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HOUSE OF REPRESENTATIVES |
H.B. NO. |
830 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
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STATE OF HAWAII |
S.D. 2 |
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A BILL FOR AN ACT
RELATING TO HISTORIC PRESERVATION REVIEWS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that regulatory costs are a major contributor to the high cost of housing in Hawaii despite the State facing an unprecedented housing crisis. According to a report released by the university of Hawaii economic research organization in 2024, the median sale price of a new two-bedroom condominium in Hawaii was about $670,000, more than double the national average price, and regulatory costs comprise $387,000. Permit applicants face significant delays in obtaining county permits that require historic preservation review because of the overwhelming volume of submittals for review. Consequently, much needed housing, economic development, and critical infrastructure projects often face significant delays in permit approvals and project implementation.
The legislature additionally finds that due to the current demand for the construction of affordable housing and other critical infrastructure, the state historic preservation division consistently receives more reports than they have time to review. According to the department of land and natural resources report to the legislature in October 22, project reviews in the state historic preservation division's archaeology branch face "a 6-month to 1-year backlog as the volume of permit and project submissions have risen . . .".
The legislature also finds that allowing the state historic preservation division to engage with third-party consultants could help expedite the review process so that more affordable housing units can be produced in a timely manner. Delegating review responsibilities will reduce the state historic preservation division's intake load and allow the division to focus on core historical review properties.
Therefore, legislature believes that it must take immediate action to mitigate the overwhelming volume of submissions to the state historic preservation division and the impacts on permit applicants.
Accordingly, the purpose of this Act is to:
(1) Authorize the department of land and natural resources, through the state historic preservation division, to contract its review of proposed state projects, projects on privately-owned historic property, and projects affecting historic properties if the proposed project involves a development intended to be affordable housing, to third-party consultants, under certain conditions; and
(2) Appropriate funds to the state historic preservation division for the recruitment and retention of qualified third-party consultants to expedite review of proposed state affordable housing projects and affordable housing projects affecting historic properties.
SECTION 2. Section 6E-8, Hawaii Revised Statutes, is amended to read as follows:
"§6E-8 Review
of effect of proposed state projects.
(a) Before
any agency or officer of the State or its political subdivisions commences any
project [which] that may affect historic property, aviation
artifact, or a burial site, the agency or officer shall advise the department
and allow the department an opportunity for review of the effect of the
proposed project on historic properties, aviation artifacts, or burial sites,
consistent with section 6E-43, especially those listed on the Hawaii register
of historic places. The proposed project
shall not be commenced, or if it has already begun, continued, until the
department has given its written concurrence.
If:
(1) The proposed project consists of corridors or large land areas;
(2) Access to properties is restricted; or
(3) Circumstances dictate that construction be done in stages,
the department may give its written concurrence based on a phased review of the project; provided further that there shall be a programmatic agreement between the department and the project applicant that identifies each phase and the estimated timelines for each phase.
The
department shall provide written concurrence or non-concurrence within ninety
days after the filing of a request with the department. The agency or officer seeking to proceed with
the project, or any person, may appeal the department's concurrence or
non-concurrence to the Hawaii historic places review board. An agency, officer, or other person who is
dissatisfied with the decision of the review board may apply to the governor,
who may take action as the governor deems best in overruling or sustaining the
department.
(b) The department of Hawaiian home lands, [prior
to] before commencing any proposed project relating to lands under
its jurisdiction, shall consult with the department regarding the effect of the
project upon historic property or a burial site.
(c)
The State, its political subdivisions, agencies, and officers shall
report to the department the finding of any historic property during any
project and shall cooperate with the department in the investigation, recording,
preservation, and salvage of the property.
(d)
Whenever a proposed state project involves the development of
residential units intended for affordable housing, as that term is defined
under section 201H-57, the department may retain a third-party consultant to
conduct the review described under subsection (a) no later than sixty days
after the filing of a request with the department; provided that after an
initial evaluation, the department determines that:
(1) The department
will not be able to provide its written concurrence or non-concurrence within
sixty days of the filing of the request with the department;
(2) The third-party
consultant has the qualifications and experience pursuant to subsection (e) to
conduct the review; and
(3) The contract
with the third-party consultant:
(A) Requires the third-party consultant to provide a recommendation to the department within thirty days of the date that the consultant is retained to conduct the review and comment; and
(B) Allows the department to reserve the right to determine whether use of a third-party consultant was appropriate and terminate the contract if the third-party consultant:
(i) Has evidenced insufficient compliance with the state historic preservation rules and statutes; or
(ii) Has not completed assigned historic
preservation reviews accurately.
(e)
Whenever the department retains any third-party consultant pursuant to
subsection (d), including an architect, engineer, archaeologist, planner, or
other professional, to review an application for a permit, license, or
approval, the third-party consultant shall:
(1) Meet the educational and experience standards as well as the
qualifications for preservation professionals pursuant to the rules adopted by
the state historic preservation division;
(2) Follow state ethics rules; and
(3) Not review any project that the third-party
consultant or the consultant's employer has previously worked on.
(f)
The project proponent shall pay for the reasonable fee requirements of
the third-party consultant; provided that the project proponent may contract
with or sponsor any county, housing authority, non-profit organization, or
person, to meet the fee requirements.
[(d)] (g) The department shall adopt rules in
accordance with chapter 91 to implement this section."
SECTION 3. Section 6E-10, Hawaii Revised Statutes, is amended to read as follows:
"§6E-10 Privately owned historic property.
(a) Before any construction,
alteration, disposition or improvement of any nature, by, for, or permitted by
a private landowner may be commenced [which] that will affect [an]
a historic property on the Hawaii register of historic places, the
landowner shall notify the department of the construction, alteration,
disposition, or improvement of any nature and allow the department opportunity
for review of the effect of the proposed construction, alteration, disposition,
or improvement of any nature on the historic property. The proposed construction, alteration,
disposition, or improvement of any nature shall not be commenced, or in the
event it has already begun, continue, until the department shall have given its
concurrence or ninety days have elapsed.
Within ninety days after notification, the department shall:
(1) Commence condemnation proceedings for the purchase of the historic property if the department and property owner do not agree upon an appropriate course of action;
(2) Permit the owner to proceed with the owner's construction, alteration, or improvement; or
(3) In coordination with the owner, undertake or permit the investigation, recording, preservation, and salvage of any historical information deemed necessary to preserve Hawaiian history, by any qualified agency for this purpose.
(b)
Nothing in this section shall be construed to prevent the ordinary
maintenance or repair of any feature in or on [an] a historic
property that does not involve a change in design, material, or outer
appearance or change in those characteristics which qualified the historic
property for entry onto the Hawaii register of historic places.
(c) Any person, natural or corporate, who violates the provisions of this section shall be fined not more than $1,000, and each day of continued violation shall constitute a distinct and separate offense under this section for which the offender may be punished.
(d) If funds for the acquisition of needed property are not available, the governor may, upon the recommendation of the department allocate from the contingency fund an amount sufficient to acquire an option on the property or for the immediate acquisition, preservation, restoration, or operation of the property.
(e) The department may retain a third-party
consultant, that the department may require to be paid for by the private
landowner, to conduct the review described under section (a) if, after an
initial evaluation, the department determines that:
(1) It will not be
able to provide its written concurrence or non-concurrence within sixty days of
the landowner's notification;
(2) The third-party
consultant has the qualifications and experience to conduct the review pursuant
to subsection (f); and
(3) The third-party
consultant will contract to provide a recommendation to the department within
thirty days of the landowner's notification; provided that the contract allows
the department to reserve the right to determine whether use of a third-party
consultant was appropriate and terminate the contract if the third‑party
consultant:
(A) Has evidenced insufficient compliance with
the state historic preservation rules and statutes; or
(B) Has not completed assigned historic preservation reviews accurately.
(f) Whenever the department retains any
third-party consultant, including an architect, engineer, archaeologist,
planner, or other professional, to review an application for a permit, license,
or approval under subsection (e), the third‑party consultant shall:
(1) Meet the education and experience standards as well as the
qualifications for preservation professionals as determined by rules adopted by
the state historic preservation division;
(2) Follow state ethics rules; and
(3) Not review any project that the third-party
consultant or the consultant's employer has previously worked on.
[(e)] (g) The department or the department's
third-party consultant, as applicable, may enter, solely in performance of
its official duties and only at reasonable times, upon private lands for
examination or survey thereof. Whenever
any member of the department or the department's third-party consultant, as
applicable, duly authorized to conduct investigations and surveys of [an]
a historic or cultural nature determines that entry onto private lands
for examination or survey of historic or cultural finding is required, the
department or the department's third-party consultant, as applicable, shall
give written notice of the finding to the owner or occupant of such property at
least five days prior to entry. If entry
is refused, the member or the department's third-party consultant, as
applicable, may make a complaint to the district environmental court in the
circuit in which such land is located.
The district environmental court may thereupon issue a warrant, directed
to any police officer of the circuit, commanding the officer to take sufficient
aid, and, being accompanied by a member of the department[,] or the
department's third-party consultant, as applicable, between the hours of
sunrise and sunset, allow the member of the department or the department's
third-party consultant, as applicable, to examine or survey the historic or
cultural property.
(h) The department shall adopt rules in
accordance with chapter 91 to implement this section."
SECTION 4. Section 6E-42, Hawaii Revised Statutes, is amended to read as follows:
"§6E-42 Review of proposed projects.
(a) Except as provided in section 6E-42.2, before any
agency or officer of the State or its political subdivisions approves any
project involving a permit, license, certificate, land use change, subdivision,
or other entitlement for use[, which] that may affect historic
property, aviation artifacts, or a burial site, the agency or office shall
advise the department and [prior to] before any approval allow
the department an opportunity for review and comment on the effect of the
proposed project on historic properties, aviation artifacts, or burial sites,
consistent with section 6E-43, including those listed in the Hawaii register of
historic places. If:
(1) The proposed project consists of corridors or large land areas;
(2) Access to properties is restricted; or
(3) Circumstances dictate that construction be done in stages,
the department's review and comment may be based on a phased review of the project; provided that there shall be a programmatic agreement between the department and the project applicant that identifies each phase and the estimated timelines for each phase.
(b)
The department shall inform the public of any project proposals
submitted to it under this section that are not otherwise subject to the
requirement of a public hearing or other public notification.
(c) Whenever the project involves the development
of residential units intended as affordable housing, as that term is defined
under section 201H-57, the department may retain a third-party consultant to
conduct the review and comment described under subsection (a) no later than
sixty days after being advised pursuant to subsection (a); provided that after
an initial evaluation, the department determines that:
(2) The third-party
consultant has the qualifications and experience required by subsection (d) to
conduct the review; and
(3) The contract
with the third-party consultant:
(A) Requires the third-party consultant to provide a recommendation to the department within thirty days of the date that the consultant is retained to conduct the review and comment; and
(B) Allows the department to reserve the right to determine whether use of a third-party consultant was appropriate and terminate the contract if the third-party consultant:
(i) Has evidenced insufficient compliance with the state historic preservation rules and statutes; or
(ii) Has not completed assigned historic
preservation reviews accurately.
(d) Whenever the department retains any third-party
consultant, including any architect, engineer, archaeologist, planner, or other
professional, to review an application for a permit, license, or approval under
subsection (c), the third-party consultant shall:
(1) Meet the educational and experience standards as well as the
qualifications for preservation professionals pursuant to rules adopted by the
state historic preservation division;
(2) Follow state ethics rules; and
(3) Not review any project that the third-party
consultant or the consultant's employer has previously worked on.
(e) The project proponent shall pay the
reasonable fee requirements of the third-party consultant; provided that the
project proponent may contract with or sponsor any county, housing authority,
non-profit organization, or person, to meet the fee requirements.
[(c)] (f) The department shall adopt rules in
accordance with chapter 91 to implement this section."
SECTION 5.
The department of land and natural resources shall publish on its
website proposed rules implementing sections 2, 3, and 4 of this Act within one
year from the effective date of this Act.
Thereafter, the department of land and natural resources, within one
year, shall present its proposed final rules to the board of land and natural
resources.
SECTION 6. 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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the state historic preservation division's recruitment and retention of qualified third-party consultants.
The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Act.
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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to fund full-time equivalent ( FTE) positions to oversee third-party consultants.
The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Act.
SECTION 8. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
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, 3000, and shall be repealed on June 30, 2029; provided that sections 6E-8, 6E—l0, and 6E-42, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act; provided further that sections 2, 3, and 4 of this Act shall take effect on July 1, 2027.
Report Title:
BLNR; DLNR; SHPD; Review and Comment; Affordable Housing; Historic Preservation; Historic Preservation Review; Third-Party Consultants; Appropriations
Description:
Beginning 7/1/2027 allows the State Historic Preservation Division of the Department of Land and Natural Resources to contract its review of proposed state projects, projects on privately-owned historic property, and projects affecting historic properties to third-party consultants if the projects involve the development of affordable housing and the division, after an initial evaluation, determines it will not be able to complete its review within sixty days. Establishes requirements for qualified third-party consultants providing review services. Requires the project proponent to pay for the reasonable fee requirements of the third-party consultant. Allows the project proponent to contract or sponsor with any county, housing authority, non-profit organization, or person, to meet the third-party consultant fee requirement. Requires the Department of Land and Natural Resources to publish a draft of its proposed rules within one year, and within one year thereafter, present its proposed final rules to the Board of Land and Natural Resources. Appropriates funds. Effective 7/1/3000. Sunsets 6/30/2029. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.