Report Title:

Affordable Housing; Fees; Incentives; Transit Oriented Development

Description:

Provides county incentives for the development of affordable housing in transit oriented developments.  (SD1)

THE SENATE	S.B. NO.	736
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO AFFORDABLE HOUSING.

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

     SECTION 1.  The legislature finds that in August 2007, Hawaii accepted an invitation by the United State Department of Housing and Urban Development to join the National Call to Action for Affordable Housing through Regulatory Reform.  The Call to Action presented an opportunity for Hawaii to receive technical assistance from the federal government and collaborate with other states, counties, municipalities, and organizations to knock down the barriers imposed by governments in hopes of building more affordable housing.  Governor Lingle convened a statewide task force comprised of representatives from the counties, business, labor, developers, architects, nonprofit providers of services, the State, and the legislature to carry out the mission of the Call to Action and recommend solutions to address barriers to affordable housing.

     The legislature recognizes that the need for more affordable housing in Hawaii remains a significant problem affecting all segments of society.  The development of residential housing is bridled by significant varying regulations placed on the industry at both the state and county levels.  Recent analysis shows that regulations and conditions placed on developers can potentially delay a project for up to seven years.  This delay in time leads to a level of uncertainty for the housing industry, adds cost to the total development project, jeopardizes funding streams for affordable housing projects, and ultimately results in a more expensive home for the homebuyer or renter.  In addition, impact fees, connection fees, and other conditions that are imposed on housing developers during this uncertain time of permit approvals can increase the cost of the home or rental unit by $10,000 to $50,000.

     The purpose of this Act is to implement the legislative recommendations of the task force by providing incentives for the development of affordable housing.

     SECTION 2.  Section 46-14.5, Hawaii Revised Statutes, is amended to read as follows:

"§46‑14.5  [Land use density] Affordable housing; incentives and infrastructure[; low-income rental units].  Notwithstanding any other law to the contrary, the counties [are authorized to] shall provide [flexibility in land use] incentives for the development of affordable housing in transit oriented developments that may include, but are not limited to density [provisions and] bonuses, height waivers, cluster zoning, reduction of parking requirements, greater design flexibility, waiving water and sewer connection fees, waiving public facilities set-asides and fees, priority infrastructure financing, and site flexibility.  Counties shall provide flexibility in public facility requirements to encourage the development of [any rental] affordable housing [project where at least a portion of the rental units are set aside for persons and families with incomes at or below one hundred forty per cent of the area median family income, of which twenty per cent are set aside for persons and families with incomes at or below eighty per cent of the area median family income.] as defined in section 201H-57, in transit oriented developments.

For the purposes of this section, "transit oriented development" means compact, mixed-use development near new or existing public transit facilities that serves, housing, transportation and neighborhood goals."

     SECTION 3.  The counties may consult with the commission on transit oriented development, established pursuant to section 6 of S.B. No. 442, to serve in as advisory capacity to the legislative bodies of the counties and county agencies for carrying out a continuing, comprehensive, transit oriented development planning process.

     SECTION 4.  If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  Upon codifying the new chapter that establishes the commission on transit oriented development, as proposed by S.B. No. 442 (2009) and as referred to in section 3 of this Act, the revisor of statutes shall substitute the appropriate Hawaii Revised Statutes section number for the reference to section 6 of S.B. No. 442 in section 3 of this Act.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2009.