(1) The Liliha-Palama district is located in Honolulu proper, in close proximity to the emerging commercial, industrial, and market facilities of the Iwilei area, and major existing and contemplated harbor and transportation routes;

(2) The district presently consists of large and small low-income and affordable rental apartment complexes that are owned by the State, city and county of Honolulu, and private owners. The majority of these housing units are aging and in need of repair and renovation. There is a potential for the loss of affordable housing inventory and the displacement of thousands of residents as these older, aging properties become renovated or redeveloped into commercial properties or ownership housing units that will not be affordable to low-income families. Other parcels of land are owned and occupied by churches, nonprofit and charitable organizations, small businesses, and small single-family residences.

(3) The district has the potential for redevelopment into mixed-use, mixed-income residential developments that will enhance the present community environment, remove the stigma of public housing, and strengthen the economic viability of the community; and

(4) The Liliha-Palama district, if properly developed and improved, has the potential to become a planned new community in consonance with the development of the Iwilei area.

(1) Development shall result in a primarily residential community that includes an appropriate land mixture of residential, commercial, and light industrial uses. The authority may use innovative mixed-use and urban design approaches, with appropriate input from public and private sectors in the proper development of this district. While the authority's development responsibilities apply only to the area within the district, the authority may engage in any studies or coordinative activities permitted in this chapter that affect areas lying outside the district, where the authority in its discretion decides that those activities are necessary to implement the intent of this chapter. The studies or coordinative activities shall be limited to facility systems, resident and industrial relocation, and other activities with the county and appropriate state agencies. The authority may engage in construction activities outside of the district; provided that such construction relates to infrastructure development or residential or business relocation activities; provided further that, notwithstanding section 206E-7, such construction shall comply with the general plan, development plan, ordinances, and rules of the county in which the district is located;

(2) Existing affordable residential uses shall be retained and expanded in appropriate locations within the district. Mixed-use activities shall complement the residential character of the community and the emerging commercial growth of the Iwilei area;

(3) Activities shall be located so as to provide primary reliance on public transportation and pedestrian facilities for internal circulation within the district or designated subareas;

(4) Major view planes, view corridors, and other environmental elements such as natural light and prevailing winds, shall be preserved through necessary regulation and design review;

(5) Redevelopment of the district shall be compatible with plans and special districts established for the surrounding areas;

(6) Historic sites and culturally significant facilities, settings, or locations shall be preserved;

(7) Land use activities within the district, where compatible, shall, to the greatest possible extent, be mixed horizontally, that is, within blocks or other land areas, and vertically, as integral units of multi-purpose structures;

(8) Residential development may require a mixture of densities, building types, and configurations in accordance with appropriate urban design guidelines and may be integrated both vertically and horizontally for residents of varying incomes, ages, and family groups. Residential development shall increase the supply of housing for residents of low- or moderate-income and shall be required as a condition of redevelopment for residential use. The authority shall not approve any residential development that reduces the inventory of comparable affordable housing units that existed on the property prior to redevelopment of the property. Residential development shall provide necessary community facilities, such as open space, parks, community meeting places, child care centers, and other services, within and adjacent to residential development; and

(9) Public facilities within the district shall be planned, located, and developed so as to support the redevelopment policies for the district established by this chapter and plans and rules adopted pursuant to it."