Allows affordable housing requirements for certain undeveloped parcels in Pu'ukoli'i village to be established by agreement among the developer, housing and community development corporation of Hawaii, and the appropriate Maui county agency. (SB117 HD2)

A BILL FOR AN ACT

SECTION 1. In an attempt to meet the housing needs of residents, the legislature enacted Act 15, Session Laws of Hawaii 1988 (Act 15). In part, Act 15 permitted the housing finance and development corporation to enter into agreements with eligible developers to develop badly needed homes by exempting approved projects from all statutes, ordinances, charter provisions, and rules relating to zoning. However, an approved Act 15 project was also required to have not less than sixty per cent of the units in the project be affordable units.

According to the housing and community development corporation of Hawaii, before Act 15 "sunsetted" in 1993, although more than sixteen thousand homes were granted approval under the Act 15 program, fewer than six hundred were actually constructed. It appears that the vast majority of these homes were not developed due to the sixty per cent affordable housing requirement that made many projects economically unfeasible. However, the approvals of these Act 15 projects remain in effect.

To coordinate and streamline the various state housing programs, the legislature enacted Act 350, Session Laws of Hawaii 1997 (Act 350). Among other things, Act 350 contained a provision similar to Act 15 that exempted approved projects with eligible developers from county zoning requirements. However, this similar provision did not contain the sixty per cent affordable housing requirement.

Act 350 further transferred all jurisdiction, functions, rights, and powers exercised by the housing finance and development corporation and the Hawaii housing authority to the housing and community development corporation of Hawaii. It further provided that all contracts, agreements, permits, and other documents executed by the housing finance and development corporation remained applicable to the housing and community development corporation of Hawaii and remained in full force and effect.

Accordingly, while many approved Act 15 projects remain in effect, they may still not proceed unless the sixty per cent affordable housing requirement is amended. However, it is uncertain whether the housing and community development corporation of Hawaii has the authority to amend these Act 15 contracts and agreements entered into by the housing finance and development corporation to comply with current statutory requirements.

The purpose of this Act is to allow affordable housing requirements for undeveloped parcels of land in Puukolii village, a privately-sponsored project in west Maui approved under the provisions of Act 15, to be established by agreement among the housing and community development corporation of Hawaii, the developer, and the appropriate Maui county agency.

SECTION 2. Notwithstanding Act 15, Session Laws of Hawaii 1988, the affordable housing requirements for the undeveloped parcels in Puukolii village shall be established by agreement among:

The affordable housing requirement shall include housing that is affordable to households earning up to one hundred per cent of the county median income.

The undeveloped parcels in Puukolii village are defined as tax map key numbers 4-4-02: por. 02 and 4-4-06: por. 01.

SECTION 3. This Act shall take effect on July 1, 2020.