HB948 SD1.DOC

SECTION 1. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"§206E‑ Reserved housing requirement for Kakaako mauka area. (a) For the purpose of this section:

"Base zoning" means the use, lot area, building area, height, density, bulk, yard, setback, open space, on-site parking and loading, and other zoning standards or other such restrictions imposed upon a development on a particular lot.

"Community service use" means any of the following uses:

(1) Nursing or convalescent home, nursing facility, assisted living administration, or ancillary assisted living amenities for the elderly or persons with disabilities;

(2) Child care, day care, or senior citizen center;

(3) Nursery school or kindergarten;

(4) Church;

(5) Charitable institution or nonprofit organization;

(6) Public use;

(7) Public utility; or

(8) Consulate.

"Countable floor area" of a planned development means the total floor area of every building on the lot of a planned development, except the floor area developed for the following:

(1) Community service use;

(2) Special facility use; or

(3) Industrial use.

"Floor area" means the area of the several floors of a building, including basement but not unroofed areas, measured from the exterior faces of the exterior walls or from the center line of party walls separating portions of a building. The floor area of a building or portion thereof not provided with surrounding exterior walls shall be the usable area under the horizontal projection of the roof or floor above, including but not limited to elevator shafts, corridors, and stairways. "Floor area" shall not include the area for parking facilities and loading spaces, driveways and access ways, lanais or balconies of dwelling or lodging units that do not exceed fifteen per cent of the total floor area of the units to which they are appurtenant, attic areas with head room less than seven feet, covered rooftop areas, and rooftop machinery equipment and elevator housings on the top of buildings.

"Industrial use" shall have the same meaning as in section 171-131.

"Median income" means the median annual income, adjusted for family size, for households in the city and county of Honolulu as most recently established by the United States Department of Housing and Urban Development for the section 8 housing assistance payments program.

"Planned development" means a development for which the authority approves a greater density or any other difference from the base zoning applicable to the lot on which the development is situated in exchange for public facilities, amenities, and reserved housing units provided by the developer.

"Reserved housing unit" means a multi-family dwelling unit that is developed for the following:

(1) Purchase by a family that:

(A) Has an income of not more than one hundred forty per cent of the median income; and

(B) Complies with other eligibility requirements established by statute or rule; or

(2) Rent to a family that:

(A) Has an income of not more than one hundred per cent of the median income; and

(B) Complies with other eligibility requirements established by statute or rule.

A "reserved housing unit" shall be one of the following types of dwelling units: studio with one bathroom; one bedroom with one bathroom; two bedrooms with one and one-half bathrooms; two bedrooms with two bathrooms; three bedrooms with one and one-half bathrooms; three bedrooms with two bathrooms; and four bedrooms with two bathrooms.

"Special facility use" means a use in a "special facility" as defined under section 206E-181.

(b) At least fifty per cent of the countable floor area of each planned development on a lot of at least 80,000 square feet shall be developed as and made available for reserved housing units; provided that after five years from the effective date of Act , Session Laws of Hawaii 2009, the percentage shall increase to at least sixty per cent. The developer of the planned development shall divide the floor area required for reserved housing into and construct the number, types, and sizes of reserved housing units set by the authority. The authority shall set the number, types, and sizes of reserved housing units to establish sale prices or rents to be charged that are affordable to families intended to be served by the reserved housing units. The authority also shall set the number of parking stalls to be assigned to the reserved housing units.

The countable floor area upon which the reserved housing floor area requirement is calculated shall be the countable floor area in the plan approved by the authority in the planned development permit. The reserved housing floor area requirement shall not be changed if, subsequent to the planned development permit approval, the countable floor area is decreased. If, however, the countable floor area is increased before the issuance of a building permit for a building on the lot, the reserved housing floor area requirement shall be appropriately increased.

(d) As an alternative to requiring a developer to develop and make available any reserved housing floor area or unit, the authority may allow the developer to make an in lieu cash payment to the authority. The authority shall establish the amount of the cash payment, which may vary depending upon projected gross revenue of the developer from the planned development, amount of reserved housing units to be provided for the planned development, affordability of non-reserved housing units to be provided in the planned development, estimated development cost of the reserved housing units if provided on the same lot as the planned development, or other factors deemed appropriate by the authority; provided that this subsection shall apply to properties less than 80,000 square feet.

(e) Subject to the rules of the authority, reserved housing units shall be built prior to or concurrent with the planned development. Any project that provides more reserved housing units than required under this section may transfer excess housing credits to another project in Kakaako toward satisfaction of the reserved housing unit requirement of that project as follows:

(1) $60,000 for a studio with one bathroom of at least four hundred square feet;

(2) $75,000 for a one bedroom with one bathroom of at least 500 square feet;

(3) $105,000 for a two bedroom with one bathroom of at least 700 square feet;

(4) $112,500 for a two bedroom with one and a half bathrooms of at least 750 square feet;

(5) $120,000 for a two bedroom with two bathrooms of at least 800 square feet;

(6) $135,000 for a three bedroom with two bathrooms of at least 900 square feet; and

(7) $150,000 for a four bedroom with two bathrooms of at least 1,000 square feet.

In the alternative, the developer of a planned development may sell a credit to another developer of a planned development in Kakaako at a price mutually agreed upon. The developer who purchases the credit may deduct the credit from the reserved housing square footage or units required for the developer's planned development.

The authority shall annually review the amount and price for the transfer of the excess credits and may increase the amount as deemed necessary. The terms of the reserved housing credits transfer shall be subject to the approval of the authority.

(f) The authority shall adopt rules in accordance with chapter 91 to implement this section."

SECTION 2. Section 206E, Hawaii Revised Statutes, is amended by amending section 206E-31.5 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;

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

(2) Approving any plan or proposal for any residential development or substitute housing 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. Section 206E-33, Hawaii Revised Statutes, is amended to read as follows:

"§206E-33 Kakaako community development district; development guidance policies. The following shall be the development guidance policies generally governing the authority's action in the Kakaako community development district:

(1) Development shall result in a community [~~which~~] that permits an appropriate land mixture of residential, commercial, industrial, and other uses. In view of the innovative nature of the mixed use approach, urban design policies should be established to provide guidelines for the public and private sectors in the proper development of this district; while the authority's development responsibilities apply only to the area within the district, the authority may engage in any studies or coordinative activities permitted in this chapter [~~which~~] that affect areas lying outside the district, where the authority in its discretion decides that those activities are necessary to implement the intent of this chapter. The studies or coordinative activities shall be limited to facility systems, resident and industrial relocation, and other activities with the counties and appropriate state agencies. The authority may engage in construction activities outside of the district; provided that [~~such~~] the construction relates to infrastructure development or residential or business relocation activities; provided further, notwithstanding section 206E-7, that such construction shall comply with the general plan, development plan, ordinances, and rules of the county in which the district is located;

(2) Existing and future industrial uses shall be permitted and encouraged in appropriate locations within the district. No plan or implementation strategy shall prevent continued activity or redevelopment of industrial and commercial uses [~~which~~] that meet reasonable performance standards;

(3) Activities shall be located [~~so as~~] to provide primary reliance on public transportation and pedestrian facilities for internal circulation within the district or designated subareas;

(4) Major view planes, view corridors, and other environmental elements such as natural light and prevailing winds, shall be preserved through necessary regulation and design review;

(5) Redevelopment of the district shall be compatible with plans and special districts established for the Hawaii Capital District, and other areas surrounding the Kakaako district;

(6) Historic sites and culturally significant facilities, settings, or locations shall be preserved;

(7) Land use activities within the district, where compatible, shall to the greatest possible extent be mixed horizontally, that is, within blocks or other land areas, and vertically, as integral units of multi-purpose structures;

(8) Residential development may require a mixture of densities, building types, and configurations in accordance with appropriate urban design guidelines[;] and the integration both vertically and horizontally of residents of varying incomes, ages, and family groups[~~; and an increased supply of housing for residents of low- or moderate-income may be required as a condition of redevelopment in residential use.~~]; provided that the reserved housing requirements of section 206E- shall be imposed upon a planned development when applicable. Residential development shall provide necessary community facilities, such as open space, parks, community meeting places, child care centers, and other services, within and adjacent to residential development; and

(9) Public facilities within the district shall be planned, located, and developed [~~so as~~] to support the redevelopment policies for the district established by this chapter and plans and rules adopted pursuant to it."

SECTION 4. Section 206E-101, Hawaii Revised Statutes, is amended by amending the definition of "reserved housing" to read as follows:

""Reserved housing" means [~~housing designated for residents in the low- or moderate-income ranges who meet such~~] a reserved housing unit, as defined under section 206E- , developed and made available for purchase by a family that has a household income of not more than one hundred forty per cent of the median income and that meets other eligibility requirements as the authority may adopt by rule."

SECTION 5. The Hawaii community development authority shall adopt new or amended rules to implement this Act without regard to the public notice and public hearing requirements of section 91-3, Hawaii Revised Statutes, or the small business impact review requirements of chapter 201M, Hawaii Revised Statutes. The authority shall adopt the rules before January 1, 2010. Any subsequent amendment of the rules adopted pursuant to this section shall be subject to all applicable provisions of chapter 91 and chapter 201M, Hawaii Revised Statutes.

SECTION 6. (a) From the effective date of this Act until the effective date of the new or amendatory rules adopted pursuant to section 5, the Hawaii community development authority shall not accept any planned development permit application for a planned development on a lot of at least 80,000 square feet.

(b) From the effective date of the new or amendatory rules adopted pursuant to section 5, the Hawaii community development may accept any planned development permit application for a planned development on a lot of at least 80,000 square feet.

SECTION 7. From the effective date of this Act until the effective date of the new or amended rules adopted pursuant to section 5, the Hawaii community development authority may accept any planned development permit application for a planned development with multi-family dwelling units on a lot less than one acre. The reserved housing unit requirement for this type of planned development shall be subject to the statutes and rules in effect on the date of the permit application.

SECTION 8. Any major development subject to this Act for which the building permit application is pending on the effective date of this Act, shall not be subject to this Act or rules adopted pursuant to section 5 of this Act. Such a major development shall be subject to the statutes and rules in effect on the date of the building permit application.

SECTION 9. This Act shall apply to the unbuilt portion of a major development within the area of approval of an approved master plan which was pending on the effective date of this Act; provided that the developer shall have five years from the effective date of this Act to build before this Act shall apply.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	948
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 1
STATE OF HAWAII		S.D. 1