SB1040

SECTION 1. The legislature finds that homelessness continues to be one of Hawaii's most dire and persistent challenges. Native Hawaiians are disproportionately affected by the housing crisis. Although Native Hawaiians represent less than twenty percent of the State's population, according to the 2020 point-in-time count, Native Hawaiians represent over half of all homeless individuals. The Hawaiian Homes Commission Act of 1920 was enacted by the United States Congress to distribute benefits to Native Hawaiians. These benefits include establishing a government-sponsored homesteading program. The department of Hawaiian home lands has been granted the authority to lease, not sell, land to native Hawaiian beneficiaries and provide financial assistance.

The legislature also finds that the department of Hawaiian home lands owns lots that are available for development along the Leeward coast of Oahu.

The purpose of this Act is to:

(1) Establish under the department of Hawaiian home lands a kauhale pilot program on the Leeward coast of Oahu to provide housing and services to homeless Native Hawaiians;

(2) Provide exemptions for low-income rentals, tiny homes, and kauhale constructed pursuant to the governor's 2015 and 2018 proclamations on homelessness; and

(3) Appropriate funds to support the establishment of a kauhale pilot program on the Leeward coast of Oahu.

SECTION 2. For the purposes of this Act, "department" means the department of Hawaiian home lands.

SECTION 3. (a) There is established the kauhale pilot program on the Leeward coast of Oahu under the department of Hawaiian home lands to provide individual or shared micro housing units and services to homeless Native Hawaiian individuals and families who meet the definition of homeless, as defined by the United States Department of Housing and Urban Development. The department may determine other eligibility requirements as necessary to carry out the purposes of this Act.

(b) The department may cooperate with any state departments or agencies and private nonprofit organizations as needed to expedite the development and operation of housing under the kauhale pilot program, including agencies with specific expertise in construction development and agencies with specific expertise in administering homeless services. The department may construct kauhale, that shall be situated on the Leeward coast of Oahu.

(c) The department may coordinate with public or private entities, as appropriate, to develop and implement the kauhale pilot program; provided that:

(1) The department may work with the appropriate construction agency to ensure that the kauhale's infrastructure needs are met and minimize adverse impacts to the environment, including nearshore resources such as corals, reef fish, and seabirds;

(2) Use of the kauhale may be used for affordable housing through a deed restriction, easement, or other legally binding measure; and

(3) The kauhale communities may allow for off-the-grid technologies that can provide drinking water, electricity, and process sewage without existing infrastructure.

(d) The kauhale pilot program may provide the following facilities and services:

(1) Secure dwelling spaces that:

(A) May be private or communal;

(B) Are designed aesthetically and constructed of quality materials;

(D) Have access to adequate facilities that allow for cooking and meal preparation;

(E) Have common spaces that build community and encourage sustainability; and

(F) Include living units; provided that the size of a unit in the kauhale shall not exceed five hundred square feet with livable space not to exceed two hundred square feet but at least one hundred twenty square feet of net interior for the purposes of keeping cost low;

(2) Medical and social support services; and

(3) Transportation to appointments related to medical care or supportive services that are not available onsite.

(e) The construction of living units pursuant to section (d)(1)(F) shall be exempt from the requirements of chapter 46, Hawaii Revised Statutes, to the extent that any county ordinance, rule, regulation, law, or provision that applies to any county permitting, licensing, zoning, variance, processes, procedures, fees, or any other requirements that hinder, delay, or impede the purposes of this section; provided that:

(1) All construction shall conform to drawings and plans stamped by licensed architects and engineers;

(2) Stamped drawings and plans shall be submitted to the appropriate county planning and permitting departments for informational purposes;

(3) Submitted plans shall list any deviations from existing county building codes; and

(4) No deviations from any county building codes that relate to life safety shall be allowed.

(f) The department may employ persons for the kauhale pilot program who are exempt from chapters 89 and 89C, Hawaii Revised Statutes.

(g) Any appropriations by the legislature for the kauhale pilot program shall be exempt from section 37-41, Hawaii Revised Statutes.

(h) The state historic preservation division may prioritize the review of projects under the kauhale pilot program and shall complete its review of the projects within forty-five days of initiating the review. If a review of a project under the kauhale pilot program is not completed by the state historic preservation division within forty-five days of the division initiating its review, the project shall be exempt from chapter 6E, Hawaii Revised Statutes; provided that the developer for the project shall commission historical, cultural, and archaeological background research and a field inspection report by a licensed archaeologist; provided further that the report shall:

(1) Define the likelihood that historic or cultural assets may be affected by the project;

(2) Make cultural resource management recommendations if historical or cultural assets are likely to be affected by the project; and

(3) Shall be submitted to the state historic preservation division for informational purposes.

(i) Projects shall be exempt from the land use requirements under chapter 205, Hawaii Revised Statutes; provided that the site plan for the development of a project shall include measures to conform with the purposes of the original classification of the land on which the project is to be built.

(j) The kauhale pilot program shall be exempt from the requirements of chapters 206E and 346, and sections 102-2, 103‑53, 103-55, 105-1 to 105-10, and 464-4, Hawaii Revised Statutes.

(k) The department may consult with the department of human services and department of health to administer the kauhale pilot program pursuant to this section.

(l) As used in this section:

"Kauhale" means individual or shared micro housing units and services to homeless individuals and families who meet the definition of chronically homeless, as defined by the United States Department of Housing and Urban Development.

"Kauhale pilot program" means the Kauhale Pilot Program on the Leeward coast of Oahu established under this Act.

SECTION 4. All kauhale built on the Leeward coast of Oahu pursuant to this Act shall be exempt for the duration of the underlying lease from the following provisions of the Hawaii Revised Statutes; provided that the housing created under this Act shall be safe, sanitary, and suitable for human habitation:

(1) Chapter 6E, historic preservation;

(2) Section 37-41, appropriations to revert to state treasury;

(3) Section 37-74(d), program execution, except for sections 37-74(d)(2) and 37-74(d)(3), and any such transfers or changes shall be considered authorized transfers or changes for purposes of section 34‑74(d)(1) for legislative reporting requirements;

(4) Section 40-66, lapsing of appropriations;

(5) Chapter 46, county organization and administration as any county ordinance, rule, regulation, law, or provision in any form applies to any county permitting, licensing, zoning, variance, processes, procedures, fees, or any other requirements that hinder, delay, or impede the purpose of this Act;

(6) Chapter 89, collective bargaining in public employment;

(7) Chapter 89C, public officers and employees excluded from collective bargaining;

(8) Chapter 92, public agency meetings and records, to the extent that any notice requirements or any other provisions of chapter 92 may delay the expeditious action, decision, or approval of any agency;

(9) Section 102-2, contracts for concessions in government buildings; bid requirements;

(10) Section 103-2, general fund;

(11) Section 103-53, contracts with the State or counties; tax clearances, assignments;

(12) Section 103-55, wages, hours, and working conditions of employees of contractors performing services;

(13) Chapter 103D, Hawaii public procurement code;

(14) Chapter 103F, purchases of health and human services;

(15) Chapter 104, wages and hours of employees on public works;

(16) Sections 105-1 to 105-10, use of government vehicles, limitations;

(17) Section 127A-30, rental or sale of essential commodities during a state of emergency; prohibition against price increases;

(18) Chapter 171, public lands;

(19) Chapter 205, land use commission;

(20) Chapter 205A, coastal zone management;

(21) Chapter 206E, Hawaii community development authority;

(22) Chapter 343, environmental impact statements;

(23) Chapter 346, social services;

(24) Section 464-4, public works required to be supervised by certain professionals; and

(25) Sections 601-1.5, 708-817, 708-818, 708-820, 708‑830.5, and 708-840, to the extent that these sections contain provisions for the suspension, tolling, extension, or granting of relief from deadlines, time schedules, or filing requirements in civil, criminal, or administrative matters before the courts of the State or to the extent that these sections contain provisions for criminal penalties that are automatically heightened by reason of any declared disaster or emergency.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to establish and administer the kauhale pilot program on the Leeward coast of Oahu.

The sums appropriated shall be expended by the department of Hawaiian home lands for the purposes of this Act.

SECTION 6. This Act shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1040
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII