island as the development project.

              The Hawaii community development authority shall adopt rules relating to the approval of reserved housing that are developed outside of a community development district.  The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities."

     SECTION 3.  Section 206E-7, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§206E-7[]]  Community development rules.  The authority shall establish community development rules under chapter 91 on health, safety, building, planning, zoning, and land use which, upon final adoption of a community development plan, shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction thereon[.]; provided that the authority's rules shall require reserved housing for low- and moderate-income residents in a manner consistent with the city and county of Honolulu's requirements for affordable housing.  Rules adopted under this section shall follow existing law, rules, ordinances, and regulations as closely as is consistent with standards meeting minimum requirements of good design, pleasant amenities, health, safety, and coordinated development.  The authority may, in the community development plan or by a community development rule, provide that lands within a community development district shall not be developed beyond existing uses or that improvements thereon shall not be demolished or substantially reconstructed, or provide other restrictions on the use of the lands."

     SECTION 4.  Section 206E-101, Hawaii Revised Statutes, is amended by amending the definition of "reserved housing" to read as follows:

     "Reserved housing" means housing designated for residents in the low- or moderate-income ranges who meet such eligibility requirements as the authority may adopt by rule[.]; provided that, as used in this definition:

     (1)  "Low-income" means household income no greater than eighty per cent of the area median income for Honolulu; and

     (2)  "Moderate-income" means household income no greater than one hundred twenty per cent of the area median income for Honolulu;

provided further that the authority's rules shall be at least as strict and restrictive as the city and county of Honolulu's Amendment of Affordable Housing Rules for Unilateral Agreements, adopted February 12, 2010, including terms of restrictions on the transfer of title, the sale of affordable housing units, and buyback provisions."

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2050.

 

 

 

Report Title:

Hawaii Community Development Authority; Affordable Housing; Reserved Housing

 

Description:

Requires the Hawaii Community Development Authority to implement affordable housing policies that are in greater conformity with those of the City and County of Honolulu.  Effective 7/1/2050.  (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.