H.B. NO.














RELATING TO the senior residence at Piikoi, Oahu.





     SECTION 1.  The legislature finds that the Hawaii state planning act establishes objectives and policies for housing in Hawaii, including:

     (1)  Providing "[g]reater opportunities for Hawaii's people to secure reasonably priced, safe, sanitary, and livable homes, located in suitable environments that satisfactorily accommodate the needs and desires of families and individuals, through collaboration and cooperation between government and nonprofit and for-profit developers to ensure that more affordable housing is made available to very low-, low-, and moderate-income segments of Hawaii's population"; and

     (2)  "The development and provision of affordable rental housing by the State to meet housing needs of Hawaii's people."

     The legislature further finds that with the aging of Hawaii's population, the need for affordable rental housing becomes especially acute for senior citizens.  Nearly twenty-nine per cent of Hawaii's population is over fifty years of age. Facing challenging economic conditions, the ability to meet monthly housing expenses is a constant and growing concern for senior renters.

     The legislature further finds that a 2006 study found that "without incentives, tax credits, or financing breaks, a private for-profit developer would have to absorb approximately $200,000 loss per affordable unit ... [with] high-end homes subsidizing the affordable units."  The study raised the certainty that "developers cannot be expected to foot the bill entirely for Hawaii's affordable housing crisis."  One way the State can provide assistance to senior renters is to subsidize building costs, through lower costs of land, financing, or construction costs.

     The legislature further finds that the Senior Residence at Piikoi is an example of the confluence of the State's housing objectives and policies.  Located in the Ala Moana/Kakaako area of the city and county of Honolulu in the vicinity of a major shopping mall, park and recreational facilities, quality medical care, public bus transportation, and the proposed fixed rail rapid transit system, this project is well situated for seniors.  While this ideally located project is planned as a seventy-two-unit affordable rental development for seniors with an income of no more than sixty per cent of the median income level ($43,260 for one person; $49,440 for two persons), monthly rents are targeted at fifty per cent of median income level.  The project consists of a five-story low rise building with seventy-two one-bedroom units, community space and office space, with parking for forty-six vehicles, on .73 acres and is situated on state-owned land leased from the Hawaii housing finance and development corporation.  This project will greatly add to the rental housing needs of Hawaii's aging population.

     The purpose of this Act is to authorize the issuance of general obligation bonds and make an appropriation for the construction of the Senior Residence at Piikoi.

     SECTION 2.  The director of finance is authorized to issue general obligation bonds in the sum of $10,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2013-2014 for the construction of the Senior Residence at Piikoi, Oahu, an affordable rental housing project consisting of seventy-two affordable, elderly rental apartments; community space; office space; and on-site parking.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 3.  The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2016, shall lapse as of that date.

     SECTION 4.  This Act shall take effect on July 1, 2013.








Report Title:

GO Bonds; Hawaii Community Development Authority; Affordable Rentals; Seniors; Appropriation



Authorizes the director of finance to issue general obligation bonds for the construction of the Senior Residence at Piikoi, an affordable senior rental housing project on Oahu.




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