Report Title:

Housing and Community Development Corporation of Hawaii

Description:

Allows the housing and community development corporation of Hawaii to amend or modify housing project agreements between the housing finance and development corporation and eligible developers.

HOUSE OF REPRESENTATIVES

H.B. NO.

490

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HOUSING.

 

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

SECTION 1. In an attempt to meet the housing needs of residents, the legislature enacted Act 15, Session Laws of Hawaii 1988. In part, Act 15 permitted the housing and finance development corporation to enter into agreements with eligible developers to develop badly needed homes by exempting approved projects from all statutes, ordinances, charter provisions, and rules relating to zoning. However, an approved Act 15 project was also required to have not less than sixty per cent of the units in the project be affordable units.

According to the housing and community development corporation of Hawaii, before Act 15 "sunsetted" in 1993, although more than sixteen thousand homes were granted approval under the Act 15 program, fewer than six hundred were actually constructed. It appears that the vast majority of these homes were not developed due to the sixty per cent affordable housing requirement that made many projects economically unfeasible. However, the approvals to these Act 15 projects remain in effect.

In order to coordinate and streamline the various state housing programs, the legislature enacted Act 350, Session Laws of Hawaii 1997. Among other things, Act 350 contained a provision similar to Act 15 that exempted approved projects with eligible developers from county zoning requirements. However, this similar provision did not contain the sixty per cent affordable housing requirement.

Act 350 further transferred all jurisdiction, functions, rights, and powers exercised by the housing finance and development corporation and the Hawaii housing authority to the housing and community development corporation of Hawaii. It further provided that all contracts, agreements, permits, and other documents executed by the housing finance and development corporation remained applicable to the housing and community development corporation of Hawaii and remained in full force and effect.

Accordingly, while many approved Act 15 projects remain in effect, they may still not proceed unless the sixty per cent affordable housing requirement is amended. However, it is uncertain whether the housing and community development corporation of Hawaii has the authority to amend these Act 15 contracts and agreements entered into by the housing finance and development corporation to comply with current statutory requirements.

The purpose of this Act is to expressly authorize the housing and community development corporation of Hawaii to modify and amend contracts and agreements previously entered into by the housing finance and development corporation.

SECTION 2. Chapter 201G, Hawaii Revised Statutes, is amended by adding a new section to subpart F of part II to be appropriately designated and to read as follows:

"§201G- Authority to modify and amend development agreements with eligible developers. The corporation shall have the power and authority to amend, delete, restate, and otherwise modify the terms, conditions, plans, specifications, and all other matters relating, directly or indirectly, to any housing project that was previously approved by the housing finance and development corporation, including, without limitation, the terms, covenants, and conditions of any development agreement for a housing project between the housing finance and development corporation and an eligible developer."

SECTION 3. New statutory material is underscored.

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

INTRODUCED BY:

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