HOUSE OF REPRESENTATIVES

H.B. NO.

1054

THIRTY-SECOND LEGISLATURE, 2023

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

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 severe shortage of affordable housing imposes a tremendous hardship on the residents of the State. The lack of affordable housing options is the biggest barrier for employers to recruit and retain skilled workers, and the reason many residents are migrating to more affordable communities in the continental United States. A December 2019 study commissioned by the Hawaii housing finance and development corporation estimates that the State will need to build more than fifty thousand housing units by 2025 to meet the housing demand, with over ninety per cent of the units required for households earning at or below one hundred forty per cent of the area median income.

The legislature further finds that it must engage developers with incentives to develop additional affordable housing units above and beyond inclusionary requirements, including creating pathways to deliver affordable homes in a timely matter to the public.

The purpose of this Act is to encourage development of affordable housing units, support workforce housing renters with direct loans for security deposits, and temporarily promote timely reviews of projects through targeted streamlined processes without compromising health and safety or historic preservation.

SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"201H-   Rental deposit loan program. (a) There is established within the corporation a rental deposit loan program to assist individuals and families earning between eighty per cent and one hundred twenty per cent of the area median income with obtaining rental housing by providing zero per cent interest loans for security deposits up to $2,500. Zero per cent interest loans for security deposits under this subsection shall be repaid to the corporation over a period not to exceed forty-eight months.

(b) The corporation shall award grants pursuant to chapter 103F to counties and nonprofit corporations for the administration of the rental deposit loan program.

(c) Prospective tenants who are eligible to participate in the rental deposit loan program shall be limited to individuals and families earning between eighty per cent and one hundred twenty per cent of the area median income.

(d) The recipient county or nonprofit corporation shall determine the eligibility of an applicant, including but not limited to:

(1) Verification of income between eighty per cent and one hundred twenty per cent of the area median income;

(2) Proof of a rental offering of at least six months;

(3) Evaluation of the applicant's financial resources;

(4) Determination that the applicant is unable to afford both the rental deposit and first month's rent, but is able to afford the rent thereafter; and

(5) Proof of Hawaii residency.

(e) The recipient county or nonprofit corporation shall enter into a contract with persons deemed eligible and awarded a loan under the rental deposit loan program in which the repayment schedule is agreed upon a specific amount of months not to exceed forty-eight months at zero per cent interest.

(f) A county or nonprofit corporation receiving a grant pursuant to this section may use an amount not to exceed eight per cent of the grant for the costs of administering the rental deposit loan program.

(g) County and nonprofit corporation recipients shall:

(1) Keep statistical records on loan recipients, including the numbers of individuals and families served and repayment status; and

(2) Provide quarterly reports to the corporation."

SECTION 3. Section 6E-2, Hawaii Revised Statutes, is amended by amending the definition of "historic property" to read as follows:

""Historic property" means any building, structure, object, district, area, or site, including heiau and an underwater site [,which] that is over [fifty] one hundred years old."

SECTION 4. Section 6E-8, Hawaii Revised Statutes, is amended to read as follows:

"6E-8 Review of effect of proposed state projects. (a) Before any agency or officer of the State or its political subdivisions commences any project [which] that may affect historic property, aviation artifact, or a burial site, the agency or officer shall advise the department and allow the department an opportunity for review of the effect of the proposed project on historic properties, aviation artifacts, or burial sites, consistent with section 6E-43, especially those listed on the Hawaii register of historic places. The proposed project shall not be commenced, or if it has already begun, continued, until the department has given its written concurrency. If:

(1) The proposed project consists of corridors or large land areas;

(2) Access to properties is restricted; or

(3) Circumstances dictate that construction be done in

stages,

the department may give its written concurrence based on a phased review of the project; provided that there shall be a programmatic agreement between the department and the project applicant that identifies each phase and the estimated timelines for each phase.

The department shall provide written concurrence or non-concurrence within ninety days after the filing of a request with the department. The agency or officer seeking to proceed with the project, or any person, may appeal the department's concurrence or non-concurrence to the Hawaii historic places review board. An agency, officer, or other person who is dissatisfied with the decision of the review board may apply to the governor, who may take action as the governor deems best in overruling or sustaining the department.

(b) The department of Hawaiian home lands, prior to any proposed project relating to lands under its jurisdiction, shall consult with the department regarding the effect of the project upon historic property or a burial site.

(c) The State, its political subdivisions, agencies, and officers shall report to the department the finding of any historic property during any project and shall cooperate with the department in the investigation, recording, preservation, and salvage of the property.

(d) The department shall retain a third-party consultant to conduct the review described under subsection (a) if, after an initial evaluation, the department determines that:

(1) It will not be able to provide its written concurrence or non-concurrence within sixty days of the filing of the request with the department;

(2) The third-party consultant has the qualifications and experience required pursuant to subsection (e) to conduct the review; and

(3) The third-party consultant will contract to provide a recommendation to the department within thirty days of the filing of the request with the department.

The department shall obtain the approval of the appropriate island burial council prior to retaining the services of the third-party consultant.

(e) Whenever the department retains any third party, including an architect, engineer, archaeologist, planner, or other person to review an application for a permit, license, or approval under subsection (d), the third party shall meet the educational and experience standards and the qualifications for preservation professionals pursuant to rules adopted by the state historic preservation division.

[(d)] (f) The department shall adopt rules in accordance with chapter 91 to implement this section."

SECTION 5. Section 6E-10, Hawaii Revised Statutes, is amended to read as follows:

"6E-10 Privately owned historic property. (a) Before any construction, alteration, disposition or improvement of any nature, by, for, or permitted by a private landowner may be commenced [which] that will affect [an] a historic property on the Hawaii register of historic places, the landowner shall notify the department of the construction, alteration, disposition, or improvement of any nature and allow the department opportunity for review of the effect of the proposed construction, alteration, disposition, or improvement of any nature on the historic property. The proposed construction, alteration, disposition, or improvement of any nature shall not be commenced, or in the event it has already begun, continue, until the department shall have given its concurrence or ninety days have elapsed. Within ninety days after notification, the department shall:

(1) Commence condemnation proceedings for the purchase of the historic property if the department and property owner do not agree upon an appropriate course of action;

(2) Permit the owner to proceed with the owner's construction, alteration, or improvement; or

(3) In coordination with the owner, undertake or permit the investigation, recording, preservation, and salvage of any historical information deemed necessary to preserve Hawaiian history, by any qualified agency for this purpose.

(b) Nothing in this section shall be construed to prevent the ordinary maintenance or repair of any feature in or on [an] a historic property that does not involve a change in design, material, or outer appearance or change in those characteristics [which] that qualified the historic property for entry onto the Hawaii register of historic places.

(c) Any person, natural or corporate, who violates the provisions of this section shall be fined not more than $1,000, and each day of continued violation shall constitute a distinct and separate offense under this section for which the offender may be punished.

(d) If funds for the acquisition of needed property are not available, the governor may, upon the recommendation of the department, allocate from the contingency fund an amount sufficient to acquire an option on the property or for the immediate acquisition, preservation, restoration, or operation of the property.

(e) The department shall retain a third-party consultant to conduct the review described under subsection (a) if, after an initial evaluation, the department determines that:

(1) It will not be able to provide its written concurrence or non-concurrence within sixty days of the landowner's notification of construction, alteration, disposition, or improvement;

(2) The third-party consultant has the qualifications and experience required pursuant to subsection (f) to conduct the review; and

(3) The third-party consultant will contract to provide a recommendation to the department within thirty days of the landowner's notification of construction, alteration, disposition, or improvement.

The department shall obtain the approval of the appropriate island burial council prior to contracting to retain the services of the third-party consultant.

(f) Whenever the department retains any third party, including an architect, engineer, archaeologist, planner, or other person, to review an application for a permit, license, or approval under subsection (e), the third party shall meet the educational and experience standards as well as the qualifications for preservation professionals pursuant to rules adopted by the state historic preservation division.

[(e)] (g) The department or third-party consultant, as applicable, may enter, solely in performance of [its] the department's official duties and only at reasonable times, upon private lands for examination or survey thereof. Whenever any member of the department or the department's third-party consultant, as applicable, duly authorized to conduct investigations and surveys of [an] a historic or cultural nature determines that entry onto private lands for examination or survey of historic or cultural finding is required, the department or the department's third-party consultant, as applicable, shall give written notice of the finding to the owner or occupant of such property at least five days prior to entry. If entry is refused, the member or the department's third-party consultant, as applicable, may make a complaint to the district environmental court in the circuit in which such land is located. The district environmental court may thereupon issue a warrant, directed to any police officer of the circuit, commanding the officer to take sufficient aid, and, being accompanied by a member of the department[,] or the department's third-party consultant, as applicable, between the hours of sunrise and sunset, allow the member of the department or the department's third-party consultant, as applicable, to examine or survey the historic or cultural property."

SECTION 6. Section 6E-42, Hawaii Revised Statutes, is amended to read as follows:

"6E-42 Review of proposed projects. (a) Except as provided in section 6E-42.2, before any agency or officer of the State or its political subdivisions approves any project involving a permit, license, certificate, land use change, subdivision, or other entitlement for use[, which] that may affect historic property, aviation artifacts, or a burial site, the agency or office shall advise the department and, prior to any approval, allow the department an opportunity for review and comment on the effect of the proposed project on historic properties, aviation artifacts, or burial sites, consistent with section 6E-43, including those listed in the Hawaii register of historic places. If:

(1) The proposed project consists of corridors or large land areas;

(2) Access to properties is restricted; or

(3) Circumstances dictate that construction be done in stages,

the department's review and comment may be based on a phased review of the project; provided that there shall be a programmatic agreement between the department and the project applicant that identifies each phase and the estimated timelines for each phase.

(b) The department shall inform the public of any project proposals submitted to it under this section that are not otherwise subject to the requirement of a public hearing or other public notification.

(c) The department shall retain a third-party consultant to conduct the review described under subsection (a) if, after an initial evaluation, the department determines that:

(1) It will not be able to provide its written concurrence or non-concurrence within sixty days of being advised of the project pursuant to subsection (a);

(2) The third-party consultant has the qualifications and experience required pursuant to subsection (d) to conduct the review; and

(3) The third-party consultant will contract to provide a recommendation to the department within thirty days of being advised of the project pursuant to subsection (a).

The department shall obtain the approval of the appropriate island burial council prior to contracting to retain the services of the third-party consultant.

(d) Whenever the department retains any third party, including an architect, engineer, archaeologist, planner, or other person to review an application for a permit, license, or approval under subsection (c), the third party shall meet the educational and experience standards and the qualifications for preservation professionals pursuant to rules adopted by the state historic preservation division.

[(c)] (e) The department shall adopt rules in accordance with chapter 91 to implement this section."

SECTION 7. Section 201H-38, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, ordinances, charter provisions, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that:

(1) The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;

(2) The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;

(3) The legislative body of the county in which the housing project is to be situated [shall have approved] may approve the project with or without [modifications:] recommendations:

(A) The legislative body shall approve, approve with [modification,] recommendations, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;

(B) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, [modifying,] or disapproving the plans and specifications; and

(C) The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the preliminary plans and specifications. The final plans and specifications for the project shall constitute the zoning, building, construction, and subdivision standards for that project. For purposes of sections 501-85 and 502-17, the executive director of the corporation or the responsible county official may certify maps and plans of lands connected with the project as having complied with applicable laws and ordinances relating to consolidation and subdivision of lands, and the maps and plans shall be accepted for registration or recordation by the land court and registrar; and

(4) The land use commission shall approve, approve with modification, or disapprove a boundary change within forty-five days after the corporation has submitted a petition to the commission as provided in section 205-4. If, on the forty-sixth day, the petition is not disapproved, it shall be deemed approved by the commission."

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $2,500,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment of the rental deposit loan program.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 9. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New material is underscored.

SECTION 11. This Act shall take effect on July 1, 2050; provided that:

(1) Section 8 shall take effect on July 1, 2023; and

(2) On July 1, 2028, sections 4, 5, 6, and 7 shall be repealed, and sections 6E-8, 6E-10, 6E-42, and 201H-38(a), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the approval of this Act.



 

Report Title:

Rental Deposit Loan Program; Counties; Nonprofit Organizations; Appropriation

 

Description:

Establishes the Rental Deposit Loan Program. Amends the definition of "historic property". Temporarily requires the Department of Land and Natural Resources to retain a third-party consultant, under certain circumstances, to conduct review of certain historic preservation projects. Permits, rather than requires, a county legislative body to approve a housing development project for purposes of exempting the project from all laws and rules relating to the development of housing. Appropriates funds for the establishment of the Rental Deposit Loan Program. Effective 7/1/2050. (SD1)

 

 

 

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