SB3173

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to title 13 to be appropriately designated and to read as follows:

"Chapter

expedited affordable housing development

process for qualified nonprofit organizations

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Affordable housing" or "affordable housing units" means housing that is affordable to households having incomes at or below per cent of the median family income as determined by the United States Department of Housing and Urban Development.

"Apartment building" means a structure containing one or more dwelling units, except a single-family residence or a structure in which all tenants are roomers or boarders.

"Applicant" means a developer that intends to build a project under this chapter.

"Dwelling unit" means a structure, or part of a structure, that is used as a home, residence, or sleeping place by one person or by two or more persons maintaining a common household, to the exclusion of all others.

"Level affordable to households of moderate, low, or very low income" means an amount that is affordable to households having incomes at or below per cent of the median family income as determined by the United States Department of Housing and Urban Development.

"Project" has the same meaning as "housing project" in section 201H-1.

"Public highway" means a public highway described in section 264-1.

"Qualified buyer" means a buyer having an income that is at or below per cent of the median family income as determined by the United States Department of Housing and Urban Development.

"Qualified nonprofit organization" means an entity that is registered and in good standing with the State; is recognized by the Internal Revenue Serve as a charitable or otherwise tax‑exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and has the capacity, resources, and mission to carry out the purposes of this chapter.

"Shoreline" has the same meaning as in section 205A-1.

"Urban" means an area classified as urban pursuant to section 205-2.

§ -2 Eligibility. (a) An applicant may develop a project that shall be subject to the exemptions from statutes, ordinances, charter provisions, and rules established in section 201H-38(a); provided that:

(1) The project includes not more than twenty-five units, whether the project is an apartment building or a subdivided lot;

(2) Each unit is an affordable housing unit that will be sold to a qualified buyer;

(3) The project is not part of a larger development involving more than twenty-five units;

(4) The units are subject to a recorded covenant, ordinance, or law that restricts mortgages to levels affordable to households of moderate, low, or very low income for at least forty-five years;

(5) The project requires the buyer to occupy the unit as the buyer's principal residence;

(6) The project is a self-help housing project, in which at least five hundred hours of construction work associated with the units are performed by the qualified buyer who will occupy the unit and by volunteers;

(7) The applicant is, and the project is being built by, a qualified nonprofit organization;

(8) The project meets minimum requirements of health and safety;

(9) The project is approved by the legislative body of the county in which the projected is to be developed as provided in section -3;

(10) If the project requires a boundary change, the project receives approval from the land use commission as provided in section -4; and

(11) The applicant meets all other requirements of this chapter.

(b) In addition to the eligibility requirements established in subsection (a), a project developed pursuant to this chapter shall meet the following requirements:

(1) The project shall be located on land that is classified as urban;

(2) At least seventy-five per cent of the perimeter of the site adjoins parcels shall be classified as urban. For the purpose of this paragraph, parcels that are only separated by a public highway shall be considered to be adjoined;

(3) The project shall be built in an area zoned for residential use or residential mixed use, or otherwise allows a mix of residential and nonresidential uses; provided that at least two-thirds of the square footage of the project shall be designated for residential use. For the purpose of this paragraph, the square footage of the project shall not include underground space, such as basements or underground parking garages;

(4) The project shall not be located on a site that:

(A) Is within feet of the shoreline;

(B) Includes important agricultural lands;

(D) Is in a special flood hazard area subject to inundation by the one per cent annual chance flood (one hundred-year flood) as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency; provided that a project may be located on a site described in this subparagraph if either of the following are met:

(i) The site has been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the county; or

(ii) The site meets Federal Emergency Management Agency requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program pursuant to title 44 Code of Federal Regulations, chapter I, subchapter B, parts 59 and 60;

(E) Within a regulatory floodway as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency, unless the project has received a no-rise certification in accordance with title 44 Code of Federal Regulations section 60.3(d)(3);

(F) Lands identified for conservation in a habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. section 1531 et seq.), or other adopted natural resource protection plan;

(G) Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. section 1531 et seq.); and

(H) Lands under conservation easement;

(5) The project shall not require the demolition of the following types of housing:

(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to households of moderate, low, or very low income;

(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power; and

(6) The project shall not be located on a site that was previously used for housing that was occupied by tenants and that was demolished within ten years before the applicant submits an application under this section;

(7) The project shall not be located on a site that would require the demolition of a historic structure that was placed on a national or state historic register; and

(8) The project shall not be located on a site that contains housing units that are occupied by tenants, and units at the property are, or were, subsequently offered for sale to the general public by the subdivider or subsequent owner of the property.

§ -3 County action. An applicant seeking to develop a project pursuant to this chapter shall submit an application to the legislative body of the county in which the project is proposed to be developed. Upon receiving the application, the legislative body shall determine whether the project meets the eligibility requirements described in section -2 and shall follow the procedures described in section 201H-38(a)(3) to approve, approve with modification, or disapprove the project.

§ -4 Land use commission action. If a project requires a boundary change, then the applicant seeking to develop a project pursuant to this chapter shall submit an application for the boundary change to the land use commission. Upon receiving the application, the land use commission shall determine whether the project meets the eligibility requirements described in section -2 and shall follow the procedures described in section 201H-38(a)(4) to approve, approve with modification, or disapprove the boundary change."

SECTION 2. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3173
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII