HB929 HD1

SECTION 1. The legislature finds that one of the barriers to the development of housing affordable to the general workforce is the regulatory process that exists in Hawaii. Duplication, fragmentation, and the lack of standards or predictability are the cost-generating and supply-reducing consequences that result from Hawaii’s regulatory process.

The purpose of this Act is to increase the supply of housing affordable to the general workforce by providing an incentive to counties that streamline the application process for building, construction, or development-related permits.

SECTION 2. Chapter 225M, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

“§225M- Incentive and streamlining grants program; incentive and streamlining grants special fund; established. (a) There is created within the office of planning the incentive and streamlining grants program to assist the counties in streamlining the permit and approval regulatory process for construction and development-related permits for housing developments affordable to the general workforce. Counties may apply for financial grants from the office to develop and implement plans that will reduce regulatory barriers to the development of housing for the general workforce. Counties shall develop the plans and may incorporate the following considerations as options to expedite development:

(1) Establishing mandatory review time frames;

(2) Eliminating duplicative reviews and services;

(3) Assessing developer fees for expedited reviews;

(4) Assuming responsibility for district reclassifications;

(5) Creating a housing expediter position for workforce housing projects;

(6) Providing development incentives, including:

(A) Density bonuses for developments in the urban core;

(B) Height bonuses for developments in the urban core;

(D) Waiving connection fees;

(E) Tax credits;

(F) Waiving or modifying certain infrastructure requirements;

(G) Reducing parking requirements;

(H) Ensuring that in-lieu fees are dedicated to the development of housing affordable for the general workforce, maintenance, and preservation;

(I) Allowing adjustments to floor area ratios for units in housing affordable to the general workforce;

(J) Amending county building codes to allow accelerated building techniques;

(K) Promoting mixed-use development in urban and rural districts;

(L) Allowing residential use in commercial and industrial zoned areas; and

(M) Establishing growth districts, increasing density in those districts, and targeting infrastructure resources into those districts;

and

(7) Establishing a procedure for the priority processing of a permit application for a project containing units that are affordable to the general workforce.

(b) There is established within the state treasury the incentive and streamlining grants special fund, into which shall be deposited:

(1) Legislative appropriations;

(2) State, county, and federal funds designated to the fund; and

(3) Private contributions and any other funds designated to the fund.

(1) Up to one-half of the fund balance on July 1, 2007, shall be awarded as grants to assist counties with developing plans to streamline county regulatory processes; and

(2) Up to one-half of the fund balance on July 1, 2007, and any supplemental funds deposited into the fund after July 1, 2007, shall be awarded as grants to assist counties with implementing plans to streamline county regulatory processes.

The office of planning shall administer the incentive and

streamlining grants special fund.

(d) The office of planning shall adopt rules pursuant to

chapter 91 to effectuate the purposes of this section, including

the grant application process for the incentive and streamlining

grants program.

(e) Nothing in subsection (a) shall be construed to exempt developments under this section from chapter 343 and other environmental laws."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2007-2008 for deposit into the incentive and streamlining grants special fund for the purposes of the incentive and streamlining grants program.

The sum appropriated shall be expended by the office of planning for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2007.

HOUSE OF REPRESENTATIVES	H.B. NO.	929
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII