Report Title:

HCDA; Reserved Housing; Buyback Provisions

Description:

Allows the Hawaii Community Development Authority (HCDA) to sell a fee simple interest in reserved housing units.  Permanently allows HCDA to repurchase property.  (HB1283 HD1)

HOUSE OF REPRESENTATIVES	H.B. NO.	1283
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 206E-14, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  In the case of residential projects or redevelopment projects, the terms of the sale shall provide for the repurchase of the property by the authority at its option, in the event that the purchaser, if other than a state agency, desires to sell the property [within ten years,]; provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the community development plan.  The authority shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations including but not being limited to interest rates, land values, construction costs, and federal tax laws.

     If the purchaser in a residential project is a state agency, the authority may include as a term of the sale a provision for the repurchase of the property in conformance with this section."

     SECTION 2.  Section 206E-31.5, Hawaii Revised Statutes, is amended to read as follows:

     "§206E-31.5  Prohibitions.  Anything contained in this chapter to the contrary notwithstanding, the authority is prohibited from:

     (1)  Selling or otherwise assigning the fee simple interest in any lands in the Kakaako community development district to which the authority in its corporate capacity holds title, except with respect to:

         (A)  Utility easements;

         (B)  Remnants as defined in section 171-52;

         (C)  Grants to any state or county department or agency; [or]

         (D)  Private entities for purposes of any easement, roadway, or infrastructure improvements; or

(E) Reserved housing as defined in section 206E-101;

or

     (2)  Approving any plan or proposal for any residential development in that portion of the Kakaako community development district makai of Ala Moana Boulevard and between Kewalo basin and the foreign trade zone."

     SECTION 3.  Statutory material to be repealed is bracketed.  New statutory material is underscored.

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