Bill Text: HI SB580 | 2018 | Regular Session | Introduced
Bill Title: Relating To Housing And Mixed-use Development.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [SB580 Detail]
Download: Hawaii-2018-SB580-Introduced.html
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THE SENATE |
S.B. NO. |
580 |
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TWENTY-NINTH LEGISLATURE, 2017 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to housing and mixed-use development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that a critical shortage of affordable housing exists in Hawaii. The need for affordable rental units is particularly acute for households with low incomes. Approximately ninety-three to ninety-five per cent of rental unit tenants have a household income of less than one hundred forty per cent of the median Hawaii income.
The legislature further finds that the lack of supply leads to higher rents for households of all income levels, leaving all tenants with less disposable income, increasing the personal stress of tenants, reducing tenant quality of life, and exacerbating the population overcrowding and homelessness problems. Without sufficient affordable rental housing, the future social, community, and economic consequences for Hawaii may be dire.
The legislature additionally finds that Act 127, Session Laws of Hawaii 2016, identified a need for an additional 64,700 new housing units and set a state goal to develop at least 22,500 affordable rental housing unit ready for occupancy between January 1, 2017, and December 31, 2026.
The legislature also finds that traditional zoning and land use designations are no longer adequate to meet current development trends. Mixed-use zoning encourages smart growth and the development of compact, higher-density communities consisting of walkable areas with housing, jobs, shops, and services located within close proximity. Mixed-use developments are especially beneficial for low- and moderate-income households because they reduce transportation costs, traffic congestion, and the number of vehicle miles traveled by community residents.
The legislature further finds that long-term leases of lands owned or administered by the State will encourage developers to initiate housing and multi-use development projects that will provide affordable housing options to Hawaii's residents and commercial development projects that will encourage the continued growth of the State's economy.
The purpose of this Act is to allow the department of land and natural resources to enter into housing, commercial, and mixed-use leases for terms in excess of sixty-five years but not exceeding ninety-nine years.
SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§171- Leases for housing, commercial, and mixed-use projects. (a) Notwithstanding sections 171‑36(a)(2) and 171‑95(a)(2) to the contrary, the department may negotiate leases for housing, commercial, and mixed-use projects that have been or shall be developed pursuant to a land disposition authorized under:
(1) Rules adopted by the department with a qualified developer; or
(2) A project developer agreement authorized under rules adopted by the department with a qualified developer, whether the project developer agreement is existing or entered into pursuant to this section.
As part of the lease negotiation process, the department may consult with the Hawaii housing finance and development corporation.
(b) The initial term of any lease of residential, commercial, or mixed use property negotiated pursuant to this section and any extensions thereof may be for a period in excess of sixty-five years; provided that the aggregate of the initial term and any extensions of the term shall in no event exceed ninety-nine years. Upon expiration of the negotiated term of the lease, the lease may be offered for public option as provided in this title; provided that the previous lease holder shall be offered the right of first refusal in accordance with the terms of the lease; provided further that the lease holder shall agree to match the highest bid offered at the public option.
(c) As used in this section, "consult with the Hawaii housing finance and development corporation" means a process, as established by the department, of engaging the Hawaii housing finance and development corporation and the qualified developer in a process that provides for the timely dissemination of information and the gathering of input and allows for a reasonable time and reasonable access to relevant information for evaluation and consideration."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Housing and Mixed-use Development; Department of Land and Natural Resources; Leases
Description:
Allows the department of land and natural resources to enter into housing, commercial, and mixed-use leases for terms in excess of sixty-five years but not exceeding ninety-nine years. Gives the lessee a right of first refusal following a public auction at the termination of the lease; provided that the lessee shall match the highest lease rental bid offered.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
