SB2658

SECTION 1. The legislature finds that there is currently a state-wide housing crisis that is having a negative impact on the quality of life for Hawaii's residents. The overall lack of supply of housing at all price points on the islands is causing residents to move out of the State to more affordable markets. It is also contributing to the increased number of homeless individuals and families across the State.

There is a need to focus the efforts among all government agencies on increasing the supply of housing at all price points, especially at the workforce and affordable price points, i.e. at or below 140 per cent of area median income.

There is an opportunity to build more housing units on state owned lands along the rail transit corridor. While these units will not be sold in fee simple, the State is able to provide ninety-nine year leasehold condominiums for projects built on state owned lands.

There is also a need to allow for more construction on private lands throughout the State as the housing crisis cannot be solved solely on government lands.

The legislature further finds that the existing government structure at the state and county level, which was developed at statehood, is cumbersome and not proactive in addressing the existing housing problems. Furthermore, the dual level land entitlement/land zoning system in Hawaii is reactive and not proactive in addressing the need for more housing.

The legislature finds that in order to appropriately respond to the statewide need for more housing at all price points, there needs to be a central authority in government that is able to marshal the various resources, people, and processes existing in government today.

SECTION 2. Chapter 26, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§26- Position of director of housing created. (a) The governor shall appoint, and may remove, a director of housing, without regard to chapter 76.

(b) The director of housing shall develop, advocate for, and implement policies to solve Hawaii's housing shortage by:

(1) Analyzing solutions and programs to address the State's need for housing that is affordable for all economic segments of the State, including but not limited to programs or proposals regarding the:

(A) Financing, acquisition, rehabilitation, preservation, conversion, or construction of housing;

(B) Use of publicly owned land and buildings as sites for affordable housing;

(D) Stimulation of public and private sector and intergovernmental cooperation in the development of housing;

(E) Equitable geographic distribution of housing for all economic segments;

(F) Examination of successful housing policies from jurisdictions across the country and the world, and how to adapt these policies to the State;

(G) Unique circumstances for special needs populations;

(H) Provision of infrastructure for existing and future housing needs;

(I) Preservation and enhancement of the character of the State's unique cultures and communities;

(J) Correction of distortions in the housing market;

(K) Prevention of the erosion of housing stock due to speculation, transient accommodations and short-term vacation rentals, and other phenomena; and

(L) Diversity of communities across the State;

(2) Considering homeownership and rental housing as viable options for the provision of housing;

(3) Considering various types of residential construction and innovation housing options, including but not limited to manufactured housing;

(4) Reviewing, evaluating, and making recommendations regarding existing and proposed housing programs and initiatives, including but not limited to tax policies, land use policies, and financing programs;

(5) Incorporating feedback and concerns from all stakeholders in the State's housing crisis;

(6) Attracting and retaining future generations and industries through the provision of abundant and affordable housing;

(7) Engaging and educating the public on housing policies and programs;

(8) Facilitating the development process by serving as a one-stop guide for housing developers through all parts of the development process;

(9) Addressing complaints and issues concerning public housing;

(10) Encouraging state and county housing agencies to explore the potential or expanded use of development and hold mechanisms such as community land trusts, land banks, and master leases, to preserve public lands under long term leases or in perpetuity for affordable housing;

(11) Facilitating redevelopment and rehabilitation of existing state public housing units;

(12) Gathering and collecting information concerning the existing challenges of developing more housing in Hawaii; and

(13) Collaborating with various State and county agencies involved in housing development, including infrastructure, and develop strategies, which can be project specific, regional, or statewide depending on the situation, that will allow for increasing the supply of housing at all price points.

(c) The director of housing shall be a member of the state employees' retirement system and shall be included under the operations of the federal social security program or any other state or federal employee benefit program generally applicable to officers and employees of the State."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2658
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII