Appropriates an unspecified amount to acquire the property currently known as Kulana Nani Apartments from Kamehameha Schools. Authorizes eminent domain proceedings should the negotiations be unsuccessful. (SD1)

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 legislature finds that:

The legislature therefore declares that it is in the public interest and is required for public use to acquire the land under Kulana Nani by exercise of the power of eminent domain. The legislature further declares that it is necessary to provide for the public financing of the acquisition of the Kulana Nani property by condemnation through the expenditure of general funds and any available revenue bond proceeds and private funds at the disposal of the State.

SECTION 3. 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 income restrictions for rental housing units on the property as of the effective date of this Act; provided further that if an agreement to acquire the property is not reached within a reasonable time, the Hawaii housing finance and development administration shall exercise its power of eminent domain to acquire the property. For the purposes of this Act, and notwithstanding any provision of section 201G-16, Hawaii Revised Statutes, to the contrary, condemnation of the Kulana Nani property shall not be subject to legislative disapproval.

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 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, for land acquisition of the Kulana Nani property, tax map key (I) 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 5. This Act shall take effect on July 1, 2020.