Kakaako Community Development District, Mauka Area; Reserved Housing
Increases the reserved housing requirement for a development in the Kakaako community development district, mauka area, for lots 3 acres or more to 25% of the countable floor area of the development. Directs HCDA to submit a report prior to the convening of the 2017 regular session on its reserved housing program in the Kakaako community development district. (SB1350 HD1)
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO KAKAAKO.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Honolulu has become the primary urban core for the island of Oahu, with the increasing concentration of density at its downtown and Kakaako center. In Act 153, Session Laws of Hawaii 1976, the legislature created the Hawaii community development authority as the authority in charge of the planning and development of Kakaako, one of the main centers of urban living in Honolulu. This was due to its central location and largely unplanned and underutilized condition at the time. The planning and development of Kakaako is all the more important with the proposed rail transit project that is planned to traverse the district and connect it with leeward Oahu and downtown Honolulu on one side and, eventually, Waikiki and the university area on the other side. This central position of Kakaako makes it more imperative that Kakaako continue to play a role in providing adequate housing opportunities for Hawaii's residents, especially for the work force of Honolulu.
The opportunities presented by the planning framework in place and the fact that there are but a few large landowners in Kakaako make it imperative that planning incentives continue to be made available for Kakaako to be developed to its fullest potential.
The development principles put in place by the authority for large-scale developments in the district allow for better site planning through modifications and flexibility afforded under this program. This also allows for an increase in public amenities including increased open spaces, more recreational opportunities for residents, the nearby availability of community services and amenities, and improved pedestrian circulation. Of equal importance, the authority's development process allows for the provisions of housing for families of varying sizes, income, age, and needs. In keeping with this vision of the future of Kakaako, the goal of this Act is to provide for increased housing opportunities for Honolulu's work force in the urban core of Honolulu in Kakaako by raising the reserved housing requirements for large-scale developments in excess of three acres in size. However, it is not the intent of the legislature to hamper the development of smaller landholdings by increasing reserved housing requirements.
Accordingly, the purpose of this Act is to:
(1) Increase reserved housing requirements for the development of large lots of three acres or greater in area within the Kakaako mauka area from twenty per cent to twenty-five per cent of the countable floor area provided in the development;
(2) Allow smaller developments of less than three acres to continue meeting the existing requirement that reserved housing units comprise twenty per cent of the dwelling units developed; and
(3) Provide safeguards to prevent a rush to development by developers trying to avoid these new requirements.
SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:
"§206E- Reserved housing requirement for Kakaako mauka area. (a) At least twenty-five per cent of the countable floor area of a development on a lot within the Kakaako mauka area shall be developed and made available for reserved housing units if the lot is:
(1) Three acres or greater in area; or
(2) Less than three acres in area following a subdivision or consolidation and subdivision after June 30, 2009, of a lot that was three acres or greater in area before July 1, 2009.
The developer of the development shall divide the floor area required for reserved housing into, and construct the number, types, and sizes of reserved housing units set by the authority. The authority shall establish sale prices or rents to be charged that are affordable to families intended to be served by the reserved housing units. The authority shall also set the number of parking stalls to be assigned to the reserved housing units.
The countable floor area upon which the reserved housing floor area requirement is calculated shall be based on the plan approved by the authority in the development permit or base zone development permit, as applicable, for the development. The reserved housing floor area requirement shall not be changed if, subsequent to the approval or submission of the plan to the authority, the countable floor area is decreased. If, however, the countable floor area is increased before the issuance of a building permit for a building on the lot, the reserved housing floor area requirement shall be appropriately increased.
(b) For a development with dwelling units on a lot of between twenty thousand and one hundred thirty thousand six hundred seventy-nine square feet, at least twenty per cent of the units shall be reserved housing units. The authority shall set the types and sizes of the reserved housing units and establish sale prices or rents to be charged that are affordable to families intended to be served by the reserved housing units. The authority also shall set the number of parking stalls to be assigned to the reserved housing units.
(c) The authority shall determine the ratio of reserved housing units that shall be available for sale or for rent; provided that:
(1) With regard to the reserved housing units that shall be sold, the authority shall adopt rules pursuant to chapter 91 to ensure that the reserved housing units, for the economic life of the units, shall remain available for resale to persons subject to the same qualifications that were imposed on the original purchasers of the units, including resale to other qualified persons or buyback conditions; and
(2) The reserved housing units that are made available for rental shall be transferred to the Hawaii public housing authority for rental by the Hawaii public housing authority pursuant to its rules.
(d) The authority shall not allow a developer to make a cash payment to the authority in lieu of developing and making available the reserved housing floor area or units required under this section; provided that the authority may adopt rules providing for a contribution, in lieu of the provision of reserved housing units, of a fee simple assignment of real property within the Kakaako mauka area.
(e) Subject to the rules of the authority, reserved housing units shall be built and made available for occupancy prior to or concurrently with the development of the lot that required the provision of the reserved housings units. The authority shall prohibit the issuance of any certificate of occupancy for any of the other uses before the issuance of the certificate of occupancy for all the required reserved housing floor area or units.
(f) Any project that provides more reserved housing units than required under this section may transfer excess housing credits to another project in the Kakaako community development district toward satisfaction of the reserved housing units requirement of that project as follows:
(1) $60,000 for a studio with one bathroom of at least four hundred square feet;
(2) $75,000 for a one bedroom with one bathroom of at least five hundred square feet;
(3) $105,000 for a two bedroom with one bathroom of at least seven hundred square feet;
(4) $112,500 for a two bedroom with one and a half bathroom of at least seven hundred fifty square feet;
(5) $120,000 for a two bedroom with two bathrooms of at least eight hundred square feet;
(6) $135,000 for a three bedroom with two bathrooms of at least nine hundred square feet; and
(7) $150,000 for a four bedroom with two bathrooms of at least one thousand square feet.
Alternatively, the developer of a development may sell a credit to another developer of a development in the Kakaako mauka area at a price mutually agreed upon. The developer who purchases the credit may deduct the credit from the reserved housing square footage or units required for the developer's development.
The authority shall annually review the amount and price for the transfer of the excess credits and is authorized to increase the amount as deemed necessary. The terms of the reserved housing credits transfer shall be approved by the authority.
(g) For the purposes of this section:
"Base zone" means the use, lot area, building area, height, density, bulk, yard, setback, open space, on-site parking and loading, and other zoning standards or other restrictions imposed upon a development on a particular lot.
"Community service use" means any of the following uses:
(1) Nursing or convalescent home, nursing facility, assisted living administration, or ancillary assisted living amenities for the elderly or persons with disabilities;
(2) Child care, day care, or senior citizen center;
(3) Nursery school or kindergarten;
(5) Charitable institution or nonprofit organization;
(6) Public use;
(7) Public utility; or
"Countable floor area" of a development means the total floor area of every building on the lot of a development, except the floor area developed for the following:
(1) Community service use; or
(2) Special facility use.
"Development" means the construction of a new building or other structure on a lot, the relocation of an existing building on another lot, the use of a tract of land for a new use, or the enlargement of an existing building or use.
(1) Means the total area of the several floors of a building, including basement but not unroofed areas, measured from the exterior faces of the exterior walls or from the center line of party walls separating portions of a building. The floor area of a building or portion thereof not provided with surrounding exterior walls shall be the usable area under the horizontal projection of the roof or floor above, including elevator shafts, corridors, and stairways; and
(2) Shall not include the area for parking facilities and loading spaces, driveways, access ways, lanai or balconies of dwelling or lodging units that do not exceed fifteen per cent of the total floor area of the units to which they are appurtenant, attic areas with head room less than seven feet, covered rooftop areas, and rooftop machinery equipment and elevator housings on the top of buildings.
"Kakaako mauka area" means that portion of the Kakaako community development district, established by section 206E-32, that is bound by King street, Piikoi street from its intersection with King street to Ala Moana boulevard, Ala Moana boulevard, exclusive, from Piikoi street to its intersection with Punchbowl street, and Punchbowl street to its intersection with King street.
"Lot" means a duly recorded parcel of land that can be used, developed, or built upon as a unit.
"Median income" means the median annual income, adjusted for family size, for households in the city and county of Honolulu as most recently established by the United States Department of Housing and Urban Development for the section 8 housing assistance payment program.
"Reserved housing unit":
(1) Means a multi-family dwelling unit that is developed for:
(A) Purchase by a family that:
(i) Has an income of not more than one hundred forty per cent of the median income; and
(ii) Complies with other eligibility requirements established by statute or rule; or
(B) Rent to a family that:
(i) Has an income of not more than one hundred per cent of the median income; and
(ii) Complies with other eligibility requirements established by statute or rule;
(2) Shall be one of the following types of dwelling units:
(A) Studio with one bathroom;
(B) One bedroom with one bathroom;
(C) Two bedrooms with one bathroom;
(D) Two bedrooms with one and one-half bathrooms;
(E) Two bedrooms with two bathrooms;
(F) Three bedrooms with one and one-half bathrooms;
(G) Three bedrooms with two bathrooms; and
(H) Four bedrooms with two bathrooms.
"Special facility use" means a use in a "special facility" as defined under section 206E-181."
SECTION 3. 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,
but not limited to] streets, sidewalks, parks, schools, and other
(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 such 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 [
such] 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, [
in order] 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
(15) Procure insurance against any loss in connection
with its property and other assets and operations in [
such] amounts and
from [ such] 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 law or the authority upon any proposed
development project through the construction of reserved housing[
as defined in section [ 206E-101,] 206E- , by a person on land
located outside the [ geographic boundaries of the authority's jurisdiction.
Such 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] lot of the
proposed development project, but within the same community development
(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.] provided that the prohibitions
of section 206E-31.5(2) shall apply.
The Hawaii community development authority
shall adopt rules relating to the approval of reserved housing [
units to be 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.] the lot of a
proposed development project, but within the same community development
district, in accordance with this paragraph."
SECTION 4. Section 206E-15, Hawaii Revised Statutes, is amended to read as follows:
"§206E-15 Residential projects;
cooperative agreements. [
(a)] If the authority deems it desirable
to develop a residential project, it may enter into an agreement with qualified
persons to construct, maintain, operate, or otherwise dispose of the
residential project. Sale, lease, or rental of dwelling units in the project
shall be as provided by the rules established by the authority. The authority
may enter into cooperative agreements with the Hawaii housing finance and development
corporation for the financing, development, construction, sale, lease, or
rental of dwelling units and projects.
(b) The authority may transfer the housing
fees collected from private residential developments for the provision of
housing for residents of low-or moderate-income to the Hawaii housing finance
and development corporation for the financing, development, construction, sale,
lease, or rental of such housing within or without the community development
districts. The fees shall be used only for projects owned by the State or
owned or developed by a qualified nonprofit organization. For the purposes of
this section, "nonprofit organization" means a corporation,
association, or other duly chartered organization registered with the State,
which organization has received charitable status under the Internal Revenue
Code of 1986, as amended.]"
SECTION 5. Section 206E-33, Hawaii Revised Statutes, is amended to read as follows:
"§206E-33 Kakaako community development district; development guidance policies. The following shall be the development guidance policies generally governing the authority's action in the Kakaako community development district:
(1) Development shall result in a community [
that permits an appropriate land mixture of residential, commercial,
industrial, and other uses. In view of the innovative nature of the mixed use
approach, urban design policies should be established to provide guidelines for
the public and private sectors in the proper development of this district;
while the authority's development responsibilities apply only to the area
within the district, the authority may engage in any studies or coordinative activities
permitted in this chapter [ which] that affect areas lying outside
the district, where the authority in its discretion decides that those
activities are necessary to implement the intent of this chapter. The studies
or coordinative activities shall be limited to facility systems, resident and
industrial relocation, and other activities with the counties and appropriate
state agencies. The authority may engage in construction activities outside of
the district; provided that [ such] the construction relates to
infrastructure development or residential or business relocation activities;
provided further, notwithstanding section 206E-7, that [ such] the
construction shall comply with the general plan, development plan, ordinances,
and rules of the county in which the district is located;
(2) Existing and future industrial uses shall be
permitted and encouraged in appropriate locations within the district. No plan
or implementation strategy shall prevent continued activity or redevelopment of
industrial and commercial uses [
which] that meet reasonable
(3) Activities shall be located [
so as] to
provide primary reliance on public transportation and pedestrian facilities for
internal circulation within the district or designated subareas;
(4) Major view planes, view corridors, and other environmental elements, such as natural light and prevailing winds, shall be preserved through necessary regulation and design review;
(5) Redevelopment of the district shall be compatible with plans and special districts established for the Hawaii Capital District, and other areas surrounding the Kakaako district;
(6) Historic sites and culturally significant facilities, settings, or locations shall be preserved;
(7) Land use activities within the district, where compatible, shall to the greatest possible extent be mixed horizontally, that is, within blocks or other land areas, and vertically, as integral units of multi-purpose structures;
(8) Residential development may require a mixture of
densities, building types, and configurations in accordance with appropriate
urban design guidelines[
;] and the integration, both
vertically and horizontally, of residents of varying incomes, ages, and
family groups; [ and an increased supply of housing for residents of low-or
moderate-income may be required as a condition of redevelopment in residential
use.] provided that the reserved housing requirements of section
206E- shall be imposed upon a development when applicable.
Residential development shall provide necessary community facilities, such as
open space, parks, community meeting places, child care centers, and other
services, within and adjacent to residential development; and
(9) Public facilities within the district shall be
planned, located, and developed [
so as] to support the redevelopment
policies for the district established by this chapter and plans and rules
adopted pursuant to it."
SECTION 6. Section 206E-101, Hawaii Revised Statutes, is amended by amending the definition of "reserved housing" to read as follows:
""Reserved housing" means [
designated for residents in the low-or moderate-income ranges who meet such]
a reserved housing unit, as defined under section 206E- ,
developed and made available for purchase by a family that has a household
income of not more than one hundred forty per cent of the area median income
and that meets other eligibility requirements as the authority may adopt by
SECTION 7. The Hawaii community development authority shall adopt new or amend existing rules to implement this Act without regard to the public notice and public hearing requirements of section 91-3, Hawaii Revised Statutes, or the small business impact review requirements of chapter 201M, Hawaii Revised Statutes. The authority shall adopt the rules before January 1, 2010. Any subsequent amendment of the rules adopted pursuant to this section shall be subject to all applicable provisions of chapters 91 and 201M, Hawaii Revised Statutes.
SECTION 8. (a) From the effective date of this Act until the effective date of the new or amended rules adopted pursuant to section 6 of this Act, the Hawaii community development authority shall not accept any planned development permit or base zone development permit application for a development on a lot that is three acres or greater in area.
(b) From the effective date of this Act, the Hawaii community development authority may accept any planned development permit or base zone development permit application for a development on a lot that is less than three acres in area. The application for the development shall be subject to the law and rules in effect on the date of the permit application.
SECTION 9. Any planned development permit or base zone permit application for any development that is pending on the effective date of this Act shall not be subject to this Act or rules adopted pursuant to section 7 of this Act. The development shall be subject to the laws and rules in effect on the date of the permit application.
SECTION 10. From the effective date of this Act until the effective date of the new or amended rules adopted pursuant to section 7, the Hawaii community development authority shall prohibit the developer of a lot three acres or greater in area in the Kakaako mauka area from submitting:
(1) A building permit application for the development to the city and county of Honolulu; or
(2) A subdivision application to subdivide or consolidate and subdivide any lot or lots that are three acres or greater in area.
SECTION 11. (a) Twenty days prior to the convening of the regular session of 2017, the Hawaii community development authority shall submit a report to the legislature, including any proposed legislation, on the status of its reserved housing program in the Kakaako community development district.
(b) The report shall set forth:
(1) The total number of reserved housing units contained in the Kakaako community development district at the time of the report, broken down with regard to:
(A) Size and type of unit;
(B) Age group of occupants of the units; and
(C) Whether the units were sold or rented;
(2) The number of reserved housing units that were provided or are under construction at the time of the report as a result of the requirements of this Act;
(3) A recommendation whether the reserved housing requirements contained in this Act should be reduced, remain unchanged, or increased; and
(4) Any other information that it deems relevant to its reserved housing program in the Kakaako community development district.
SECTION 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 13. This Act shall take effect on July 1, 2009.