H.B. NO.



S.D. 1
















SECTION 1. 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, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

(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 which 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 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, 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 advice;

(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] fifty per cent of the affordable housing requirements imposed by the authority upon any proposed development project through the construction of or by causing to be constructed substitute reserved housing, as defined in section 206E-101, by a person [on]:

(A) On land located outside the geographic boundaries of the authority's jurisdiction;

(B) On a one-unit-for-one-unit basis; and

(C) At the person's own cost;

provided that the authority shall not permit any person to make cash payments in lieu of providing reserved housing, except to account for any fractional unit that results after calculating the percentage requirement against residential floor space or total number of units developed. The [substituted] substitute reserved housing units shall be located on lands controlled by the department of Hawaiian home lands that are situated 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 community development district;

(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.]

within the geographic boundaries of the authority's jurisdiction.

The development of substitute reserved housing shall be undertaken only in accordance with a request for those substitute reserved housing units submitted by the department of Hawaiian home lands. All other substitute reserved housing units shall be constructed within the community development district where the proposed development project is located.

The Hawaii community development authority [shall] may adopt rules relating to the [approval] development of substitute reserved housing units that are [developed] constructed 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.]"

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.




Report Title:

Hawaii Community Development Authority; Substitute Reserved Housing; Department of Hawaiian Home Lands



Amends the criteria for approval by the Hawaii community development authority of substitute reserved housing projects to be constructed within and outside of the geographic boundaries of the authority's jurisdiction. (HB1554 PROPOSED SD1)




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