HOUSE OF REPRESENTATIVES
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII
A BILL FOR AN ACT
relating to the hawaii community development authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§206E- Real property; restrictions on transfer; waiver of restrictions. (a) The sale, assignment, deed, or lease of reserved housing and workforce housing by the authority shall be subject to the procedures set forth in section 201H-47.
(b) For the purposes of this section, all references to "qualified resident" in section 201H-47 shall be understood as a resident qualifying for workforce housing or reserved housing.
(c) For the purposes of this section:
"Reserved housing" has the same meaning as in section 206E-101.
"Workforce housing" means housing designated for residents in the low- or moderate-income ranges in residential projects in which seventy-five per cent of residential units in each separate project building are sold to low- or moderate-income households, with at least 37.5 per cent of the residential units in each separate project building set aside for low-income households; provided that, as used in this definition:
(1) "Low-income" means household income no greater than eighty per cent of the area median income for Honolulu; and
(2) "Moderate-income" means household income no greater than one hundred twenty per cent of the area median income for Honolulu.
(d) The authority may adopt rules, pursuant to chapter 91, to ensure the consistent compliance of this section with the intent and procedures of 201H-47."
SECTION 2. Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The authority shall consist of nine voting
for each community development district established in this
chapter. The director of finance, the director of business, economic
development, and tourism, the comptroller, and the director of transportation,
or their respective designated representatives, shall serve as ex officio,
voting members of the authority; provided that, in addition: (1) A cultural expert shall be appointed by the governor pursuant to section
26-34 as a voting member; (2) One member shall be appointed by the governor pursuant to section 26-34
as a voting member; provided further that this paragraph shall not apply to the
Kalaeloa community development district; and (3) The chairperson of the Hawaiian homes commission or the chairperson's
designee, shall serve as an ex officio, voting member for the Kalaeloa
community development district only, shall be considered in determining quorum
and majority only on issues relating to the Kalaeloa community development
district, and shall vote only on issues relating to the Kalaeloa community
development district. Three
additional members, hereinafter referred to as county members, shall be
selected by the governor from a list of ten prospective appointees recommended
by the local governing body of the county in which each designated district is
situated; provided that when vacancies occur in any of the three positions for
which the members were selected from a list of county recommendations, the
governor shall fill such vacancies on the basis of one from a list of four
recommendations, two from a list of seven recommendations, or three from a list
of ten recommendations. The list of recommendations shall be made by the local
governing body of the county. Of the three members appointed as county members
recommended by the local governing body of the county in which each designated
district is situated, two members shall represent small businesses and shall be
designated as the small business representatives on the board whose purpose,
among other things, is to vote on matters before the board that affect small
businesses. The small business representatives shall be owners or active
managers of a small business with its principal place of operation located
within the physical boundaries of each designated district. Notwithstanding
section 84-14(a), the small business representatives may vote on any matter
concerning any district under the board's jurisdiction other than matters
concerning the Heeia community development district; provided that the matter
is not limited to solely benefiting the specific interest of that member and
the matter concerns broader interests within the district. One of the county
members shall be a resident of the designated district; provided that for
purposes of this section, the county member who is a resident of the Kalaeloa
community development district shall be a resident of the Ewa zone (zone 9,
sections 1 through 2), or the Waianae zone (zone 8, sections 1 through 9) of
the first tax map key division. The county members shall be considered in
determining quorum and majority only on issues not relating to the Heeia
community development district and may only vote on issues not related to the
Heeia community development district. Three additional voting members shall be
appointed to the authority by the governor pursuant to section 26-34 to
represent the Heeia community development district. These three members shall
be considered in determining quorum and majority only on issues relating to the
Heeia community development district and may vote only on issues related to the
Heeia community development district. The three members shall be residents of
the Heeia community development district or the Koolaupoko district which
consists of sections 1 through 9 of zone 4 of the first tax map key division. If
an additional district is designated by the legislature, the governor shall
appoint three county members as prescribed above for each additional designated
district.] to be appointed by the governor, by
and with the advice and consent of the senate; provided that one member each shall
be appointed by the governor from a list of three nominees submitted by each of
(1) The president of the senate;
(2) The speaker of the house of representatives;
(3) The minority leader of the senate;
(4) The minority leader of the house of representatives;
(5) The chief justice of the Hawaii supreme court;
(6) The board of trustees of the office of Hawaiian affairs; and
(7) The president of the University of Hawaii.
In the event of a vacancy, the governor shall appoint a member to fill the vacancy within thirty days of the vacancy or within thirty days of the submission of the list of nominees to the governor, as applicable.
If the governor fails to make any appointment within the thirty-day period specified in this subsection or within ten days of the senate's rejection of any previous appointment, the appointment shall be made by the applicable appointing authority from the list with the advice and consent of the senate. The same appointment and consent procedure shall be followed until a valid appointment has been made.
The terms of the members shall be for four years, commencing on July 1 and expiring on June 30; provided that the governor may reduce the terms of those initially appointed so as to provide, as nearly as can be, for the expiration of an equal number of terms at intervals of one year. The governor may remove or suspend for cause any member after due notice and public hearing.
In addition to the members specified in this subsection, the mayor or other designee of the governing body of each of the counties may serve as an ex officio, nonvoting member of the authority at the discretion of the governing bodies of the respective counties.
Notwithstanding section 92-15, a two-thirds' majority of all members shall constitute a quorum to do business, and the concurrence of a majority of all members shall be necessary to make any action of the authority valid; except as provided in this subsection. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.
purposes of this section, "small business" means a business which is
independently owned and which is not dominant in its field of operation.]"
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, 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 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 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 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, 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 amounts and from 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 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] inside the
geographic boundaries of the [ authority's jurisdiction ;] same community development
district as the proposal development project; 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 development 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
SECTION 4. Section 206E-7, Hawaii Revised Statutes, is amended to read as follows:
§206E-7[ ]] Community development rules.
The authority shall establish community development rules under chapter 91 on
health, safety, building, planning, zoning, and land use, which, upon
final adoption of a community development plan, shall [ supersede] comply
with all other [ inconsistent] laws, 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] and
be 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 by a community
development rule, may provide that lands within a community development
district 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 5. Section 206E-8, Hawaii Revised Statutes, is amended to read as follows:
Use of public lands; acquisition of state lands. (a) Any provision of
chapter 171 to the contrary notwithstanding, the governor may set aside public
lands located within community development districts to the authority for its
use[ .], subject to prior approval by the legislature by concurrent
resolution adopted by each house by at least a two-thirds majority vote of the
members to which that house is entitled.
If state lands under the control and management of other public agencies are
required by the authority for its purposes, the agency having the control and
management of those required lands shall, upon request by the authority and
with the approval of the governor, convey[
,] or lease such lands to the
authority upon such terms and conditions as may be agreed to by the parties.
(c) Notwithstanding the foregoing, no public lands shall be set aside, conveyed, or leased to the authority as above provided if such setting aside, conveyance, or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or such county, department, or board."
SECTION 6. Section 206E-16.5, Hawaii Revised Statutes, is amended to read as follows:
Expenditures of revolving funds under the authority not exempt from
appropriation and allotment. [ Except as to administrative expenditures,
and except as otherwise provided by law, expenditures] Expenditures
from any revolving fund administered by the authority [ may] shall
be made by the authority [ without] pursuant to appropriation [ or]
and allotment of the legislature[ ; provided that no expenditure shall
be made from and no obligation shall be incurred against any revolving fund in
excess of the amount standing to the credit of the fund or for any purpose for
which the fund may not lawfully be expended. Nothing in sections 37-31 to
37-41 shall require the proceeds of any revolving fund administered by the
authority to be reappropriated annually]."
SECTION 7. Section 206E-182, Hawaii Revised Statutes, is amended to read as follows:
"§206E-182 Powers. In addition and supplemental to the powers granted to the authority by law, the authority may:
(1) With the approval of the governor, enter into a special facility lease or an amendment or supplement thereto whereby the authority agrees to construct, acquire, or remodel and furnish or equip a special facility solely for the use by another person to a special facility lease;
(2) With the approval of the governor, and subject to prior approval by the legislature by concurrent resolution adopted by each house by at least a two-thirds majority vote of the members to which that house is entitled, issue special facility revenue bonds in principal amounts, not to exceed the total amount of bonds authorized by the legislature, that may be necessary to yield all or a portion of the cost of any construction, acquisition, remodeling, furnishing, and equipping of any special facility;
(3) With the approval of the governor, issue refunding special facility revenue bonds, in principal amounts not to exceed the total amount of bonds authorized by the legislature, with which to provide for the payment of outstanding special facility revenue bonds (including any special facility revenue bonds theretofore issued for this purpose) or any part thereof; provided any issuance of refunding special facility revenue bonds shall not reduce the principal amount of the bonds which may be issued as provided in paragraph (2);
(4) Perform and carry out the terms and provisions of any special facility lease;
(5) Notwithstanding section 103-7 or any other law to the contrary, acquire, construct, or remodel and furnish or equip any special facility, or accept the assignment of any contract therefor entered into by the other person to the special facility lease;
(6) Construct any special facility on land owned by the State; provided that no funds derived herein will be expended for land acquisition; and
(7) Agree with the other person to the special facility lease whereby any acquisition, construction, remodeling, furnishing, or equipping of the special facility and the expenditure of moneys therefor shall be undertaken or supervised by another person."
SECTION 8. Section 206E-185, Hawaii Revised Statutes, is amended to read as follows:
Special facility revenue bonds. All special facility revenue bonds
authorized to be issued, in principal amounts not to exceed the total amount
of bonds authorized by the legislature, shall be issued pursuant to part
III of chapter 39, except as follows:
(1) No revenue bonds shall be issued unless at the time of issuance the authority shall have entered into a special facility lease with respect to the special facility for which the revenue bonds are to be issued;
(2) The revenue bonds shall be issued in the name of the authority, and not in the name of the State;
(3) The revenue bonds shall be payable solely from and secured solely by the revenues derived by the authority from the special facility for which they are issued;
(4) The final maturity date of the revenue bonds shall not be later than either the estimated life of the special facility for which they are issued or the initial term of the special facility lease;
(5) If deemed necessary or advisable by the authority, or to permit the obligations of the other person to the special facility lease to be registered under the U.S. Securities Act of 1933, the authority, with the approval of the director of finance, may appoint a national or state bank within or without the State to serve as trustee for the holders of the revenue bonds and may enter into a trust indenture or trust agreement with the trustee. The trustee may be authorized by the authority to collect, hold, and administer the revenues derived from the special facility for which the revenue bonds are issued and to apply the revenues to the payment of the principal and interest on the revenue bonds. If any trustee shall be appointed, any trust indenture or agreement entered into by the authority with the trustee may contain the covenants and provisions authorized by part III of chapter 39 to be inserted in a resolution adopted or certificate issued, as though the words "resolution" or "certificate" as used in that part read "trust indenture or agreement". The covenants and provisions shall not be required to be included in the resolution or certificate authorizing the issuance of the revenue bonds if included in the trust agreement or indenture. Any resolution or certificate, trust indenture, or trust agreement adopted, issued, or entered into by the authority pursuant to this part may also contain any provisions required for the qualification thereof under the U.S. Trust Indenture Act of 1939. The authority may pledge and assign to the trustee the special facility lease and the rights of the authority including the revenues thereunder;
(6) If the authority, with the approval of the director of finance, shall have appointed or shall appoint a trustee for the holders of the revenue bonds, then notwithstanding the provisions of the second sentence of section 39-68, the director of finance may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the revenue bonds, or may elect to limit the functions the director of finance shall perform as the fiscal agent. The authority, with the approval of the director of finance, may appoint the trustee to serve as the fiscal agent, and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, that the authority may deem necessary, advisable, or expedient, including, without limitation, the holding of the revenue bonds and coupons which have been paid and the supervision and conduction of the destruction thereof in accordance with sections 40-10 and 40-11. Nothing in this paragraph shall be a limitation upon or construed as a limitation upon the powers granted in the preceding paragraph to the authority, with the approval of the director of finance, to appoint the trustee, or granted in sections 36-3 and 39-13 and the third sentence of section 39-68 to the director of finance to appoint the trustee or others, as fiscal agents, paying agents, and registrars for the revenue bonds or to authorize and empower the fiscal agents, paying agents, and registrars to perform the functions referred to in that paragraph and sections, it being the intent of this paragraph to confirm that the director of finance as aforesaid may elect not to serve as fiscal agent for the revenue bonds or may elect to limit the functions the director of finance shall perform as the fiscal agent, that the director of finance may deem necessary, advisable, or expedient;
(7) The authority may sell the revenue bonds either at public or private sale;
(8) If no trustee shall be appointed to collect, hold, and administer the revenues derived from the special facility for which the revenue bonds are issued, the revenues shall be held in a separate account in the treasury of the State, separate and apart from the Hawaii community development revolving fund, to be applied solely to the carrying out of the resolution, certificate, trust indenture, or trust agreement authorizing or securing the revenue bonds;
(9) If the resolution, certificate, trust indenture, or trust agreement shall provide that no revenue bonds issued thereunder shall be valid or obligatory for any purpose unless certified or authenticated by the trustee for the holders of the revenue bonds, signatures of the officers of the State upon the bonds required by section 39-56 may be facsimiles of their signatures;
(10) Proceeds of the revenue bonds may be used and applied by the authority to reimburse the other person to the special facility lease for all preliminary costs and expenses, including architectural and legal costs; and
(11) If the special facility lease shall require the other person to operate, maintain, and repair the special facility which is the subject of the lease, at the other person's expense, the requirement shall constitute compliance by the authority with section 39‑61(a)(2), and none of the revenues derived by the authority from the special facility shall be required to be applied to the purposes of section 39‑62(2). Sections 39-62(4), 39-62(5), and 39-62(6) shall not apply to the revenues derived from a special facility lease."
SECTION 9. Act 134, Session Laws of Hawaii 2013, is amended by amending section 3, program heading A (economic development), item No. 23, program ID BED150 Hawaii community development authority, to read as follows:
OPERATING BED 1,086,818W [
INVESTMENT CAPITAL BED 2,155,000C [
SECTION 10. All existing members of the Hawaii community development authority in office as of the effective date of this Act shall be removed immediately, and new members shall be appointed pursuant to section 206E-3, Hawaii Revised Statutes.
SECTION 11. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
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, 2020.
Hawaii Community Development Authority
Amends the manner in which members are appointed to the Hawaii Community Development Authority. Enhances legislative oversight of the Authority. Establishes restrictions on transfers, sales, and deeds of property owned by the Hawaii Community Development Authority. Effective July 1, 2020. (HB1866 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.