Bill Text: HI SB3261 | 2022 | Regular Session | Amended

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Bill Title: Relating To Housing.

Spectrum: Strong Partisan Bill (Democrat 10-1)

Status: (Engrossed - Dead) 2022-03-18 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with Representative(s) Kapela, Kong, Perruso voting aye with reservations; none voting no (0) and Representative(s) Branco, Ilagan, McKelvey, Ohno excused (4). [SB3261 Detail]

Download: Hawaii-2022-SB3261-Amended.html

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THE SENATE	S.B. NO.	3261
THIRTY-FIRST LEGISLATURE, 2022		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

 

 

RELATING TO HOUSING.

 

 

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

 

     SECTION 1.  The legislature finds that the cost and availability of housing in the State are significant challenges facing Hawaii residents.  Although Hawaii has the tenth highest median wage nationally, living expenses are two-thirds higher than the rest of the nation, with the cost of housing being a major contributing factor.  According to the Honolulu Board of Realtors, by August 2021 the median price for a single-family home on Oahu had risen to $1,050,000, while the median price for condominiums on Oahu had risen to $500,000.  With a simple mortgage calculator and using conservative assumptions on interest rates and down payment amounts, a household needs to earn at least $200,000 annually to afford to buy a median-priced home on Oahu in 2021, making homeownership out of reach for many of Hawaii's residents, especially first-time buyers.

     Because of the many barriers hindering the production of new housing, such as geographic limitations, lack of major infrastructure, construction costs, and government regulation, the State and housing developers have not been able to produce enough housing for Hawaii residents.  

     In addition, the legislature finds that the amount of new construction of housing, especially for low- to middle-income families, continues to be inadequate as the supply of housing remains constrained while demand for housing increases.  This lack of supply leads to higher housing prices and rents for households of all income levels, leaving all tenants with less disposable income, increasing the personal stress on buyers and renters, and exacerbating overcrowding and homelessness.  Given these consequences, the lack of affordable housing requires the concentrated attention of state government at the highest level.

     The legislature further finds that one solution to the affordable housing shortage is to have the State and counties work together to implement leasehold housing for local residents.  State-supported leasehold housing can offer more affordable ownership options than the private market and can be reserved entirely for local residents.  The formation of a working group can help determine the best framework for how state and county agencies can work together to create leasehold housing options for residents.

     The purpose of this Act is to:

     (1)  Direct the Hawaii housing finance and development corporation to convene a working group in cooperation with the counties and other housing experts to study the implementation of leasehold housing on publicly-owned, non-ceded lands near public transit stations in each county; and

     (2)  Appropriate funds to the Hawaii housing finance and development corporation to support the activities of the working group.

     SECTION 2.  (a)  The Hawaii housing finance and development corporation shall establish a working group in cooperation with the counties and other housing experts to study the implementation of leasehold housing on publicly-owned, non-ceded lands near public transit stations in each county.

     (b)  The working group shall comprise:

     (1)  The executive director of the Hawaii housing finance and development corporation, or the executive director's designee;

     (2)  The directors of housing of each county, or their respective designees;

     (3)  An affordable housing advocate, selected by the executive director of the Hawaii housing finance and development corporation;

     (4)  A nonprofit housing developer with experience in publicly-financed development, to be selected by the president of the senate;

(5)  A private housing developer with experience in publicly-financed development, to be selected by the speaker of the house of representatives; and

(6)  A representative from a low-income homeowner assistance program, to be selected by the president of the senate.

     (c)  The members of the working group shall designate a chairperson from among themselves.

(d) The working group shall:

     (1)  Study the implementation of leasehold housing on publicly-owned, non-ceded lands near public transit stations in each county;

     (2)  Review the history of leasehold housing in Hawaii; existing state laws permitting residential leasehold developments under chapter 516, Hawaii Revised Statutes; and past litigation to determine opportunities and barriers to establishing a leasehold housing program in the State;

     (3)  Identify best practices in residential leasehold development in Hawaii, United States, and globally;

     (4)  Articulate the potential costs and benefits of a partnership between the Hawaii housing finance and development corporation and counties to develop leasehold housing programs;

     (5)  Develop recommendations on resident requirements, owner-occupancy enforcement, limited equity agreements, affordability periods for the housing, and other program elements that are important to help the State and counties meet their affordable housing goals;

     (6)  Develop recommendations on ways to ensure access to the leasehold housing program for middle- and lower-income residents who need assistance acquiring a down payment or qualifying for a mortgage;

     (7)  Identify potential sites in each county to be used or acquired for publicly-financed leasehold housing; provided that the sites are suitable for long-term leases and the counties are interested in initiating or expanding leasehold housing programs; and

     (8)  Determine estimated pre-development and infrastructure costs and cost-sharing options among the State, counties, private entities, and developers.

     (e)  The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than December 10, 2023.

     (f) The working group shall dissolve on June 30, 2024.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2022-2023 to support the activities of the working group established pursuant to section 2 of this Act.

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

     SECTION 4.  This Act shall take effect on July 1, 2050.

 

 

 

Report Title:

HHFDC; Affordable Housing; Working Group; Leasehold Housing; Counties; Study; Appropriation

 

Description:

Directs the Hawaii housing finance and development corporation in cooperation with the counties and other housing experts to study the implementation of leasehold housing on publicly-owned, non-ceded lands near public transit stations in each county.  Requires the working group to submit a report to the legislature by 12/10/2023.  Appropriates funds.  Effective 7/1/2050.  (HD1)

 

 

 

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