SB755 SD1.DOC

SECTION 1. The legislature finds that more reserved housing units are needed in the Kakaako mauka area. Time is critical in the development of housing projects and delays in obtaining the necessary approvals or the requirement of multiple governmental approvals may jeopardize projects. Currently, planned development projects requiring either a consolidation or subdivision of land must seek approvals from both the Hawaii community development authority and the city and county of Honolulu.

The purpose of this Act is to authorize the Hawaii community development authority to process an application for subdivision and consolidation of land for a planned development project:

(1) On a development lot between 20,000 and 80,000 square feet with at least twenty per cent of the total number of dwelling units in the project reserved for sale or rental to qualified persons as determined by the authority; and

(2) On a development lot greater than 80,000 square feet with at least twenty-five per cent of the total number of dwelling units in the project reserved for sale or rental to qualified persons as determined by the authority.

SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§206E‑ Planned development project; reserved housing; subdivision and consolidation of land. (a) Every applicant for a planned development containing multi-family dwelling units on development lots of between 20,000 and 80,000 square feet shall reserve at least twenty per cent of the total number of dwelling units in the project for sale or rental to qualified persons as determined by the authority.

(b) Every applicant for a planned development containing multi-family dwelling units on development lots greater than 80,000 square feet shall reserve at least twenty-five per cent of the total number of dwelling units in the project for sale or rental to qualified persons as determined by the authority.

(c) Notwithstanding any law to the contrary, the authority shall process and take action on an application for subdivision and consolidation of land for a planned development project:

(1) On a development lot of between 20,000 to 80,000 square feet with at least twenty per cent of the total number of dwelling units in the project reserved for sale or rental to qualified persons as determined by the authority; and

(d) For any planned development project described in subsection (c), the following review periods shall apply:

(1) Project eligibility review shall be completed by the:

(A) City and county of Honolulu and any other governmental agency within thirty days; and

(B) Authority within forty-five days after receipt of the application for a planned development, at which time a written project eligibility determination shall be issued to the applicant;

(2) Action on the application for a planned development shall be taken by the authority within forty-five days after the date the authority issues a written project eligibility determination; provided that the application shall be deemed approved if no decision is made by the authority in granting or denying the application within the forty-five day time period; and

(3) Action on the application for subdivision or consolidation of land shall be taken by the authority within ninety days after the date the application for subdivision or consolidation is deemed complete by the authority. If an applicant for a planned development project described in subsection (c) requires subdivision or consolidation approval, the application for subdivision or consolidation shall be submitted together with the planned development application. The application shall be deemed approved if no decision is made by the authority in granting or denying the application within the ninety-day time period.

(e) The authority shall adopt rules pursuant to chapter 91 for the purposes of this section."

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 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, in order 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 the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction. Such 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 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[.]; and

(19) Process and take action on an application for subdivision and consolidation of land for a planned development project:

(A) On a development lot of between 20,000 and 80,000 square feet with at least twenty per cent of the total number of dwelling units in the project reserved for sale or rental to qualified persons as determined by the authority; and

(B) On a development lot greater than 80,000 square feet with at least twenty-five per cent of the total number of dwelling units in the project reserved for sale or rental to qualified persons as determined by the authority."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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

SECTION 6. This Act shall take effect upon its approval.

THE SENATE	S.B. NO.	755
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII