HB2016

SECTION 1. According to the department of business economic development, and tourism, for the period from 2015 to 2025, the number of additional housing units that will be required for the counties of Hawaii, Maui, and Kauai is 19,610, 13,949, and 5,287 units, respectively. The city and county of Honolulu will require 25,847 additional units for the same time period. The city and county of Honolulu's draft affordable housing strategy explains that the marketplace is not building enough affordable homes to keep up with demand. Further, over seventy-five per cent of the projected demand is for households earning less than eighty per cent of the area median income, or approximately $75,650 for a family of four.

The policies of inclusionary zoning and the imposition of development exactions do not coincide with the State's goal of developing more affordable workforce housing, which are units that are affordable for households making at or below one hundred forty per cent of the area median income. Inclusionary zoning requirements, which has the aim of increasing affordable housing units, have had the opposite effect by making housing projects unfeasible. In addition, the imposition of requirements as a condition for approval of development, a concept known as exactions, during the zoning and permitting process has also resulted in the slower housing growth.

The legislature finds that a healthy housing market provides opportunities for owners to upgrade to higher priced units, which would increase the inventory of lower priced units for new buyers and renters to enter the market. The legislature further finds that the State should encourage the development of workforce housing to stimulate a healthy housing market. The policies of inclusionary zoning and exactions are contrary to a healthy housing market.

The purpose of this Act is to encourage the private sector to increase the supply of workforce housing by prohibiting the imposition of inclusionary zoning and exactions during the zoning and permitting process for certain housing developments.

SECTION 2. Section 46-4, Hawaii Revised Statutes, is amended to read as follows:

"§46-4 County zoning. (a) This section and any ordinance, rule, or regulation adopted in accordance with this section shall apply to lands not contained within the forest reserve boundaries as established on January 31, 1957, or as subsequently amended.

Zoning in all counties shall be accomplished within the framework of a long-range, comprehensive general plan prepared or being prepared to guide the overall future development of the county. Zoning shall be one of the tools available to the county to put the general plan into effect in an orderly manner. Zoning in the counties of Hawaii, Maui, and Kauai means the establishment of districts of such number, shape, and area, and the adoption of regulations for each district to carry out the purposes of this section. In establishing or regulating the districts, full consideration shall be given to all available data as to soil classification and physical use capabilities of the land to allow and encourage the most beneficial use of the land consonant with good zoning practices. The zoning power granted herein shall be exercised by ordinance which may relate to:

(1) The areas within which agriculture, forestry, industry, trade, and business may be conducted;

(2) The areas in which residential uses may be regulated or prohibited;

(3) The areas bordering natural watercourses, channels, and streams, in which trades or industries, filling or dumping, erection of structures, and the location of buildings may be prohibited or restricted;

(4) The areas in which particular uses may be subjected to special restrictions;

(5) The location of buildings and structures designed for specific uses and designation of uses for which buildings and structures may not be used or altered;

(6) The location, height, bulk, number of stories, and size of buildings and other structures;

(7) The location of roads, schools, and recreation areas;

(8) Building setback lines and future street lines;

(9) The density and distribution of population;

(10) The percentage of a lot that may be occupied, size of yards, courts, and other open spaces;

(11) Minimum and maximum lot sizes; and

(12) Other regulations the boards or city council find necessary and proper to permit and encourage the orderly development of land resources within their jurisdictions.

The council of any county shall prescribe rules, regulations, and administrative procedures and provide personnel it finds necessary to enforce this section and any ordinance enacted in accordance with this section. The ordinances may be enforced by appropriate fines and penalties, civil or criminal, or by court order at the suit of the county or the owner or owners of real estate directly affected by the ordinances.

Any civil fine or penalty provided by ordinance under this section may be imposed by the district court, or by the zoning agency after an opportunity for a hearing pursuant to chapter 91. The proceeding shall not be a prerequisite for any injunctive relief ordered by the circuit court.

Nothing in this section shall invalidate any zoning ordinance or regulation adopted by any county or other agency of government pursuant to the statutes in effect prior to July 1, 1957.

The powers granted herein shall be liberally construed in favor of the county exercising them, and in such a manner as to promote the orderly development of each county or city and county in accordance with a long-range, comprehensive general plan to ensure the greatest benefit for the State as a whole. This section shall not be construed to limit or repeal any powers of any county to achieve these ends through zoning and building regulations, except insofar as forest and water reserve zones are concerned and as provided in subsections (c) and (d).

Neither this section nor any ordinance enacted pursuant to this section shall prohibit the continued lawful use of any building or premises for any trade, industrial, residential, agricultural, or other purpose for which the building or premises is used at the time this section or the ordinance takes effect; provided that a zoning ordinance may provide for elimination of nonconforming uses as the uses are discontinued, or for the amortization or phasing out of nonconforming uses or signs over a reasonable period of time in commercial, industrial, resort, and apartment zoned areas only. In no event shall such amortization or phasing out of nonconforming uses apply to any existing building or premises used for residential (single-family or duplex) or agricultural uses. Nothing in this section shall affect or impair the powers and duties of the director of transportation as set forth in chapter 262.

(b) Any final order of a zoning agency established under this section may be appealed to the circuit court of the circuit in which the land in question is found. The appeal shall be in accordance with the Hawaii rules of civil procedure.

(c) Each county may adopt reasonable standards to allow the construction of two single-family dwelling units on any lot where a residential dwelling unit is permitted.

(d) Neither this section nor any other law, county ordinance, or rule shall prohibit group living in facilities with eight or fewer residents for purposes or functions that are licensed, certified, registered, or monitored by the State; provided that a resident manager or a resident supervisor and the resident manager's or resident supervisor's family shall not be included in this resident count. These group living facilities shall meet all applicable county requirements not inconsistent with the intent of this subsection, including but not limited to building height, setback, maximum lot coverage, parking, and floor area requirements.

(e) Neither this section nor any other law, county ordinance, or rule shall prohibit the use of land for employee housing and community buildings in plantation community subdivisions as defined in section 205-4.5(a)(12); in addition, no zoning ordinance shall provide for the elimination, amortization, or phasing out of plantation community subdivisions as a nonconforming use.

(f) Neither this section nor any other law, county ordinance, or rule shall prohibit the use of land for medical cannabis production centers or medical cannabis dispensaries established and licensed pursuant to chapter 329D; provided that the land is otherwise zoned for agriculture, manufacturing, or retail purposes.

(g) Neither this section nor any other law, county ordinance, or rule shall impose an inclusionary zoning requirement on a housing development offered exclusively for sale to buyers earning less than one hundred forty per cent of the area median income.

(h) Neither this section nor any other law, county ordinance, or rule shall impose an exaction on a housing development offered exclusively for sale to buyers earning less than one hundred forty per cent of the area median income.

(i) As used in this section:

"Exaction" means a condition placed on a land use permit that requires the developer to fulfill other requirements not required under the zoning ordinance or regulation for the land use permit, including dedicating land, building infrastructure, or paying one or more fees to mitigate anticipated negative impacts of the development.

"Inclusionary zoning requirement" means any requirement to set aside a fraction of a housing development to be sold at below market prices."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2018.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2016
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII