HB2846.DOC

SECTION 1. The purpose of this Act is to increase the reserved housing requirement for a major development on a lot of at least one acre in the Kakaako community development district, mauka area. For such a major development, at least twenty-five per cent of the floor area shall be constructed and made available as reserved housing units for low- and moderate-income families. The floor area countable for establishing the percentage for reserved housing units is the total floor area of every building of the major development, except the floor area developed for community or special facility uses. The developer is required to divide the reserved housing floor area into the number, types, and sizes of reserved housing units set by the Hawaii community development authority.

This Act also establishes a reserved housing requirement for a planned development with multi-family dwelling units on a lot of at least twenty thousand square feet, but less than one acre. At least twenty per cent of the multi-family dwelling units to be constructed are required to be set aside for reserved housing. This requirement is the same for a planned development with multi-family dwelling units on a lot of at least twenty thousand square feet. This requirement is intended to apply only to a planned development and not any other type of major development.

This Act requires the Hawaii community development authority to adopt implementing rules without regard to the notice and public hearing requirements of chapter 91, Hawaii Revised Statutes. This provision is intended to facilitate adoption of the rules.

To prevent a flurry of permit applications for major developments on lots of at least one acre before adoption of the rules, this Act prohibits the authority from accepting applications until the rules take effect. The legislature finds that this action is necessary to ensure that the public receives the maximum benefit from this Act.

With respect to the eligibility requirements for a low- or moderate-income family to purchase or rent a reserved housing unit, the legislature does not intend that this Act cause any change from the requirements under existing statute or rule. The legislature intends that the present eligibility requirements remain the same until amended by statute or rule.

SECTION 2. 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) At least twenty-five per cent of the countable floor area of each major development on a lot of at least one acre in the Kakaako mauka area shall be developed as and made available for reserved housing units. The developer of the major development shall divide the floor area required for reserved housing into and construct the number, types, and sizes of reserved housing units established by the authority. The authority shall 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 establish 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 based on:

(1) For a planned development, the countable floor area in the plan approved by the authority in the planned development permit for a planned development; or

(2) For other major developments, the countable floor area in the plan submitted to the authority before any building permit application is submitted.

The reserved housing floor area requirement shall not be changed if, subsequent to the submission or approval of the plan by the authority, 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.

(b) For a planned development with multi-family dwelling units on a lot of between twenty thousand and 43,559 square feet, at least twenty per cent of the units shall be reserved housing units. The authority shall establish the types and sizes of the reserved housing units and 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 establish the number of parking stalls to be assigned to the reserved housing units.

(c) The reserved housing floor area or units required for a major development under this section need not be developed on the same lot as the major development, but shall be developed primarily within the Kakaako mauka area.

(d) The authority shall not allow the developer of a major development to make a cash payment to the authority in lieu of developing and making available the reserved housing floor area or units required by this section.

(e) The developer of a major development shall construct the reserved housing floor area or units required by this section prior to or concurrent with the construction of other uses of the development. The authority shall prohibit the issuance of any certificate of occupancy for any of the other uses before the issuance of the certificate of occupancy for all the required reserved housing floor area or units.

(f) A developer of a major development who develops and makes available more reserved housing floor area or units than required by this section shall be entitled to a credit for the excess and may transfer the credit to another of the developer's major development in the Kakaako mauka area. The credit shall equal the amount of reserved housing floor area or units developed and made available in excess of the requirement of this section. Any transferred credit shall be deducted from the reserved housing floor area or units required of the developer's other major development.

In the alternative, a developer of a major development with a development permit approved by Hawaii community development authority may sell a credit to another developer of a major development in the Kakaako mauka area 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 major development, subject to Hawaii community development authority's approval.

In addition, credit for excess reserved housing may also be created when a developer converts existing non-reserved housing units, not in use by those intended to benefit by reserved housing, into reserved housing within the Kakaako community development district.

Reserved housing credits may also be created if a landowner or developer transfer or cause to be transferred Kakaako community development district land to the authority, or another entity identified by and at a rate approved by the authority, and which shall be used to construct reserved housing.

Reserved housing credits shall be applied on a one-for-one basis.

(g) The authority shall adopt rules pursuant to chapter 91 and section 6 of this Act to implement this section.

(h) 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 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; or

(7) Consulate.

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

(1) Community service use; or

(2) Special facility 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.

"Floor area ratio" means the ratio of floor area to land of a development as expressed as a percentage or decimal. The ratio shall be calculated by dividing the total floor area on a development lot by the area of the development lot.

"Kakaako mauka area" means the area of the Kakaako community development district mauka of Ala Moana Boulevard.

"Major development" means:

(1) A planned development; or

(2) A development that conforms with the base zoning, but has a floor area ratio exceeding 1.5, or a structure height exceeding forty five feet, or both.

"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 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; or four bedrooms with two bathrooms.

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

SECTION 3. Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:

"§206E-4 Powers; generally. Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(4) Make and alter bylaws for its organization and internal management;

(5) Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

(6) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;

(7) Prepare or cause to be prepared a community development plan for all designated community development districts;

(8) Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

(9) Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

(10) By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project [~~which~~] that the authority has [~~theretofore~~] sold or otherwise conveyed, transferred, or disposed of;

(11) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;

(12) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on such terms and conditions as it deems advisable;

(13) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify such plans, specifications, designs, or estimates;

(14) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(15) Procure insurance against any loss in connection with its property and other assets and operations in [~~such~~] amounts and from [~~such~~] insurers as it deems desirable;

(16) Contract for and accept gifts or grants in any form from any public agency or from any other source;

(17) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter; and

(18) Allow satisfaction of any affordable housing requirements imposed by law or the authority upon any proposed development project through the construction of reserved housing[,] units, as defined in section [~~206E-101,~~] 206E- , by a person on land located outside the geographic boundaries of the authority's jurisdiction; provided that the authority shall not permit any person to make cash payments in lieu of providing reserved housing, except to account for any fractional unit that results after calculating the percentage requirement against residential floor space or total number of units developed. The substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site. The authority shall establish the following priority in the development of reserved housing:

(A) Within the community development district;

(B) Within areas immediately surrounding the community development district;

(D) In outlying areas within the same island as the development project.

The Hawaii community development authority shall adopt rules relating to the approval of reserved housing [~~that are~~] units to be developed outside of a community development district. The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities."

SECTION 4. 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 major 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 5. 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 in section 206E- , developed and made available for either:

(1) Purchase by a family that has a household income of not more than one hundred forty per cent of the area median income; or

(2) Rental by a family that has a household income of not more than one hundred per cent of the area median income;

provided that the family meets other eligibility requirements as the authority may adopt by rule."

SECTION 6. The Hawaii community development authority shall adopt or amend 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, 2011. 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 7. (a) From the effective date of this Act until the effective date of the rules adopted or amended pursuant to section 6, the Hawaii community development authority shall not accept any planned development permit application for a planned development on a lot of at least one acre.

(b) From the effective date of the rules adopted or amended pursuant to section 6, the Hawaii community development authority may accept any planned development permit application for a planned development on a lot of at least one acre.

(c) From the effective date of this Act, the Hawaii community development authority may accept any planned development permit application for a planned development with multi-family dwelling units on a lot of between twenty thousand and 43,559 square feet. The reserved housing unit requirement for the planned development shall be subject to the statutes and rules in effect on the date of the permit application.

(d) Any planned development permit application pending on the effective date of this Act shall not be subject to this Act or rules adopted pursuant to section 6. The planned development shall be subject to the statutes and rules in effect on the date of the planned development permit application.

SECTION 8. (a) This section shall apply only to a major development on a lot of at least one acre that is not a planned development.

(b) From the effective date of this Act until the effective date of the rules adopted or amended pursuant to section 6, the Hawaii community development authority shall prohibit the issuance of building permits by the city and county of Honolulu to a developer of a major development subject to subsection (a).

(c) From the effective date of the rules adopted or amended pursuant to section 6, the Hawaii community development authority shall allow the issuance of building permits by the city and county of Honolulu to a developer of a major development subject to subsection (a).

(d) Any major development subject to this section, the building permit application for which is pending on the effective date of this Act, shall not be subject to this Act or rules adopted pursuant to section 6. The major development shall be subject to the statutes and rules in effect on the date of the building permit application.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2846
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII