H.B. NO.














relating to housing.





     SECTION 1.  The legislature finds that state and city and county of Honolulu affordable and workforce housing requirements often result in significant delays prior to the start of construction.  Some requirements are so onerous as to prevent affordable and workforce housing from being built.

     In 2009, the legislature adopted senate concurrent resolution no. 132, S.D. 1, which established the construction industry task force (task force) to determine the economic value of the construction industry in Hawaii.  As directed in the concurrent resolution, the task force was charged with developing a series of recommendations to stimulate the construction industry and create new jobs in the local construction industry.  Unfortunately, to date, many of the task force's recommendations have yet to be enacted by the legislature.  The intent of this Act is to enact and implement one of the recommendations of the task force in an effort to support the local construction industry.

     The purpose of this Act is to provide temporary relief from county requirements for affordable and workforce housing to stimulate housing construction statewide.

     SECTION 2.  Section 46-15.1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Any law to the contrary notwithstanding, any county shall have and may exercise the same powers, subject to applicable limitations, as those granted the Hawaii housing finance and development corporation pursuant to chapter 201H insofar as those powers may be reasonably construed to be exercisable by a county for the purpose of developing, constructing, and providing low- and moderate-income housing; provided that no county shall be empowered to cause the State to issue general obligation bonds to finance a project pursuant to this section; provided further that county projects shall be granted an exemption from general excise or receipts taxes in the same manner as projects of the Hawaii housing finance and development corporation pursuant to section 201H-36; [and] provided further that section 201H-16 shall not apply to this section unless federal guidelines specifically provide local governments with that authorization and the authorization does not conflict with any state laws[.]; and provided further that the county affordable and workforce housing requirements shall be reduced by forty per cent.  The powers shall include the power, subject to applicable limitations, to:

     (1)  Develop and construct dwelling units, alone or in partnership with developers;

     (2)  Acquire necessary land by lease, purchase, exchange, or eminent domain;

     (3)  Provide assistance and aid to a public agency or other person in developing and constructing new housing and rehabilitating existing housing for elders of low- and moderate-income, other persons of low- and moderate-income, and persons displaced by any governmental action, by making long-term mortgage or interim construction loans available;

     (4)  Contract with any eligible bidders to provide for construction of urgently needed housing for persons of low- and moderate-income;

     (5)  Guarantee the top twenty-five per cent of the principal balance of real property mortgage loans, plus interest thereon, made to qualified borrowers by qualified lenders;

     (6)  Enter into mortgage guarantee agreements with appropriate officials of any agency or instrumentality of the United States to induce those officials to commit to insure or to insure mortgages under the National Housing Act, as amended;

     (7)  Make a direct loan to any qualified buyer for the downpayment required by a private lender to be made by the borrower as a condition of obtaining a loan from the private lender in the purchase of residential property;

     (8)  Provide funds for a share, not to exceed fifty per cent, of the principal amount of a loan made to a qualified borrower by a private lender who is unable otherwise to lend the borrower sufficient funds at reasonable rates in the purchase of residential property; and

     (9)  Sell or lease completed dwelling units.

     For purposes of this section, a limitation is applicable to the extent that it may reasonably be construed to apply to a county."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval and shall be repealed on December 31, 2019; provided that section 46-15.1(a), Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the approval date of this Act.








Report Title:

Construction Industry Task Force; County Housing Requirements; Temporary Relief



Granting temporary relief from county housing requirements as recommended by the construction industry task force to stimulate housing construction statewide.




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