Report Title:

Hawaii Housing and Conservation Trust Fund

Description:

Establishes a Hawaii Housing and Conservation Trust Fund to finance affordable housing and conserve and protect important agricultural lands and historic properties.

HOUSE OF REPRESENTATIVES

H.B. NO.

2818

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 
     

A BILL FOR AN ACT

 

RELATING TO HAWAII HOUSING AND CONSERVATION TRUST FUND.

 

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

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

HAWAII HOUSING AND CONSERVATION TRUST FUND

PART I. GENERAL PROVISIONS

§ -1 Short title. This chapter may be cited as the "Hawaii Housing and Conservation Trust Fund Act".

§ -2 Purpose. The purpose of this chapter is to create affordable housing in Hawaii and to conserve and protect Hawaii's agricultural lands, historic properties, important natural areas, unique ecological environments, and recreational lands that are of primary importance to the economic vitality and quality of life in the State.

§ -3 Definitions. As used in this chapter:

"Board" means the Hawaii housing and conservation board established under this chapter.

"Eligible activity" means any activity that will create affordable housing or conserve and protect important Hawaii lands, including activities that will encourage or assist:

(1) The preservation, rehabilitation, or development of residential dwelling units that are affordable to lower income residents;

(2) The retention of agricultural land for agricultural use;

(3) The protection of important wildlife habitat and important natural areas;

(4) The preservation of historic properties or resources;

(5) The protection of areas suited for outdoor public recreational activity; and

(6) The development of capacity on the part of an eligible applicant to engage in an eligible activity.

"Eligible applicant" means any county or state agency or department, qualifying nonprofit organization, or cooperative housing organization (chapter 42F notwithstanding), whose objective is the creation or retention of affordable lower income housing and whose bylaws require that such housing be maintained as affordable lower income housing on a perpetual basis.

"Fund" means the Hawaii housing and conservation trust fund established under this chapter.

"Historic property or resource" means any building, structure, object, district, area, or site that is significant in the history, architecture, archeology, or culture of the State, its communities, or the nation.

"Important natural area" means any area containing one or more endangered species or any area essential to maintaining the ecological diversity or natural heritage of the State.

"Low- or lower-income" means less than or equal to the median income based on statistics from state or federal sources as determined by the board.

PART II. ESTABLISHMENT AND ORGANIZATION

§ -11 Hawaii housing and conservation trust fund board; authority; establishment; staff. (a) There is established the Hawaii housing and conservation trust fund board, that shall be a body corporate and a public instrumentality of the State, formed for the purpose of administering the fund and implementing this chapter. The board shall be placed within the department of land and natural resources for administrative purposes only.

(b) The board shall consist of nine public, voting members, and four ex officio nonvoting members; provided that:

(1) The nine public, voting members shall be appointed by the governor as provided in section 26-34, except as otherwise provided by law;

(2) The nine public, voting members shall be composed of at least one representative each from the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui; the remaining public members shall be appointed at-large;

(3) Of the nine public, voting members, two shall be appointed by the governor from a list of four names submitted by the president of the senate, and two shall be appointed by the governor from a list of four names submitted by the speaker of the house of representatives; provided that if fewer than two names are submitted for each appointment, the governor may disregard the list;

(4) Each of the nine public, voting members shall have knowledge, experience, and expertise in at least one of the following areas: public housing development, historic property, agronomical, architectural, or civil engineering, biological and ethnological science, environment, conservation, and Hawaiian cultural practices; provided that one member shall be a low-income resident and one member shall be a farmer;

(5) The administrator of the state historic preservation division, or a designated representative, shall be an ex officio nonvoting member;

(6) The chairperson of the housing and community development corporation of Hawaii, or a designated representative, shall be an ex officio nonvoting member;

(7) The chairperson of the board of agriculture, or a designated representative, shall be an ex officio nonvoting member; and

(8) The chairperson of the board of land and natural resources, or a designated representative, shall be an ex officio nonvoting member.

(c) The public members shall be appointed by the governor for terms of four years. Each public member shall hold office until the member's successor is appointed and qualified. Section 26-34 shall apply insofar as it relates to the number of terms and consecutive number of years a member may serve on the board.

(d) The board shall elect a chairperson from members other than ex officio nonvoting members.

(e) Five voting members shall constitute a quorum and a minimum of five affirmative votes shall be necessary for all actions by the board. Board members shall serve without compensation, but shall be reimbursed for expenses, including traveling expenses, necessary for the performance of their duties.

(f) The board shall appoint an executive director, exempt from chapters 76 and 89, who shall oversee the Hawaii housing and conservation trust fund staff; provided that:

(1) The compensation package, including salary, shall not exceed fifteen per cent of the 3.5 per cent authorized for administrative expenses under section -12(c); and

(2) The compensation package shall not include private sector moneys or other contributions.

The board shall set the executive director's duties, responsibilities, holidays, vacations, leaves, hours of work, and working conditions. It may grant such other benefits as it deems necessary.

(g) The board may employ persons not subject to chapters 76 and 89 to perform and execute the functions of the Hawaii housing and conservation trust fund.

§ -12 Powers and duties. (a) The board shall have all the powers necessary to carry out and effectuate the purposes and provisions of this chapter, including the power to:

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

(2) Notwithstanding chapter 42F, upon application from an eligible applicant in a form prescribed by the board, provide funding in the form of grants or loans for eligible activities;

(3) Notwithstanding chapter 42F, enter into cooperative agreements with private organizations or individuals or with any agency or instrumentality of the United States or of this State to carry out the purposes of this chapter;

(4) Adopt rules in accordance with chapter 91 for the purpose of administering this chapter;

(5) Transfer funds to the housing and community development corporation of Hawaii as necessary.

(b) The board's duties include the:

(1) Preservation, rehabilitation, or development of residential dwelling units that are affordable to lower income residents;

(2) Retention of agricultural land for agricultural use;

(3) Protection of important wildlife habitat and important natural areas;

(4) The preservation of historic properties or resources; and

(5) Protection of areas suited for outdoor public recreational activity.

(c) The board shall seek out and fund not-for-profit organizations and municipalities that can assist any region of the State that has high unemployment and low per capita incomes in obtaining grants and loans under this chapter for affordable housing.

§ -13 Allocation system. In determining the allocation of funds available for the purposes of this chapter, the board shall give priority to projects that combine the dual goals of creating affordable housing and conserving and protecting Hawaii's agricultural lands, historic properties, important natural areas or recreation lands and also shall consider, but not be limited to, the following factors:

(1) The need to maintain balance between the dual goals in allocating resources;

(2) The need for a timely response to unpredictable circumstances or special opportunities to serve the purposes of this chapter;

(3) The level of funding or other participation by private or public sources in the activity being considered for funding by the board;

(4) What resources will be required in the future to sustain the project;

(5) The need to pursue the goals of this chapter without displacing low-income residents;

(6) The long-term effect of a proposed activity and, with respect to affordable housing, the likelihood that the activity will prevent the loss of subsidized housing units and will be of perpetual duration; and

    1. The geographic distribution of funds.

§ -14 Fast tracking. (a) Notwithstanding any other law to the contrary, all State or county agencies that issue permits applicable to an eligible activity under this chapter shall fast-track or expeditiously process such permits, if fast-tracking is allowed by the agency.

(b) The board's allocation system shall include a method, defined by rule, that evaluates the need for, impact, and quality of activities proposed by applicants.

§ -15 Annual report. Twenty days prior to the convening of every legislative session, the board shall submit a report concerning its activities to the governor and the legislature that shall include, but not be limited to the following:

(1) A list and description of activities funded by the board during the preceding year;

(2) A list of contributions received by the board, whatever their form or nature, and the source thereof, unless anonymity is a condition of a particular contribution;

(3) A full financial report of the board's activities, including a special accounting of all activities during the previous year; and

(4) If more than seventy per cent of the funds allocated by the board during the previous year was allocated to either one of the dual goals of this chapter under section -13, the board shall set forth its reasons for not allocating funds more equally between the two.

§ -16 Stewardship. If an activity funded by the board involves acquisition by the State of an interest in real property for the purpose of conserving and protecting agricultural lands, important natural areas or recreation lands, the board, in its discretion, may make a one-time grant to the appropriate state or county agency. The grant shall not exceed ten per cent of the current appraised value of that property interest and shall be used to support its proper management or maintenance or both.

§ -17 Condemnation prohibited. The board shall not have the authority or power to acquire property for the purposes of this chapter through condemnation or through the exercise of the power of eminent domain.

PART III. THE HAWAII HOUSING AND CONSERVATION TRUST FUND

§ -21 The Hawaii housing and conservation trust fund. (a) There is established in the state treasury the Hawaii housing and conservation trust fund, into which shall be deposited:

(1) A portion of the revenues from the real property conveyance tax, as provided by section 247-7;

(2) Appropriations by the legislature to the fund; and

(3) Gifts, grants, and other funds accepted by the board.

(b) Moneys in the fund may be placed in interest-bearing accounts or otherwise invested by the board until such time as the moneys may be needed. All interest accruing from the investment of these moneys shall be credited to the fund.

(c) Moneys in the fund shall be administered and used solely by the board for the purposes of this chapter; provided that not more than 3.5 per cent of this amount shall be used for administrative expenses."

SECTION 2. Section 247-2, Hawaii Revised Statutes, is amended to read as follows:

"§247-2 Basis and rate of tax. (a) The tax imposed by section 247-1 shall be based on the actual and full consideration (whether cash or otherwise, including any promise, act, forbearance, property interest, value, gain, advantage, benefit, or profit) paid or to be paid, which shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and except as provided in subsection (b), shall be at the rate of 10 cents per $100 of such actual and full consideration; provided that in the case of a lease or sublease, this chapter shall apply only to a lease or sublease whose full unexpired term is for a period of five years or more, and in those cases, including (where appropriate) those cases where the lease has been extended or amended, the tax in this chapter shall be based on the cash value of the lease rentals discounted to present day value and capitalized at the rate of six per cent, plus the actual and full consideration paid or to be paid for any and all improvements, if any, which shall include on-site as well as offsite improvements, applicable to the leased premises; and provided further that the tax imposed for each transaction shall be not less than $1.

(b) Effective July 1, 2004, the following rates shall apply only to the value of properties under subsection (a) that are valued at more than $300,000:

Value of property: Tax rate:

$300,000 to $500,000 .0013 cents per $100;

$500,001 to $750,000 .0016 cents per $100;

$750,001 to $1,000,000 .0018 cents per $100; and

over $1,000,000 .0020 cents per $100."

SECTION 3. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. (a) All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that, except for subsection (b), of the taxes collected each fiscal year, twenty-five per cent shall be paid into the rental housing trust fund established by section 201G-432, and twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources after joint consultation with the forest stewardship committee and the natural area reserves system commission in the following priority:

(1) To natural area partnership and forest stewardship programs;

(2) Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners; and

(3) The youth conservation corps established under chapter 193.

(b) All taxes collected under section 247-2(b), shall be deposited in the Hawaii housing and conservation trust fund under section    -21."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

_____________________________