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THE SENATE |
S.B. NO. |
580 |
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TWENTY-NINTH LEGISLATURE, 2017 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOUSING AND MIXED-USE DEVELOPMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that a critical shortage of affordable housing exists in Hawaii. The need for affordable rental units is particularly acute for households with low incomes. Approximately ninety-three to ninety-five per cent of rental unit tenants have a household income of less than one hundred forty per cent of the median Hawaii income.
The legislature further finds that the lack of supply leads to higher rents for households of all income levels, leaving all tenants with less disposable income, increasing the personal stress of tenants, reducing tenant quality of life, and exacerbating the population overcrowding and homelessness problems. Without sufficient affordable rental housing, the future social, community, and economic consequences for Hawaii may be dire.
The legislature additionally finds that Act 127, Session Laws of Hawaii 2016, identified a need for an additional 64,700 new housing units and set a state goal to develop at least 22,500 affordable rental housing unit ready for occupancy between January 1, 2017, and December 31, 2026.
The legislature also finds that traditional zoning and land use designations are no longer adequate to meet current development trends. Mixed-use zoning encourages smart growth and the development of compact, higher-density communities consisting of walkable areas with housing, jobs, shops, and services located within close proximity. Mixed-use developments are especially beneficial for low- and moderate-income households because they reduce transportation costs, traffic congestion, and the number of vehicle miles traveled by community residents.
The legislature further finds that long-term leases of lands owned or administered by the State will encourage developers to initiate housing and multi-use development projects that will provide affordable housing options to Hawaii's residents and commercial development projects that will encourage the continued growth of the State's economy.
The purpose of this Act is to allow the Hawaii housing finance and development corporation on behalf of the State to negotiate leases for multi-family residential, commercial, and mixed-use projects on public lands for terms in excess of sixty-five years but not exceeding ninety-nine years.
SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§171- Leases for multi-family residential, commercial, and mixed-use projects. (a) Notwithstanding sections 171‑36(a)(2) and 171‑95(a)(2) to the contrary, the Hawaii housing finance and development corporation may negotiate leases for multi-family residential, commercial, and mixed-use projects on public lands for a term up to ninety-nine years.
(b) The initial term of any lease of multi-family residential, commercial, or mixed-use property negotiated pursuant to this section and any extensions thereof may be for a period in excess of sixty-five years; provided that the aggregate of the initial term and any extensions of the term shall in no event exceed ninety-nine years. Upon expiration of the negotiated term of the lease, the lease may be offered for public auction as provided in this title; provided that the previous lease holder shall be offered the right of first refusal in accordance with the terms of the lease if the lease holder agrees to match the highest bid offered at the public auction."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
Report Title:
Housing and Mixed-use Development; Department of Land and Natural Resources; Leases; Hawaii Housing and Finance Development Corporation
Description:
Allows the HHFDC to negotiate leases for multi-family residential, commercial, and mixed-use projects on public lands for terms in excess of sixty-five years but not exceeding ninety-nine years. Gives the lessee a right of first refusal following a public auction at the termination of the lease; provided that the lessee matches the highest lease rental bid offered. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.