HB363 SD1.DOC

SECTION 1. 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.

The purpose of this Act is to provide incentives for affordable housing by:

(1) Establishing a commission on transit oriented development to facilitate affordable housing in transit oriented developments by better coordinating transportation and housing planning and programs; and

(2) Requiring the counties to provide fee waivers and other incentives for the development of affordable housing.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

COMMISSION ON TRANSIT ORIENTED DEVELOPMENT

§ -1 Definitions. The following terms, wherever used or referred to in this chapter, shall have the following respective meanings, unless a different meaning clearly appears from the context:

"Affordable housing" means housing units for households with incomes at or below one hundred forty per cent of the median family income, as determined by the United States Department of Housing and Urban Development.

"Commission" means the commission on transit oriented development.

"Rapid transit system" means a grade-separated, high capacity, high frequency transportation system used primarily to transport people.

"Transit oriented development" means compact, mixed-use development near new or existing public transit facilities that serves, housing, transportation and neighborhood goals.

"Transit oriented development zone" means an area in proximity to a transit station, within the jurisdiction of a county government or a legislatively established special district, which is designated by the commission for state or county incentives and programs.

§ -2 Commission on transit oriented development; establishment, staff. (a) There is established the commission on transit oriented development under the department of business, economic development, and tourism for administrative purposes and staffed by the Hawaii housing finance and development corporation.

(b) The commission shall consist of at least thirteen members; provided that each county that develops a rapid transit system shall be represented on the commission as follows. Members shall include:

(1) Two members of the county council appointed by the chairperson of the council, one of whom represents an area with, or planned to have rapid transit stations;

(2) Two members of the state senate appointed by the president of the senate, one of whom shall be the chairperson of the senate committee with primary responsibility for housing issues;

(3) Two members of the state house of representatives appointed by the speaker of the house of representatives, one of whom shall be the chairperson of the committee with primary responsibility for housing issues;

(4) The state director of finance, or a designated representative;

(5) The executive director of the Hawaii housing finance and development corporation, or a designated representative;

(6) The director of the state office of planning, or a designated representative;

(7) The county director of planning, or a designated representative;

(8) The county director of budget and fiscal services, or a designated representative;

(9) The county housing director, or a designated representative; and

(10) The county director of the metropolitan planning organization, or a designated representative.

(c) Each member of the commission who is a member of the state legislature or the legislative body of the county shall serve for the same term as the term of office for which the member is elected. Vacancies that occur on the commission shall be filled in the same manner in which the original member was appointed.

(d) The commission shall select a chairperson and vice chairperson from among its members. Seven members shall constitute a quorum, whose affirmative vote shall be necessary for all actions by the commission.

(e) The members shall receive no compensation for services.

§ -4 Functions of the commission on transit oriented development. (a) The commission shall serve in an advisory capacity to the state legislature, the legislative body of each county, and the appropriate state and county agencies responsible for carrying out a continuing, comprehensive, transit oriented development planning process.

(b) The commission shall:

(1) Identify regulatory barriers to housing near transit stations;

(2) Identify ways to improve coordination of housing and transportation planning including the United States Department of Housing and Urban Development's Consolidated Plan and Public Housing Agency Plan, and the United States Department of Transportation's transportation planning requirements;

(3) Identify strategies for addressing area housing and transportation needs including the designation of transit oriented development zones;

(4) Identify ways to improve the leveraging of housing and transportation funds;

(5) Identify financial incentives for funding mixed-income and affordable housing near transit, as well as land use and other incentives to expand housing choices in proximity of new and existing transit stations;

(6) Identify tax incentives for the development or rehabilitation of community health care facilities within mixed-use transit oriented development projects;

(7) Monitor outcomes and continually update goals and objectives; and

(8) Undertake any other functions as may be appropriate in an advisory capacity to ensure a joint planning process between the county and the State, and advise appropriate legislative bodies and agencies, as necessary.

§ -5 Jurisdictional responsibilities. Nothing in this chapter is intended to change the basic jurisdictions for planning, regulating, financing, and permitting responsibilities under the purview of state and county agency statutes and ordinances that were in existence prior to the enactment of this chapter. The State and counties shall cooperate with the commission by providing guidance based on their planning processes and regulatory functions."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 for the operations of the commission on transit oriented development.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 4. Section 46-14.5, Hawaii Revised Statutes, is amended to read as follows:

"§46‑14.5 [~~Land use density~~] 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 density provisions and~~] incentives for the development of affordable housing that may include density bonuses, height waivers, cluster zoning, greater design flexibility, waiving water and sewer connection fees, priority infrastructure financing, and site flexibility; provided that the counties may establish priorities for the development of affordable housing in transit oriented developments. Counties shall provide flexibility in public facility requirements to encourage the development of any rental 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~~] forty per cent are set aside for persons and families with incomes at or below eighty per cent of the area median family income."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2020.

HOUSE OF REPRESENTATIVES	H.B. NO.	363
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 2
STATE OF HAWAII		S.D. 1