THE SENATE

S.B. NO.

140

THIRTY-FIRST LEGISLATURE, 2021

S.D. 2

STATE OF HAWAII

H.D. 2

 

C.D. 1

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO COMMUNITY DEVELOPMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. The legislature finds that the construction and installation of certain public facilities are necessary and desirable to facilitate the renewal and redevelopment of areas designated for transit-oriented development by the State and the counties. Transit-oriented development is a powerful tool that can ultimately deliver a wide range of social, environmental, and economic benefits. Transit-oriented development promotes development patterns that support quality of life; preserves the natural environment; provides a range of housing choices for residents; and encourages walking, biking, and mass transit.

The State plays an important role in overcoming barriers to transit-oriented development, including encouraging needed investments in regional public facilities such as roads, sewers, and storm water management systems. This Act is intended to move current transit-oriented development planning efforts forward into structures that benefit the community.

The legislature further finds that, currently, no single entity has the authority to redevelop the State's assets along a transit corridor in the best interest of the State. This Act will enable the delivery of public facilities and infrastructure needed to support development on lands within designated transit-oriented development zones.

The purpose of this Act is to establish the transit-oriented development zone improvement board to develop a transit-oriented development zone improvement program to foster community development by strategically investing in public facilities.

SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part     Transit-oriented development zone improvement proGRAM

206E-A Definitions. As used in this part:

"Board" means the transit-oriented development zone improvement board established by section 206E-B.

"Program" means the transit-oriented development zone improvement program developed by the board pursuant to section 206E-D.

"Transit-oriented development zone" means the parcels of land within county-designated transit-oriented development zones, or within a one-half mile radius around proposed or existing transit stations if the county has not designated transit-oriented development zones, as determined by the board, taking into account proximity, walkability, adopted county plans, and other relevant factors; provided that in a county with a population in excess of five hundred thousand a transit-oriented development zone shall include a rail station or a planned rail station. "Transit-oriented development zone" includes all parcels of land on which any portion of said parcels are located within that one-half mile radius.

206E-B Transit-oriented development zone improvement board; established. (a) There is established the transit-oriented development zone improvement board to govern the program.

(b) The governor shall appoint the following members of the board, who shall each serve for a term of four years; provided that the governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of two members selected by lot shall be for two years, the initial term of one member selected by lot shall be for three years, and the initial terms of the remaining member shall be for four years:

(1) One at-large member selected from a list of three nominees submitted by the president of the senate;

(2) One at-large member selected from a list of three nominees submitted by the speaker of the house of representatives;

(3) One at-large member;

(4) One cultural specialist;

(5) The director of the planning department of the county in which the district is located, or the director's designee, who shall serve in an ex-officio, non-voting capacity; and

(6) The director of finance, director of the office of planning, and executive director of the Hawaii housing finance and development corporation, or their respective designees, who shall all serve in ex-officio, voting capacities.

In the event of a vacancy, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

The terms of the director of finance, director of transportation, county directors of planning and permitting, chairperson of the Hawaiian homes commission, director of the office of planning, and executive director of the Hawaii housing finance and development corporation, or their respective designees, shall run concurrently with each official's term of office.

The governor may remove or suspend for cause any member after due notice and public hearing.

Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the board valid. 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.

206E-C Transit-oriented development zone improvement board; powers; generally. Except as otherwise limited by this part, the board 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 part;

(4) Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

(5) Prepare or cause to be prepared a development plan for all transit-oriented development zones;

(6) 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;

(7) 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;

(8) 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;

(9) 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;

(10) 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, modify the plans, specifications, designs, or estimates of any project;

(11) 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 part, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(12) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

(13) Contract for and accept gifts or grants in any form from any public agency or from any other source;

(14) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this part; and

(15) Establish and administer the transit-oriented development zones and program.

206E-D Transit-oriented development zone improvement program. (a) The board shall develop a transit-oriented development zone improvement program to identify necessary transit-oriented development zone public facilities within the transit-oriented development zones.

(b) Whenever the board shall determine to undertake, or cause to be undertaken, any public facility as part of the program, the cost of providing the public facilities may be assessed against the real property in the transit-oriented development zone specially benefiting from the public facilities. The board shall determine the areas of the transit-oriented development zone that will benefit from the public facilities to be undertaken and, if less than the entire transit-oriented development zone benefits, the board may establish assessment areas within the transit-oriented development zone. The board may issue and sell bonds in amounts as may be authorized by the legislature to provide funds to finance the public facilities. The board may fix the assessments against real property specially benefited. All assessments made pursuant to this section shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until paid, and the lien shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien shall be superior to the later lien.

(c) Bonds issued to provide funds to finance transit-oriented development zone public facilities shall be secured solely by the real properties benefited or improved, the assessments thereon, or the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the board. Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes. The bonds shall be issued according and subject to rules adopted pursuant to this section.

(d) Notwithstanding any other law to the contrary, in assessing real property for transit-oriented development zone public facilities, the board shall assess the real property within an assessment area according to the special benefits conferred upon the real property by the public facilities. These methods may include assessment on a frontage basis or according to the area of real property within an assessment area or any other assessment method that assesses the real property according to the special benefit conferred, or any combination thereof. No assessment levied against real property specially benefited as provided by this part shall constitute a tax on real property within the meanings of any constitutional or statutory provisions.

(e) The board shall adopt rules pursuant to chapter 91 and may amend the rules from time to time, providing for the method of undertaking and financing transit-oriented development zone public facilities in an assessment area or an entire transit-oriented development zone. The rules adopted pursuant to this section shall include but are not limited to:

(1) The methods by which the board shall establish assessment areas;

(2) The method of assessment of real properties specially benefited;

(3) The costs to be borne by the board, the county in which the transit-oriented development zone public facilities are situated, and the property owners;

(4) The procedures before the board relating to the creation of the assessment areas by the owners of real property therein, including provisions for petitions, bids, contracts, bonds, and notices;

(5) Provisions relating to assessments;

(6) Provisions relating to financing, including bonds, revolving funds, advances from available funds, special funds for payment of bonds, payment of principal and interest, and sale and use of the bonds;

(7) Provisions relating to funds and refunding of outstanding debts;

(8) Provisions relating to limitations on time to sue; and

(9) Other related provisions.

(f) Notwithstanding any other provisions to the contrary, the board may, in its discretion, enter into any agreement with the county in which the transit-oriented development zone public facilities are located, to implement all or part of the purposes of this section.

(g) All sums collected under this section shall be deposited into the Hawaii community development revolving fund established by section 206E-16; provided that notwithstanding section 206E-16, all moneys collected on account of assessments and interest thereon for any specific transit-oriented development zone public facilities financed by the issuance of bonds shall be set apart in a separate special fund and applied solely to:

(1) The payment of the principal and interest on these bonds and the cost of administering, operating, and maintaining the program;

(2) The establishment of reserves; and

(3) Other purposes as may be authorized in the proceedings providing for the issuance of the bonds.

If any surplus remains in any special fund after the payment of the bonds chargeable against the fund, it shall be credited to and become a part of the Hawaii community development revolving fund. Moneys in the Hawaii community development revolving fund may be used to make up any deficiencies in the special fund.

(h) The transit-oriented development zone public facilities to be financed through bonds issued by the board may be dedicated to the county in which the public facilities are to be located. The board shall ensure that the public facilities are designed and constructed to meet county requirements and enter into agreement with the county for dedication of the public facilities.

(i) Notwithstanding any law to the contrary, whenever as part of a program, it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities, the board shall establish by rule the allocation of cost between the board, the affected public utilities, and the properties that may specially benefit from the improvement, if any. In determining the allocation of cost, the board shall consider the cost allocation policies for improvement districts established by the county in which the removal, relocation, replacement, or reconstruction is to take place."

SECTION 3. 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 4. This Act shall take effect on July 1, 2021.



 

Report Title:

Transit-oriented Development; HCDA

 

Description:

Defines transit-oriented development zone. Establishes the transit-oriented zone development improvement board. Requires the transit-oriented zone development improvement board to develop a transit-oriented development zone improvement program to foster community development by strategically investing in public facilities. Effective 7/1/2021. (CD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.