Report Title:

Land Developments; Compliance with Land Use Restrictions

Description:

Provides that developments that have received county approval before a certain date are deemed to be in compliance with state land use restrictions.

HOUSE OF REPRESENTATIVES

H.B. NO.

2839

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to land use.

 

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

SECTION 1. In a recent decision, the state circuit court of the third circuit halted the Hokulia project in South Kona after ruling that the dwellings being constructed for the project were not farm dwellings and therefore not a permitted use in the state agricultural district. The court made this decision in spite of arguments by the developer that it had relied on the county's prior approval of the project in proceeding with the development, including the sale of over one hundred ninety homes and after investing more than $350,000,000.

The legislature finds that the Hokulia decision has created great uncertainty over the validity of county approvals of land development projects granted prior to the decision. The adverse effect the decision has on land development and investment in the state is far-reaching. County approvals of projects are devoid of certainty. Developers of county-approved projects face the loss of millions of dollars after undertaking or completing projects while relying on government approval. Buyers and investors are at risk of losing the use of their property for purposes that were previously approved.

Uncertainty in the real estate market also has a negative impact on Hawaii's economy by deterring investment and reducing the amount of jobs and the demand for local materials and supplies tied to affected projects. Counties will lose property tax revenue that could help pay for community infrastructure and services. The reduction of development projects in the state would also result in a corresponding decrease in the multitude of benefits for local communities that frequently accompany these projects, such as exactions on developers to include affordable housing, transportation infrastructure, shoreline and beach access, and public parks.

The Hokulia decision could also draw a variety of parties into costly and time-consuming litigation, including the government, developers, construction companies, buyers, lenders, realtors, title insurers, and residential lot owners. Such litigation only adds to delays of projects and the uncertainty of their status.

All of these considerations revolve around the need for assurances and finality regarding the validity of existing land development projects. An area of such profound importance to the state economy, local businesses, employment, housing, and general community interests deserves a greater measure of certainty in the status of county-approved land developments.

The purpose of this Act is to reestablish certainty for existing land development projects that have received county approval, by providing that developments approved by counties prior to the Hokulia decision are deemed to be in compliance with state laws relating to permissible land use.

SECTION 2. Chapter 205, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§205- Land use restrictions; certain developments approved by counties; compliance. Notwithstanding any other law to the contrary, any land development or project therefor approved by the appropriate county land use decision-making authority prior to shall be deemed to be in compliance with the provisions of this chapter relating to permissible uses of land."

SECTION 3. New statutory material is underscored.

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

INTRODUCED BY:

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