Appropriates $6,800,000 to acquire the property currently known as Kulana Nani Apartments from Kamehameha Schools. Authorizes eminent domain proceedings should the negotiations be unsuccessful. (HB2994 HD2)

A BILL FOR AN ACT

SECTION 1. In its final report dated January 2006, the joint legislative housing and homeless task force expressed concern that the inventory of affordable housing rental units is at risk of being reduced. Affordable rental housing projects built in part with government subsidies have been offered for sale at market prices in anticipation of the expiration of income and regulatory restrictions encumbering the property. The task force is committed to ensuring that these units remain affordable to persons at lower income levels.

In recent months, media reports have announced several affordable housing projects that may be offered for sale, such as the Kulana Nani apartments in Kaneohe, Oahu, that offer affordable rental housing.

The purpose of this Act is to preserve Kulana Nani as an affordable rental housing project.

SECTION 2. The Hawaii housing finance and development administration shall immediately initiate negotiations with Kamehameha Schools to ensure state acquisition of the Kulana Nani property and may partner with a private developer for acquisition of the property; provided that one hundred per cent of the housing units on the property shall be retained in perpetuity as affordable housing for households at or below the current income restrictions for rental housing units on the property; provided further that if an agreement to acquire the property is not reached by June 30, 2007, the Hawaii housing finance and development administration shall exercise its power of eminent domain to acquire the property.

The Hawaii housing finance and development administration shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2007 regarding its efforts to ensure acquisition of the Kulana Nani property and its recommendations for financing the purchase of the property.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $6,800,000 or so much thereof as may be necessary for fiscal year 2006-2007 for land acquisition of the Kulana Nani property, tax map key 4-6-31:15, owned by Kamehameha Schools.

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

SECTION 4. This Act shall take effect on July 1, 2020.