HB2473 HD1

SECTION 1. The legislature finds that the department of Hawaiian home lands produced no new housing units during the fiscal year ending June 30, 2017, and closed out the year with $30,000,000 in unspent federal housing funds. The number of eligible beneficiaries awaiting residential leases totals more than twenty-two thousand individuals statewide, with roughly half of the wait list applicants on Oahu.

The legislature further finds that the department of Hawaiian home lands has historically lagged terribly behind in addressing its wait list of native Hawaiian beneficiaries. The Hawaiian Homes Commission Act, 1920, as amended, requires the department of Hawaiian home lands to provide houses as well as leases of land. Section 101 of the Hawaiian Homes Commission Act of 1920 states in pertinent part as follows:

(b) The principal purposes of this Act include but are not limited to:

(1) Establishing a permanent land base for the benefit and use of native Hawaiians, upon which they may live, farm, ranch, and otherwise engage in commercial or industrial or any other activities as authorized in this Act;

(2) Placing native Hawaiians on the lands set aside under this Act in a prompt and efficient manner and assuring long-term tenancy to beneficiaries of this Act and their successors; . . . (Emphasis added)

The legislature additionally finds that micro housing is an emerging trend and a feasible type of housing that can help achieve the housing obligations of the department of Hawaiian home lands by reducing the cost of development and fostering an adequate supply of housing, particularly for native Hawaiians for whom "affordable housing" is oftentimes simply unaffordable. "Tiny homes" are a form of affordable housing that may address the State's persistent housing shortage. Tiny homes and their multifamily counterpart, micro-unit apartments, are typically constructed using a modular, prefabricated build system or hybrid that involves some conventional construction. Tiny homes are also ideal for accessory dwelling units, popularly known for decades as ohana units, which are usually add-ons to existing homes and can serve as either affordable rentals or additional shelter for overcrowded residences.

The legislature further finds that micro housing or tiny homes are a cost-effective way to address the housing shortage in Hawaii because these homes make efficient use of scarce and expensive land. It is estimated that ten thousand homestead lots are suitable for tiny homes, and native Hawaiians could benefit from funding to construct tiny homes.

Furthermore, legalizing micro housing will help the department of Hawaiian home lands to achieve its objectives for socio-cultural advancement with regard to housing, as set forth in Act 349, Session Laws of Hawaii 1990, which proposes the addition of the following language to section 101 of the Hawaiian Homes Commission Act, 1920, as amended: "The Congress of the United States and the State of Hawaii declare that the policy of this Act is to enable native Hawaiians to return to their lands in order to fully support self-sufficiency for native Hawaiians and the self-determination of native Hawaiians . . . "

The purpose of this Act is to:

(1) Authorize the construction and use of micro housing units on Hawaiian home lands managed by the department of Hawaiian home lands; and

(2) Make an appropriation to the department of Hawaiian home lands to:

(A) Construct micro housing units, subject to certain conditions; and

(B) Build the general organizational capacity of native Hawaiian-controlled nonprofit housing developers.

SECTION 2. Chapter 107, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"§107- Micro housing; exemptions. (a) Notwithstanding any county zoning laws, permit provisions, or building code provisions to the contrary, the construction and use of micro housing units on Hawaiian home lands managed by the department of Hawaiian home lands and leased to native Hawaiian beneficiaries shall be allowed.

(b) For purposes of this section, "micro housing unit" means a dwelling unit with a total floor area of less than eight hundred square feet, including a bed, kitchen, kitchen sink, cooking and refrigeration appliances, and a partitioned off bathroom containing a toilet and a bathtub or shower."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2018-2019 for the construction of micro housing units as defined in section 107‑ , Hawaii Revised Statutes, to be matched on a dollar-for-dollar basis by funds awarded through the department of Hawaiian home lands; provided that:

(1) The cost of construction of each micro housing unit shall not exceed $125,000;

(2) A micro housing unit may be constructed on an existing homestead lot upon which a home already exists only if the micro housing unit is to be occupied by another individual or family related to the existing lessee; and

(3) Awarded Native Community Development Financial Institutions shall determine the criteria for lessees to qualify for loans pursuant to this paragraph.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2018-2019 to build the general organizational capacity of native Hawaiian-controlled nonprofit housing developers; provided that the nonprofit developers:

(1) Have a board of directors that consists of members who are at least fifty-one per cent of native Hawaiian ancestry; and

(2) Are able to demonstrate past experience developing housing units on Hawaiian home lands.

The sum appropriated shall be expended by the department of Hawaiian home lands for the purposes of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on January 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	2473
TWENTY-NINTH LEGISLATURE, 2018		H.D. 1
STATE OF HAWAII