Bill Text: HI SB442 | 2010 | Regular Session | Amended
Bill Title: County Infrastructure Development Revolving Loan Fund
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB442 Detail]
Download: Hawaii-2010-SB442-Amended.html
Report Title:
Affordable Housing; Third-Party Review; Commission on Transit Oriented Development; Appropriation
Description:
Authorizes the Hawaii housing finance and development corporation to grant funds to affordable housing developers to contract for third-party review and certification to expedite the process and issuance of building permits for an affordable housing project that is part of a transit oriented development; appropriates moneys for the grants (part I); establishes a commission on transit oriented development; appropriates funds for the commission (part II). (SD1)
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THE SENATE |
S.B. NO. |
442 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
S.D. 1 |
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STATE OF HAWAII |
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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 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 can promote affordable housing. Development around transit stations is often more intensive, mixed-use development, which may help reduce the cost of constructing affordable housing, and require fewer parking options. With daily goods and services located within walking distance, developing new and preserving existing affordable housing near transit stations can reduce transportation costs for working families and mitigate the negative impacts of automobile travel on the environment and the economy. However, developing mixed-income housing near transit presents significant challenges because of the high land cost that results from the market demand for housing, office space, and amenities within walking distance of transit; multiple sources of financing required; and the added costs of providing more community benefits, often sooner, rather than later.
The legislature further finds that the need for a mix of housing types affordable to a range of household incomes in proximity to transit is an important policy concern at all levels of government, including state government.
The purpose of this Act is to encourage the delivery of new and preservation of existing mixed-use affordable housing as part of transit oriented development by providing incentives to facilitate affordable housing in well-designed transit oriented development and improving the coordination of housing and transportation planning at all levels of government.
PART I
SECTION 2. The legislature finds that if incentives are not provided for the development of affordable housing in proximity to transit corridors and stations, "gentrification" of the neighborhood – meaning significantly more expensive market housing that replaces existing affordable housing – may occur. Therefore, it is important that transit oriented development be encouraged to provide new and retain existing affordable housing.
The purpose of this part is to encourage the delivery of affordable housing as part of transit oriented development by offering faster permit processing through funding the use of third-party review programs.
SECTION 3. (a) Notwithstanding any provisions of chapter 201H, Hawaii Revised Statutes, the Hawaii housing finance and development corporation may grant funds to affordable housing developers for the purpose of contracting for third-party review and certification, as offered by the respective county, to expedite the processing and issuance of building permits for an affordable housing project that is part of a transit oriented development; provided that no more than $10,000 may be expended for third-party review for each affordable housing project.
Affordable housing projects shall include a minimum of thirty units, of which at least half shall be affordable units for rent or for sale.
Third-party review and certification may apply to inspections and other ministerial permits as allowed by the respective county.
The counties shall certify that the project is in a transit oriented zone in order for this subsection to apply.
(b) In processing requests for third-party review and certification, the Hawaii housing finance and development corporation shall give priority:
(1) First, to projects 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; and
(2) Second, to projects that offer affordable housing units to qualifying households dislocated as a result of redevelopment.
(c) For the purposes of this section"
"Affordable housing" means housing units for households with incomes at or below one hundred forty per cent of the median family income, as determined by the United States Department of Housing and Urban Development.
"Code" means the building code, plumbing code, electrical code, housing code, and ordinances pertaining to land use, and to building energy efficiency standards that are administered and enforced by the county.
"Third-party certification" means an expression of a licensed architect or engineer's professional opinion to the best of the person's information, knowledge, or belief that the proposed design or project is in compliance with the code, ordinances, rules, and other requirements. This certification does not constitute a warranty or guarantee.
"Third-party review" means the review of the one hundred per cent design submission of plans and specifications by licensed architects or engineers, qualified by the county, for the purpose of certifying that the proposed design or project is in compliance with the code, ordinances, rules, and other requirements of the county.
"Transit oriented development" means compact, mixed-use development near new or existing public transit facilities that serves, housing, transportation and neighborhood goals.
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 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 for grants to affordable housing developers for the purpose of contracting for third-party review and certification.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
PART II
SECTION 5. The legislature finds that transit oriented development is increasingly recognized as having the potential to improve the quality of life for Hawaii households by creating livable communities in proximity to transit. Transit oriented development presents unique opportunities to address land use, planning, zoning, and financing issues that affordable housing developers encounter when developing mixed-income housing projects.
The purpose of this part is to facilitate mixed-income and affordable housing in transit oriented developments by better coordinating transportation and housing planning and programs.
SECTION 6. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
COMMISSION ON TRANSIT ORIENTED DEVELOPMENT
§ -1 Definitions. The following terms, wherever used or referred to in this chapter, shall have the following respective meanings, unless a different meaning clearly appears from the context:
"Affordable housing" means housing units for households with incomes at or below one hundred forty per cent of the median family income, as determined by the United States Department of Housing and Urban Development.
"Commission" means the commission on transit oriented development.
"Rapid transit system" means a grade-separated, high capacity, high frequency transportation system used primarily to transport people.
"Transit oriented development" means compact, mixed-use development near new or existing public transit facilities that serves, housing, transportation and neighborhood goals.
"Transit oriented development zone" means an area in proximity to a transit station, within the jurisdiction of a county government or a legislatively established special district, which is designated by the commission for state or county incentives and programs.
§ -2 Commission on transit oriented development; establishment, staff. (a) There is established the commission on transit oriented development under the department of business, economic development, and tourism for administrative purposes and staffed by the Hawaii housing finance and development corporation.
(b) The commission shall consist of at least thirteen members; provided that each county that develops a rapid transit system shall be represented on the commission as follows. Members shall include:
(1) Two members of the county council appointed by the chairperson of the council, one of whom represents an area with, or planned to have rapid transit stations;
(2) Two members of the state senate appointed by the president of the senate, one of whom shall be the chairperson of the senate committee with primary responsibility for housing issues;
(3) Two members of the state house of representatives appointed by the speaker of the house of representatives, one of whom shall be the chairperson of the committee with primary responsibility for housing issues;
(4) The state director of finance, or a designated representative;
(5) The executive director of the Hawaii housing finance and development corporation, or a designated representative;
(6) The director of the state office of planning, or a designated representative;
(7) The county director of planning, or a designated representative;
(8) The county director of budget and fiscal services, or a designated representative;
(9) The county housing director, or a designated representative; and
(10) The county director of the metropolitan planning organization, or a designated representative.
(c) Each member of the commission who is a member of the state legislature or the legislative body of the county shall serve for the same term as the term of office for which the member is elected. Vacancies that occur on the commission shall be filled in the same manner in which the original member was appointed.
(d) The commission shall select a chairperson and vice chairperson from among its members. Seven members shall constitute a quorum, whose affirmative vote shall be necessary for all actions by the commission.
(e) The members shall receive no compensation for services.
§ -4 Functions of the commission on transit oriented development. (a) The commission shall serve in an advisory capacity to the state legislature, the legislative body of each county, and the appropriate state and county agencies responsible for carrying out a continuing, comprehensive, transit oriented development planning process.
(b) The commission shall:
(1) Identify regulatory barriers to housing near transit stations;
(2) Identify ways to improve coordination of housing and transportation planning including the United States Department of Housing and Urban Development's Consolidated Plan and Public Housing Agency Plan, and the United States Department of Transportation's transportation planning requirements;
(3) Identify strategies for addressing area housing and transportation needs including the designation of transit oriented development zones;
(4) Identify ways to improve the leveraging of housing and transportation funds;
(5) Identify financial incentives for funding mixed-income and affordable housing near transit, as well as land use and other incentives to expand housing choices in proximity of new and existing transit stations;
(6) Identify tax incentives for the development or rehabilitation of community health care facilities within mixed-use transit oriented development projects;
(7) Monitor outcomes and continually update goals and objectives; and
(8) Undertake any other functions as may be appropriate in an advisory capacity to ensure a joint planning process between the county and the State, and advise appropriate legislative bodies and agencies, as necessary.
§ -5 Jurisdictional responsibilities. Nothing in this chapter is intended to change the basic jurisdictions for planning, regulating, financing, and permitting responsibilities under the purview of state and county agency statutes and ordinances that were in existence prior to the enactment of this chapter. The state and counties shall cooperate with the commission by providing guidance based on their planning processes and regulatory functions."
SECTION 7. 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 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 for the operations of the commission on transit oriented development.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 8. This Act shall take effect on July 1, 2009.
