(1) Provides for inventory or public lands suitable for housing; (2) provides executive order transfer of lands identified to Hawaii Public Housing Administration; (3) directs HPHA to adopt administrative rules for financing infrastructure through creation of community facilities districts; and (4) allows 99 year leases at lease rent of $1 per year to qualified residents.

A BILL FOR AN ACT

SECTION 1. Article XI, section 10, of the state constitution provides the following: "The public lands shall be used for the development of farm and home ownership on as widespread a basis as possible, in accordance with procedures and limitations prescribed by law."

The legislature finds that there is a drastic need for housing to meet the needs of our local residents at prices that are affordable. The legislature further finds that the State needs to utilize existing public lands to meet these needs.

The purpose of this Act is to encourage the development of housing on public lands and make that housing available at affordable lease rents by creating the structure to comply with the state constitution's mandate.

SECTION 2. Chapter 201G, Hawaii Revised Statutes, is amended by adding a new section to subpart F of part II to be appropriately designated and to read as follows:

"§201G- Housing projects on public lands; lease rent; community facilities districts. (a) The administration, in consultation with the department of land and natural resources, shall identify and prioritize public lands, as defined in section 171-2, in the various counties that are suitable for housing projects to be developed pursuant to this part. Upon completion of a prioritized list of suitable parcels, the corporation shall request the governor to transfer the parcels or a portion of the parcels to the administration to be developed pursuant to this part.

(b) Any housing project developed on public land owned by the administration shall be developed as a leasehold project and the portion of the lease rent allocated for leasing the underlying real property shall be $1 per year. An award of a lease pursuant to this section shall only be to qualified residents.

(c) In developing a housing project on public lands pursuant to this section, the administration, by administrative rules adopted pursuant to chapter 91, may create community facilities districts to finance special improvements in the same manner as the counties, pursuant to section 46-80.1."

SECTION 3. New statutory material is underscored.

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