HOUSE OF REPRESENTATIVES

H.B. NO.

445

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to transit-oriented development.

 

 

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

 


SECTION 1.  The legislature finds that in addition to increasing mobility, rapid transit can be a significant contributor to more sustainable living in Hawaii.  Rapid transit can stimulate more compact development around transit stations, thereby reducing the pressure for urban sprawl.  Community benefits, such as open plazas, and community focal points can also be components of transit-oriented development.  Residents living close to transit stations can realize significant savings in transportation costs as well as enjoy the benefits and convenience of amenities such as grocery stores within walking distance.

However, transit-oriented developments are often associated with higher risk because of the multiple sources of financing required; the added costs of providing more community benefits; and requirements that the community benefits be provided sooner, rather than later.  These risks make affordable housing that is a part of transit-oriented development more difficult to develop.

The purpose of this Act is to encourage the development and implementation of transit-oriented development projects that include affordable housing by authorizing the Hawaii housing finance and development corporation to guarantee loans to developers for such projects.

SECTION 2.  Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H-    Transit-oriented development; affordable housing; loan guaranty.  (a)  The corporation may guarantee loans made by commercial lenders authorized to do business in the State to developers for the purpose of developing and implementing transit-oriented development projects that include affordable housing if the following conditions, as determined by the executive director, are met:

     (1)  The transit-oriented development projects are located within a transit-oriented development in a zone designated by the applicable county; and

     (2)  The commercial lender has completed its due diligence in approving the loan, including ensuring adequate collateral;

provided that the corporation may impose additional conditions that the executive director deems reasonable to implement the loan guaranty.

     (b)  In addition to the conditions that the executive director may impose under subsection (a), any loan guaranty made pursuant to this section shall meet the following conditions:

(1)    For any loan that finances operating costs, the maximum term of the loan shall be ten years;

(2)    For any loan that finances capital improvement costs, the maximum term of the loan shall be twenty years;

(3)    The interest rate charged on any loan shall be one per cent below the commercial lender's prime rate for as long as the loan guaranty is in effect;

(4)    The loan guaranty may constitute up to eighty-five per cent of the outstanding principal amount of any single loan, but shall not include any fees or accrued interest associated with the loan or its collection; and

(5)    The total principal amount of the guaranteed portion of all loans outstanding at any time shall not exceed $10,000,000.

(c)  The corporation may adopt rules pursuant to chapter 91 to implement this section.

(d)  As used in this section, "transit-oriented development" means land use projects of relatively intense concentration involving a mixture of uses that depend upon and support transit ridership."

SECTION 3.  New statutory material is underscored.

SECTION 4.  This Act shall take effect on July 1, 2015.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Transit-oriented Development

 

Description:

Offers loan guarantees to encourage affordable housing as part of transit-oriented development.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.