SB806

SECTION 1. The legislature finds that section 201H-38, Hawaii Revised Statutes, was enacted in 2006 to authorize the Hawaii housing finance and development corporation to grant affordable housing projects approved by the agency exemptions from any statutes, ordinances, and rules of any governmental agency relating to planning, zoning, and construction standards that would not negatively affect the health and safety of the general public. These exceptions were also intended to expedite the building process for urgently needed housing. Applications for exemptions pursuant to section 201H-38, Hawaii Revised Statutes, for affordable housing projects increased in 2019 after new rules under chapter 343, Hawaii Revised Statutes, relating to environmental impact statements, removed a requirement that projects approved pursuant to section 201H-38, Hawaii Revised Statutes, be accompanied by draft environmental assessments.

The legislature also finds that several housing projects proposed for development pursuant to section 201H-38, Hawaii Revised Statutes, have recently been approved in neighborhoods where existing infrastructure has raised concerns regarding whether that infrastructure can adequately sustain higher-density development.

The legislature further finds that transit-oriented development (TOD) zones, or specially zoned areas within one-fourth to one-half mile of a rail station, are designed to encourage people to live, work, and shop within walking or biking distance of a rail station. These TOD zones are more likely to have coordinated infrastructure plans that include integrated roadways, sewer, water, and electrical infrastructure projects and land use requirements that can support the housing projects developed pursuant to section 201H-38, Hawaii Revised Statutes.

Accordingly, the purpose of this Act is to require housing projects developed pursuant to section 201H-38, Hawaii Revised Statutes, to be located within county-designated transit-oriented development zones or within a certain distance of a proposed or existing transit station.

SECTION 2. Section 201H-38, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that either:

(1) The housing projects are located within county-designated transit-oriented development zones, or within a one-half mile radius of a proposed or existing transit station if the county has not designated transit-oriented development zones, and meet the following conditions:

(A) The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;

(B) The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;

(C) The legislative body of the county in which the housing project is to be situated has approved the project with or without modifications:

(i) The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;

(ii) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and

(iii) The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the preliminary plans and specifications. The final plans and specifications for the project shall constitute the zoning, building, construction, and subdivision standards for that project. For purposes of sections 501‑85 and 502-17, the executive director of the corporation or the responsible county official may certify maps and plans of lands connected with the project as having complied with applicable laws and ordinances relating to consolidation and subdivision of lands, and the maps and plans shall be accepted for registration or recordation by the land court and registrar; and

(D) The land use commission has approved, approved with modification, or disapproved a boundary change within forty-five days after the corporation has submitted a petition to the commission as provided in section 205-4. If, on the forty-sixth day, the petition is not disapproved, it shall be deemed approved by the commission; or

(2) The housing projects:

(A) Meet the conditions of paragraph (1);

(B) Do not impose stricter income requirements than those adopted or established by the State; and

(C) For the lifetime of the project, require one hundred per cent of the units in the project be exclusively for qualified residents."

SECTION 3. New statutory material is underscored.

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

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	806
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII