§206E-246 Transit-oriented development infrastructure improvement program; assessment; rules. (a) The authority shall develop a transit-oriented development infrastructure improvement program to identify infrastructure improvements within each program area. In determining the required infrastructure improvements to be undertaken, the authority shall consider the infrastructure needs of transit-supportive density requirements, the strategic plan prepared and the prioritization of transit-oriented development projects established by the Hawaii interagency council for transit-oriented development, pursuant to section 226-63(c), and subsequent plans and studies prepared by, or approved by, an appropriate governmental agency to further implement the strategic plan and the transit-oriented development projects therein.
(b) The authority may assess all beneficiaries of the program a user fee for their fair share of the cost of providing any infrastructure improvement the user may be specially benefiting from. The authority shall determine the program areas that will benefit from the infrastructure improvement to be undertaken, and if less than the entire transit-oriented development zone benefits, the authority may establish user fee areas within the program area. The authority may issue and sell bonds in amounts as may be authorized by the legislature to provide funds to finance the infrastructure improvements.
(c) Bonds issued to provide funds to finance transit-oriented development infrastructure improvements shall be secured in a manner to be determined through the bond issuance process, or the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the authority. Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes. The bonds shall be issued subject to rules adopted by the authority pursuant to this section.
(d) The authority may adopt rules for the purposes of this part, pursuant to chapter 91, and to provide for the method of undertaking and financing transit-oriented development infrastructure improvement in a program area or transit-oriented development zone.
(e) Notwithstanding any other provisions to the contrary, the authority may, in its discretion, enter into any agreement with the county in which the program areas are located to implement all or part of the purposes of this section.
(f) All sums collected under this section shall be deposited into the transit-oriented development infrastructure improvement program special fund established under section 206E-247 and shall be applied solely to:
(1) The payment of the principal and interest on the bonds and the cost of administering, operating, and maintaining the program;
(2) The establishment of reserves; and
(3) Other purposes as may be authorized in the proceedings providing for the issuance of the bonds.
If any surplus remains in the fund after the payment of the bonds chargeable against the fund, it shall be credited to and become a part of the fund.
(g) The transit-oriented development infrastructure improvements may be dedicated to the county in which the infrastructure improvements are to be located. The authority shall ensure that the infrastructure improvements are designed and constructed to meet county requirements and shall enter into an agreement with the county for dedication of the public facilities.
(h) Notwithstanding any law to the contrary, whenever it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities that are part of a program, the authority shall establish by rule the allocation of cost between the authority, the affected public utilities, and the users that may specially benefit from the improvement, if any. In determining the allocation of cost, the authority shall consider the cost allocation policies for districts established by the county in which the removal, relocation, replacement, or reconstruction is to take place.
[(i)] For the purposes of this section:
"County-designated transit-oriented development area" has the same meaning as defined in section 226-63(d).
"Floor area ratio" means the quotient, expressed as a decimal number, that results from dividing a structure's total floor area by the total area of the lot or parcel on which the structure is located.
"Ministerial" means a permit process based upon standards established through county ordinance or rule and issued by the director of the county agency responsible for land use or a single county officer designated by ordinance.
"Transit-supportive density" means a county-designated transit-oriented development area:
(1) With development standards that allow a floor area ratio of at least:
(A) 4.0 for all uses that are permitted in a county-designated transit-oriented development area or by the underlying county zoning;
(B) 6.0 for all uses that are permitted in a county-designated transit-oriented development area within one-half mile of a station of a locally preferred alternative for a mass transit project; and
(C) For all uses that are permitted within one-quarter mile of a station of a locally preferred alternative for a mass transit project, whichever is greater:
(i) 7.0;
(ii) The maximum floor area ratio allowed by the adopted transit-oriented development special district; or
(iii) The maximum floor area ratio allowed by the applicable transit-oriented development plan;
(2) For which permits for development are processed as a ministerial permit subject to applicable objective design standards;
(3) Where there is no imposition of a development standard that renders it impracticable to build a usable structure for the permitted uses at the applicable transit-supportive density; and
(4) Where funds collected pursuant to section 46-16.8 have been expended in the county-designated transit-oriented development area in which the development is located. [L 2022, c 184, pt of §1; am L 2025, c 159, §4 and c 252, §5]