SB2658 SD1

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 coordinate and 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 one hundred forty per cent of area median income.

Presently, there is a unique 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 centralized authority in government that can coordinate the government's resources to respond to the housing shortage.

SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H- Position of housing coordinator created. (a) The governor shall appoint, and may remove, a housing coordinator that shall be:

(1) Attached to the hawaii housing finance and development corporation for administrative purposes;

(2) Designated as an exempt, non-civil service position; and

(3) Responsible for organizing and maintaining a housing opportunity working group that:

(A) Is made up representatives of state agencies identified by the housing coordinator as having jurisdiction over matters related to housing development;

(B) Shall discuss and make recommendations for coordination of the state resources to maximize efficiency relating to housing development;

(D) Shall file an annual report of its efforts and progress to the governor and legislature, no later than twenty days prior to the convening of each regular session.

(b) The housing coordinator shall develop, advocate for, and implement policies to address the State'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) 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;

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

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

(12) Collaborating with various state and county agencies involved in housing development, including infrastructure, and developing 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 housing coordinator 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.

THE SENATE	S.B. NO.	2658
THIRTIETH LEGISLATURE, 2020		S.D. 1
STATE OF HAWAII