SB2205 SD2

SECTION 1. Chapter 205, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . important housing lands

§205-A Important housing lands; definition and objectives. (a) As used in this part, unless the context requires otherwise:

"Eligible buyer" means a resident of the State who:

(1) Is an owner-occupant of a dwelling unit on important housing lands; and

(2) Owns no other real property.

"Important housing lands" means public lands that are located within one mile of any rail mass transit station and needed to promote the development of housing priced below market rates for an eligible buyer.

(b) The objectives for the identification of important housing lands is to:

(1) Identify and plan for the maintenance of a strategic base of lands to meet housing demand for current and future generations;

(2) Create highly walkable, mixed-use neighborhoods that minimize car usage and maximize density;

(3) Promote land development and land use planning that delineates blocks of promising land areas for housing opportunities; and

(4) Establish incentives that promote the long-term use and protection of these promising land areas for housing opportunities.

§205-B Important housing lands; policies. State and county housing policies, tax policies, land use plans, ordinances, and rules shall promote the long-term viability of important housing lands and shall be consistent with and implement the following policies:

(1) Promote the retention of important housing lands in blocks of contiguous, intact, and functional land units;

(2) Discourage the fragmentation of important housing lands and the conversion of these lands to non-housing uses;

(3) Direct incompatible uses and activities from important housing lands to other areas and ensure that uses on important housing lands are actually for housing and mixed-use purposes;

(4) Provide infrastructure and services on important housing lands necessary to support housing uses and activities;

(5) Facilitate the long-term dedication of important housing lands for future housing needs through the use of incentives;

(6) Facilitate the access of low-income individuals to important housing lands for long-term viable housing use; and

(7) Promote the maintenance of essential housing infrastructure systems.

§205-C Standards and criteria for the identification of important housing lands. The standards and criteria in this section shall be used to identify important housing lands. Lands identified as important housing lands need not meet every standard and criteria listed below; provided that the lands identified shall meet the criteria established in the definition of important housing lands as that term is defined in this part. Rather, lands meeting any of the criteria below shall be given initial consideration; provided that the designation of important housing lands shall be made by weighing the standards and criteria with each other and the objectives and policies for important housing lands in sections 205-A and 205-B. The standards and criteria shall be as follows:

(1) Land currently used for housing development;

(2) Land that supports housing development;

(3) Land identified by the land use commission as housing lands of importance to the State;

(4) Land whose designation as important housing lands is consistent with general, development, and community plans of the county; and

(5) Land with or near support infrastructure conducive to housing development.

§205-D Incentives for important housing lands. (a) To achieve the long-term use of important housing lands, the State and each county shall ensure that their:

(1) Housing development, land use, water use, regulatory, tax, and land protection policies; and

(2) Permitting and approval procedures,

enable and promote the economic sustainability of housing development.

Housing development on important housing lands shall be eligible for incentives and protections provided by the State and counties pursuant to this section to promote the viability of housing development on important housing lands and to assure the availability of important housing lands for long-term housing use.

(b) State and county incentive programs shall provide preference to important housing lands. The State and each county shall cooperate in program development to prevent duplication of and to streamline and consolidate access to programs and services for housing development on important housing lands.

(c) Incentive and protection programs shall be designed to provide a mutually supporting framework of programs and measures that enhance housing development on important housing lands.

(d) State and county agencies shall review the protection and incentive measures enacted for important housing lands and housing development pursuant to this chapter at least every five years to:

(1) Determine their effectiveness in providing housing opportunities in Hawaii;

(2) Determine whether the effectiveness of tax credits or incentive programs will be enhanced by creating revolving funds or increasing rates based upon the tax revenues generated by enhanced investment and housing development on important housing lands; and

(3) Modify measures and programs as needed.

(e) This section shall apply only to those lands designated as important housing lands pursuant to section 205‑G.

§205-E Identification of important housing lands; county process. (a) Each county shall identify and map potential important housing lands within its jurisdiction based on the standards and criteria in section 205-C and intent of this part.

(b) Each county shall develop maps of potential lands to be considered for designation as important housing lands in consultation and cooperation with interested stakeholders, as determined by the county.

(c) Each county, through its planning department, shall develop an inclusive process for public involvement in the identification of potential important housing lands and the development of maps of lands to be recommended as important housing lands. The planning departments may also establish one or more citizen advisory committees on important housing lands to provide further public input, utilize an existing process (such as a general plan, development plan, or community plan), or employ appropriate existing and adopted general plan, development plan, or community plan maps.

(d) The counties shall take notice of those lands that have already been designated as important housing lands by the commission.

Upon identification of potential lands to be recommended to the county council as potential important housing lands, the counties shall take reasonable action to notify each owner of those lands by mail or posted notice on the affected lands to inform them of the potential designation of their lands.

In formulating its final recommendations to the respective county councils, the planning departments shall report on the manner in which the mapping of important housing lands relates to, supports, and is consistent with the:

(1) Standards and criteria set forth in section 205-C;

(2) County's adopted land use plans, as applied to both the identification and exclusion of important housing lands from the designation; and

(3) Comments received from government agencies and others identified in subsection (b).

(e) The important housing lands maps shall be submitted to the county council for decision-making. The county council shall adopt the maps, with or without changes, by resolution. The adopted maps shall be transmitted to the land use commission for further action pursuant to section 205-F.

§205-F Receipt of maps of eligible important housing lands; land use commission. (a) Each county council shall transmit its recommendations and maps delineating those lands eligible to be designated as important housing lands to the land use commission no sooner than three years after the effective date of this part.

(b) The office of planning shall review the county report and recommendations and provide comments to the land use commission within forty-five days of receipt of the report and maps by the land use commission. The land use commission may also consult with the office of planning as needed.

(1) County recommendations result in an identified resource base that meets the definition of important housing land and the objectives and policies for important housing lands in sections 205-A and 205-B; and

(2) County has met the minimum standards and criteria for the identification and mapping process in sections 205-C and 205-E.

§205-G Designation of important housing lands; adoption of important housing lands maps. (a) After receipt of the maps of eligible important housing lands from the counties and the recommendations of the office of planning, the commission shall then proceed to identify and designate important housing lands. The decision shall consider the county maps of eligible important housing lands, declaratory orders issued by the commission designating important housing lands, and any other relevant information.

In designating important housing lands in the State, pursuant to the recommendations of individual counties, the commission shall consider the extent to which:

(1) The proposed lands meet the standards and criteria under section 205-C; and

(2) The proposed designation is necessary to meet the objectives and policies for important housing lands in sections 205-A and 205-B.

Any decision regarding the designation of lands as important housing lands and the adoption of maps of those lands pursuant to this section shall be based upon written findings of fact and conclusions of law, presented in at least one public hearing conducted in the county where the land is located in accordance with chapter 91, that the subject lands meet the standards and criteria set forth in section 205-C and shall be approved by two-thirds of the membership to which the commission is entitled.

(b) Copies of the maps of important housing lands adopted under this section shall be transmitted to each county planning department and county council, the office of planning, and other state agencies involved in land use matters. The maps of important housing lands shall guide all decision-making on the proposed reclassification or rezoning of important housing lands and other state and county land use planning and decision-making.

(c) The land use commission shall have the sole authority to interpret the adopted map boundaries delineating the important housing lands; provided that the land use commission may designate lands as important housing lands and adopt maps for a designation pursuant to the county process for identifying and recommending lands for important housing lands under section 205-E no sooner than six years after the effective date of this part.

§205-H Standards and criteria for reclassifying or rezoning important housing lands. (a) Any land use district boundary amendment or change in zoning that involves important housing lands identified pursuant to this chapter shall be subject to this section.

(b) Upon acceptance by the county for processing, any application for a special permit that involves important housing lands shall be referred to the office of planning for review and comment.

(c) Any decision by the land use commission or county pursuant to this section shall specifically consider the following standards and criteria:

(1) The relative importance of the land for housing development, based on the stock of similarly suited lands in the area and the State as a whole;

(2) The district boundary amendment or zone change will not cause the fragmentation of important housing lands or intrusion of non-housing uses;

(3) The public benefit to be derived from the proposed action is justified by a need for additional lands for non-housing purposes; and

(4) The impact of the proposed district boundary amendment or zone change on the necessity and capacity of state and county agencies to provide and support additional housing infrastructure or services in the area.

(d) Any decision pursuant to this section shall be based upon a determination that:

(1) On balance, the public benefit from the proposed district boundary amendment or zone change outweighs the benefits of retaining the land for housing purposes; and

(2) The proposed action will have no significant impact upon the viability of housing development on adjacent housing lands.

(e) The standards and criteria of this section shall be in addition to:

(1) The decision-making criteria of section 205-17 governing decisions of the land use commission under this chapter; and

(2) The decision-making criteria adopted by each county to govern decisions of county decision-making authorities under this chapter.

(f) Any decision of the land use commission and any decision of any county on a land use district boundary amendment or change in zoning that involves important housing lands shall be approved by the body responsible for the decision by a two-thirds vote of the membership to which the body is entitled.

§205-I Important housing lands; county ordinances. (a) Each county shall adopt ordinances that reduce infrastructure standards for important housing lands no later than three years after the effective date of this part.

(b) For counties without ordinances adopted pursuant to subsection (a), important housing lands designated pursuant to this part may be subdivided without county processing or standards; provided that the leasehold lots shall return to the original lot of record upon expiration or termination of the lease.

§205-J Periodic review and amendment of important housing land maps. The maps delineating important housing lands shall be reviewed in conjunction with the county general plan and community and development plan revision process, or at least once every ten years following the adoption of the maps of the land use commission; provided that the maps shall not be reviewed more than once every five years. Any review and amendment of the maps of important housing lands shall be conducted in accordance with this part."

SECTION 2. Section 205-3.1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) District boundary amendments involving lands in the conservation district, land areas greater than fifteen acres, lands delineated as important housing lands, or lands delineated as important agricultural lands shall be processed by the land use commission pursuant to section 205-4."

SECTION 3. Section 205-4, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Any department or agency of the State, any department or agency of the county in which the land is situated, or any person with a property interest in the land sought to be reclassified, may petition the land use commission for a change in the boundary of a district. This section applies to all petitions for changes in district boundaries of lands within conservation districts, lands designated or sought to be designated as important agricultural lands, lands designated or identified by a county for consideration for designation as important housing lands pursuant to section 205-E(b), and lands greater than fifteen acres in the agricultural, rural, and urban districts, except as provided in section 201H-38. The land use commission shall adopt rules pursuant to chapter 91 to implement section 201H-38."

2. By amending subsection (h) to read:

"(h) No amendment of a land use district boundary shall be approved unless the commission finds upon the clear preponderance of the evidence that the proposed boundary is reasonable, not violative of section 205-2 and [~~part~~] parts III and of this chapter, and consistent with the policies and criteria established pursuant to sections 205-16 and 205-17. Six affirmative votes of the commission shall be necessary for any boundary amendment under this section."

SECTION 4. Section 205-6, Hawaii Revised Statutes, is amended by amending subsections (c), (d), and (e) to read as follows:

"(c) The county planning commission may, under such protective restrictions as may be deemed necessary, permit the desired use, but only when the use would promote the effectiveness and objectives of this chapter; provided that a use proposed for designated important agricultural lands or designated important housing lands shall not conflict with any part of this chapter. A decision in favor of the applicant shall require a majority vote of the total membership of the county planning commission.

(d) Special permits for land the area of which is greater than fifteen acres or for lands designated as important agricultural lands or important housing lands shall be subject to approval by the land use commission. The land use commission may impose additional restrictions as may be necessary or appropriate in granting the approval, including the adherence to representations made by the applicant.

(e) A copy of the decision, together with the complete record of the proceeding before the county planning commission on all special permit requests involving a land area greater than fifteen acres or for lands designated as important agricultural lands[,] or important housing lands, shall be transmitted to the land use commission within sixty days after the decision is rendered.

Within forty-five days after receipt of the complete record from the county planning commission, the land use commission shall act to approve, approve with modification, or deny the petition. A denial either by the county planning commission or by the land use commission, or a modification by the land use commission, as the case may be, of the desired use shall be appealable to the circuit court of the circuit in which the land is situated and shall be made pursuant to the Hawaii rules of civil procedure."

SECTION 5. Section 205-17, Hawaii Revised Statutes, is amended to read as follows:

"§205-17 Land use commission decision-making criteria. In its review of any petition for reclassification of district boundaries pursuant to this chapter, the commission shall specifically consider the following:

(1) The extent to which the proposed reclassification conforms to the applicable goals, objectives, and policies of the Hawaii state plan and relates to the applicable priority guidelines of the Hawaii state plan and the adopted functional plans;

(2) The extent to which the proposed reclassification conforms to the applicable district standards;

(3) The impact of the proposed reclassification on the following areas of state concern:

(A) Preservation or maintenance of important natural systems or habitats;

(B) Maintenance of valued cultural, historical, or natural resources;

(D) Commitment of state funds and resources;

(E) Provision for employment opportunities and economic development; and

(F) Provision for housing opportunities for all income groups, particularly the low, low-moderate, and gap groups;

(4) The standards and criteria for the reclassification or rezoning of important agricultural lands in section 205-50[;] and important housing lands in section 205‑H;

(5) The county general plan and all community, development, or community development plans adopted pursuant to the county general plan, as they relate to the land that is the subject of the reclassification petition; and

(6) The representations and commitments made by the petitioner in securing a boundary change."

SECTION 6. Each county shall submit its report and maps with recommendations for lands eligible for designation as important housing lands to the land use commission no later than sixty months from the date of county receipt of state funds appropriated for the identification process. Upon receipt of the county maps, the land use commission shall review and adopt maps designating important housing lands to the State in accordance with section 205-G, Hawaii Revised Statutes.

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2020-2021 for grants-in-aid to the counties for the identification and mapping of important housing lands to the State in accordance with section 1 of this Act, to be allocated as follows:

(1) To the city and county of Honolulu $

(2) To the county of Hawaii $

(3) To the county of Maui $

(4) To the county of Kauai $

The sum appropriated by this Act and allocated to the counties is done so in satisfaction of the requirements of article VIII, section 5 of the state constitution.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the disbursement of funds by the land use commission to each county for the identification of important housing lands pursuant to this Act.

SECTION 8. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	2205
THIRTIETH LEGISLATURE, 2020		S.D. 2
STATE OF HAWAII