HB1305

SECTION 1. The legislature finds that the State should strive to meet the needs of the people. Many of these needs can be met through development projects, but not enough of those projects are currently in place, even as the needs of the people continue to grow, and have grown since Hawaii became a state in 1959.

The legislature notes that the needs of communities continue to grow. For example, in 2016, the governor noted that the State was short of sixty-six thousand affordable housing units. The legislature finds that neither the State, nor any county, business, nor other organization can work alone to meet housing needs, or any needs relating to food, clothing, health care, economic development, trade, travel, tourism, or transportation. Rather, governmental agencies should work together with businesses and other organizations to execute community development projects to help address these needs.

The legislature also finds that the State's most populous county had a department of housing and community development, but that the agency was dismantled in 1998. The legislature finds that the establishment of a county program to engage in similar projects would be most helpful.

Accordingly, the purpose of this Act is to authorize and appropriate moneys for any county with a population of five hundred thousand or more to form partnerships with certain qualifying nonprofit corporations to execute community-initiated development projects within the county.

SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part

COMMUNITY-INITIATED DEVELOPMENT PROJECTS

§46-A Definitions. As used in this part, unless the context clearly requires otherwise:

"Community-initiated development project" means a project that is subject to this part.

"County" means any county with a population of five hundred thousand or more.

"Department" means the county department or other county agency that carries out the county's duties under this part.

"Nonprofit corporation" means a Hawaii nonprofit corporation, formed pursuant to chapter 414D, that develops and operates, or proposes to develop and operate, a project.

"Project" means a community-initiated development project.

§46-B Counties; private sector entities; projects. A department may form any partnership with any nonprofit corporation to execute any community-initiated development project within the county; provided that:

(1) The project is in the public interest and complies with this part;

(2) Development of the project cannot occur by the ordinary operations of private enterprise;

(3) The project shall be developed on land or property in the inventory that the department maintains pursuant to section 46-C; and

(4) The county, nonprofit corporation, and project shall comply with this part.

§46-C Suitable properties for projects. The department shall identify and keep an updated inventory of the following lands and properties within the county:

(1) State land use agriculture and conservation land with infrastructure that can be developed for housing;

(2) State land use agriculture and conservation land with infrastructure;

(3) All state land use real estate that is in an urban area, zoned properly for the purposes of a project, and empty of buildings and occupants;

(4) All state land use real estate that is in an urban area, zoned properly for the purposes of a project, with vacant buildings;

(5) All state land use real estate that is in an urban area, zoned properly for the purposes of a project, that is underutilized;

(6) Church properties, to extent authorized under constitutional law;

(7) Harbors;

(8) Health care facilities;

(9) Hospitals;

(10) Housing;

(11) Parks;

(12) Schools; and

(13) Sporting facilities.

§46-D Master plan; requirements. (a) A nonprofit corporation shall prepare a master plan for a project.

(b) Each master plan shall include, to the extent necessary for the purposes of the project:

(1) Multiple-use facilities;

(2) Placement of similar businesses within close proximity of each other;

(3) Adjacencies between businesses and buildings;

(4) Phased inclusion of businesses and phased development of buildings;

(5) Synergy between businesses and buildings;

(6) Leveraging assets, needs, products, and services of each business and building;

(7) Identification of benefits to all stakeholders;

(8) Specifications on how the partnership between the entity and the county will make efficient use of assets to meet needs and provide benefits, products, and services; and

(9) Specifications on the development of any center for excellence.

(1) Senior housing or care;

(2) Adolescent housing or adolescent care;

(3) Teacher or student housing;

(4) Employee housing;

(5) Special needs housing or care;

(6) Health care or wellness facilities;

(7) Job counseling or training centers;

(8) Centers focused on arts, craft, culture, history, botany, zoology;

(9) Multi-use community centers;

(10) Public facility partnerships with private developers to build retail and commercial facilities to subsidize the public facilities; and

(11) Parking facilities.

(d) A nonprofit corporation shall submit a copy of the master plan to the appropriate neighborhood board for the board's review and consideration. The board may approve or disapprove of a master plan. The master plan shall be amended to comply with any conditions the board may place on the project's approval.

(e) Each master plan that has been approved by a board shall be reviewed by a committee that includes the state legislators and county council members who represent the corresponding state legislative and county council districts in which the project is to be located. The department shall provide administrative support for each committee.

(f) Each master plan shall be subject to approval or disapproval by the legislative body of the county.

§46-E Funding. (a) Nonprofit corporations shall make a good faith effort to apply for funds and other assistance from governmental agencies, community organizations, business organizations, and other public and private entities.

(b) Projects may be funded by moneys from the revolving funds established in section 201- , subject to requirements established by the department of business, economic development, and tourism, and the county.

§46-F Rules. The director of the department shall adopt rules, pursuant to chapter 91, necessary for the purposes of this part."

SECTION 3. Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201- Revolving funds; community-initiated development projects. (a) The following revolving funds are created to assist counties with community-initiated development projects pursuant to part of chapter 46:

(1) A land acquisition revolving fund;

(2) A pre-development revolving fund;

(3) A development revolving fund;

(4) A construction revolving fund;

(5) A building materials revolving fund;

(6) A repair and maintenance revolving fund;

(7) A modernization revolving fund; and

(8) A community organization-owned housing revolving fund.

(b) Moneys from any lawful source may be deposited into each fund.

(c) The department shall adopt rules, pursuant to chapter 91, necessary for the purposes of this section, including rules to specify the purposes of each fund."

SECTION 4. 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 be deposited into the revolving funds established pursuant to section 3 of this Act; provided that the sums appropriated shall be divided equally between each revolving fund.

SECTION 5. There is appropriated out of each of the revolving funds established pursuant to section 3 of this Act 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 for community‑initiated development projects.

The sums appropriated shall be expended by the city and county of Honolulu for the purposes of this Act.

SECTION 6. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 8. This Act shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1305
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII