SB2217

SECTION 1. The legislature finds that Hawaii has been struggling with a lack of affordable housing for decades. Challenges range from land and infrastructure costs, funding and over-regulation and permitting. According to the department of business, economic development, and tourism's report on housing demand in Hawaii, the state needs 64,493 additional housing units to meet the demand projected for 2025. There exists a housing supply problem and the State needs creative solutions to build more housing at all price points.

The legislature further finds that the land use commission is responsible for the classification of land parcels in the urban, rural, agricultural and conservation districts. Additionally, the land use commission is responsible for amendment petitions involving the reclassification of lands greater than fifteen acres in areas in the agricultural, rural and urban districts. The legislature also finds that if the responsibility of boundary amendments were given to the counties, it would make larger scale projects more economically feasible for infrastructure to be built, such as a water treatment plant or connectivity to an existing sewer system. Opening land for affordable housing projects will facilitate the State's goal of increasing the supply of much needed affordable housing units, while being budget neutral to the State.

The purpose of this Act is to allow the counties to reclassify lands that are fifteen to one hundred acres, provided that fifty per cent or more of the proposed housing units are occupied by the owner and priced or below one hundred forty per cent of the area median income.

SECTION 2. Section 205-3.1, Hawaii Revised Statutes, is amended to read as follows:

"§205-3.1 Amendments to district boundaries. (a) District boundary amendments involving [~~lands in the conservation district, land areas greater than fifteen acres, or lands delineated as important agricultural~~] the following lands shall be processed by the land use commission pursuant to section 205-4[.]:

(1) Lands in the conservation district;

(2) Lands greater than fifteen acres, except for lands pursuant to subsection (c); or

(3) Lands delineated as important agricultural lands.

(b) Any department or agency of the State, and 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 appropriate county land use decision-making authority of the county in which the land is situated for a change in the boundary of a district involving [~~lands~~]:

(1) Lands less than fifteen acres presently in the rural and urban districts [~~and lands~~]; and

(2) Lands less than fifteen acres in the agricultural district that are not designated as important agricultural lands.

(c) Any department or agency of the State, and 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 appropriate county land use decision-making authority of the county in which the land is situated for a change in the boundary of a district involving:

(1) Lands greater than fifteen acres but no more than one hundred acres presently in the rural and urban districts; and

(2) Lands greater than fifteen acres but no more than one hundred acres in the agricultural district that are not designated as important agricultural lands;

provided that any proposed reclassification of lands pursuant to this subsection shall be contingent upon any proposed project consisting of housing units of which at least fifty per cent of housing units are priced at or below one hundred forty per cent of the area median income; provided further that housing units located on lands pursuant to this section shall be occupied by the purchaser at all times.

[~~(c)~~] (d) District boundary amendments involving land areas of fifteen acres or less, except as provided in subsection (b), shall be determined by the appropriate county land use decision-making authority for the district and shall not require consideration by the land use commission pursuant to section 205-4; provided that such boundary amendments and approved uses are consistent with this chapter. The appropriate county land use decision-making authority may consolidate proceedings to amend state land use district boundaries pursuant to this subsection, with county proceedings to amend the general plan, development plan, zoning of the affected land, or such other proceedings. Appropriate ordinances and rules to allow consolidation of such proceedings may be developed by the county land use decision-making authority.

[~~(d)~~] (e) The county land use decision-making authority shall serve a copy of the application for a district boundary amendment to the land use commission and the department of business, economic development, and tourism and shall notify the commission and the department of the time and place of the hearing and the proposed amendments scheduled to be heard at the hearing. A change in the state land use district boundaries pursuant to this subsection shall become effective on the day designated by the county land use decision-making authority in its decision. Within sixty days of the effective date of any decision to amend state land use district boundaries by the county land use decision-making authority, the decision and the description and map of the affected property shall be transmitted to the land use commission and the department of business, economic development, and tourism by the county planning director."

SECTION 3. Section 205-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(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, and lands greater than fifteen acres in the agricultural, rural, and urban districts, except as provided in [~~section 201H-38.~~] sections 201H-38 and 205-3.1(a). The land use commission shall adopt rules pursuant to chapter 91 to implement section 201H-38."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2217
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII