Allows the HCDA to implement improvement districts and issue revenue bonds for infrastructure improvements anywhere in the State.

A BILL FOR AN ACT

SECTION 1. The legislature finds and declares that the health, safety, and general welfare of the people of the State require that every opportunity be taken to assist the redevelopment of residential land for affordable housing. The redevelopment and revitalization of these residential lands will alleviate community needs for affordable housing. However, a significant deterrent to redevelopment is the cost of public facilities; interest rates on moneys necessary to finance such public facilities add significantly to their cost, and more favorable interest rates would be available through the issuance of tax-exempt bonds. Thus, the availability of revenue bonds to finance the cost of public facilities will facilitate redevelopment of affordable residential units.

The legislature further finds that the powers conferred, the issuance of revenue bonds, and the expenditure of public moneys in this Act constitute service of a public interest.

The Hawaii community development authority is currently empowered to implement projects for Kakaako. The legislature is aware of the demands on counties and their inability to obtain financing for their infrastructure projects. It is the intent of the legislature to allow the authority to expand its financing capacity beyond the boundaries of Kakaako and to include projects throughout the State.

SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§206E-   District; bonds. The authority may implement improvement districts and issue revenue bonds for infrastructure improvements which are beyond the district boundaries contained in section 206E-32."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.