THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the cost and availability of housing in the State are significant challenges facing Hawaii residents. Although Hawaii has the tenth highest median wage nationally, living expenses are two-thirds higher than the rest of the nation, with the cost of housing being a major contributing factor. According to a local news report, a household needed to earn almost $160,000 annually to afford to buy a median-priced home on Oahu in 2018, making homeownership out of reach for many of Hawaii's residents, especially first-time buyers. By July 2019, the median price for a single-family home on Oahu had risen to $835,000, while the median price for condominiums on Oahu had risen to $461,500.
Because of the many barriers hindering the production of new housing, such as geographic limitations, lack of major infrastructure, construction costs, and government regulation, the State and housing developers have not been able to produce enough housing for Hawaii residents. According to a 2015 report from the department of business, economic development, and tourism, the projected long-run estimate of demand for total new housing in Hawaii is between 64,700 to 66,000 for the 2015 to 2025 period. The legislature has responded through the passage of various legislation. During the regular session of 2016, the legislature passed a bill enacted as Act 127, Session Laws of Hawaii 2016, that, among other things, established a goal of developing or vesting the development of at least 22,500 affordable rental housing units ready for occupancy by the end of 2026. During the regular session of 2017, the legislature passed a bill enacted as Act 54, Session Laws of Hawaii 2017, to expand the types of rental housing projects that can be exempt from general excise tax, thereby encouraging the development of rental housing projects targeted for occupancy by households at or below the one hundred forty per cent area median income level. During the regular session of 2018, the legislature passed a bill enacted as Act 39, Session Laws of Hawaii 2018, that, among other things, provides an estimated total value of $570,000,000 to address Hawaii's affordable rental housing crisis and is expected to generate more than 25,000 affordable units by the year 2030.
Despite these efforts, the amount of new construction of housing, especially for low- to middle-income families, continues to be inadequate as the supply of housing remains constrained while demand for housing increases. This lack of supply leads to higher housing prices and rents for households of all income levels, leaving all tenants with less disposable income, increasing the personal stress on buyers and renters, and exacerbating overcrowding and homelessness. Given these consequences, the lack of affordable housing requires the concentrated attention of state government at the highest level.
The legislature further finds that Singapore faced a housing crisis in the 1940s through 1960s but was subsequently able to provide nearly one million residential units for its citizens. The housing and development board ‑‑ the government entity responsible for the rapid increase in housing development ‑‑ plans, develops, and constructs the housing units, including commercial, recreational, and social amenities. The result is that units built by the housing and development board house eighty per cent of the resident population and that, overall, ninety per cent of the resident population are owners of their units. Through government loans, subsidies, and grants and the use of money saved through a government-run mandatory savings program, residents are able to purchase residential units at an affordable price, including options to upgrade to a better living environment in the future.
The legislature further finds that with Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of properties along the transit line, with approximately two thousand acres under the jurisdiction of various departments, the State must be proactive in establishing a unified vision and approach toward redevelopment of its properties to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to:
(1) End the housing shortage in Hawaii;
(2) Establish the ALOHA homes program to facilitate the creation of low-cost leasehold homes for sale to Hawaii residents on state-owned land near public transit stations;
(3) Authorize the Hawaii housing finance and development corporation to sell the leasehold interest in residential condominium units located on state lands for lease terms of ninety-nine years; and
(4) Develop an ALOHA homes demonstration project by July 1, 2025.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding two new subparts to part II to be appropriately designated and to read as follows:
"b. aloha Homes Program
§201H-A Definitions. As used in this subpart, the following terms have the following meanings, unless the context indicates a different meaning or intent:
"ALOHA" means affordable, locally owned homes for all.
"ALOHA home" means a residential unit within an urban redevelopment site.
"Commercial project" means an undertaking involving commercial or light industrial development, which includes a mixed-use development where commercial or light industrial facilities may be built into, adjacent to, under, or above residential units.
"High density" means a project or area that has at least two hundred fifty dwelling units per acre.
"Multipurpose project" means a project consisting of any combination of a commercial project, redevelopment project, or residential project.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy, but shall not mean renting or leasing to any tenant or lessee of any kind.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, or residential project.
"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.
"Public facilities" includes streets, utility and service corridors, and utility lines where applicable, sufficient to adequately service developable improvements in an urban redevelopment site, sites for schools, parks, parking garages, sidewalks, pedestrian ways, and other community facilities. "Public facilities" also includes public highways, as defined in section 264-1, storm drainage systems, water systems, street lighting systems, off-street parking facilities, sanitary sewerage systems, facilities to address climate change and sea level rise, as well as the land required for these facilities. "Public facilities" includes any facility owned and operated by a public agency and having a useful life of at least five years.
"Public transit station" means:
(1) A station connected to a locally preferred alternative for a mass transit project; or
(2) For the city and county of Honolulu, a station of the Honolulu rail transit system.
"Redevelopment project" means an undertaking for the acquisition, clearance, replanning, reconstruction, and rehabilitation, or a combination of these and other methods, of an area for a residential project, for an incidental commercial project, and for other facilities incidental or appurtenant thereto, pursuant to and in accordance with this subpart. The term "acquisition, clearance, replanning, reconstruction, and rehabilitation" includes renewal, redevelopment, conservation, restoration, or improvement, or any combination thereof.
"Residential project" means a project or that portion of a multipurpose project, including residential dwelling units, designed and intended for the purpose of providing housing and any facilities as may be incidental or appurtenant thereto.
"Small and medium vendor" means a commercial vendor that employs nine hundred ninety-nine employees or less.
§201H-B ALOHA homes program. There is established the ALOHA homes program for the purpose of providing low-cost, high density leasehold homes for sale to Hawaii residents on state-owned lands within a one mile radius of a public transit station.
§201H-C Urban redevelopment sites; established; boundaries. There shall be established urban redevelopment sites that shall include all state-owned and county-owned land within:
(1) County-designated transit-oriented development areas; or
(2) Within a one-mile radius of a public transit station in a county having a population greater than five hundred thousand.
§201H-D Rules; guidelines. (a) The corporation shall establish rules pursuant to chapter 91 on health, safety, building, planning, zoning, and land use, which 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 corporation may provide that lands within urban redevelopment sites 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.
(b) The following shall be the principles generally governing the corporation's action in urban redevelopment sites:
(1) The corporation shall produce enough housing to meet housing demand;
(2) Each development may include facilities to replace any facilities that must be removed for the development's construction;
(3) Development shall be revenue-neutral to the State and counties, and all revenues generated shall be used for the purposes of this subpart;
(4) The corporation shall consider the infrastructure burden of each development and the impact of the development on the education system, and any mitigation actions, prior to construction;
(5) The corporation may build infrastructure beyond what exists in any development under this subpart and may sell the infrastructure capacity to private sector developers;
(6) The corporation may build common area facilities for any development undertaken pursuant to this subpart, which shall be paid through the sales of ALOHA homes units;
(7) Development shall result in a community that permits an appropriate land mixture of residential, commercial, and other uses. In view of the innovative nature of the mixed use approach, urban design policies shall be established for the public and private sectors in the proper development of urban redevelopment sites; provided that any of the corporation's proposed actions in urban redevelopment sites that are subject to chapter 343 shall comply with chapter 343 and federal environmental requirements; provided further that the corporation may engage in any studies or coordinative activities permitted in this subpart that affect areas lying outside urban redevelopment sites, where the corporation in its discretion decides that those activities are necessary to implement the intent of this subpart. 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 corporation may engage in construction activities outside of urban redevelopment sites; provided that the construction relates to infrastructure development or residential or business relocation activities; provided further that the construction shall comply with the general plan, development plan, ordinances, and rules of the county in which the urban redevelopment site is located;
(8) Activities shall be located so as to provide primary reliance on public transportation and pedestrian and bicycle facilities for internal circulation within urban redevelopment sites or designated subareas;
(9) Where compatible, land use activities within urban redevelopment sites, to the greatest possible extent, shall be mixed horizontally within blocks or other land areas, and vertically as integral units of multi-purpose structures;
(10) Development shall prioritize maximizing density on lands that are most urbanized and most suitable for high density; provided that development may require a mixture of densities, building types, and configurations in accordance with appropriate urban design guidelines and vertical and horizontal integration of residents of varying incomes, ages, and family groups that reflect the diversity of Hawaii. Development shall provide necessary community facilities, such as parks, community meeting places, child care centers, schools, educational facilities, libraries, and other services, within and adjacent to residential development; provided that any school that is provided by the corporation as a necessary community facility shall be exempt from school size requirements as calculated by recent school site area averages pursuant to section 302A-1602;
(11) Public facilities within urban redevelopment sites shall be planned, located, and developed so as to support the redevelopment policies for the sites established by this subpart and plans and rules adopted pursuant to it;
(12) Development shall be designed, to the extent possible, to minimize traffic, parking, the use of private automobiles, and noise;
(13) Development shall be subject to chapter 104;
(14) Onsite and off-site infrastructure funded by the State or county, as applicable, shall be brought to the development site; provided that the State and respective county may be reimbursed for its infrastructure contributions with proceeds from the sale of ALOHA homes; and
(15) Development shall include the establishment of a building operating and maintenance program, together with the funding to cover its cost.
(c) ALOHA homes within urban redevelopment sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use; provided that the corporation, by rule, shall establish penalties for violations of this subsection up to and including forced sale of an ALOHA home.
(d) The design and development contracts for ALOHA homes shall be subject to chapter 103D.
(e) The corporation shall recoup all expenses through the sales of the leasehold interest of ALOHA homes and other revenue sources, including the leasing of commercial space.
(f) The corporation shall transfer ALOHA homes units within residential projects to the department of Hawaiian home lands or to the Office of Hawaiian Affairs; provided that the corporation shall adopt rules under chapter 91 to determine the number of units or the percentage of units to be transferred to the department of Hawaiian home lands or to the office of Hawaiian affairs; provided further that the corporation may not grant certificates of occupancy for any ALOHA homes units prior to the implementation of these rules.
§201H-E Sale of the leasehold interest of ALOHA homes; rules; guidelines. (a) The corporation shall adopt rules, pursuant to chapter 91, for the sale of the leasehold interest of ALOHA homes under its control within urban redevelopment sites; provided that each lease shall be for a term of ninety-nine years. The rules shall include the following requirements for an eligible buyer or owner of an ALOHA home within an urban redevelopment site:
(1) The person shall be a resident of the State; provided that voting in the most recent primary or general election shall be an indication of residency in the State; provided further that not voting in any primary or general election creates a rebuttable presumption of non-residency;
(2) The person shall not use the ALOHA home for any purpose other than owner-occupied residential use; and
(3) The person, or the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential and non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning an ALOHA home in an urban redevelopment site; provided that an eligible buyer may own real property up to six months after closing on the purchase of an ALOHA home; provided further that an owner of an ALOHA home in the process of selling the ALOHA home may own other real property up to six months prior to closing on the sale of the ALOHA home to an eligible buyer;
provided that the rules under this subsection shall not include any requirements or limitations related to an individual's income or any preferences to first-time home buyers. The rules shall include strict enforcement of owner-occupancy, including a prohibition on the renting or leasing of an ALOHA home to any tenant or lessee, and may include requirements for the use of face recognition, verification of the presence of owner-occupants and prevention of access to all unauthorized persons through retina scan for a minimum number of days per year to be established by the corporation by rule, or fingerprint scan technology.
(b) The median ALOHA homes within urban redevelopment sites shall be priced to be affordable to an individual or family whose income does not exceed eighty per cent of the area median income, or $300,000, whichever is less, using the United States Department of Housing and Urban Development income guidelines; provided that the $300,000 price shall be adjusted annually by calculating the average annual increase in the median home price for the area during the previous ten-year timeframe, as determined by the department of business, economic development, and tourism.
(c) The corporation shall establish waitlists for each residential development for eligible buyers to determine the order in which ALOHA homes shall be sold. Waitlist priorities may include school, college, or university affiliation if the residential property is a redeveloped school, college, or university; proximity of an eligible buyer's existing residence to an ALOHA home within the urban redevelopment site; and other criteria based on the impact that the development has on the eligible buyer.
(d) ALOHA homes within urban redevelopment sites shall be sold only to other eligible buyers.
(e) An owner of an ALOHA home may sell the ALOHA home after five or more years of owner-occupancy; provided that the corporation shall have the right of first refusal to purchase the ALOHA home at a price that is determined by the corporation using the price at which the owner purchased the ALOHA home as the cost basis, adjusted for inflation, as determined by the department of business, economic development, and tourism using the Consumer Price Index for All Urban Consumers for Honolulu, and may include a percentage of the appreciation in value of the unit based on an appraisal obtained by the corporation. If the corporation does not exercise its right to purchase the ALOHA home, the ALOHA home may be sold by the owner to an eligible buyer; provided that the corporation shall retain seventy-five per cent of all profits from the sale net of closing and financing costs, using the price at which the owner purchased the ALOHA home, plus documented capital improvements, as the cost basis. Upon the death of the owner of an ALOHA home, the ALOHA home may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that if the heir is not an eligible buyer, the heir shall sell the ALOHA home to the corporation at a price that is determined by the corporation using the price at which the owner purchased the ALOHA home, plus documented capital improvements, as the cost basis, adjusted for inflation, and may include a percentage of the appreciation in value of the unit.
(f) If an owner of an ALOHA home sells the ALOHA home before five years of owner-occupation, the corporation shall purchase the ALOHA home at a price that is determined by the corporation using the price at which the owner purchased the ALOHA home as the cost basis, plus documented capital improvements, adjusted for inflation.
(g) Any ALOHA home developed and sold under this subpart shall not be subject to sections 201H-47, 201H-49, 201H-50, and 201H-51.
(h) If an owner of an ALOHA home defaults on any loan or mortgage secured by the owner's leasehold interest in the ALOHA home or loses ownership of the home for any reason, the corporation shall purchase the interest of the owner in the ALOHA home and take possession thereof.
§201H-F Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the corporation for the purposes of this subpart, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may convey or lease those lands to the corporation upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding the foregoing, no public lands shall be conveyed or leased to the corporation pursuant to this section if the 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 that county, department, or board.
§201H-G Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its county council, may, without public auction, sealed bids, or public notice, sell, lease, grant, or convey to the corporation any real property owned by it that the corporation certifies to be necessary for the purposes of this subpart. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the corporation. Certification shall be evidenced by a formal request from the corporation. Before the sale, lease, grant, or conveyance may be made to the corporation, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
§201H-H Condemnation of real property. The corporation, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this subpart, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the corporation. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the corporation.
§201H-I Construction contracts. The construction contracts for ALOHA homes shall be subject to chapter 103D.
§201H-J Lease of projects. Notwithstanding any law to the contrary, the corporation, without recourse to public auction or public notice for sealed bids, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a commercial project to any person, upon terms and conditions as may be approved by the corporation; provided that all revenues generated from the lease shall be used to support the purpose of this subpart pursuant to section 201H-B.
§201H-K Dedication for public facilities as condition to development. The corporation shall establish rules requiring dedication for public facilities of land or facilities by developers as a condition of developing real property within urban redevelopment sites. Where state and county public facilities dedication laws, ordinances, or rules differ, the provision for greater dedication shall prevail.
§201H-L ALOHA homes revolving fund. There is established the ALOHA homes revolving fund into which all receipts and revenues of the corporation pursuant to this subpart shall be deposited. Proceeds from the fund shall be used for the purposes of this subpart.
§201H-M Expenditures of ALOHA homes revolving fund under the corporation exempt from appropriation and allotment. Except as to administrative expenditures, and except as otherwise provided by law, expenditures from the ALOHA homes revolving fund administered by the corporation may be made by the corporation without appropriation or allotment of the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against the ALOHA homes 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 the ALOHA homes revolving fund administered by the corporation to be reappropriated annually.
§201H-N Assistance by state and county agencies. Any state or county agency may render services for the purposes of this subpart upon request of the corporation.
§201H-O Lands no longer needed. Lands acquired by the corporation from another government agency that are no longer needed for the ALOHA homes program by the corporation shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private party that are owned by the corporation and designated for the ALOHA homes program but are subsequently no longer needed for the ALOHA homes program shall be retained by the corporation.
§201H-P Rules. The corporation may adopt rules pursuant to chapter 91 that are necessary for the purposes of this subpart.
C. Leasehold Condominiums on State Lands
§201H-Q Leasehold condominiums on state lands. (a) The corporation may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this subpart on state land to a "qualified resident" as defined in section 201H‑32.
(b) The term of the lease may be for ninety-nine years, and the corporation may extend or modify the fixed rental period of the lease or extend the term of the lease.
(c) The sale of leasehold units shall be subject to sections 201H-47, 201H-49, and 201H-50, except for units sold at fair market value.
(d) State land set aside by the governor to the corporation and lands leased to the corporation by any department or agency of the State for a condominium described in this section shall be exempt from the definition of "public lands" under section 171-2, except for the provision in section 171-2(6) that subjects corporation lands to the accounting for all receipts for lands subject to section 5(f) of the Admission Act.
(e) The powers conferred upon the corporation by this section shall be in addition and supplemental to the powers conferred by any other law, and nothing in this section shall be construed as limiting any powers, rights, privileges, or immunities so conferred."
SECTION 3. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Exemption of sale of leasehold interest for ALOHA home units. In addition to the amounts exempt under section 237-24, this chapter shall not apply to amounts received from the sale of a leasehold interest in an ALOHA home under chapter 201H, part II, subpart B."
SECTION 4. Section 171-2, Hawaii Revised Statutes, is amended to read as follows:
"§171-2 Definition of public lands. "Public lands" means all lands or interest therein in the State classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including lands accreted after May 20, 2003, and not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, except:
(1) Lands designated in section 203 of the Hawaiian Homes Commission Act, 1920, as amended;
(2) Lands set aside pursuant to law for the use of the United States;
(3) Lands being used for roads and streets;
(4) Lands to which the United States relinquished the absolute fee and ownership under section 91 of the Hawaiian Organic Act prior to the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the state constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws;
(5) Lands to which the University of Hawaii holds title;
(6) Lands that are set aside by the governor to the Hawaii housing finance and development corporation; lands leased to the Hawaii housing finance and development corporation by any department or agency of the State; or lands to which the Hawaii housing finance and development corporation in its corporate capacity holds title; provided that lands described in this paragraph shall be considered "public lands" for the purpose of accounting for all receipts from lands described in section 5(f) of the Admission Act for the prior fiscal year, pursuant to section 5 of Act 178, Session Laws of Hawaii 2006; provided further that payment of receipts pursuant to this paragraph may be made in a form of remuneration or consideration other than cash;
(7) Lands to which the Hawaii community development authority in its corporate capacity holds title;
(8) Lands set aside by the governor to the Hawaii public housing authority or lands to which the Hawaii public housing authority in its corporate capacity holds title;
(9) Lands to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;
(10) Lands that are set aside by the governor to the Aloha Tower development corporation; lands leased to the Aloha Tower development corporation by any department or agency of the State; or lands to which the Aloha Tower development corporation holds title in its corporate capacity;
(11) Lands that are set aside by the governor to the agribusiness development corporation; lands leased to the agribusiness development corporation by any department or agency of the State; or lands to which the agribusiness development corporation in its corporate capacity holds title;
(12) Lands to which the Hawaii technology development corporation in its corporate capacity holds title; and
(13) Lands to which the department of education holds title;
provided that, except as otherwise limited under federal law and except for state land used as an airport as defined in section 262-1, public lands shall include the air rights over any portion of state land upon which a county mass transit project is developed after July 11, 2005."
SECTION 5. Section 171-64.7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) This section applies to all lands or interest therein owned or under the control of state departments and agencies classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or any other manner, including accreted lands not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, including:
(1) Land set aside pursuant to law for the use of the United States;
(2) Land to which the United States relinquished the absolute fee and ownership under section 91 of the Organic Act prior to the admission of Hawaii as a state of the United States;
(3) Land to which the University of Hawaii holds title;
(4) Land that is set aside by the governor to the Hawaii housing finance and development corporation; land leased to the Hawaii housing finance and development corporation by any department or agency of the State; or land to which the Hawaii housing finance and development corporation in its corporate capacity holds title;
(5) Land to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;
(6) Land that is set aside by the governor to the Aloha Tower development corporation; or land to which the Aloha Tower development corporation holds title in its corporate capacity;
(7) Land that is set aside by the governor to the agribusiness development corporation; or land to which the agribusiness development corporation in its corporate capacity holds title;
(8) Land to which the Hawaii technology development corporation in its corporate capacity holds title;
(9) Land to which the department of education holds title; and
(10) Land to which the Hawaii public housing authority in its corporate capacity holds title."
SECTION 6. Chapter 201H, Hawaii Revised Statutes, part II is amended by designating sections 201H-31 to 201H-70 as subpart A and inserting a title before section 201H-31 to read as follows:
"A. General Provisions"
SECTION 7. Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The following shall be exempt from this section:
(1) Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;
(2) Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;
(3) All nonresidential development; [
(4) Any development with an executed education
contribution agreement or other like document with the department for the
contribution of school sites or payment of fees for school land or school
(5) Any form of development by the Hawaii housing finance and development corporation pursuant to chapter 201H, part II, subpart B."
SECTION 8. The Hawaii housing finance and development corporation shall develop an ALOHA homes demonstration project by July 1, 2025. The Hawaii housing finance and development corporation shall consult with the Hawaii interagency council for transit-oriented development on the location of the demonstration project, consistent with the state strategic plan for transit-oriented development.
SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2020-2021 to be deposited into the ALOHA homes revolving fund established pursuant to section 201H-L, Hawaii Revised Statutes.
SECTION 10. There is appropriated out of the ALOHA homes revolving fund established pursuant to section 201H-L, Hawaii Revised Statutes, the sum of $ or so much thereof as may be necessary for fiscal year 2020-2021 for the purposes for which the revolving fund is established.
The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 11. In codifying the new sections added by section 2 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 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.
HHFDC; Affordable Housing; ALOHA Homes; Public Land Exemptions; Appropriation
Establishes the ALOHA homes program to develop low-cost homes on state-owned and county-owned land in urban redevelopment sites to be sold in leasehold by the Hawaii Housing Finance and Development Corporation (HHFDC) to qualified residents. Exempts certain land from the definition of public lands. Requires HHFDC to gain legislative approval before disposing of certain lands. Requires HHFDC to transfer a number of ALOHA homes units to the Department of Hawaiian Home Lands or Office of Hawaiian Affairs. Provides for the disposition of lands acquired by HHFDC, but no longer needed for the ALOHA homes program. Requires HHFDC to develop an ALOHA homes demonstration project by July 1, 2025. Appropriates funds. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.