TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII
A BILL FOR AN ACT
relating to community planning.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 206E, Hawaii Revised Statutes, is amended by adding five new sections to be appropriately designated and to read as follows:
"§206E-A Designation of transit-oriented development zones; zone development plans. (a) The authority may designate an area as a transit-oriented development zone if it determines that there is need for replanning, renewal, or redevelopment of that area due to its future potential as a high density population area. The designation shall describe the boundaries of the zone.
(b) After designation, the authority shall develop a zone development plan for the designated zone. The plan shall include but not be limited to community development guidance policies, zone improvement programs, and community development rules.
(c) The authority may enter into cooperative agreements with qualified persons or public agencies, where the powers, services, and capabilities of such persons or agencies are deemed necessary and appropriate for the development of the zone development plan.
(d) Whenever possible, planning activities of the authority shall be coordinated with federal, state, and county plans. Consideration shall be given to state goals and policies, adopted state plan or land use guidance policies, county general plans, development plans, and ordinances.
(e) The authority shall hold a public hearing on a proposed zone development plan pursuant to chapter 91 and, after consideration of comments received and appropriate revision, shall submit the zone development plan to the governor for the governor's approval.
After approval, the governor shall submit to the legislature requests for appropriations, authorization to issue bonds, or both, to implement the zone development plan in an orderly, affordable, and feasible manner. The governor shall submit the requests to the legislature as part of the executive budget or supplemental budget, as appropriate. In addition to the information, data, and materials required under chapter 37, the requests shall be accompanied by:
(1) Plans, maps, narrative descriptions, and other appropriate materials on the:
(A) Locations and design of projects or public facilities proposed to be funded; and
(B) Phase of the zone development plans proposed to be implemented with the requested funds; and
(2) Other information deemed by the governor of significance to the legislature regarding the projects or public facilities proposed to be funded, including a discussion of the public benefits intended by, and adverse effects which may result from, implementation of the projects or public facilities.
(f) The authority may amend the zone development plan as may be necessary. Amendments shall be made in accordance with chapter 91.
§206E-B Business improvement districts. (a) The authority may authorize the creation of business improvement districts, and amend the district boundaries from time to time, for the purpose of providing and financing supplemental maintenance and security services and other improvements, services, and facilities within the business improvement district as the authority determines will restore or promote business activity in the business improvement district.
(b) The authority shall adopt rules pursuant to chapter 91 to establish the criteria for creating and amending business improvement districts.
(c) The authority may levy and assess per cent of the general excise tax as a special assessment on property located within the business improvement district to finance the maintenance and operation of the business improvement district and improvements within the business improvement district. Notwithstanding any law to the contrary, in assessing property for a special assessment, the authority may implement a methodology as the authority deems appropriate. When all improvements have been fully executed within the business improvement district or the district ceases to exist, the special assessment shall no longer be assessed.
(d) The special assessments levied pursuant to the authorizing of the creation of business improvement districts and this section shall be a lien upon the property assessed. The lien shall have priority over all other liens except the lien of general real property taxes.
§206E-C Conditions for the transfer of density rights. In addition to any existing power, duty, and authority, the authority is hereby authorized to transfer and regulate the transfer of density rights, subject to the conditions set forth under this part, as well other conditions the authority deems necessary and appropriate. The purpose of providing for transfer of density rights shall be to:
(1) Protect the natural, scenic, and agricultural qualities of open lands;
(2) Enhance sites and areas of special character or special historical, cultural, aesthetic, or economic interest or value;
(3) Provide an instrument whereby landowners who choose to participate in land preservation can share in the economic benefits created through development;
(4) Direct growth to areas suitable for urban development based on the capacity of existing infrastructure and public facility systems, the cost effectiveness of providing new infrastructure and public facility systems, the proximity to employment centers, and favorable conditions including topography and freedom from natural hazards and environmental constraints; and
(5) Enable and encourage flexibility of design and careful management of land in recognition of land as a basic and valuable natural resource.
§206E-D Transfer of density rights; general authorizations. The authority may provide for the transfer of density rights by adopting rules, in accordance with chapter 91, to establish a procedure for the transfer. The rules shall provide, without limitation, for the following:
(1) The transfer of density rights to and from the authority;
(2) The transfer of density rights shall be established within the framework of the long-range, comprehensive general plan of the county;
(3) The receiving entity, to which transfer of density rights is authorized, shall be found by the authority, after evaluating the effects of the potential increased development, to contain adequate resources and public facilities to ensure that the increased density will be compatible with the development otherwise permitted by the county or authority;
(4) Sending entities and receiving entities shall be designated and mapped, and the procedure for the transfer of density rights shall be specified; and
(5) The density rights may be sold in the normal market or through a density rights bank established by the authority in which density rights may be retained and sold by the authority.
§206E-E Transfer of density rights instruments. The authority shall establish a standard instrument to document density rights that have been transferred to and from the authority. A density right that is transferred is an interest in real property evidenced by the transfer of a density right instrument issued by the authority and recorded pursuant to section 502-31."
SECTION 2. Section 46-142, Hawaii Revised Statutes, is amended to read as follows:
"§46-142 Authority to impose impact
fees; enactment of ordinances required[
.]; exemption. (a)
Impact fees may be assessed, imposed, levied, and collected by:
(1) Any county for any development, or portion thereof, not involving water supply or service; or
(2) Any board for any development, or portion thereof, involving water supply or service;
provided that the county enacts appropriate impact fee ordinances or the board adopts rules to effectuate the imposition and collection of the fees within their respective jurisdictions.
(b) Except for any ordinance governing impact fees enacted before July 1, 1993, impact fees may be imposed only for those types of public facility capital improvements specifically identified in a county comprehensive plan or a facility needs assessment study. The plan or study shall specify the service standards for each type of facility subject to an impact fee; provided that the standards shall apply equally to existing and new public facilities.
(c) The Hawaii community planning authority may grant an exemption from this part if it so finds that there is sufficient justification by rules established pursuant to section 206E-4."
SECTION 3. Chapter 206E, Hawaii Revised Statutes is amended by amending its title to read as follows:
HAWAII COMMUNITY [
SECTION 4. Section 206E-1, Hawaii Revised Statutes, is amended to read as follows:
"§206E-1 Findings and purpose. The legislature finds that many areas of the State are substantially undeveloped, blighted, or economically depressed, and are or are potentially in need of renewal, renovation, or improvement to alleviate such conditions as dilapidation, deterioration, age, and other such factors or conditions which make such areas an economic or social liability.
The legislature further finds that there exists within the State vast, unmet community development needs. These include, but are not limited to, a lack of suitable affordable housing; insufficient commercial and industrial facilities for rent; residential areas which do not have facilities necessary for basic liveability, such as parks and open space; and areas which are planned for extensive land allocation to one, rather than mixed uses.
It is further determined that the lack of planning and coordination in such areas has given rise to these community development needs and that existing laws and public and private mechanisms have either proven incapable or inadequate to facilitate timely redevelopment and renewal.
The legislature finds that a new and
comprehensive authority for community [
development] planning must
be created to join the strengths of private enterprise, public development and
regulation into a new form capable of long-range planning and implementation of
improved [ community development.] communities. The purpose of
this chapter is to establish such a mechanism in the Hawaii community [ development]
planning authority, a public entity which shall determine community development
programs and cooperate with private enterprise and the various components of
federal, state, and county governments in bringing plans to fruition. For such
areas designated as community development districts[ ,] and
transit-oriented development zones, the legislature believes that the
planning and implementation program of the Hawaii community [ development]
planning authority will result in communities which serve the highest
needs and aspirations of Hawaii's people.
The legislature finds that the creation of the
Hawaii community [
development] planning authority, the
establishment of community development districts[ ,] and
transit-oriented development zones, and the issuance of bonds pursuant to
this chapter to finance public facilities serve the public interest and are
matters of statewide concern."
SECTION 5. Section 206E-2, Hawaii Revised Statutes, is amended by adding four new definitions to be appropriately inserted and to read as follows:
""Density rights" means the rights permitted under an ordinance, rule, or law relating to permitted uses of a property, the density or intensity of use, and the maximum height and size of improvements thereon. Density rights may be calculated and allocated using factors including but not limited to area or lot size, floor area, floor area ratios, density, height limitations, or any other criteria that will effectively quantify the value for the density right in a reasonable and uniform manner that will carry out the objectives of this part.
"Receiving entity" means the authority or any landowner to which density rights from sending entities may be transferred and in which increased development is permitted using transferred density rights.
"Sending entity" means the authority or any landowner in which density rights may be designated for use by receiving entities.
"Transfer of density rights" means the process by which density rights are transferred from a property owned by any sending entity to another property owned by a receiving entity."
SECTION 6. 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[
transit-oriented development zones;
(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;
(18) Allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction; 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 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 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.
The Hawaii community [
authority shall adopt rules relating to the approval of reserved housing that
are 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; and
(19) Assist the public land development corporation established by section 171C-3 in identifying public lands that may be suitable for development, carrying on marketing analysis to determine the best revenue-generating programs for the public lands identified, entering into public-private agreements to appropriately develop the public lands identified, and providing the leadership for the development, financing, improvement, or enhancement of the selected development opportunities; provided that no assistance shall be provided unless the authority authorizes the assistance."
SECTION 7. Section 206E-5.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The authority shall adopt community and public notice procedures pursuant to chapter 91 that shall include at a minimum:
(1) A means to effectively engage the community in which the authority is planning a development project to ensure that community concerns are received and considered by the authority;
(2) The posting of the authority's proposed plans for
development of community development districts[
transit-oriented development zones, public hearing notices, and minutes of
its proceedings on the authority's website; and
(3) Any other information that the public may find useful so that it may meaningfully participate in the authority's decision-making processes."
SECTION 8. Section 206E-7, Hawaii Revised Statutes, is amended to read as follows:
§206E-7[ ]] Community
development rules[ .] and zone development rules. The
authority shall establish community development rules and zone development
rules under chapter 91 on health, safety, building, planning, zoning, and
land use which, upon final adoption of a community development plan[ ,] or
zone development plan, as appropriate, shall supersede all other
inconsistent ordinances and rules relating to the use, zoning, planning, and
development of land and construction thereon. Rules adopted under this section
shall follow existing law, rules, ordinances, and regulations as closely as is
consistent with standards meeting minimum requirements of good design, pleasant
amenities, health, safety, and coordinated development. The authority may, in
the community development plan or zone development plan or by a
community development rule[ ,] or zone development rule provide
that lands within a community development district or transit-oriented
development zone, as appropriate, shall not be developed beyond existing
uses or that improvements thereon shall not be demolished or substantially
reconstructed, or provide other restrictions on the use of the lands."
SECTION 9. Section 206E-8, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any provision of chapter 171 to the contrary notwithstanding, the governor may set aside public lands located within community development districts or transit-oriented development zones to the authority for its use."
SECTION 10. Section 206E-8.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Notwithstanding chapter 205A, all
requests for developments within a special management area and shoreline
setback variances for developments on any lands within a community development
,] or transit-oriented development zone for which a
community development plan or zone development plan has been developed
and approved in accordance with section 206E-5, shall be submitted to and
reviewed by the lead agency as defined in chapter 205A. In community
development districts or transit-oriented development zones for which a
community development plan or zone development plan, as appropriate, has
not been developed and approved in accordance with section 206E-5, parts II and
III of chapter 205A shall continue to be administered by the applicable county
authority until a community development plan or zone development plan, as
appropriate, for the district or zone takes effect."
SECTION 11. Section 206E-10, Hawaii Revised Statutes, is amended to read as follows:
§206E-10[ ]] Condemnation
of real property. The authority upon making a finding that it is necessary
to acquire any real property for its immediate or future use for the purposes
of this chapter, may acquire the property by condemnation pursuant to chapter
101, including property already devoted to a public use. Such property shall
not thereafter be taken for any other public use without the consent of the
authority. No award of compensation shall be increased by reason of any
increase in the value of real property caused by the designation of a community
development district or transit-oriented development zone or plan
adopted pursuant to [ a] either designation, or the actual or
proposed acquisition, use or disposition of any other real property by the authority."
SECTION 12. Sections 26-18, 46-102, 171-2, 206E-2, 206E-3, 206E-15, 206E-34, 206E-101, 206E-191, and 514A-14.5, Hawaii Revised Statutes, are amended by substituting the term "Hawaii community planning authority" wherever the term "Hawaii community development authority" appears, as the context requires.
SECTION 13. Sections 206E-6, 206E-16, 206E-184, and 206E‑185, Hawaii Revised Statutes, are amended by substituting the term "Hawaii community planning revolving fund" wherever the term "Hawaii community development revolving fund" appears, as the context requires.
SECTION 14. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 16. This Act shall take effect upon its approval.
Hawaii Community Development Authority; State-wide Planning
Changes the Hawaii community development authority to the Hawaii community planning authority. Allows the authority to create transit-oriented development zones. Allows the authority to waive impact fees. Authorizes the authority to create business improvement districts and assess a special assessment to fund the improvements within the district. Authorizes the authority to act as a density rights bank and transfer a property's density rights to a receiving entity or from a sending authority to increase development in that area as authorized by the authority.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.