H.B. NO.



H.D. 1
















SECTION 1. The legislature finds that an increasing population puts pressure on the State and counties to implement land use practices that carefully regulate a balance of housing while sustaining the beauty and natural resources of the islands. Changes in state and county land use practices need to be implemented to plan for proper population growth; otherwise, new housing supply will decrease and state-wide prices will increase. At least $100,000 in government subsidies is needed for each subsidized housing unit, which multiplied by the state shortage of 13,000 units, requires $1,300,000,000 of taxpayer subsidies and provides no solution to the affordable housing shortage or expansion of urban sprawl. The state statistician estimates that 3,000 new households are created each year on the island of Oahu. A recent report of the department of business, economic development, and tourism estimates Hawaii needs about 5,200 new housing units to be built each year until 2020 to adequately accommodate the State's projected population growth.

The legislature also finds that it is important to encourage redevelopment and reinvestment in the historic nature of towns and communities to preserve Hawaii's heritage for future generations. The counties must look at tools including transferring density rights, incentives for redevelopment, revenue generating public-private partnerships, and economic development strategies. Current land codes do not encourage consistency in maintaining building facades of historical buildings in the area or community. Additionally, encouragement for development of infrastructure that allows for a preferred choice of walking, biking, or the use of public transportation will help accommodate the State's growing population.

The legislature further finds that the existing land use practices, including statutes, ordinances, permitting, development application processes, and environmental infrastructure, need to be reviewed to effectively provide the necessary information and recommendations required to plan for the reduction of urban sprawl and proper development and redevelopment to accommodate population growth. Furthermore, to prevent urban sprawl from destroying agricultural lands, a viable option is to focus growth through the county development or sustainable community plans for Ewa, central Oahu, and the primary urban center.

The legislature further finds that the former Honolulu redevelopment agency, created in 1950, initiated notable projects such as the Queen Emma Gardens, Kukui Plaza, and the Chinese Cultural Plaza, before the agency's duties were transferred in 1975 to the then newly created department of housing and community development. The legislature further finds that statewide, areas could benefit from renewal and redevelopment. There have been a number of planning studies, but despite preparation of these studies and the efforts of residents, many of the recommendations have yet to be implemented.

SECTION 2. Section 39-1, Hawaii Revised Statutes, is amended to read as follows:

"39-1 Authorization to issue; amount. The director of finance of the State, with the approval of the governor, may issue from time to time general obligation bonds of the State, to an amount not exceeding the total amount of those bonds authorized to be issued by acts of the legislature and any amendments thereto in effect at the date of issue of the bonds, and not exceeding the debt limitations prescribed by the Constitution of the State of Hawaii. Except as otherwise specifically provided in the act or acts authorizing the issuance thereof, the bonds shall be issued in the manner and upon the terms provided in this part. The director of finance may issue from time to time general obligation bonds of the State to the counties for infrastructure construction related to urban renewal projects under chapter 53."

SECTION 3. Section 53-1, Hawaii Revised Statutes, is amended by amending the definition of "agency", "local agency", or "local redevelopment agency" to read as follows:

""Agency", "local agency", or "local redevelopment agency" means [a] one or more local redevelopment [agency] agencies of the county in which a redevelopment project or the redevelopment project concerned is situated, created pursuant to this chapter. [Each agency shall be designated by the name of the county followed by the words "redevelopment agency", e.g., "Maui redevelopment agency".]"

SECTION 4. Section 53-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The council of a county by resolution may create a local redevelopment agency for the county, which shall be a county agency and a public body, corporate and politic, [and] that shall target a specified redevelopment project in the county. A local redevelopment agency shall consist of five members, three appointed by the mayor, with the approval of the council, and two appointed by the council chair, with the approval of the council, who shall be outstanding and public-spirited citizens and who shall have resided in the county for at least three years immediately preceding their appointment[.]; provided that all five members shall reside within the metes and bounds of a specified area that shall be defined by the council of the county by resolution; provided further that the area shall encompass all or part of the area in which the redevelopment project is situated. The members of the agency shall serve for terms of five years each; provided that upon the initial appointment of the members of the agency, one member shall be appointed for a term of one year, the second member for a term of two years, the third member for a term of three years, the fourth member for a term of four years and a fifth member for a term of five years. Each vacancy shall be filled by the appointing power for the remainder of the unexpired term. No more than three of the members shall belong to the same political party."

SECTION 5. Section 53-5, Hawaii Revised Statutes, is amended to read as follows:

"53-5 Powers and duties of agency. The powers and duties of the redevelopment agency shall be as follows:

(1) To undertake and carry out urban renewal projects and related activities authorized by this chapter; to make and execute contracts and other instruments necessary or convenient to exercise its powers under this chapter; to sue and be sued; to have a seal; and, subject to any limitations in this chapter contained, to exercise all powers necessary, incidental, or convenient to carry out and effectuate the purposes and provisions of this chapter.

(2) To make, amend, and repeal rules and regulations not inconsistent with this part to carry into effect the powers and purposes thereof, which rules and regulations shall be subject to chapter 91.

(3) To appoint a manager and a deputy manager who shall have such qualifications as the agency deems necessary and who shall hold their respective offices at the pleasure of the agency. The manager shall be exempt from the requirements of chapter 76 and shall receive such salary as the agency may provide. The deputy manager shall be exempt from the requirements of chapter 76 but shall be subject to the position classification plan. The manager shall have full power to administer the affairs of the agency, subject to the direction and approval of the agency. The manager shall, subject to the approval of the agency, have power to appoint, suspend, and discharge such other employees, subordinates, and assistants as may be necessary for the proper conduct of the business of the agency. All the appointments, suspensions or discharges shall be made in conformity with the applicable provisions of chapter 76.

(4) To make preliminary surveys, studies, and plans to identify redevelopment areas; provided that the studies and initial determination of what areas are blighted, within the meaning of this part, shall be made exclusively by the planning commission, and to make redevelopment plans for the areas, which plans shall be in conformity with the master plan for the development of the locality, and each plan shall show the outline of the area, character of existing development, proposed use of land, general character of new buildings and other general details of redevelopment, as well as the preliminary estimated cost thereof. Further, the plans shall give due consideration to the provision of adequate park and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration for the health, safety and welfare of children residing in the general vicinity of the site covered by the plans. In preparing redevelopment plans the agency shall utilize such assistance as can be given by employees of the government, but may also enter into contracts for professional services in connection therewith. Any council which is not otherwise authorized to establish a planning commission with power to prepare a master plan for the physical development of the locality, may prepare such a master plan for the purposes of initiating and carrying out a redevelopment project under this part. Redevelopment projects carried out by a local redevelopment agency shall be considered public works for the purposes of chapter 104.

(5) To assist and cooperate with other local agencies within the State and to contract for professional services with the other local agencies in carrying out its duties.

(6) To establish and operate a central relocation office which shall perform such functions and activities as may be necessary and proper for the satisfactory relocation of families, individuals, businesses, and nonprofit organizations, incorporated and unincorporated, displaced by any governmental action to decent, safe, and sanitary locations at rents and prices within the financial means of the displaced families, individuals, businesses, and nonprofit organizations. To the extent that special funds are made available by the State or the county, the agency may authorize the central relocation office to make relocation payments for actual moving costs to families, individuals, businesses, and nonprofit organizations, incorporated or unincorporated, displaced from other than urban renewal projects; provided that the payments shall not exceed $100 for each displaced family or individual and $300 for each displaced business (including the operation of a farm) or nonprofit organization; provided further that the payments shall not be made to recipients of any other relocation payments made by any government or agency thereof for the same displacement. In the case of a business, the allowable expenses for transportation shall not exceed the cost of moving fifty miles from the point from which the business is being displaced. To prepare plans for and assist in the relocation of persons (including individuals, families, business concerns, nonprofit organizations and others) displaced from an urban renewal area, and to make relocation payments to or with respect to the persons from funds provided by the federal government.

(7) To prepare a general neighborhood renewal plan for urban renewal areas which may be of such scope that urban renewal activities may have to be carried out in stages over an estimated period of up to ten years. The plan may include, but is not limited to, a preliminary plan which (A) outlines the urban renewal activities proposed for the area involved, (B) provides a framework for the preparation of urban renewal plans, and (C) indicates generally the land uses, population density, building coverage, prospective requirements for rehabilitation and improvement of property, and portions of the area contemplated for clearance and redevelopment. A general neighborhood renewal plan shall, in the determination of the local governing body, conform to the general plan of the locality as a whole and the workable program of the county."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2050.



Report Title:

General Obligation Bonds; Counties; Urban Redevelopment



Authorizes the director of finance to issue GO bonds to the counties for infrastructure construction related to urban renewal projects. Amends allowable number, name, and membership requirements for local redevelopment agencies. Designates agency redevelopment projects as public works. (HB2678 HD1)




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