SB2697 SD1.DOC

SECTION 1. The legislature established the Hawaii community development authority in 1976 as a public entity to plan new and innovative forms of urban redevelopment and renewal to meet certain community needs, especially the provision of low and moderate income housing located in residential and mixed-use areas with sufficient public facilities and services. To ensure that comprehensive and coordinated development plans were executed by and for the community, the authority was explicitly required to engage affected communities in area development plans and projects. However the legislature finds that in the over thirty-seven years since its creation, the authority has not fulfilled the policies and purposes set out for it by the legislature. Development projects that do not comply either with legislative goals or the applicable development plans established for community development districts have been permitted, sometimes on an accelerated basis. The approval processes for proposed projects also lack both accountability and transparency to the detriment of the communities affected.

The legislature finds that, in accord with the intent of the legislature in establishing the Hawaii community development authority, community development plans should be implemented in recognition of existing uses and according to minimum requirements for good planning and design to preserve public health and safety, ensure access to sufficient public services, and avoid unintended effects on public resources and the human environment. Community development plans are intended to be adopted in consideration of community engagement and, once adopted, are intended to be strictly followed, particularly in regards to density, infrastructure, and affordable housing requirements.

The legislature finds that renewal and redevelopment of residential areas provide stability to existing neighborhoods and encourage compatible land uses that promote the unique character of Hawaii, including through renovation and restoration of existing historical neighborhoods and structures that might otherwise deteriorate. Innovative planning and creative development strategies ensure that urban redevelopment fulfils the intent of the legislature in creating the authority; meets community needs; and accommodates resident, commercial, and visitor needs including for sanitation, schools, hospitals and emergency services, and parks and open space.

The legislature also finds that support for multiple modes of transportation and circulation patterns that are consistent with the needs of residents, businesses, and visitors will make redeveloped urban areas more accessible and attractive because of the efficient flow of pedestrian, bicycle, and vehicular traffic within the area. Building design, architectural elements, and landscape elements can be used to facilitate pedestrian and other non-vehicular traffic that complements Hawaii's tropical climate while acknowledging the urban setting.

Finally, the legislature finds that urban redevelopment should provide adequate, functional, and accessible view planes, historic and cultural resources, and parks and open spaces containing generous landscaping to offset high density.

The purpose of this Act is to specify mandatory, statewide redevelopment policies and processes for urban areas to ensure that redevelopment projects serve all of Hawaii's residents, particularly by providing sufficient affordable housing and needed community services while minimizing real estate speculation.

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

"§206E- Contested case hearing; judicial review. Any person adversely affected by an action or decision of the authority may file a petition for a contested case hearing on the authority's action or decision. Any contested case hearing shall be held in accordance with chapter 91."

SECTION 3. Section 206E-5, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) The authority [~~may~~] shall adopt and amend the community development plan [~~as may be necessary. Amendments shall be made in accordance with chapter 91.~~] only as authorized by the legislature."

SECTION 4. Section 206E-5.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§206E-5.5[]] Community engagement and public notice requirements; informative and timely posting on the authority's website; required. (a) The authority shall adopt community engagement and public notice procedures pursuant to chapter 91 that shall include at a minimum:

(1) A means to effectively engage the community in which the authority is planning a [~~development~~] project to ensure that community concerns are received [~~and~~], considered, and incorporated into the plans for the project by the authority[;] through working with residents and landowners in the community in which a project is proposed to be located to ensure that the area plan and rules are followed and that proposed projects do not adversely affect the community or its residents or businesses;

(2) The posting of the authority's proposed plans for development of community development districts, including plans for redevelopment projects, which shall include details of any proposed projects as well as public hearing notices[,] and minutes of its proceedings on the authority's website; provided that the authority shall mail copies of all documents required by this paragraph to property owners and residents of the affected community upon request; and

(3) Any other information that the public may [~~find useful~~] request so that it may meaningfully participate in the authority's decision-making processes.

(b) [~~The~~] Upon receipt of any new development proposal, the authority shall notify the president of the senate [~~and~~], speaker of the house[:], and all members of the legislature and the appropriate city or county council members who represent the district in which the proposed project is to be located and shall transmit to them:

(1) A copy of the project proposal and application;

(2) A copy of the proposed project's environmental assessment or environmental impact statement, which may be provided electronically in portable document format form;

(3) The recommendations of the authority's executive director regarding the proposed project;

[~~(1)~~ Of] (4) Notice of any public hearing upon posting of the hearing notice; and

[~~(2)~~ ~~With a~~] (5) At least two weeks prior to a decision-making hearing on the proposed project, a report detailing the public's [~~reaction at the public hearing, within one week after the hearing.~~] comments on the proposed project and the authority's response to any concerns raised about the proposed project at a public hearing on the proposed project or in written testimony submitted within one week after the public hearing.

(1) Hold at least one public hearing that is scheduled in the evening or on the weekend; and

(2) Give ten-day notice to the public for at least one of its public hearings."

SECTION 5. Section 206E-5.6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§206E-5.6[]] Public hearing for decision-making; separate hearing required. (a) When rendering a decision regarding:

(1) An amendment to any of the authority's community development rules established pursuant to chapter 91 and section 206E‑7; or

(2) The acceptance of a developer's proposal to develop lands under the authority's control,

the authority shall render its decision at a public hearing separate from the hearing that the proposal under paragraph (1) or (2) was presented.

(b) The authority shall issue a public notice in accordance with section 1‑28.5 and post the notice on its website; provided that the decision-making hearing shall not occur earlier than five business days after the notice is posted. Prior to rendering a decision, the authority shall [~~provide the general public with the opportunity to testify~~] take additional public testimony at its decision-making hearing.

(c) The authority shall notify the president of the senate [~~and~~], speaker of the house[:], and all members of the legislature and the appropriate city or county council member who represents the district in which the proposed project is to be located:

(1) Of any public hearing upon posting of the hearing notice; and

(2) With a report [~~detailing the public's reaction at the public hearing, within one week after the hearing.~~] that conforms to the requirements of section 206E-5.5(b)(5).

(d) The authority shall give serious consideration to and shall respond orally to all concerns raised by the public at the decision-making hearing before the authority makes a decision. If suggested modifications raised prior to the decision-making hearing by community members impacted by a proposed project are not incorporated into the authority's decision to approve the project, the authority shall explain in detail, both in writing and orally, the reasons why those modifications have not been incorporated before issuing a decision to approve the project."

SECTION 6. 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 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 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 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 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~~] shall require a mixture of densities[,] not to exceed a maximum of 3.5 floor area ratio, building types, building heights not to exceed four hundred feet, and configurations in accordance with appropriate urban design guidelines; 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. Residential development shall provide necessary and adequate community facilities[,] and services, such as schools, open space, parks, community meeting places, child care centers, and other services, within and adjacent to residential development;

(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[.];

(10) Before approving development projects, the authority shall require comprehensive studies of and plans for the capacity of the sewers, roads, water, utilities, emergency services, schools, parks, and other infrastructure requirements to ensure that the infrastructure meets the needs generated by the additional number of anticipated residents and, where improvements are needed, the authority shall impose the necessary impact fees upon the developer."

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	2697
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 1
STATE OF HAWAII