HB2242 HD1

SECTION 1. The purpose of this Act is to authorize each county to impose an affordable housing requirement on certain subdividers or developers as a condition of approval of a subdivision or the issuance of a building permit.

SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§46- Authority to impose affordable housing requirement at subdivision or building permit stage. (a) For the purposes of this section:

"Affordable housing unit" means a dwelling unit, the rent or purchase price of which is affordable to a low- or moderate-income family for a minimum period, as determined by the applicable county.

"Eligible project" means a project on a discrete parcel of land that will be developed for either of the following:

(1) A building for a commercial, industrial, resort, or commercial-, industrial-, or resort-emphasis mixed use; or

(2) A multi-family dwelling.

"Eligible subdivision" means a subdivision or consolidation of land that will result in separate parcels zoned for residential, commercial, industrial, resort, or commercial-, industrial-, or resort-emphasis mixed use.

(b) Each county shall have the power to require a subdivider applying for an eligible subdivision approval to provide a certain number of affordable housing units within or outside the subdivision as a condition of the issuance of the final subdivision approval, and may:

(1) Impose the affordable housing requirement only upon a subdivider of an eligible subdivision that will have a minimum number of parcels specified by the county; or

(2) Allow a subdivider to pay the county cash in lieu of providing the required number of affordable dwelling units;

provided that any requirement imposed under this subsection shall only be imposed upon approval of the requirement by the land use commission.

A county shall not impose an affordable housing requirement under this subsection upon a subdivider who previously has had imposed upon the subdivider or predecessor landowner an affordable housing exaction as a condition for reclassification or rezoning of the land proposed to be subdivided.

(c) Each county shall have the power to require a developer of an eligible project to provide a certain number of affordable housing units within or outside the project as a condition of issuance of the first building permit for the project, and may:

(1) Impose the affordable housing requirement only upon an eligible project that will have a minimum number of dwelling units specified by the county; or

(2) Allow a developer to pay the county cash in lieu of providing the required number of affordable dwelling units;

provided that any requirement imposed under this subsection shall only be imposed upon approval of the requirement by the land use commission.

A county shall not impose an affordable housing requirement under this subsection upon a developer who previously has had imposed upon the developer or predecessor landowner an affordable housing exaction as a condition for reclassification, rezoning, or subdivision of the land upon which the project is situated.

(d) Any affordable housing requirement imposed by a county upon an eligible subdivision or eligible project shall have a rational nexus with the eligible subdivision or eligible project. The county shall establish a formula for determining the affordable housing requirement to be imposed upon different types or sizes of eligible subdivisions or eligible projects. The formula shall be established by ordinance and shall be presumed valid in any administrative or judicial proceeding unless the preponderance of the evidence shows that the county clearly abused its discretion in establishing the formula.

(e) A county imposing an affordable housing requirement under this section shall require the subdivider or developer to enter into an agreement binding the subdivider or developer, as well as any successor, to comply with the affordable housing requirement. The county shall require the subdivider or developer to enter into the agreement before the issuance of the final subdivision approval or building permit. The agreement shall be enforceable through appropriate judicial action."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2034.

HOUSE OF REPRESENTATIVES	H.B. NO.	2242
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII