HB 1409: Transit-Oriented Development; Counties; RHRF; Mixed-Income Subaccount; Infrastructure; Transit-Supportive Density
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-04-26
Current Status:
In Progress
(2025-06-03: Act 159, on 06/03/2025 (Gov. Msg. No. 1259).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
The bill creates a mixed‑income subaccount in the Rental Housing Revolving Fund to finance mixed‑income rental housing, prioritizing projects with varied affordability levels, partnerships with state or county land, efficient use of funds, and those that meet transit‑supportive density near transit. It also requires the Transit‑Oriented Development Infrastructure Improvement District Board to consider infrastructure needs for higher‑density transit areas and directs the state interagency council to identify and map transit‑oriented development areas for each county.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Establishes the Mixed-Income Subaccount within the Rental Housing Revolving Fund, and sunsets the Subaccount on 6/30/2030. Requires the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements. Requires the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate transit-oriented development areas for each county. (CD1)
Amends the funding priorities of the Rental Housing Revolving Fund to incentivize development in areas that satisfy transit-supportive density requirements. Allocates a minimum percentage of Rental Housing Revolving Fund moneys for certain mixed-income rental housings projects. Requires the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements. Requires the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate transit-oriented development areas for each county. Takes effect 7/1/2050. (SD1)
Amends the funding priorities of the Rental Housing Revolving Fund to incentivize development in areas that satisfy transit-supportive density requirements. Allocates a minimum percentage of Rental Housing Revolving Fund moneys for certain mixed-income rental housings projects. Requires the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements. Requires the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate county-designated transit-oriented development areas for each county. Effective 7/1/3000. (HD1)
Establishes what constitutes transit-oriented development and incentivizes development in county-designated transit-oriented development areas or zones. Prioritizes the allocation of a minimum percentage of the Rental Housing Revolving Fund for certain mixed-income rental housing projects or units.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1409 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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C.D. 1 |
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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 Hawaii faces a persistent housing crisis. Demand for housing significantly outpaces supply, particularly in urban areas. Transit-oriented development districts present a critical opportunity for efficient land use by promoting higher-density development near public transit infrastructure, thereby maximizing the value of public investments. Higher residential density in transit-oriented development districts increases public transit ridership, thus reducing dependency on private automobiles and lowering greenhouse gas emissions, which supports the State's climate resilience and sustainability objectives.
The legislature established transit-oriented development infrastructure improvement districts to foster community development by strategically investing in infrastructure improvements through Act 184, Session Laws of Hawaii 2022. The legislature found that transit-oriented development promotes development patterns that enhance residents' quality of life; preserve the natural environment; provide a range of housing choices for residents; and encourage walking, biking, and the use of mass transit. Furthermore, the legislature concluded that the State plays an important role in overcoming barriers to transit-oriented development by encouraging needed investments in improving regional infrastructure such as roads, sewers, power, communication, and storm water management systems.
The legislature further recognizes that the ready availability of affordable workforce housing near transit hubs reduces transportation costs and improves access to employment, education, and other essential services, especially for low- and moderate-income households, thereby advancing social and economic equity for the people of Hawaii.
The underutilization of land in transit-oriented development districts, due partially to restrictive development standards, undermines the economic and environmental benefits of state investments in county-designated transit-oriented development infrastructure improvement districts, contributes to urban sprawl, and increases infrastructure costs and environmental degradation.
The legislature finds that numerous jurisdictions, including California, Oregon, and Washington, have adopted minimum density standards for transit-oriented developments, demonstrating the effectiveness of these measures in increasing housing supply while bolstering transit systems. Transit-oriented development infrastructure improvement districts can increase residential density near transit hubs in order to foster vibrant, walkable communities; support local businesses; and generate higher property tax revenues, contributing to Hawaii's fiscal and economic vitality.
Accordingly, the purpose of this Act is to:
(1) Temporarily establish the mixed-income subaccount within the rental housing revolving fund for five years to finance certain projects, including those located in transit-oriented developments;
(2) Require the transit-oriented development infrastructure improvement district board to consider the infrastructure needs of transit-supportive density requirements; and
(3) Require the strategic plan developed by the Hawaii interagency council for transit-oriented development to delineate transit-oriented development areas for each county.
SECTION 2. Section 201H-202, Hawaii Revised Statutes, is amended to read as follows:
"§201H-202 Rental housing revolving fund. (a) There is established the rental housing revolving fund to be administered by the corporation.
(b) An amount from the fund, to be set by the corporation and authorized by the legislature, may be used for administrative expenses incurred by the corporation in administering the corporation's housing finance programs; provided that fund moneys shall not be used to finance day-to-day administrative expenses of projects allotted fund moneys.
(c)
The following may be deposited into the fund: [appropriations]
(1) Appropriations
made by the legislature[, conveyance];
(2) Conveyance
taxes pursuant to section 247-7[, private];
(3) Private
contributions[, repayment];
(4) Repayment
of loans[, interest, other];
(5) Interest;
(6) Other
returns[,]; and [moneys]
(7) Moneys from other sources.
(d)
[The] Except as provided in subsection (f), the fund shall
be used to provide loans for the development, pre-development, construction,
acquisition, preservation, and substantial rehabilitation of rental housing
units. The corporation shall not forgive
any loan made from the fund unless the corporation forecloses on the
project. Permitted uses of the fund may
include but are not limited to planning, design, land acquisition, costs of
options, agreements of sale, downpayments, equity financing, capacity building
of nonprofit housing developers, credit enhancement, gap financing, or other
housing development services or activities as provided in rules adopted by the
corporation pursuant to chapter 91. The
rules may provide for a means of recapturing loans or grants made from the fund
if a rental housing project financed under the fund is refinanced or sold at a
later date. The rules may also provide
that moneys from the fund shall be leveraged with other financial resources to
the extent possible.
(e)
[Moneys] Except as provided in subsection (f), moneys
available in the fund shall be used for the purpose of providing, in whole or
in part, loans for rental housing projects demonstrating project readiness,
efficiency, and feasibility acceptable to the corporation in the following
order of priority:
[(1) For projects
that were awarded low-income housing credits pursuant to paragraph (2),
priority shall be given to projects with a perpetual affordability commitment;
(2)] (1) Projects or units in projects that are
allocated low-income housing credits pursuant to the state housing credit
ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended,
or projects or units in projects that are funded by programs of the United
States Department of Housing and Urban Development and United States Department
of Agriculture Rural Development wherein:
(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and
(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;
provided that the corporation may establish rules to ensure full occupancy of fund projects; provided further that for projects that were awarded low-income housing credits pursuant to this paragraph, priority shall be given to projects with a perpetual affordability commitment. For purposes of this paragraph, "perpetual" means the useful life of the project; and
[(3)] (2) Mixed-income rental projects or units
in a mixed-income rental project [wherein all of the available units are]
for persons and families with incomes at or below one hundred forty per cent of
the median family income.
(f) There is established within the fund a mixed-income subaccount. Moneys in the mixed-income subaccount shall be used for financing, including but not limited to loans, equity investments, and credit enhancement, for mixed-income rentals for qualified residents as defined in section 201H-32. The corporation shall establish an application process for the allocation of funds in the mixed-income subaccount, separate from the fund allocation process pursuant to section 201H-204(c), that gives preference to projects meeting the following criteria:
(1) A diverse range of affordability, prioritizing persons and families with incomes up to one hundred forty per cent of the median family income;
(2) Projects located on state or county owned land or developed in partnership with the State or a county;
(3) Projects that efficiently use state funding;
(4) Mixed-income rental projects or units in a mixed-income rental project in an area that satisfy transit-supportive density requirements, as defined in section 206E-246; and
(5) Any other criteria as the corporation deems necessary to carry out the purposes of this subsection.
If the corporation, after applying the process described in this subsection, finds a nonprofit or government project equally ranked with a for-profit project, the corporation shall give preference to the nonprofit or government project in allotting funds from the mixed-income subaccount.
Moneys derived from the repayment of loans funded by the mixed-income subaccount, interest thereon, and related fees and returns shall be deposited into the fund.
[(f)] (g) There is established within the fund a bond
volume cap recycling program subaccount.
The bond volume cap recycling program subaccount shall be maintained as
a reserve for the bond volume cap recycling program established pursuant to
section 39B-2(f).
[(g)] (h) The corporation shall submit an annual report
to the legislature no later than twenty days prior to the convening of each
regular session describing the projects funded and, with respect to rental
housing projects targeted for persons and families with incomes at or below
thirty per cent of the median family income, its efforts to develop those
rental housing projects, a description of proposals submitted for this target
group and action taken on the proposals, and any barriers to developing housing
units for this target group.
[(h)] (i) For the purposes of this subpart, the
applicable median family income shall be the median family income for the
county or standard metropolitan statistical area in which the project is
located as determined by the United States Department of Housing and Urban
Development, as adjusted from time to time.
[(i)] (j) The corporation may provide loans under this
section; provided that the corporation shall establish loan-to-value ratios to
protect the fund from inordinate risk and that under no circumstances shall the
rules permit the loan-to-value ratio to exceed one hundred per cent; provided
further that the underwriting guidelines include a debt-coverage ratio of no
less than 1.0 to 1.
[(j)] (k) For the period commencing July 1, 2005,
through June 30, 2009, the fund may be used to provide grants for rental units
set aside for persons and families with incomes at or below thirty per cent of
the median family income in any project financed in whole or in part by the
fund in proportion of those units to the total number of units in the
project. At the conclusion of the period
described in this subsection, the corporation shall report to the legislature
on the number and use of grants provided and whether the grants were an
effective use of the funds for purposes of developing rental housing for
families at or below thirty per cent of the median family income."
SECTION 3. Section 201H-204, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) Activities eligible for assistance from the fund shall include but not be limited to:
(1) New construction,
rehabilitation, or preservation of low-income rental housing units that meet
the criteria for eligibility described in subsection (c)[;] or
section 201H-202(f);
(2) The leveraging of moneys with the use of fund assets;
(3) Pre-development activity grants or loans to nonprofit organizations; and
(4) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing."
2. By amending subsection (c) to read:
"(c) [The] Except as provided in section
201H-202(f), the corporation shall establish an application process for
fund allocation that gives preference to projects meeting the following
criteria that are listed in descending order of priority:
(1) Serve the original target group;
(2) Provide at least five per cent of the total number of units for persons and families with incomes at or below thirty per cent of the median family income;
(3) Provide the maximum number of units for persons or families with incomes at or below eighty per cent of the median family income;
(4) Are committed to serving the target group over a longer period of time;
(5) Increase the integration of income levels of the immediate community area;
(6) Meet the geographic needs of the target group of the proposed rental housing project, such as proximity to employment centers and services; and
(7) Have favorable past performance in developing, owning, managing, or maintaining affordable rental housing.
The corporation may include other criteria as it deems necessary to carry out the purposes of this subpart.
If the corporation, after applying the process described in this subsection, finds a nonprofit project equally ranked with a for-profit or government project, the corporation shall give preference to the nonprofit project in allotting fund moneys."
SECTION 4 Section 206E-246, Hawaii Revised Statutes, is amended to read as follows:
"[[]§206E-246[]] Transit-oriented
development infrastructure improvement district program; assessment; rules. (a) The board shall
develop a transit-oriented development infrastructure improvement district
program to identify infrastructure improvements within each district. In determining the required infrastructure
improvements to be undertaken, the board shall consider the infrastructure
needs of transit-supportive density requirements, the strategic plan
prepared by the Hawaii interagency council for transit-oriented development
pursuant to section 226-63(c), and subsequent plans and studies prepared
to further implement the strategic plan and the transit-oriented development
projects therein.
(b) Whenever the board determines to undertake, or causes to be undertaken, any infrastructure improvement as part of the program, the cost of providing the infrastructure improvement may be assessed against the real property in each district specially benefiting from the infrastructure improvement. The board shall determine the areas of each district that will benefit from the infrastructure improvement to be undertaken, and if less than the entire district benefits, the board may establish assessment areas within the district. The board may issue and sell bonds in amounts as may be authorized by the legislature to provide funds to finance the infrastructure improvements. The board may fix the assessments against real property specially benefited. All assessments made pursuant to this section shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until the assessment is paid, and the lien shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien shall be superior to the later lien.
(c) Bonds issued to provide funds to finance transit-oriented development infrastructure improvements shall be secured solely by the real properties benefited or improved, the assessments thereon, 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 board. 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 board pursuant to this section.
(d) Notwithstanding any other law to the contrary, in assessing real property for transit-oriented development infrastructure improvement, the board shall assess the real property within an assessment area according to the special benefits conferred upon the real property by the infrastructure improvement. These methods may include assessment on a frontage basis or according to the area of real property within an assessment area or any other assessment method that assesses the real property according to the special benefit conferred, or any combination thereof. No assessment levied against real property specially benefited as provided by this part shall constitute a tax on real property within the meanings of any constitutional or statutory provisions. No assessment shall be levied against real property owned by the federal government, the State, or a county, or an agency thereof, without the prior written consent of the owner.
(e) The board shall adopt rules pursuant to chapter 91 to provide for the method of undertaking and financing transit-oriented development infrastructure improvement in an assessment area or an entire district. The rules adopted pursuant to this section shall include but not be limited to:
(1) The methods by which the board shall establish assessment areas;
(2) The method of assessment of real properties specially benefited;
(3) The costs to be borne by the board, the county in which districts are situated, and the property owners;
(4) The procedures before the board relating to the creation of the assessment areas by the owners of real property therein, including provisions for petitions, bids, contracts, bonds, and notices;
(5) Provisions relating to assessments;
(6) Provisions relating to financing, including bonds, revolving funds, advances from available funds, special funds for payment of bonds, payment of principal and interest, and sale and use of the bonds;
(7) Provisions relating to funds and refunding of outstanding debts;
(8) Provisions relating to limitations on time to sue; and
(9) Other related provisions.
(f) Notwithstanding any other provisions to the contrary, the board may, in its discretion, enter into any agreement with the county in which the districts are located to implement all or part of the purposes of this section.
(g) All sums collected under this section shall be deposited into the transit-oriented development infrastructure improvement district 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.
(h) The transit-oriented development infrastructure improvements to be financed through bonds issued by the board may be dedicated to the county in which the infrastructure improvements are to be located. The board 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.
(i) 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 board shall establish by rule the allocation of cost between the board, the affected public utilities, and the properties that may specially benefit from the improvement, if any. In determining the allocation of cost, the board shall consider the cost allocation policies for districts established by the county in which the removal, relocation, replacement, or reconstruction is to take place.
(j) 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."
SECTION 5. Section 226-63, Hawaii Revised Statutes, is amended to read as follows:
"[[]§226-63[]] Hawaii interagency council for
transit-oriented development[.]; transit-oriented development
planning and implementation. (a) There is established the Hawaii
interagency council for transit-oriented development, which shall be an
advisory body exempt from section 26-34, to coordinate and facilitate state
agency transit-oriented development planning, and facilitate consultation and
collaboration between the State and the counties on transit-oriented
development initiatives. The Hawaii
interagency council for transit-oriented development shall be established
within the department of business, economic development, and tourism for
administrative purposes.
(b) The Hawaii interagency council for transit-oriented development shall:
(1) Serve as the State's transit-oriented development planning and policy development entity with representation from state and county government and the community;
(2) Formulate and
advise the governor on the implementation of a strategic plan to [address]
plan for and implement transit-oriented development projects, including
[mixed use] mixed-use and affordable for-sale and rental
housing projects, on [state] lands in county-designated
transit-oriented development areas in each county;
(3) Facilitate the acquisition of funding and resources for state and county transit-oriented development programs, including affordable for-sale and rental housing projects, on state and county lands;
(4) Monitor the preparation and conduct of plans and studies to facilitate implementation of state transit-oriented development plans prepared pursuant to this section, including but not limited to the preparation of site or master plans and implementation plans and studies;
(5) Review all capital
improvement project requests to the legislature for transit-oriented
development projects, including [mixed use] mixed-use and
affordable for-sale and rental housing projects, on [state] lands
within county-designated transit-oriented development [zones] areas
or within a one-half-mile radius of public transit stations, if a county has
not designated transit-oriented development zones;
(6) Recommend policy, regulatory, and statutory changes, and identify resource strategies for the successful execution of the strategic plan;
(7) Assemble accurate fiscal and demographic information to support policy development and track outcomes;
(8) Consider collaborative transit-oriented development initiatives of other states that have demonstrated positive outcomes; and
(9) Report annually to the governor, the legislature, and the mayor of each county on the progress of its activities, including formulation and progress on the strategic plan no later than twenty days prior to the convening of each regular session.
(c) The strategic plan developed by the Hawaii interagency council for transit-oriented development shall:
(1) Coordinate with the counties on transit-oriented development;
(2) For each county,
compile an inventory of state, county, and [private sector] private-sector
transit-oriented development projects lacking infrastructure, identifying the
type of infrastructure each project lacks, and the approximate time frame when
additional capacity is needed;
(3) Prioritize
the development of transit-oriented development projects, including [mixed
use] mixed-use and affordable for-sale and rental housing
projects, on state and county lands;
(4) Identify financing
and prioritize state financing for the public infrastructure, facility, and
service investments required to support transit-oriented development, [mixed
use,] mixed-use, and affordable for-sale and rental housing [project
plans; and] in county-designated transit-oriented development areas;
(5) Encourage and
promote partnerships between public and private entities to identify, renovate,
and secure affordable housing options on state and county lands within
county-designated transit-oriented development areas or within a one-half-mile
radius of public transit stations, if a county has not designated
transit-oriented development [zones.] areas; and
(6) Delineate for each county, transit-oriented development areas within which transit-rich, pedestrian-oriented development is desired and investment in transit-oriented development and supporting infrastructure is to be directed.
(d) For the purposes of this section and implementation of the strategic plan statewide:
"County-designated transit-oriented development area" means a geographic area designated by a county for transit-oriented development by an adopted ordinance, plan, or resolution, and delineated in the strategic plan pursuant to this section, that generally consists of lands within a one-half-mile radius of a transit hub or transit station; provided that the actual boundaries may differ under specific circumstances.
"Transit-oriented development" means the development of compact, dense, walkable, pedestrian-oriented, mixed-use neighborhoods centered around transit stations or transit hubs of public transit systems. "Transit-oriented development" features a mix of uses, such as housing, office, retail, civic and institutional, and other services and amenities at densities that support transit ridership and walkability.
"Transit-oriented development project" means a development project located within a geographic area designated as a transit-oriented development area by the county with a medium- to high-density mix of uses, such as housing, office, retail, and other amenities, that is designed to promote walkability and safe and convenient access to transit services."
SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect upon its approval; provided that sections 2 and 3 of this Act shall be repealed on June 30, 2030, and sections 201H-202 and 201H-204, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act.
Report Title:
Transit-Oriented Development; Counties; RHRF; Mixed-Income Subaccount; Infrastructure; Transit-Supportive Density
Description:
Establishes the Mixed-Income Subaccount within the Rental Housing Revolving Fund, and sunsets the Subaccount on 6/30/2030. Requires the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements. Requires the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate transit-oriented development areas for each county. (CD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1409 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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|
|
|
|
|
||
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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 Hawaii faces a persistent housing crisis. Demand for housing significantly outpaces supply, particularly in urban areas. Transit-oriented development districts present a critical opportunity for efficient land use by promoting higher-density development near public transit infrastructure, thereby maximizing the value of public investments. Higher residential density in transit-oriented development districts increases public transit ridership, thus reducing dependency on private automobiles and lowering greenhouse gas emissions, which supports the State's climate resilience and sustainability objectives.
The legislature established transit-oriented development infrastructure improvement districts to foster community development by strategically investing in infrastructure improvements through Act 184, Session Laws of Hawaii 2022. The legislature found that transit-oriented development promotes development patterns that enhance residents' quality of life; preserve the natural environment; provide a range of housing choices for residents; and encourage walking, biking, and the use of mass transit. Furthermore, the legislature concluded that the State plays an important role in overcoming barriers to transit-oriented development by encouraging needed investments in improving regional infrastructure such as roads, sewers, power, communication, and storm water management systems.
The legislature further recognizes that the ready availability of affordable workforce housing near transit hubs reduces transportation costs and improves access to employment, education, and other essential services, especially for low- and moderate-income households, thereby advancing social and economic equity for the people of Hawaii.
The underutilization of land in transit-oriented development districts, due partially to restrictive development standards, undermines the economic and environmental benefits of state investments in county-designated transit-oriented development infrastructure improvement districts, contributes to urban sprawl, and increases infrastructure costs and environmental degradation.
The legislature finds that numerous jurisdictions, including California, Oregon, and Washington, have adopted minimum density standards for transit-oriented developments, demonstrating the effectiveness of these measures in increasing housing supply while bolstering transit systems. Transit-oriented development infrastructure improvement districts can increase residential density near transit hubs in order to foster vibrant, walkable communities; support local businesses; and generate higher property tax revenues, contributing to Hawaii's fiscal and economic vitality.
Accordingly, the purpose of this Act is to:
(1) Amend the funding priorities of the rental housing revolving fund to incentivize development in areas that satisfy transit-supportive density requirements;
(2) Allocate a minimum percentage of the rental housing revolving fund for certain mixed-income rental housing projects;
(3) Require the transit-oriented development infrastructure improvement district board to consider the infrastructure needs of transit-supportive density requirements; and
(4) Require the strategic plan developed by the Hawaii interagency council for transit-oriented development to delineate transit-oriented development areas for each county.
SECTION 2. Section 201H-202, Hawaii Revised Statutes, is amended to read as follows:
"§201H-202 Rental housing revolving fund. (a) There is established the rental housing revolving fund to be administered by the corporation.
(b) An amount from the fund, to be set by the corporation and authorized by the legislature, may be used for administrative expenses incurred by the corporation in administering the corporation's housing finance programs; provided that fund moneys shall not be used to finance day-to-day administrative expenses of projects allotted fund moneys.
(c)
The following may be deposited into the fund: [appropriations]
(1) Appropriations
made by the legislature[, conveyance];
(2) Conveyance
taxes pursuant to section 247-7[, private];
(3) Private
contributions[, repayment];
(4) Repayment
of loans, interest, other returns[,]; and [moneys]
(5) Moneys from other sources.
(d) The fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units. The corporation shall not forgive any loan made from the fund unless the corporation forecloses on the project. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, capacity building of nonprofit housing developers, credit enhancement, gap financing, or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91. The rules may provide for a means of recapturing loans or grants made from the fund if a rental housing project financed under the fund is refinanced or sold at a later date. The rules may also provide that moneys from the fund shall be leveraged with other financial resources to the extent possible.
(e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans for rental housing projects demonstrating project readiness, efficiency, and feasibility acceptable to the corporation in the following order of priority:
(1) For projects that were awarded low-income housing credits pursuant to paragraph (2), priority shall be given to projects with a perpetual affordability commitment;
(2) Projects or units in projects that are allocated low-income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:
(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and
(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;
provided that the corporation
may establish rules to ensure full occupancy of fund projects; [and]
(3) Mixed-income rental projects or units in a mixed-income rental project in an area that satisfies:
(A) Transit-supportive density requirements; and
(B) Standards for project readiness, efficiency, and feasibility,
wherein all of the available
units are for persons and families with incomes at or below one hundred forty
per cent of the median family income[.]; and
(4) Mixed-income rental projects or units in a mixed-income rental project wherein all of the available units are for persons and families with incomes at or below one hundred forty per cent of the median family income.
(f) At least per cent of the moneys in the fund used for mixed-income rental projects or units in a mixed-income rental project shall be prioritized for a county that has expended funds pursuant to section 46-16.8(f); provided that the majority of county-designated transit-oriented development areas surrounding stations of a locally preferred alternative for a mass transit project satisfy transit-supportive density requirements.
[(f)] (g) There is established within the fund a bond
volume cap recycling program subaccount.
The bond volume cap recycling program subaccount shall be maintained as
a reserve for the bond volume cap recycling program established pursuant to
section 39B-2(f).
[(g)] (h) The corporation shall submit an annual report
to the legislature no later than twenty days prior to the convening of each
regular session describing the projects funded and, with respect to rental
housing projects targeted for persons and families with incomes at or below
thirty per cent of the median family income, its efforts to develop those
rental housing projects, a description of proposals submitted for this target
group and action taken on the proposals, and any barriers to developing housing
units for this target group.
[(h)] (i) For the purposes of this subpart, the
applicable median family income shall be the median family income for the
county or standard metropolitan statistical area in which the project is
located as determined by the United States Department of Housing and Urban
Development, as adjusted from time to time.
[(i)] (j) The corporation may provide loans under this
section; provided that the corporation shall establish loan-to-value ratios to
protect the fund from inordinate risk and that under no circumstances shall the
rules permit the loan-to-value ratio to exceed one hundred per cent; provided
further that the underwriting guidelines include a debt-coverage ratio of no
less than 1.0 to 1.
[(j)] (k) For the period commencing July 1, 2005,
through June 30, 2009, the fund may be used to provide grants for rental units
set aside for persons and families with incomes at or below thirty per cent of
the median family income in any project financed in whole or in part by the
fund in proportion of those units to the total number of units in the
project. At the conclusion of the period
described in this subsection, the corporation shall report to the legislature
on the number and use of grants provided and whether the grants were an
effective use of the funds for purposes of developing rental housing for
families at or below thirty per cent of the median family income.
(l) 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."
SECTION 3. Section 206E-246, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The board shall develop a transit-oriented development infrastructure improvement district program to identify infrastructure improvements within each district. In determining the required infrastructure improvements to be undertaken, the board shall consider the infrastructure needs of transit-supportive density requirements as defined under section 201H-202(l), the strategic plan prepared by the Hawaii interagency council for transit-oriented development pursuant to section 226-63(c), and subsequent plans and studies prepared to further implement the strategic plan and the transit-oriented development projects therein."
SECTION 4. Section 226-63, Hawaii Revised Statutes, is amended to read as follows:
"[[]§226-63[]] Hawaii interagency council for
transit-oriented development[.]; transit-oriented development
planning and implementation. (a) There is established the Hawaii
interagency council for transit-oriented development, which shall be an
advisory body exempt from section 26-34, to coordinate and facilitate state
agency transit-oriented development planning, and facilitate consultation and
collaboration between the State and the counties on transit-oriented
development initiatives. The Hawaii
interagency council for transit-oriented development shall be established
within the department of business, economic development, and tourism for
administrative purposes.
(b) The Hawaii interagency council for transit-oriented development shall:
(1) Serve as the State's transit-oriented development planning and policy development entity with representation from state and county government and the community;
(2) Formulate and
advise the governor on the implementation of a strategic plan to [address]
plan for and implement transit-oriented development projects, including
[mixed use] mixed-use and affordable for-sale and rental
housing projects, on [state] lands in county-designated
transit-oriented development areas in each county;
(3) Facilitate the acquisition of funding and resources for state and county transit-oriented development programs, including affordable for-sale and rental housing projects, on state and county lands;
(4) Monitor the preparation and conduct of plans and studies to facilitate implementation of state transit-oriented development plans prepared pursuant to this section, including but not limited to the preparation of site or master plans and implementation plans and studies;
(5) Review all capital
improvement project requests to the legislature for transit-oriented
development projects, including [mixed use] mixed-use and
affordable for-sale and rental housing projects, on [state] lands
within county-designated transit-oriented development [zones] areas
or within a one-half-mile radius of public transit stations, if a county has
not designated transit-oriented development zones;
(6) Recommend policy, regulatory, and statutory changes, and identify resource strategies for the successful execution of the strategic plan;
(7) Assemble accurate fiscal and demographic information to support policy development and track outcomes;
(8) Consider collaborative transit-oriented development initiatives of other states that have demonstrated positive outcomes; and
(9) Report annually to the governor, the legislature, and the mayor of each county on the progress of its activities, including formulation and progress on the strategic plan no later than twenty days prior to the convening of each regular session.
(c) The strategic plan developed by the Hawaii interagency council for transit-oriented development shall:
(1) Coordinate with the counties on transit-oriented development;
(2) For each county,
compile an inventory of state, county, and [private sector] private-sector
transit-oriented development projects lacking infrastructure, identifying the
type of infrastructure each project lacks, and the approximate time frame when
additional capacity is needed;
(3) Prioritize
the development of transit-oriented development projects, including [mixed
use] mixed-use and affordable for-sale and rental housing
projects, on state and county lands;
(4) Identify financing
and prioritize state financing for the public infrastructure, facility, and
service investments required to support transit-oriented development, [mixed
use,] mixed-use, and affordable for-sale and rental housing [project
plans; and] in county-designated transit-oriented development areas;
(5) Encourage and
promote partnerships between public and private entities to identify, renovate,
and secure affordable housing options on state and county lands within
county-designated transit-oriented development areas or within a one-half-mile
radius of public transit stations, if a county has not designated
transit-oriented development [zones.] areas; and
(6) Delineate for each county, transit-oriented development areas within which transit-rich, pedestrian-oriented development is desired and investment in transit-oriented development and supporting infrastructure is to be directed.
(d) For the purposes of this section and implementation of the strategic plan statewide:
"County-designated transit-oriented development area" means a geographic area designated by a county for transit-oriented development by an adopted ordinance, plan, or resolution, and delineated in the strategic plan pursuant to this section, that generally consists of lands within a one-half-mile radius of a transit hub or transit station; provided that the actual boundaries may differ under specific circumstances.
"Transit-oriented development" means the development of compact, dense, walkable, pedestrian-oriented, mixed-use neighborhoods centered around transit stations or transit hubs of public transit systems. Transit-oriented development features a mix of uses, such as housing, office, retail, civic and institutional, and other services and amenities at densities that support transit ridership and walkability.
"Transit-oriented development project" means a development project located within a geographic area designated as a transit-oriented development area by the county with a medium- to high-density mix of uses, such as housing, office, retail, and other amenities, that is designed to promote walkability and safe and convenient access to transit services."
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2050.
Report Title:
Transit-Oriented Development; Counties; RHRF; Infrastructure; Transit Supportive Density
Description:
Amends the funding priorities of the Rental Housing Revolving Fund to incentivize development in areas that satisfy transit-supportive density requirements. Allocates a minimum percentage of Rental Housing Revolving Fund moneys for certain mixed-income rental housings projects. Requires the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements. Requires the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate transit-oriented development areas for each county. Takes effect 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1409 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
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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 Hawaii faces a persistent housing crisis. Demand for housing significantly outpaces supply, particularly in urban areas. Transit-oriented development districts present a critical opportunity for efficient land use by promoting higher-density development near public transit infrastructure, thereby maximizing the value of public investments. Higher residential density in transit-oriented development districts increases public transit ridership, thus reducing dependency on private automobiles and lowering greenhouse gas emissions, which supports the State's climate resilience and sustainability objectives.
The legislature established transit-oriented development infrastructure improvement districts to foster community development by strategically investing in infrastructure improvements through Act 184, Session Laws of Hawaii 2022. The legislature found that transit-oriented development promotes development patterns that enhance residents' quality of life; preserve the natural environment; provide a range of housing choices for residents; and encourage walking, biking, and the use of mass transit. Furthermore, the legislature concluded that the State plays an important role in overcoming barriers to transit-oriented development by encouraging needed investments in improving regional infrastructure such as roads, sewers, power, communication, and storm water management systems.
The legislature further recognizes that the ready availability of affordable workforce housing near transit hubs reduces transportation costs and improves access to employment, education, and other essential services, especially for low- and moderate-income households, thereby advancing social and economic equity for the people of Hawaii.
The underutilization of land in transit-oriented development districts, due partially to restrictive development standards, undermines the economic and environmental benefits of state investments in county-designated transit-oriented development infrastructure improvement districts, contributes to urban sprawl, and increases infrastructure costs and environmental degradation.
The legislature finds that numerous jurisdictions, including California, Oregon, and Washington, have adopted minimum density standards for transit-oriented developments, demonstrating the effectiveness of these measures in increasing housing supply while bolstering transit systems. Transit-oriented development infrastructure improvement districts can increase residential density near transit hubs in order to foster vibrant, walkable communities; support local businesses; and generate higher property tax revenues, contributing to Hawaii's fiscal and economic vitality.
Accordingly, the purpose of this Act is to:
(1) Amend the funding priorities of the rental housing revolving fund to incentivize development in areas that satisfy transit-supportive density requirements;
(2) Allocate a minimum percentage of the rental housing revolving fund for certain mixed-income rental housing projects;
(3) Require the transit-oriented development infrastructure improvement district board to consider the infrastructure needs of transit-supportive density requirements; and
(4) Require the strategic plan developed by the Hawaii interagency council for transit-oriented development to delineate county-designated transit-oriented development areas for each county.
SECTION 2. Section 201H-202, Hawaii Revised Statutes, is amended to read as follows:
"§201H-202 Rental housing revolving fund. (a) There is established the rental housing revolving fund to be administered by the corporation.
(b) An amount from the fund, to be set by the corporation and authorized by the legislature, may be used for administrative expenses incurred by the corporation in administering the corporation's housing finance programs; provided that fund moneys shall not be used to finance day-to-day administrative expenses of projects allotted fund moneys.
(c)
The following may be deposited into the fund: [appropriations]
(1) Appropriations
made by the legislature[, conveyance];
(2) Conveyance
taxes pursuant to section 247-7[, private];
(3) Private
contributions[, repayment];
(4) Repayment
of loans, interest, other returns[,]; and [moneys]
(5) Moneys from other sources.
(d) The fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units. The corporation shall not forgive any loan made from the fund unless the corporation forecloses on the project. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, capacity building of nonprofit housing developers, credit enhancement, gap financing, or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91. The rules may provide for a means of recapturing loans or grants made from the fund if a rental housing project financed under the fund is refinanced or sold at a later date. The rules may also provide that moneys from the fund shall be leveraged with other financial resources to the extent possible.
(e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans for rental housing projects demonstrating project readiness, efficiency, and feasibility acceptable to the corporation in the following order of priority:
(1) For projects that were awarded low-income housing credits pursuant to paragraph (2), priority shall be given to projects with a perpetual affordability commitment;
(2) Projects or units in projects that are allocated low-income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:
(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and
(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;
provided that the corporation
may establish rules to ensure full occupancy of fund projects; [and]
(3) Mixed-income rental projects or units in a mixed-income rental project in an area that satisfies:
(A) Transit-supportive density requirements; and
(B) Standards for project readiness, efficiency, and feasibility,
wherein all of the available
units are for persons and families with incomes at or below one hundred forty
per cent of the median family income[.]; and
(4) Mixed-income rental projects or units in a mixed-income rental project wherein all of the available units are for persons and families with incomes at or below one hundred forty per cent of the median family income.
(f) At least fifty-one per cent of the moneys in the fund used for mixed-income rental projects or units in a mixed-income rental project shall be prioritized for a county that has expended funds pursuant to section 46-16.8(f); provided that the majority of county-designated transit-oriented development areas surrounding stations of a locally preferred alternative for a mass transit project satisfy transit-supportive density requirements.
[(f)] (g) There is established within the fund a bond
volume cap recycling program subaccount.
The bond volume cap recycling program subaccount shall be maintained as
a reserve for the bond volume cap recycling program established pursuant to
section 39B-2(f).
[(g)] (h) The corporation shall submit an annual report
to the legislature no later than twenty days prior to the convening of each
regular session describing the projects funded and, with respect to rental
housing projects targeted for persons and families with incomes at or below
thirty per cent of the median family income, its efforts to develop those
rental housing projects, a description of proposals submitted for this target
group and action taken on the proposals, and any barriers to developing housing
units for this target group.
[(h)] (i) For the purposes of this subpart, the
applicable median family income shall be the median family income for the
county or standard metropolitan statistical area in which the project is
located as determined by the United States Department of Housing and Urban
Development, as adjusted from time to time.
[(i)] (j) The corporation may provide loans under this
section; provided that the corporation shall establish loan-to-value ratios to
protect the fund from inordinate risk and that under no circumstances shall the
rules permit the loan-to-value ratio to exceed one hundred per cent; provided
further that the underwriting guidelines include a debt-coverage ratio of no
less than 1.0 to 1.
[(j)] (k) For the period commencing July 1, 2005,
through June 30, 2009, the fund may be used to provide grants for rental units
set aside for persons and families with incomes at or below thirty per cent of
the median family income in any project financed in whole or in part by the
fund in proportion of those units to the total number of units in the
project. At the conclusion of the period
described in this subsection, the corporation shall report to the legislature
on the number and use of grants provided and whether the grants were an
effective use of the funds for purposes of developing rental housing for
families at or below thirty per cent of the median family income.
(l) For purposes of this section:
"County-designated transit-oriented development area" has the same meaning as 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."
SECTION 3. Section 206E-246, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The board shall develop a transit-oriented development infrastructure improvement district program to identify infrastructure improvements within each district. In determining the required infrastructure improvements to be undertaken, the board shall consider the infrastructure needs of transit-supportive density requirements as defined under section 201H-202(l), the strategic plan prepared by the Hawaii interagency council for transit-oriented development pursuant to section 226-63(c) and subsequent plans and studies prepared to further implement the strategic plan and the transit-oriented development projects therein."
SECTION 4. Section 226-63, Hawaii Revised Statutes, is amended to read as follows:
"[[]§226-63[]]
Hawaii interagency council for transit-oriented development[.];
transit-oriented development planning and implementation.
(a) There is established
the Hawaii interagency council for transit-oriented development, which shall be
an advisory body exempt from section 26-34, to coordinate and facilitate state
agency transit-oriented development planning, and facilitate consultation and
collaboration between the State and the counties on transit-oriented
development initiatives. The Hawaii interagency
council for transit-oriented development shall be established within the
department of business, economic development, and tourism for administrative
purposes.
(b) The Hawaii interagency council for transit-oriented development shall:
(1) Serve as the State's transit-oriented development planning and policy development entity with representation from state and county government and the community;
(2) Formulate and
advise the governor on the implementation of a strategic plan to [address]
plan for and implement transit-oriented development projects, including
[mixed use] mixed-use and affordable for-sale and rental
housing projects, on [state] lands in county-designated
transit-oriented development areas in each county;
(3) Facilitate the acquisition of funding and resources for state and county transit-oriented development programs, including affordable for-sale and rental housing projects, on state and county lands;
(4) Monitor the preparation and conduct of plans and studies to facilitate implementation of state transit-oriented development plans prepared pursuant to this section, including but not limited to the preparation of site or master plans and implementation plans and studies;
(5) Review all capital
improvement project requests to the legislature for transit-oriented
development projects, including [mixed use] mixed-use and
affordable for-sale and rental housing projects, on [state] lands
within county-designated transit-oriented development [zones] areas
or within a one-half-mile radius of public transit stations, if a county has
not designated transit-oriented development zones;
(6) Recommend policy, regulatory, and statutory changes, and identify resource strategies for the successful execution of the strategic plan;
(7) Assemble accurate fiscal and demographic information to support policy development and track outcomes;
(8) Consider collaborative transit-oriented development initiatives of other states that have demonstrated positive outcomes; and
(9) Report annually to the governor, the legislature, and the mayor of each county on the progress of its activities, including formulation and progress on the strategic plan no later than twenty days prior to the convening of each regular session.
(c) The strategic plan developed by the Hawaii interagency council for transit-oriented development shall:
(1) Coordinate with the counties on transit-oriented development;
(2) For each county,
compile an inventory of state, county, and [private sector] private-sector
transit-oriented development projects lacking infrastructure, identifying the
type of infrastructure each project lacks, and the approximate time frame when
additional capacity is needed;
(3) Prioritize
the development of transit-oriented development projects, including [mixed
use] mixed-use and affordable for-sale and rental housing
projects, on state and county lands;
(4) Identify financing
and prioritize state financing for the public infrastructure, facility, and
service investments required to support transit-oriented development, [mixed
use,] mixed-use, and affordable for-sale and rental housing [project
plans;] in county-designated transit-oriented development areas; [and]
(5) Encourage and
promote partnerships between public and private entities to identify, renovate,
and secure affordable housing options on state and county lands within
county-designated transit-oriented development areas or within a one-half-mile
radius of public transit stations, if a county has not designated
transit-oriented development [zones.] areas; and
(6) Delineate for each county, county-designated transit-oriented development areas within which transit-rich, pedestrian-oriented development is desired and investment in transit-oriented development and supporting infrastructure is to be directed.
(d) For the purposes of this section and implementation of the strategic plan statewide:
"County-designated transit-oriented development area" means a geographic area designated by a county for transit-oriented development by an adopted ordinance, plan, or resolution, and delineated in the strategic plan pursuant to this section. These areas shall generally consist of lands within a one-half-mile radius of a transit hub or transit station but may extend further when there is state and county agreement about the extent of the transit-oriented development area.
"Transit-oriented development" means the development of compact, dense, walkable, pedestrian-oriented, mixed-use neighborhoods centered around transit stations or transit hubs of public transit systems. Transit-oriented development features a mix of uses, such as housing, office, retail, civic and institutional, and other services and amenities at densities that support transit ridership and walkability.
"Transit-oriented development project" means a development project located within a geographic area designated as a transit-oriented development area by the county with a medium- to high-density mix of uses, such as housing, office, retail, and other amenities, that is designed to promote walkability and safe and convenient access to transit services."
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 3000.
Report Title:
Transit-oriented Development; Counties; Rental Housing Revolving Fund; Infrastructure; Transit Supportive Density
Description:
Amends the funding priorities of the Rental Housing Revolving Fund to incentivize development in areas that satisfy transit-supportive density requirements. Allocates a minimum percentage of Rental Housing Revolving Fund moneys for certain mixed-income rental housings projects. Requires the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements. Requires the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate county-designated transit-oriented development areas for each county. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1409 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
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 Hawaii faces a persistent housing crisis. Demand for housing significantly outpaces supply, particularly in urban areas. Transit-oriented development districts present a critical opportunity for efficient land use by promoting higher-density development near public transit infrastructure, thereby maximizing the value of public investments. Higher residential density in transit-oriented development districts increases public transit ridership, thus reducing dependency on private automobiles and lowering greenhouse gas emissions, which supports the State's climate resilience and sustainability objectives.
The legislature established transit-oriented development infrastructure improvement districts to foster community development by strategically investing in infrastructure improvements through Act 184, Session Laws of Hawaii 2022. The legislature found that transit-oriented development promotes development patterns that enhance residents' quality of life; preserve the natural environment; provide a range of housing choices for residents; and encourage walking, biking, and the use of mass transit. Furthermore, the legislature concluded that the State plays an important role in overcoming barriers to transit-oriented development by encouraging needed investments in improving regional infrastructure such as roads, sewers, power, communication, and storm water management systems.
The legislature further recognizes that the ready availability of affordable workforce housing near transit hubs reduces transportation costs and improves access to employment, education, and other essential services, especially for low- and moderate-income households, thereby advancing social and economic equity for the people of Hawaii.
The underutilization of land in transit-oriented development districts, due partially to restrictive development standards, undermines the economic and environmental benefits of state investments in county-designated transit-oriented development infrastructure improvement districts, contributes to urban sprawl, and increases infrastructure costs and environmental degradation.
The legislature finds that numerous jurisdictions, including California, Oregon, and Washington, have adopted minimum density standards for transit-oriented developments, demonstrating the effectiveness of these measures in increasing housing supply while bolstering transit systems. Transit-oriented development infrastructure improvement districts can increase residential density near transit hubs in order to foster vibrant, walkable communities; support local businesses; and generate higher property tax revenues, contributing to Hawaii's fiscal and economic vitality.
Accordingly, the purpose of this Act is to:
(1) Define transit-oriented development for purposes of state implementation of transit-oriented development;
(2) Incentivize development in county-designated transit-oriented development areas; and
(3) Allocate a minimum percentage of the rental housing revolving fund for certain mixed-income rental housing projects or units.
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; criteria for certain financing. (a) Notwithstanding any law to the contrary, development in a county-designated transit-oriented development area, as defined in section 226-63(d), shall have priority for financing; provided that:
(1) Development standards for the transit-oriented development area allow an average floor area ratio equal to or greater than the transit-supportive densities set forth in this section;
(2) Permits for development in the transit-oriented development area are processed as a ministerial permit subject to applicable objective design standards;
(3) 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) 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.
(b) As used in this section:
"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 floor area ratio of at least:
(1) 4.0 for all uses that are permitted in a county-designated transit-oriented development area or by the underlying county zoning;
(2) 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
(3) 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:
(A) 7.0;
(B) The maximum floor area ratio allowed by the adopted transit-oriented development special district; or
(C) The maximum floor area ratio allowed by the applicable transit-oriented development plan."
SECTION 3. Section 201H-202, Hawaii Revised Statutes, is amended to read as follows:
"§201H-202 Rental housing revolving fund. (a) There is established the rental housing revolving fund to be administered by the corporation.
(b) An amount from the fund, to be set by the corporation and authorized by the legislature, may be used for administrative expenses incurred by the corporation in administering the corporation's housing finance programs; provided that fund moneys shall not be used to finance day-to-day administrative expenses of projects allotted fund moneys.
(c) The following may be deposited into the fund: appropriations made by the legislature, conveyance taxes pursuant to section 247-7, private contributions, repayment of loans, interest, other returns, and moneys from other sources.
(d) The fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units. The corporation shall not forgive any loan made from the fund unless the corporation forecloses on the project. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, capacity building of nonprofit housing developers, credit enhancement, gap financing, or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91. The rules may provide for a means of recapturing loans or grants made from the fund if a rental housing project financed under the fund is refinanced or sold at a later date. The rules may also provide that moneys from the fund shall be leveraged with other financial resources to the extent possible.
(e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans for rental housing projects demonstrating project readiness, efficiency, and feasibility acceptable to the corporation in the following order of priority:
(1) For projects that were awarded low-income housing credits pursuant to paragraph (2), priority shall be given to projects with a perpetual affordability commitment;
(2) Projects or units in projects that are allocated low-income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:
(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and
(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;
provided that the corporation
may establish rules to ensure full occupancy of fund projects; [and]
(3) Mixed-income
rental projects or units in a mixed-income rental project wherein all of the
available units are for persons and families with incomes at or below one hundred
forty per cent of the median family income[.]; provided that the
project meets the criteria in section 201H- and standards for
project readiness, efficiency, and feasibility; and
(4) Mixed-income rental projects or units in a mixed-income rental project wherein all of the available units are for persons and families with incomes at or below one hundred forty per cent of the median family income.
(f) At least fifty-one per cent of the moneys in the fund used for mixed-income rental projects or units in a mixed-income rental project shall be prioritized for counties that have expended funds pursuant to section 46-16.8(f); provided that the majority of transit-oriented development areas surrounding stations of a locally preferred alternative for a mass transit project adopt development standards for transit-oriented development pursuant to section 201H- .
[(f)] (g) There is established within the fund a bond
volume cap recycling program subaccount.
The bond volume cap recycling program subaccount shall be maintained as
a reserve for the bond volume cap recycling program established pursuant to
section 39B-2(f).
[(g)] (h) The corporation shall submit an annual report
to the legislature no later than twenty days prior to the convening of each
regular session describing the projects funded and, with respect to rental
housing projects targeted for persons and families with incomes at or below
thirty per cent of the median family income, its efforts to develop those
rental housing projects, a description of proposals submitted for this target
group and action taken on the proposals, and any barriers to developing housing
units for this target group.
[(h)] (i) For the purposes of this subpart, the
applicable median family income shall be the median family income for the
county or standard metropolitan statistical area in which the project is
located as determined by the United States Department of Housing and Urban
Development, as adjusted from time to time.
[(i)] (j) The corporation may provide loans under this
section; provided that the corporation shall establish loan-to-value ratios to
protect the fund from inordinate risk and that under no circumstances shall the
rules permit the loan-to-value ratio to exceed one hundred per cent; provided
further that the underwriting guidelines include a debt-coverage ratio of no
less than 1.0 to 1.
[(j)] (k) For the period commencing July 1, 2005,
through June 30, 2009, the fund may be used to provide grants for rental units
set aside for persons and families with incomes at or below thirty per cent of
the median family income in any project financed in whole or in part by the
fund in proportion of those units to the total number of units in the
project. At the conclusion of the period
described in this subsection, the corporation shall report to the legislature
on the number and use of grants provided and whether the grants were an
effective use of the funds for purposes of developing rental housing for
families at or below thirty per cent of the median family income."
SECTION 4. Section 206E-246, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The board shall develop a transit-oriented development infrastructure improvement district program to identify infrastructure improvements within each district. In determining the required infrastructure improvements to be undertaken, the board shall consider the infrastructure needs of transit-supportive density pursuant to section 201H- , the strategic plan prepared by the Hawaii interagency council for transit-oriented development pursuant to section 226-63(c) and subsequent plans and studies prepared to further implement the strategic plan and the transit-oriented development projects therein."
SECTION 5. Section 226-63, Hawaii Revised Statutes, is amended to read as follows:
"[[]§226-63[]]
Hawaii interagency council for transit-oriented development[.];
transit-oriented development planning and implementation.
(a) There is established
the Hawaii interagency council for transit-oriented development, which shall be
an advisory body exempt from section 26-34, to coordinate and facilitate state
agency transit-oriented development planning, and facilitate consultation and
collaboration between the State and the counties on transit-oriented
development initiatives. The Hawaii interagency
council for transit-oriented development shall be established within the
department of business, economic development, and tourism for administrative
purposes.
(b) The Hawaii interagency council for transit-oriented development shall:
(1) Serve as the State's transit-oriented development planning and policy development entity with representation from state and county government and the community;
(2) Formulate and
advise the governor on the implementation of a strategic plan to [address]
plan for and implement transit-oriented development projects, including [mixed
use] mixed-use and affordable for-sale and rental housing
projects, on [state] lands in county-designated transit-oriented
development areas in each county;
(3) Facilitate the acquisition of funding and resources for state and county transit-oriented development programs, including affordable for-sale and rental housing projects, on state and county lands;
(4) Monitor the preparation and conduct of plans and studies to facilitate implementation of state transit-oriented development plans prepared pursuant to this section, including but not limited to the preparation of site or master plans and implementation plans and studies;
(5) Review all capital
improvement project requests to the legislature for transit-oriented
development projects, including [mixed use] mixed-use and
affordable for-sale and rental housing projects, on [state] lands
within county-designated transit-oriented development [zones] areas
or within a one-half-mile radius of public transit stations, if a county has
not designated transit-oriented development zones;
(6) Recommend policy, regulatory, and statutory changes, and identify resource strategies for the successful execution of the strategic plan;
(7) Assemble accurate fiscal and demographic information to support policy development and track outcomes;
(8) Consider collaborative transit-oriented development initiatives of other states that have demonstrated positive outcomes; and
(9) Report annually to the governor, the legislature, and the mayor of each county on the progress of its activities, including formulation and progress on the strategic plan no later than twenty days prior to the convening of each regular session.
(c) The strategic plan developed by the Hawaii interagency council for transit-oriented development shall:
(1) Coordinate with the counties on transit-oriented development;
(2) For each county,
compile an inventory of state, county, and [private sector] private-sector
transit-oriented development projects lacking infrastructure, identifying the
type of infrastructure each project lacks, and the approximate time frame when
additional capacity is needed;
(3) Prioritize
the development of transit-oriented development projects, including [mixed
use] mixed-use and affordable for-sale and rental housing
projects, on state and county lands;
(4) Identify financing
and prioritize state financing for the public infrastructure, facility, and
service investments required to support transit-oriented development, [mixed
use,] mixed-use, and affordable for-sale and rental housing [project
plans;] in county-designated transit-oriented development areas; [and]
(5) Encourage and
promote partnerships between public and private entities to identify, renovate,
and secure affordable housing options on state and county lands within
county-designated transit-oriented development areas or within a one-half-mile
radius of public transit stations, if a county has not designated
transit-oriented development [zones.] areas; and
(6) Delineate for each county, county-designated transit-oriented development areas within which transit-rich, pedestrian-oriented development is desired and investment in transit-oriented development and supporting infrastructure is to be directed.
(d) For the purposes of this part and implementation of the strategic plan statewide:
"County-designated transit-oriented development area" or "county-designated transit-oriented development zone" means a geographic area designated by a county for transit-oriented development by an adopted ordinance, plan, or resolution, and delineated in the strategic plan pursuant to this section. These areas shall generally consist of lands within a one-half-mile radius of a transit hub or transit station but may extend further when there is state and county agreement about the extent of the transit-oriented development area.
"Transit-oriented development" means the development of compact, dense, walkable, pedestrian-oriented, mixed-use neighborhoods centered around transit stations or transit hubs of public transit systems. Transit-oriented development features a mix of uses, such as housing, office, retail, civic and institutional, and other services and amenities at densities that support transit ridership and walkability.
"Transit-oriented development project" means a development project with a medium- to high-density mix of uses, such as housing, office, retail, and other amenities, that is designed to promote walkability and safe and convenient access to transit services. Transit-oriented development projects shall be located within geographic areas designated as transit-oriented development areas by the county."
SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Transit-oriented Development; Counties; Rental Housing Revolving Fund
Description:
Establishes what constitutes transit-oriented development and incentivizes development in county-designated transit-oriented development areas or zones. Prioritizes the allocation of a minimum percentage of the Rental Housing Revolving Fund for certain mixed-income rental housing projects or units.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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|---|---|
| Jun 3, 2025 | Act 159, on 06/03/2025 (Gov. Msg. No. 1259). |
| Jun 3, 2025 | Act 159, 06/03/2025 (Gov. Msg. No. 1259). |
| May 1, 2025 | Transmitted to Governor. |
| May 2, 2025 | Received notice of passage on Final Reading in House (Hse. Com. No. 821). |
| May 1, 2025 | Received notice of Final Reading (Sen. Com. No. 888). |
| Apr 30, 2025 | Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and Representative(s) Cochran excused (1). |
| Apr 30, 2025 | Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none. |
| Apr 25, 2025 | 48 Hrs. Notice (as amended CD 1) 04-30-25 |
| Apr 25, 2025 | Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 234). |
| Apr 25, 2025 | Forty-eight (48) hours notice Wednesday, 04-30-25. |
| Apr 25, 2025 | Reported from Conference Committee (Conf Com. Rep. No. 234) as amended in (CD 1). |
| Apr 25, 2025 | The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Chang, Inouye, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Apr 25, 2025 | The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Evslin, Hashem, Miyake; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Muraoka. |
| Apr 25, 2025 | Received notice of change in Senate conferees (Sen. Com. No. 882). |
| Apr 25, 2025 | Senate Conferees Changed: Senator Kanuha added as Co-Chair. Senator Hashimoto discharged as Co-Chair. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 4:30 PM; Conference Room 225. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 3:30 PM; Conference Room 016. |
| Apr 24, 2025 | Conference committee meeting to reconvene on 04-25-25 10:30AM; Conference Room 224. |
| Apr 23, 2025 | Conference committee meeting to reconvene on 04-24-25 10:30AM; Conference Room 224. |
| Apr 22, 2025 | Bill scheduled for Conference Committee Meeting on Wednesday, 04-23-25 10:32AM in conference room 224. |
| Apr 22, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 796). |
| Apr 21, 2025 | House Conferees Appointed: Evslin, Hashem, Miyake Co-Chairs; Muraoka. |
| Apr 21, 2025 | Received notice of Senate conferees (Sen. Com. No. 847). |
| Apr 21, 2025 | Senate Conferees Appointed: Chang Chair; Inouye, Hashimoto Co-Chairs; Fevella. |
| Apr 8, 2025 | Received notice of disagreement (Hse. Com. No. 559). |
| Apr 4, 2025 | House disagrees with Senate amendment (s). |
| Apr 3, 2025 | Returned from Senate (Sen. Com. No. 563) in amended form (SD 1). |
| Apr 3, 2025 | Report Adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 2, 2025 | One Day Notice 04-03-25. |
| Apr 2, 2025 | Reported from WAM (Stand. Com. Rep. No. 1525) with recommendation of passage on Third Reading. |
| Mar 28, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Lee, C.. |
| Mar 25, 2025 | The committee(s) on WAM will hold a public decision making on 03-28-25 10:02AM; Conference Room 211 & Videoconference. |
| Mar 21, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Mar 21, 2025 | Reported from HOU/WTL (Stand. Com. Rep. No. 1311) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Mar 18, 2025 | The committee(s) on WTL recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WTL were as follows: 4 Aye(s): Senator(s) Inouye, Elefante, Chang, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey. |
| Mar 18, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 4 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Mar 12, 2025 | The committee(s) on HOU/WTL has scheduled a public hearing on 03-18-25 1:05PM; Conference Room 225 & Videoconference. |
| Mar 6, 2025 | Referred to HOU/WTL, WAM. |
| Mar 6, 2025 | Passed First Reading. |
| Mar 6, 2025 | Received from House (Hse. Com. No. 367). |
| Mar 4, 2025 | Passed Third Reading with Representative(s) Belatti, Chun, Lamosao voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate. |
| Feb 28, 2025 | Reported from FIN (Stand. Com. Rep. No. 1123), recommending passage on Third Reading. |
| Feb 25, 2025 | The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Kitagawa, Ward. |
| Feb 21, 2025 | Bill scheduled to be heard by FIN on Tuesday, 02-25-25 10:00AM in House conference room 308 VIA VIDEOCONFERENCE. |
| Feb 14, 2025 | Report adopted; referred to the committee(s) on FIN with none voting aye with reservations; Representative(s) Pierick voting no (1) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4). |
| Feb 14, 2025 | Reported from WAL (Stand. Com. Rep. No. 715), recommending referral to FIN. |
| Feb 13, 2025 | The committee on WAL recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 8 Ayes: Representative(s) Hashem, Lamosao, Belatti, Ichiyama, Iwamoto, Morikawa, Shimizu, Souza; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Poepoe, Woodson. |
| Feb 10, 2025 | Bill scheduled to be heard by WAL on Thursday, 02-13-25 9:30AM in House conference room 411 VIA VIDEOCONFERENCE. |
| Feb 4, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on WAL with none voting aye with reservations; Representative(s) Pierick voting no (1) and Representative(s) Cochran, Kong, Ward excused (3). |
| Feb 4, 2025 | Reported from HSG (Stand. Com. Rep. No. 137) as amended in HD 1, recommending passage on Second Reading and referral to WAL. |
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka; Ayes with reservations: none; 1 Noes: Representative(s) Pierick; and 1 Excused: Representative(s) Cochran. |
| Jan 27, 2025 | Bill scheduled to be heard by HSG on Wednesday, 01-29-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE. |
| Jan 27, 2025 | Referred to HSG, WAL, FIN, referral sheet 4 |
| Jan 23, 2025 | Introduced and Pass First Reading. |
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Date
|
Description
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Location
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Votes
|
|
|---|---|---|---|---|
| Apr 30, 2025 | Final Reading | House Floor |
Passed |
|
| Apr 30, 2025 | Final Reading | Senate Floor |
Passed |
|
| Apr 3, 2025 | Third Reading | Senate Floor |
Passed |
|
| Mar 28, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Ways and Means |
Passed |
|
| Mar 18, 2025 | The committee(s) on WTL recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Water and Land |
Passed |
|
| Mar 18, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Housing |
Passed |
|
| Mar 4, 2025 | Third Reading | House Floor |
Passed |
|
| Feb 25, 2025 | The committee on FIN recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Finance |
Passed |
|
| Feb 13, 2025 | The committee on WAL recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Water & Land |
Passed |
|
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
|
Position
|
Date
|
|---|---|---|
| AARP Hawaiʻi | ** Support | |
| Co Pegg | *** Support | Feb 12, 2025 |
| Department of Hawaiian Home Lands | ** Support | |
| Grassroot Institute of Hawaii | ** Support | |
| Hawaii Appleseed Center for Law and Economic Justice | ** Support | |
| Hawaii Housing Finance and Development Corporation | *** Support | Mar 27, 2025 |
| Hawaiian Homes Commission | *** Support | Mar 18, 2025 |
| Hawaii Children's Action Network Speaks! | ** Support | |
| Hawaiʻi YIMBY | ** Support | |
| Holomua Collaborative | ** Support | |
| Housing Hawaiʻi's Future | ** Support | |
| Oahu Metropolitan Planning Organization | ** Support | |
| Office of Planning and Sustainable Development | ** Support |
CONFERENCE COMMITTEE REP. NO. 234
Honolulu, Hawaii
, 2025
RE: H.B. No. 1409
H.D. 1
S.D. 1
C.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madam and Sir:
Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1409, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TRANSIT-ORIENTED DEVELOPMENT,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this Act is to:
(1) Amend the funding priorities of the Rental Housing Revolving Fund to incentivize development in areas that satisfy transit-supportive density requirements;
(2) Allocate a minimum percentage of the Rental Housing Revolving Fund for certain mixed-income rental housing projects;
(3) Require the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements; and
(4) Require the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate transit-oriented development areas for each county.
Your Committee on Conference has amended this measure by:
(1) Deleting language that would have amended the funding priorities of the Rental Housing Revolving Fund;
(2) Establishing a Mixed-Income Subaccount within the Rental Housing Revolving Fund to finance certain projects, including those located in transit-oriented developments, instead of allocating a minimum percentage of the Rental Housing Revolving Fund for certain mixed-income rental housing projects, and sunsetting the Subaccount on June 30, 2030;
(3) Changing the effective date to upon approval; and
(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1409, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1409, H.D. 1, S.D. 1, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE SENATE |
|
ON THE PART OF THE HOUSE |
|
____________________________ STANLEY CHANG Chair |
|
____________________________ LUKE A. EVSLIN Co-Chair |
|
____________________________ LORRAINE R. INOUYE Co-Chair |
|
____________________________ MARK J. HASHEM Co-Chair |
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____________________________ DRU KANUHA Co-Chair |
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____________________________ TYSON K. MIYAKE Co-Chair |
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STAND. COM. REP. NO. 1525
Honolulu, Hawaii
RE: H.B. No. 1409
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 1409, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TRANSIT-ORIENTED DEVELOPMENT,"
begs leave to report as follows:
The purpose and intent of this measure is to encourage development near public transportation hubs.
Specifically, this measure:
(1) Amends the funding priorities of the rental housing revolving fund to incentivize development in areas that satisfy transit-supportive density requirements;
(2) Allocates a minimum percentage of the rental housing revolving fund for certain mixed-income rental housing projects;
(3) Requires the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements; and
(4) Requires the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate transit-oriented development areas for each county.
Your Committee received written comments in support of this measure from the Department of Hawaiian Home Lands, Hawaii Housing Finance and Development Corporation, Office of Planning and Sustainable Development, Oahu Metropolitan Planning Organization, Hawaii YIMBY, Grassroot Institute of Hawaii, AARP Hawaii, Holomua Collaborative, Housing Hawai`i's Future, Church of the Crossroads, Hawai`i Children's Action Network Speaks!, Hawaii Appleseed Center for Law and Economic Justice, and one individual.
Your Committee received written comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu.
Your Committee finds that transit-oriented development districts are an efficient use of land because the districts promote higher-density development near public transportation infrastructure, which allows the value of public investments to be maximized. Your Committee further finds that encouraging development near public transit infrastructure increases public transit ridership, reduces dependency on private automobiles, and lowers greenhouse gas emissions.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1409, H.D. 1, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
|
|
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 1311
Honolulu, Hawaii
RE: H.B. No. 1409
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Housing and Water and Land, to which was referred H.B. No. 1409, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TRANSIT-ORIENTED DEVELOPMENT,"
beg leave to report as follows:
The purpose and intent of this measure is to:
(1) Amend the funding priorities of the Rental Housing Revolving Fund to incentivize development in areas that satisfy transit-supportive density requirements;
(2) Allocate a minimum percentage of Rental Housing Revolving Fund moneys for certain mixed-income rental housings projects;
(3) Require the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements; and
(4) Require the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate county-designated transit-oriented development areas for each county.
Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands, Office of Planning and Sustainable Development, Hawaii Housing Finance and Development Corporation, Oahu Metropolitan Planning Organization, AARP Hawaiʻi, Holomua Collaborative, Housing Hawaiʻi's Future, Grassroot Institute of Hawaii, Hawaiʻi YIMBY, Hawaii Appleseed Center for Law and Economic Justice, and four individuals.
Your Committees received comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu.
Your Committees find that transit-oriented development allows individuals and families to live close to major transportation hubs, which lowers the overall cost of transportation, reduces traffic congestion, and improves accessibility to local communities and businesses. Additionally, transit-oriented development encourages healthier lifestyle choices such as walking, cycling, and other forms of physical activity. As the State seeks to expand its housing inventory, high-density transit-oriented development offers an opportunity for the creation of walkable communities that prioritize residents, while ensuring that the State can meet its climate and energy goals. Therefore, this measure encourages the creation of vibrant communities statewide while addressing the State's existing housing shortage.
Your Committees have amended this measure by:
(1) Changing the percentage of moneys in the fund to be prioritized for mixed-income rental projects or units in a mixed-income rental project from at least fifty-one percent to an unspecified percentage;
(2) Specifying that the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development shall delineate for each county transit-oriented development areas, rather than county-designated transit-oriented development areas;
(3) Clarifying the definition of "county-designated transit-oriented development area" to specify that actual boundaries may differ under specific circumstances;
(4) Amending section 1 to reflect its amended purpose;
(5) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(6) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the records of votes of the members of your Committees on Housing and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1409, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1409, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Housing and Water and Land,
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________________________________ LORRAINE R. INOUYE, Chair |
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________________________________ STANLEY CHANG, Chair |
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STAND. COM. REP. NO. 1123
Honolulu, Hawaii
, 2025
RE: H.B. No. 1409
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 1409, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TRANSIT-ORIENTED DEVELOPMENT,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Amend the funding priorities of the Rental Housing Revolving Fund to incentivize development in areas that satisfy transit-supportive density requirements;
(2) Allocate a minimum percentage of the Rental Housing Revolving Fund for certain mixed-income rental housing projects;
(3) Require the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements; and
(4) Require the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to delineate county-designated transit-oriented development areas for each county.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Hawaii Children's Action Network Speaks!; Hawaii Appleseed Center for Law & Economic Justice; Hawaii YIMBY; Holomua Collaborative; Housing Hawaii's Future; Grassroot Institute of Hawaii; and two individuals. Your Committee received comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1409, H.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ KYLE T. YAMASHITA, Chair |
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STAND. COM. REP. NO. 715
Honolulu, Hawaii
, 2025
RE: H.B. No. 1409
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Water & Land, to which was referred H.B. No. 1409, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TRANSIT-ORIENTED DEVELOPMENT,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Amend the funding priorities of the Rental Housing Revolving Fund to incentivize development in areas that satisfy transit-supportive density requirements;
(2) Allocate a minimum percentage of the Rental Housing Revolving Fund for certain mixed-income rental housing projects;
(3) Require the Transit-Oriented Development Infrastructure Improvement District Board to consider the infrastructure needs of transit-supportive density requirements; and
(4) Require the strategic plan developed by the Hawaii Interagency Council for transit-oriented development to delineate county-designated transit-oriented development areas for each county.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Holomua Collaborative; Hawaii Appleseed Center for Law & Economic Justice; Hawaii YIMBY; Oahu Metropolitan Planning Organization; Grassroot Institute of Hawaii; Housing Hawaii's Future; and numerous individuals. Your Committee received comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu.
Your Committee finds that transit-oriented development districts present a critical opportunity for efficient land use by promoting higher-density development near public transit infrastructure. Your Committee further finds that the underutilization of land in transit-oriented development districts is partially due to restrictive development standards. Your Committee believes that promoting the development of high-density developments, and particularly affordable housing, near transit hubs will ensure the economic and environmental benefits of the State's investments in county-designated transit-oriented development districts are fully utilized.
As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1409, H.D. 1, and recommends that it be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Water & Land,
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____________________________ MARK J. HASHEM, Chair |
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STAND. COM. REP. NO. 137
Honolulu, Hawaii
, 2025
RE: H.B. No. 1409
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Housing, to which was referred H.B. No. 1409 entitled:
"A BILL FOR AN ACT RELATING TO TRANSIT-ORIENTED DEVELOPMENT,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Define transit-oriented development for purposes of state implementation of transit-oriented development;
(2) Incentivize development in county-designated transit-oriented development areas; and
(3) Allocate a minimum percentage of the Rental Housing Revolving Fund for certain mixed-income rental housing projects or units.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Hawaii Appleseed Center for Law & Economic Justice; Hawaiʻi YIMBY; Grassroot Institute of Hawaii; Holomua Collaborative; and Housing Hawaii's Future. Your Committee received comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu and one individual.
Your Committee finds that the State's housing crisis is exacerbated by a significant demand-supply imbalance, particularly in urban areas. Your Committee further finds that transit‑oriented development offers a critical solution by promoting higher-density housing near public transit. Transit-oriented development not only enhances public transit ridership and reduces greenhouse gas emissions, but also supports economic equity by improving access to housing, employment, and essential services for low- and moderate-income households. This measure encourages strategic investment in regional infrastructure and the removal of restrictive development standards that will foster vibrant, walkable communities and reduce the urban sprawl.
Your Committee has amended this measure by:
(1) Deleting language that would have required development in a county-designated transit-oriented development zone to have priority for financing under certain circumstances and instead including these requirements under the definition of "transit-supportive density";
(2) Clarifying the types of mixed-income rental projects in an area that satisfies transit-supportive density requirements that receive prioritized funding from the Rental Housing Revolving Fund;
(3) Changing the effective date to July 1, 3000, to encourage further discussion; and
(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1409, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1409, H.D. 1, and be referred to your Committee on Water & Land.
Respectfully submitted on behalf of the members of the Committee on Housing,
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____________________________ LUKE A. EVSLIN, Chair |
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Date
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Testimony PDF
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| Mar 27, 2025 | HB1409_SD1_TESTIMONY_WAM_03-28-25_.PDF |
| Mar 18, 2025 | HB1409_HD1_TESTIMONY_WTL-HOU_03-18-25_.PDF |
| Feb 25, 2025 | HB1409_HD1_TESTIMONY_FIN_02-25-25_.PDF |
| Feb 12, 2025 | HB1409_HD1_TESTIMONY_WAL_02-13-25_.PDF |
| Jan 29, 2025 | HB1409_TESTIMONY_HSG_01-29-25_.PDF |
Discussed in Hearing
32SEC
Conference Committee
35SEC
Conference Committee
47SEC
Conference Committee
22SEC
Senate Floor
2MIN
Senate Standing Committee on Housing
2MIN
Senate Standing Committee on Labor and Technology
2MIN
Senate Standing Committee on Water and Land
4MIN
