THE SENATE	S.B. NO.	1554
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to community collaborative capital improvement projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that community collaborative capital improvement projects can significantly benefit local communities by addressing infrastructure needs and fostering community engagement. However, the regulatory process can often delay these projects, hindering their timely completion.

Accordingly, the purpose of this Act is to establish a program to authorize the formation of community collaborative capital improvement projects eligible for state grants, which may be exempted from certain state and county regulatory requirements under specific circumstances.

SECTION 2. Chapter 42F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§42F-   Community collaborative capital improvement projects. (a) There is established within the office of community services a program to authorize the formation of eligible community collaborative capital improvement projects eligible for grants under this chapter.

(b) Notwithstanding any other law to the contrary, eligible community collaborative capital improvement projects may be exempt from state and county regulatory requirements, including but not limited to zoning, permitting, and environmental review; provided that:

(1) The project has received written consent from the affected community and the developer;

(2) The project complies with all applicable health and safety standards; and

(3) The project provides documented community benefits, including:

(A) Affordable housing units;

(B) Public amenities, including parks, community centers, and recreational facilities;

(C) Environmental improvements, including green spaces, renewable energy installations, and pollution reduction measures;

(D) Economic development opportunities, including job creation and support for local businesses; and

(E) Educational and cultural programs for the community.

(c) The office of community services shall establish criteria for project eligibility, application procedures, and guidelines for community consent and benefits documentation; provided that:

(1) Projects shall not be eligible unless the community and developer mutually agree on the project's site, size, scope, and community benefits; and

(2) The process for obtaining community consent shall include:

(A) A minimum of two public hearings held within the affected community, with adequate notice provided to community members;

(B) Documentation of community feedback and concerns, and a formal response from the developer addressing them; and

(C) A signed agreement between the community representatives and the developer outlining the agreed-upon project details and community benefits.

(d) To ensure proper oversight, the office of community services shall:

(1) Establish a project oversight committee composed of representatives from the community, the developer, and relevant state and county agencies;

(2) Conduct quarterly site visits and inspections to monitor compliance with project plans and community benefits agreements; and

(3) Provide a mechanism for community members to report concerns or violations, which shall be investigated promptly by the project oversight committee.

(e) To ensure transparency and accountability, the office of community services shall:

(1) Require regular progress reports from the developer, detailing project milestones, expenditures, and any issues encountered;

(2) Ensure public access to project documentation and reports through an online portal; and

(3) Submit an annual report of the program's effectiveness, including community satisfaction and project outcomes, to the legislature no later than twenty days prior to the convening of each regular session.

(f) The office of community services shall adopt rules pursuant to chapter 91 necessary to implement this section."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval and shall be repealed on June 30, 2030.

INTRODUCED BY:

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Report Title:

OCS; Grants; Program; Community Collaborative Capital Improvement Projects; Regulatory Exemptions; Rules; Reports

Description:

Establishes a program within the Office of Community Services to authorize the formation of community collaborative capital improvement projects eligible for state grants, which may be exempted from certain state and county regulatory requirements under specific circumstances. Requires the Office to adopt rules and submit annual reports to the Legislature. Repeals 6/30/2030.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.