HB2242 HD2

Report Title:

Housing Development; Affordable Housing

Description:

Requires developers with plans to develop 50 or more residential dwelling units to dedicate a certain percentage of the units to affordable housing. (HB2242 HD2)

HOUSE OF REPRESENTATIVES	H.B. NO.	2242
TWENTY-THIRD LEGISLATURE, 2006		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

relating to affordable housing.

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

SECTION 1. Chapter 205, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§205- Approval of land use petition that includes plans to develop residential dwellings; affordable housing requirements. Notwithstanding any law to the contrary, the commission shall not approve any land use petition that:

(1) Is subject to this chapter;

(2) Is submitted to the commission after July 1, 2006; and

(3) Includes a plan to develop fifty or more residential dwelling units,

which does not include a requirement that at least per cent of the residential dwelling units being developed be affordable or reserved for low- or moderate-income ranges; provided that if any other ordinance, statute, or rule provides for a greater percentage of affordable dwellings per development on the land being developed, the higher percentage shall apply. Developers who are subject to the affordable housing requirement provided under this section shall not be allowed to satisfy the affordable housing requirement by any other means, including, without limitation, impact fees, assessments, or offsite affordable housing development credits.

For the purposes of this section, "affordable or reserved for low- or moderate-income ranges" shall be determined by the commission pursuant to rules adopted in accordance with chapter 91."

SECTION 2. Section 46-124, Hawaii Revised Statutes, is amended to read as follows:

"[[]§46-124[]] Negotiating development agreements. (a) The mayor or the designated agency appointed to administer development agreements may make [~~such~~] arrangements as may be necessary or proper to enter into development agreements, including negotiating and drafting individual development agreements; provided that the county has adopted an ordinance pursuant to section 46-123.

(b) The final draft of each individual development agreement shall be presented to the county legislative body for approval or modification prior to execution. To be binding on the county, a development agreement [~~must~~] shall be approved by the county legislative body and executed by the mayor on behalf of the county. County legislative approval shall be by resolution adopted by a majority of the membership of the county legislative body.

(1) Negotiated or executed on behalf of the county after July 1, 2006; and

(2) That includes a plan to develop fifty or more residential dwelling units,

shall include a requirement that at least per cent of the residential dwelling units be designated as affordable or reserved for low- or moderate-income ranges; provided that if any other ordinance, statute, or rule provides for a greater percentage of affordable dwellings per development on the land being developed, the higher percentage shall apply. Developers who are subject to the affordable housing requirement provided under this subsection shall not be allowed to satisfy the affordable housing requirement by any other means, including, without limitation, impact fees, assessments, or offsite affordable housing development credits.

For the purposes of this subsection, "affordable or reserved for low- or moderate-income ranges" shall be determined by ordinance of the legislative body of each county."

SECTION 3. Section 201G-114, Hawaii Revised Statutes, is amended to read as follows:

"§201G-114 Additional powers; development. (a) Notwithstanding and without compliance with section 103-7 but with the approval of the governor, the administration may enter into and carry out agreements and undertake projects or participate in projects authorized by this chapter. The powers conferred upon the administration by this subpart shall be in addition and supplemental to the powers conferred upon it by part I and any other law, and nothing herein shall be construed as limiting any powers, rights, privileges, or immunities so conferred upon it.

(b) Notwithstanding any law to the contrary, any development agreement:

(1) Negotiated or executed by the administration after July 1, 2006; and

(2) That includes a plan to develop fifty or more residential dwelling units,

shall include a requirement that at least per cent of the residential dwelling units be affordable or reserved for low- or moderate-income ranges; provided that if any other ordinance, statute, or rule provides for a greater percentage of affordable dwellings per development on the land being developed, the higher percentage shall apply. Developers who are subject to the affordable housing requirement provided under this subsection shall not be allowed to satisfy the affordable housing requirement by any other means, including, without limitation, impact fees, assessments, or offsite affordable housing development credits.

For the purposes of this subsection, "affordable or reserved for low- or moderate-income ranges" shall be determined by the administration pursuant to rules adopted in accordance with chapter 91."

SECTION 4. Section 201H-12, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201H-12[]] Development of property. (a) The administration, in its own behalf or on behalf of any federal, state, or county agency, may:

(1) Clear, improve, and rehabilitate property;

(2) Plan, develop, construct, and finance housing projects; and

(3) In cooperation with the department of education and department of accounting and general services, plan educational facilities and related infrastructure as a necessary and integral part of its public housing projects, using all its innovative powers toward achieving that end expeditiously and economically; provided that the educational facilities comply with the department of education's educational specifications, timelines, and siting requirements.

(b) The administration may develop public land in an agricultural district subject to the prior approval of the land use commission, when developing lands greater than fifteen acres in size, and public land in a conservation district subject to the prior approval of the board of land and natural resources. The administration shall not develop state monuments or historical sites or parks. When the administration proposes to develop public land, it shall file with the department of land and natural resources a petition setting forth such purpose. The petition shall be conclusive proof that the intended use is a public use superior to that which the land has been appropriated[.] or set aside.

(c) The administration may develop or assist in the development of federal lands with the approval of appropriate federal authorities.

(d) The administration shall not develop any public land where the development may endanger the receipt of any federal grant, impair the eligibility of any public body for a federal grant, prevent the participation of the federal government in any government program, or impair any covenant between the government and the holder of any bond issued by the government.

(e) Notwithstanding any law to the contrary, any development agreement:

(1) Negotiated or executed by the administration after July 1, 2006; and

(2) That includes a plan to develop fifty or more residential dwelling units,

For the purposes of this subsection, "affordable or reserved for low- or moderate-income ranges" shall be determined by the administration pursuant to rules adopted in accordance with chapter 91.

[~~(e)~~] (f) The administration may contract or sponsor with any county, housing authority, or person, subject to the availability of funds, an experimental or demonstration housing project designed to meet the needs[:] of [~~elders; the~~]

(1) Elders;

(2) The disabled; [~~displaced~~]

(3) Displaced or homeless persons; [~~low-~~]

(4) Low- and moderate-income persons; [~~teachers~~]

(5) Teachers or other government employees; or [~~university~~]

(6) University and college students and faculty."

SECTION 5. Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:

"§206E-4 Powers; generally. Except as otherwise limited by this chapter, the authority 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 chapter;

(4) Make and alter bylaws for its organization and internal management;

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

(6) Through its executive director, appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;

(7) Prepare or cause to be prepared a community development plan for all designated community development districts;

(8) 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;

(9) 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;

(10) 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, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project [~~which~~] that the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

(11) 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;

(12) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on such terms and conditions as it deems advisable;

(13) 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 to modify such plans, specifications, designs, or estimates;

(14) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, [~~in order~~] to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

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

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

(17) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter[~~; and~~

~~(18)~~ Allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction. Such substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site. The authority shall establish the following priority in the development of reserved housing:

~~(A)~~ ~~Within the community development district;~~

~~(B)~~ ~~Within areas immediately surrounding the community development district;~~

~~(C)~~ ~~Areas within the central urban core;~~

~~(D)~~ ~~In outlying areas within the same island as the development project.~~

The Hawaii community development authority shall adopt rules relating to the approval of reserved housing that are developed outside of a community development district. The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities]."

SECTION 6. Section 206E-5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The authority may enter into cooperative agreements with qualified persons or public agencies, where the powers, services, and capabilities of such persons or agencies are deemed necessary and appropriate for the development of the community development plan. Notwithstanding any law to the contrary, any agreement:

(1) Negotiated or executed by the authority after July 1, 2006; and

(2) That includes a plan to develop fifty or more residential dwelling units,

For the purposes of this subsection, "affordable or reserved for low- or moderate-income ranges" shall be determined by the authority pursuant to rules adopted in accordance with chapter 91."

SECTION 7. Section 206E-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) If the authority deems it desirable to develop a residential project, it may enter into an agreement with qualified persons to construct, maintain, operate, or otherwise dispose of the residential project. Notwithstanding any law to the contrary, any agreement:

(1) Negotiated or executed by the authority after July 1, 2006; and

(2) That includes a plan to develop fifty or more residential dwelling units,

For the purposes of this subsection, "affordable or reserved for low- or moderate-income ranges" shall be determined by the authority pursuant to rules adopted in accordance with chapter 91. Sale, lease, or rental of dwelling units in the project shall be as provided by the rules established by the authority. The authority may enter into cooperative agreements with the Hawaii housing finance and development administration for the financing, development, construction, sale, lease, or rental of dwelling units and projects."

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2096.