[§346-388.1]  Kauhale projects; requirements.  (a)  Any kauhale projects constructed or developed using state funds shall be connected to public utilities, including water, sewer, and electricity.

     (b)  The monthly rent charged to any resident of a kauhale shall not exceed thirty per cent of the area median income.

     (c)  If funds appropriated for construction and development of a kauhale project are used to contract for the procurement of building services and projects related to the kauhale initiative, there shall be at least two bidders for any kauhale project estimated to be over $1,000,000.

     (d)  The office shall conduct and complete a community consultation process prior to the construction and development of any kauhale project.

     (e)  Should any portion of the funds appropriated for the construction of a kauhale project be used for purposes inconsistent with the intent of the kauhale initiative or the construction is phased out and the kauhale project is contracted with a private entity, the State shall have the first right to recoup and reclaim all or a portion of the appropriated funds. [L 2025, c 309, pt of §1]