HB 1484: RELATING TO TRANSIT ORIENTED DEVELOPMENT.

Current Status:

Failed

(2025-12-08: Carried over to 2026 Regular Session.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Final Decking

Enacted

Version:

Establishes the Transit-Oriented Community Improvement Partnership within the Department of Transportation. Establishes the Community Improvement Revolving Fund. Requires annual reports to the Legislature. Appropriates funds. Effective 7/1/3000. (HD1)

Version:

HB1484 HD1

HOUSE OF REPRESENTATIVES	H.B. NO.	1484
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
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 the two highest costs contributing to the cost of living are housing and transportation. By broadening the State's focus to develop affordable communities, rather than affordable housing, the cost of a single unit can be reduced by as much as $75,000, and the cost of transportation for families living there can be reduced by $15,000 or more per year.

Units in many recent housing projects have become prohibitively expensive. On average, about $50,000 is added to the cost of a unit per parking stall built for it, and as much as $25,000 per unit for building amenities. Numerous cities have begun separating and aggregating parking stalls and building amenities, lowering the cost of each unit produced by as much as $75,000.

The legislature further finds that building separate parking garages allows residents in an area to lease space or use a parking stall as may be needed, rather than having the cost forced upon them through their mortgage. This is important considering Hawaii's next generation is driving considerably less than previous generations. Since 2000, the percentage of eighteen- to twenty-nine-year-olds with driver's licenses has plummeted nearly forty per cent. Many desire to live in walkable, bikeable communities where they can get around without the average costly expense of $10,000 per year for a car.

Additionally, relieving housing developers of the burden of building excessive amenities and gathering spaces in each building lowers the cost of living. Aggregating public spaces for open plazas, gathering spaces, parks, and green spaces available to everyone creates and fosters a better sense of community, opportunities for better mixed-use commercial, retail, and food options, and at a lower overall cost.

The legislature believes that tasking an agency to plan for and build community amenities such as parks, public spaces, markets, and other amenities that make communities livable, desirable, and lower the cost of housing should be a priority, not an afterthought. This method can reduce the cost of living, and equally importantly improve quality of life and mental health and well-being for residents of all ages.

The legislature additionally finds that incorporating mixed-use commercial and retail space into the ground floors of buildings not only puts daily needs in walking distance of residents, but also provides lease rent and revenue generating opportunities that can help pay for maintenance, security, and similar expenses to lower maintenance fees and cost of living for residents in each building by thousands of dollars per year.

The legislature asserts that instead of focusing on just building affordable housing, Hawaii needs an agency tasked with the full responsibility of building affordable communities, and filling the gaps in recent development projects to ensure communities are being built with the parks, public spaces, and everything the public tends to desire and need.

Accordingly, the purpose of this Act is to establish the transit-oriented community improvement partnership that shall:

(1) Coordinate transit-oriented community development to ensure communities are planned and built with full amenities and infrastructure needed for success;

(2) Build missing amenities, parking, and other needs to lower the cost of housing and improve the quality of life in transit-oriented communities; and

(3) Establish programs and support that communities desire such as community improvement districts to keep public spaces safe and clean and provide opportunities and pathways for local economic development.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

transit-oriented community improvement partnership

§ -1 Definitions. As used in this chapter:

"Board" means the board of directors of the transit-oriented community improvement partnership.

"Coordinating entrepreneur" means a qualified person capable of organizing, operating, and assuming the risk for enterprises, including securing land and seed capital, developing, or managing commercial or recreational facilities or projects, arranging concession agreements, supplying materials, maintaining equipment and infrastructure, and providing for the processing and marketing of services or products.

"Coventure" means an investment by the partnership in qualified securities of an enterprise in which a substantial investment is also being made or has been made by a professional investor to provide seed capital to an enterprise. A guarantee by the partnership of qualified securities provided by a professional investor shall be classified as a coventure. An investment made by the partnership, which is a direct investment, may later be classified as a coventure upon an investment by a professional investor.

"Development rights" means the rights permitted under a law or an ordinance relating to permitted uses of a property, the density or intensity of use, and the maximum height and size of improvements thereon.

"Direct investment" means an investment by the partnership in qualified securities of an enterprise where no investment is being or has been made by a professional investor to provide seed capital to the enterprise.

"Enterprise" means a business with its principal place of business in Hawaii, which is or proposes to be engaged in recreational and commercial area development, development of new value-added products, enhancement of existing recreational or commercial commodities, and the application of existing recreation or commercial areas and appurtenant facilities to productive uses.

"Fund" means the community improvement revolving fund.

"Partnership" means the transit-oriented community improvement partnership.

"Professional investor" means any bank, bank holding company, savings institution, farm credit institution, trust company, insurance company, investment company registered under the federal Investment Company Act of 1940, financial services loan company, pension or profit-sharing trust or other financial institution or institutional buyer, licensee under the federal Small Business Investment Act of 1958, as amended, or any person, partnership, or other entity of whose resources, a substantial amount is dedicated to investing in securities or debt instruments, and whose net worth exceeds $250,000.

"Project" means a specific undertaking, improvement, or system consisting of work or improvement, including personal property or any interest therein acquired, constructed, reconstructed, rehabilitated, improved, altered, or repaired by the partnership.

"Project facility" includes improvements, roads and streets, utility and service corridors, utility lines where applicable, water and irrigation systems, lighting systems, security systems, sanitary sewerage systems, and other community facilities where applicable.

"Qualified person" means any individual, corporation, partnership, or public agency possessing the competence, expertise, experience, and resources, including financial, personnel, and tangible qualifications, as may be deemed desirable by the partnership in administering this chapter.

"Qualified security" means any note, stock, treasury stock bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, pre-organization certificate of subscription, transferable share, investment contract, certificate of deposit for a security, certificate of interest or participation in a patent or patent application, or in royalty or other payments under a patent or application, or, in general, any interest or instrument commonly known as a "security" or any certificate for, receipt for, or option, warrant, or right to subscribe to or purchase any of the foregoing.

"Revenue bonds" means bonds, notes, or other evidence of indebtedness of the partnership issued to finance any project facility.

"Seed capital" means financing that is provided for the development, refinement, and commercialization of a product or process and other working capital needs.

"Transit-oriented community improvement area" means those lands within one half of a mile of a rail line design.

"Trustee" means a national or state bank or trust company, within or outside the State, that enters into a trust indenture.

"Trust indenture" means an agreement by and between the partnership and a trustee that sets forth the duties of the trustee with respect to the revenue bonds, the security thereof, and other provisions as may be deemed necessary or convenient by the partnership to secure the revenue bonds.

"Value-added" means any activity that increases, by means of development or any other means, the value of public lands.

"Walkable community" means a primarily residential area with mixed uses appurtenant to the residences wherein the services, commodities, and amenities necessary for residents to enjoy a complete and fulfilled life are within walking or bike riding distance along protected or grade-separated paths with minimal conflicts with other modes of transportation, for both bicycles and pedestrians, with convenient access to mass transit.

§ -2 Transit-oriented community improvement partnership; established. (a) There is established the transit-oriented community improvement partnership, that shall be a public body corporate and politic and an instrumentality and agency of the State. The partnership shall be headed by the board. The partnership shall be placed within the department of transportation for administrative purposes only.

(b) The partnership shall:

(1) Plan, coordinate, and administer programs and projects to develop meaningful infrastructure, housing, and amenities to create walkable communities along transit-oriented corridors for working families that are affordable, livable, healthy, happy, equitable, and secure;

(2) Identify and designate each transit-oriented community improvement area, and may assist communities with individual projects as may be appropriate;

(3) Plan and coordinate with any stakeholders necessary, or negotiate with and seek support or concessions from any stakeholders as may be prudent, and develop and execute projects or enter into a public-private partnership to develop and execute projects, to provide for:

(A) Infrastructure for utilities including sewer, water, power, and similar needs;

(B) Transportation infrastructure; provided that the transportation infrastructure shall be designed to have the capacity to enable at least seventy per cent of all daily commutes to, from, and within the area to be safely and comfortably made by walking, biking, micro-mobility, or public transit, between common destinations, as well as for long-distance daily commuting without interruption pursuant to section 264-142 and shall include amenities such as rest stops, secure bicycle and micro-mobility device parking, emergency support stations with tools and other resources as may be appropriate;

(C) Public parking hubs of meaningful capacity, including charging for electric vehicles, within a reasonable distance of which the partnership may waive requirements for or limit the number of parking stalls required by the State or counties;

(D) Affordable housing and related infrastructure; provided that at a minimum, a majority of the ground floor frontage facing each street shall include commercial space;

(E) Public spaces of meaningful scale and access with an overall ratio of residents to public spaces and accessible natural green spaces that shall include:

(i) Public parks and gathering spaces;

(ii) Public spaces for hosting markets and events;

(iii) Natural areas with open green space and water for passive relaxation;

(iv) Public spaces for active recreation; and

(v) Public spaces for pet and animals;

(F) Facilities for public arts and culture that include:

(i) Public libraries;

(ii) Public works of art;

(iii) Galleries, museums, and exhibitions;

(iv) Spaces for performances and events;

(v) Accessible education and narratives on the history, culture, and people of the area; and

(vi) Flexible spaces and infrastructure for seasonal, rotating, and evolving programming and engagement;

(G) Space for local economic development and community empowerment; provided that the primary focus shall be assisting local residents, entrepreneurs, and brands, which shall include:

(i) Community-based economic development hubs and cooperative spaces such as public commercial kitchens, processing facilities, or similar work hubs available to the community and small businesses;

(ii) Cooperative commercial and retail locations capable of supporting and aggregating products and services from numerous small businesses;

(iii) Spaces for hosting micro-businesses such as food trucks, market stalls, and similar temporary business fronts;

(iv) Spaces for hosting growing small businesses in permanent micro or small commercial locations or rotating pop-up locations; and

(v) Spaces for hosting larger maturing businesses in regular food, retail, and commercial locations; and

(H) Opportunities for revenue generation from any facility, lease, program, or other means as may be appropriate to help fund the projects, programs, and operations of the partnership, with a focus on financially sustaining the communities the partnership was created to support; provided that any revenue generation shall be secondary to the primary mission of the partnership; and

(4) Address established and adopted goals of the State, including the Aloha+ challenge, sustainable development goals, and other statutory goals.

(1) Adopt rules pursuant to chapter 91 to:

(A) Establish and implement a community improvement district, to be governed by an approved independent entity with a board represented by stakeholders from the community with the purpose of providing additional services or improvements to the district; and

(B) Establish a fee mechanism to provide long-term funding for a community improvement district, subject to approval by a majority of stakeholders that it is designed to serve;

(2) Provide grant funding to support the establishment and up to one year of operations of a community improvement district;

(3) Establish regular communications to residents and businesses within a transit-oriented community improvement area, or other community as may be appropriate, to provide regular updates, information, or similar communication that builds relations and a sense of community amongst those living and working in the area. The partnership may designate or contract with another entity to carrier out this function; and

(4) Require all or a portion of commercial lease rent to be used to subsidize the cost of property maintenance, security, or similar needs for residents in the building.

§ -3 Board of directors. (a) The board shall consist of the following members:

(1) The director of finance, or the director's designee;

(2) The department of transportation multimodal transportation coordinator, or the coordinator's designee;

(3) The co-chairs of the Hawaii climate change mitigation and adaptation commission, or the co-chairs' designee;

(4) One member with history and expertise in affordable housing, to be appointed by the governor;

(5) One member with history and expertise in public spaces, to be appointed by the governor;

(6) One member with history and expertise in urban planning, to be appointed by the president of the senate; and

(7) One member with history and expertise in community-based economic development, to be appointed by the speaker of the house of representatives.

The chairs of the house of representatives and senate standing committees with jurisdiction over transportation and housing shall serve as ex-officio non-voting members.

(b) No member shall have a financial interest or conflict of interest in any project, parcel, business, or development located in the community improvement district.

(c) The term of office of the two voting members appointed by the speaker of the house of representatives and president of the senate shall be four years each.

(d) The board shall appoint an executive director, who shall serve at the pleasure of the board and be exempt from chapter 76. The salary of the executive director shall be set by the board.

(e) The board, through its executive director, may appoint officers, agents, and employees and:

(1) Prescribe their duties and qualifications; and

(2) Fix their salaries, without regard to chapter 76.

§ -4 Powers; generally. (a) Except as otherwise limited by this chapter, the partnership may:

(1) Sue and be sued;

(2) Have a seal and alter the same at its pleasure;

(3) Make and alter bylaws for its organization and internal management;

(4) Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its projects, operations, and properties;

(5) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(6) Carry out surveys, research, investigations, site visits, and similar examinations into technological, business, financial, consumer trends, and other aspects of affordable housing, transportation, walkable communities, public spaces, leisure or recreational land uses in the national and international community;

(7) Acquire or contract to acquire by grant or purchase:

(A) All privately owned real property or any interest therein and the improvements thereon, if any, that are determined by the partnership to be necessary or appropriate for its purposes under this chapter, including real property together with improvements, if any, in excess of that needed for use in cases where small remnants would otherwise be left or where other justifiable cause necessitates the acquisition to protect and preserve the contemplated improvements, or public policy demands the acquisition in connection with the improvements; and

(B) Encumbrances, in the form of leases, licenses, or otherwise, needed by the partnership or any state department or agency for public purposes; and the disposition of subdivided lots, house lots, apartments or other economic units, or economic development;

(8) Own, hold, improve, and rehabilitate any real, personal, or mixed property acquired; and sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber the same;

(9) By itself, or in partnership with qualified persons or other governmental agencies:

(A) Acquire, construct, reconstruct, rehabilitate, improve, alter, or repair any infrastructure or accessory facilities in connection with any project;

(B) Own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of, or encumber any project; and

(C) Develop or manage, by itself, or in partnership with qualified persons or other governmental agencies, any project that meets the purposes of this chapter;

(10) In cooperation with any governmental agency, or otherwise through direct investment or coventure with a professional investor or enterprise or any other person, or otherwise, acquire, construct, operate, and maintain public land facilities, including but not limited to leisure, recreational, commercial, residential, hotel, office space, and business facilities, at rates or charges determined by the partnership;

(11) Assist developmental, transit-oriented, recreational, and visitor industry related enterprises, or projects developed or managed by the partnership, by conducting detailed marketing analysis and developing marketing and promotional strategies to strengthen the position of those enterprises and to better exploit local, national, and international markets;

(12) Receive, examine, and determine the acceptability of applications of qualified persons for allowances or grants for the development of new recreation and community-related products, the expansion of established recreation and visitor industry or land development enterprises, and the altering of existing recreational, visitor industry related, or land development enterprises;

(13) Coordinate its activities with any federal or state programs;

(14) Grant options to purchase any project or to renew any lease entered into by the partnership in connection with any of its projects, on the terms and conditions it deems advisable;

(15) Provide advisory, consultative, training, and educational services and technical assistance to any person or partnership, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(16) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

(17) Accept gifts or grants in any form from any public agency or other source;

(18) Issue bonds to finance the cost of a project and provide for the security thereof, in the manner and pursuant to the procedure prescribed in this chapter;

(19) Subject to approval by the board, assume management responsibilities for transit centers, infrastructure, parks and water features;

(20) Recommend to the department of transportation and board of land and natural resources the purchase of any privately owned properties that may be appropriate for development; and

(21) Do all things necessary or proper to carry out the purposes of this chapter.

(b) Notwithstanding any provisions under subsection (a) to the contrary, the partnership shall not acquire, contract to acquire by grant or purchase, own, hold, sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber any real, personal, or mixed property that is owned by the department of transportation as of July 1, 2025, except as expressly provided in this chapter.

§ -5 Community improvement projects; development plans and implementation. (a) The partnership may develop and implement plans for community improvement projects where appropriate to create projects that meet the mission of the partnership.

(b) The partnership may enter into cooperative agreements with other stakeholders, and capabilities of the persons or agencies are deemed necessary and appropriate to execute the mission of the partnership.

(c) Notwithstanding any provisions of this chapter to the contrary, when leasing partnership-controlled land or facilities, the partnership may contract with a financial institution chartered under chapter 412 or a federal financial institution, as defined under section 412:1-109, that transacts business in the State to provide lease management services. For the purposes of this subsection, "lease management services" includes the collection of lease rent and any other moneys owed to the partnership related to the lease of land or facilities under the partnership's control.

(d) The partnership may amend the community improvement plans as may be necessary or appropriate.

§ -6 Project facility program. (a) The partnership may develop a project to identify necessary project facilities within a project area.

(b) Unless and except as otherwise provided by law, whenever the partnership undertakes, or causes to be undertaken, any project facility as part of a project, the cost of providing the project facilities may be assessed against the real property in the project area specially benefiting from the project facilities. Subject to the express written consent of the landowners directly affected, the partnership shall determine the properties that will benefit from the project facilities to be undertaken and may establish assessment areas that include the properties specially benefiting from the project facilities. The partnership shall fix the assessments against the real property specially benefited.

(c) Unless and except as otherwise provided by law, the partnership may adopt rules pursuant to chapter 91 to establish the method of undertaking and financing project facilities in a project area.

(d) Notwithstanding any other law to the contrary, in assessing real property for project facilities, the partnership shall assess the real property within a project area according to the special benefits conferred upon the real property by the project facilities. These methods may include an assessment on a frontage basis or according to the area of real property within a project area, or any other assessment method that assesses the real property according to the special benefit conferred, or any combination thereof. No assessment levied under this section against real property specially benefited under this chapter shall constitute a tax on real property within the meaning of any law.

(e) Notwithstanding any other law to the contrary, the partnership, at its discretion, may enter into any agreement with the county in which project facilities are located, to implement the purposes of this section.

(f) If all or a part of the project facilities to be financed through bonds by the partnership may be dedicated to the county in which the project facilities are to be located, the partnership shall ensure that the project facilities or applicable portions thereof are designed and constructed to meet county requirements.

§ -7 Approval of projects, plans, and programs. Every project, plan, and project facility program developed by the partnership shall be approved by the board.

(1) Constructing, acquiring, remodeling, furnishing, and equipping any project facility, including the acquisition of the site of the facility; or

(2) Acquiring non-public lands through purchase to sustain and preserve leisure or recreational enterprises within a contiguous geographic area.

(b) All revenue bonds shall be issued pursuant to part III of chapter 39, except as provided in this chapter.

(c) The revenue bonds shall be issued in the name of the partnership and not in the name of the State. The final maturity date of the revenue bonds may be any date not exceeding thirty years from the date of issuance.

§ -9 Revenue bonds; payment and security. (a) The revenue bonds shall be payable from and secured by the improvements to real properties specially benefited or improved and the assessments thereon, or by the revenues derived from the project facility for which the revenue bonds were issued, including revenue derived from insurance proceeds and reserve accounts, and earnings thereon.

(b) The partnership may pledge revenues derived from the project facility financed from the proceeds of the revenue bonds to the punctual payment of the principal, interest, and redemption premiums, if any, on the revenue bonds.

(c) The revenue bonds may be additionally secured by the pledge or assignment of the loans and other agreements or any note or other undertaking, obligation, or property held by the partnership to secure the loans.

(d) Any pledge made by the partnership shall create a perfected security interest in the revenues, moneys, or property pledged and thereafter received by the partnership, from and after the time that the financing statement with respect to the revenues, moneys, or property pledged and thereafter received are filed with the bureau of conveyances. Upon the filing, the revenues, moneys, or property pledged and thereafter received by the partnership shall immediately be subject to a lien of any pledge without any physical delivery thereof or having claims of any kind in tort, contract, or otherwise against the partnership, irrespective of whether the parties have notice thereof. This section shall apply to any financing statement filed on or after the effective date of this Act with the bureau of conveyances with respect to any pledge made to secure revenue bonds issued under this chapter.

§ -10 Revenue bonds; interest rate, price, and sale. (a) The revenue bonds issued pursuant to this chapter shall bear interest at a rate or rates and shall be payable on a date or dates, as the partnership determines.

(b) The partnership shall include the costs of undertaking the project facility for which the revenue bonds are issued in determining the principal amount of revenue bonds to be issued. In determining the cost of undertaking the project facility, the partnership may include:

(1) The cost of constructing, acquiring, remodeling, furnishing, and equipping the project facility, including the acquisition of the site of the facility;

(2) The cost of purchasing or funding loans or other agreements entered into for the project facility;

(3) The costs of studies and surveys;

(4) Insurance premiums;

(5) Underwriting fees;

(6) Financial consultant, legal, accounting, and marketing services incurred;

(7) Reserve account, trustee, custodian, and rating agency fees; and

(8) Any capitalized interest.

§ -11 Revenue bonds; investment of proceeds and redemption. Subject to any agreement with the holders of its revenue bonds, the partnership may:

(1) Invest moneys not required for immediate use, including proceeds from the sale of revenue bonds, in any investment in accordance with procedures prescribed in a trust indenture; and

(2) Purchase revenue bonds out of any fund or money of the partnership available therefor, and hold, cancel, or resell the revenue bonds.

§ -12 Revenue bonds; subaccounts. A separate subaccount shall be established for each project facility financed from the proceeds of the revenue bonds secured under the same trust indenture. Each subaccount shall be designated a project facility revenue bond subaccount and shall bear additional designation as the partnership deems appropriate to properly identify the fund.

§ -13 Trustee; designation, duties. (a) The partnership shall designate a trustee for each issue of revenue bonds secured under the same trust indenture.

(b) The trustee shall be authorized by the partnership to hold and administer the project facility revenue bond subaccount established pursuant to section -12, to receive and receipt for, hold, and administer the revenues derived by the partnership from the project facility for which the revenue bonds were issued, and to apply these revenues to the payment of the cost of:

(1) Undertaking the project facility;

(2) Administering and operating the proceedings providing for the issuance of the revenue bonds;

(3) The principal or interest on these bonds;

(4) The establishment of reserves; and

(5) Other purposes as may be authorized in the proceedings providing for the issuance of the revenue bonds.

(c) Notwithstanding section 39-68 to the contrary, the director of finance may appoint the trustee to serve as fiscal agent for the:

(1) Payment of the principal of and interest on the revenue bonds; and

(2) Purchase, registration, transfer, exchange, and redemption of the bonds.

(d) The trustee shall perform additional functions with respect to the payment, purchase, registration, transfer, exchange, and redemption of the bonds, as the director of finance may deem necessary, advisable, or expeditious, including the holding of the revenue bonds and coupons that have been paid and the supervision of the destruction thereof in accordance with applicable law.

(e) Nothing in this chapter shall limit or be construed to limit the powers granted to the director of finance in sections 36-3, 39-13, and 39-68(a), to appoint the trustee or others as fiscal agents, paying agents, and registrars for the revenue bonds or to authorize and empower those fiscal agents, paying agents, and registrars to perform the functions referred to in those sections.

§ -14 Trust indenture. (a) A trust indenture may:

(1) Contain covenants and provisions authorized by part III of chapter 39, and as may be deemed necessary or convenient by the partnership for the purposes of this chapter;

(2) Allow the partnership to pledge and assign to the trustee loans and other agreements related to the project facility, and the rights of the partnership thereunder, including the right to receive revenues thereunder and to enforce the provisions thereof; and

(3) Contain provisions deemed necessary or desirable by the partnership to obtain or permit, by grant, interest, subsidy, or otherwise, the participation of the federal government in the financing of the costs of undertaking the project facility.

(b) A trust indenture shall also contain provisions as to:

(1) The investment of the proceeds of the revenue bonds, the investment of any reserve for the bonds, the investment of the revenues of the project facility, and the use and application of the earnings from investments; and

(2) The terms and conditions upon which the holders of the revenue bonds or any portion of them or any trustee thereof may institute proceedings for the foreclosure of any loan or other agreement or any note or other undertaking, obligation, or property securing the payment of the bonds and the use and application of the moneys derived from the foreclosure.

§ -15 Transfer of public lands. (a) Notwithstanding chapter 171 or any provisions of this chapter to the contrary, the department of transportation may transfer, subject to the approval of the board of land and natural resources, development rights for lands under its jurisdiction to the partnership for purposes of this chapter; provided that:

(1) If the property to be developed is two hundred acres or less and the board of land and natural resources approves the transfer of development rights appurtenant to the property to be developed, the development rights shall be transferred to the partnership;

(2) If the property to be developed is greater than two hundred acres and the board of land and natural resources approves the transfer of development rights appurtenant to the property to be developed, the development rights shall be transferred to the partnership, subject to disapproval by the legislature by two-thirds vote of either the senate or the house of representatives or by majority vote of both houses in any regular or special session next following the date of transfer; and

(3) The size of any property to be developed shall be deemed to be conclusively determined by the state surveyor.

(b) If the partnership finds that state lands under the control and management of the department of transportation or other public agencies are suitable for its purposes under this chapter, the partnership may lease the lands from the agency having the control and management of those lands, upon the terms and conditions as may be agreed to by the parties.

(c) Notwithstanding the provisions of subsection (b) to the contrary, no public lands shall be leased to the partnership if the lease would impair any covenant between the State or any county, or any department or board thereof, and the holders of bonds issued by the State or the county, or any department or board thereof.

§ -16 Community improvement revolving fund; established; use of partnership funds. (a) There is established the community improvement revolving fund, to which shall be credited any state appropriations to the fund, any sums collected as a result of bonds issued pursuant to this chapter, any revenues generated from the facilities, or other moneys made available to the fund, to be expended as directed by the partnership.

(b) Notwithstanding any provisions of this chapter to the contrary, revenues, income, and receipts derived from the project facilities shall be set apart in a separate subaccount and applied solely for the following purposes:

(1) The principal and interest on the bonds;

(2) The cost of administering, operating, and maintaining the project not to exceed fifteen per cent of the sums collected, net of principal and interest payments, on account of assessments and interest for any specific project facility;

(3) The establishment of program reserves not to exceed eighty-five per cent of the sums collected, net of principal and interest payments, on account of assessments and interest for any specific project facility; provided that accumulated reserves shall be credited to and become a part of the special land and development fund, established under section 171-19, except in the case of a specific project facility that is situated in part or wholly within a small boat harbor, in which case those accumulated reserves attributable to the portions of the facility situated in the small boat harbor shall be credited to and become a part of the boating special fund, established under section 248-8; and

(4) Other purposes as may be authorized in the proceedings providing for the issuance of the bonds.

If any surplus remains in any subaccount after the payment of the bonds chargeable against that subaccount, the surplus shall be credited to and become a part of the fund, except as provided in paragraph (3). Notwithstanding any other law to the contrary, moneys in the fund may be used to make up any deficiencies in the subaccount.

(c) The partnership shall hold the fund in an account or accounts separate from other funds. Except as otherwise provided in subsection (b), the partnership shall invest and reinvest the fund and the income thereof to:

(1) Purchase qualified securities issued by enterprises for the purpose of raising seed capital; provided that the investment shall comply with the requirements of this chapter;

(2) Make grants, loans, and provide other monetary forms of assistance necessary to carry out the purposes of this chapter; and

(3) Purchase securities as may be lawful investments for fiduciaries in the State.

All appropriations, grants, contractual reimbursements, and other funds not designated for this purpose may be used to pay for the proper general expenses and to carry out the purposes of the partnership.

(d) The partnership shall purchase qualified securities issued by an enterprise only after:

(1) Receiving:

(A) An application from the enterprise containing a business plan that is consistent with the business and public land development plan, including a description of the enterprise and its management, product, and market;

(B) A statement of the amount, timing, and projected use of the capital required;

(C) A statement of the potential economic impact of the enterprise, including the number, location, and types of jobs expected to be created; and

(D) Any other information as the partnership shall require;

(2) Determining, based upon the application submitted, that:

(A) The proceeds of the investment will be used only to cover the seed capital needs of the enterprise, except as authorized in this section;

(B) The enterprise has a reasonable chance of success;

(C) The enterprise has the reasonable potential to create employment within the State and offers employment opportunities to residents;

(D) The coordinating entrepreneur and other founders of the enterprise have already made or are prepared to make a substantial financial and time commitment to the enterprise;

(E) The securities to be purchased are qualified securities;

(F) There is a reasonable possibility that the partnership will recoup at least its initial investment; and

(G) Binding commitments have been made to the partnership by the enterprise for adequate reporting of financial data to the partnership, which shall include a requirement for an annual or other periodic audit of the books of the enterprise, and for control by the partnership that the partnership considers prudent over the management of the enterprise, in order to protect the investment of the partnership, including membership on the board of directors of the enterprise, ownership of voting stock, input in management decisions, and the right of access to the financial and other records of the enterprise; and

(3) Entering into a binding agreement with the enterprise concerning the manner of payback by the enterprise of the funds advanced, granted, loaned, or received from the partnership. The manner of payback may include the payment of dividends, returns from the public sale of corporate securities or products, royalties, and other methods of payback acceptable to the partnership. In determining the manner of payback the partnership shall establish a rate of return or rate of interest to be paid on any investment, loan, or grant of partnership funds under this section.

(e) If the partnership makes a direct investment, the partnership shall also find that a reasonable effort has been made to find a professional investor to make an investment in the enterprise as a coventure, and that the effort was unsuccessful. The findings, when made by the partnership, shall be conclusive.

(f) The partnership shall make investments in qualified securities issued by an enterprise in accordance with the following limits:

(1) No more than $500,000 shall be invested in the securities of any one enterprise, except that more than a total of $500,000 may be invested in the securities of any one enterprise if the partnership finds, after its initial investment, that additional investments in that enterprise are required to protect the initial investment of the partnership, and the other findings set forth in subsection (d) and this subsection are made as to the additional investment;

(2) The partnership shall not own securities representing more than forty-nine per cent of the voting stock of any one enterprise at the time of purchase by the partnership after giving effect to the conversion of all outstanding convertible securities of the enterprise, except that if a severe financial difficulty of the enterprise occurs, threatening the investment of the partnership in the enterprise, a greater percentage of those securities may be owned by the partnership; and

(3) No more than fifty per cent of the assets of the partnership shall be invested in direct investments at any time.

(g) No investment, loan, grant, or use of corporate funds for the purposes of this chapter shall be subject to chapter 42F.

§ -17 Exemption from taxation. The partnership shall not be required to pay state taxes of any kind.

§ -18 Exemption from requirements. Notwithstanding section 171-42 and except as otherwise provided in this chapter, projects pursuant to this chapter shall be exempt from all statutes, ordinances, charter provisions, and rules of any government agency relating to special improvement district assessments or requirements; land use, zoning, and construction standards for development, and improvement of land; provided that the community improvement planning activities of the partnership shall be coordinated with the county planning departments and the county land use plans, policies, and ordinances.

§ -19 Annual report. The partnership shall submit to the governor and legislature a complete and detailed report of its plans and activities no later than twenty days prior to the convening of each regular session."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the community improvement revolving fund established under section -16.

SECTION 4. There is appropriated out of the community improvement revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for:

(1) The establishment and operation of the transit-oriented community improvement partnership; and

(2) The establishment of positions as follows:

(A) full-time equivalent ( FTE) executive director position;

(B) full-time equivalent ( FTE) planner position; and

The sums appropriated shall be expended by the transit-oriented community improvement partnership for the purposes of this Act.

SECTION 5. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 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:

DOT; HCDA; Transit-Oriented Community Improvement Partnership; Community Improvement Revolving Fund; Tax Exemption; Zoning and Land Use Exemptions; Reports; Appropriation

Description:

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

HB1484

HOUSE OF REPRESENTATIVES	H.B. NO.	1484
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:

The legislature further finds that building separate parking garages allows residents in an area to lease space or use a parking stall as may be needed, rather than having the cost forced upon them through their mortgage. This is important considering Hawaii's next generation is driving considerably less than previous generations. Since 2000, the percentage of eighteen- to twenty-nine year olds with drivers licenses has plummeted nearly forty per cent. Many desire to live in walkable, bikeable communities where they can get around without the average costly expense of $10,000 per year for a car.

Accordingly, the purpose of this Act is to establish the transit oriented community improvement partnership that shall:

(1) Coordinate transit oriented community development to ensure communities are planned and built with full amenities and infrastructure needed for success;

(2) Build missing amenities, parking, and other needs to lower the cost of housing and improve the quality of life in transit oriented communities; and

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

transit oriented community improvement partnership

§ -1 Definitions. As used in this chapter:

"Board" means the board of directors of the transit oriented community improvement partnership.

"Development rights" means the rights permitted under an ordinance or law relating to permitted uses of a property, the density or intensity of use, and the maximum height and size of improvements thereon.

"Fund" means the community improvement revolving fund.

"Partnership" means the transit oriented community improvement partnership.

"Revenue bonds" means bonds, notes, or other evidence of indebtedness of the partnership issued to finance any project facility.

"Seed capital" means financing that is provided for the development, refinement, and commercialization of a product or process and other working capital needs.

"Transit oriented community improvement area" means those lands within one half of a mile of a rail line design.

"Trustee" means a national or state bank or trust company, within or outside the State, that enters into a trust indenture.

"Value-added" means any activity that increases, by means of development or any other means, the value of public lands.

§ -2 Transit oriented community improvement partnership; established. (a) There is established the transit oriented community improvement partnership, that shall be a public body corporate and politic and an instrumentality and agency of the State. The partnership shall be headed by the board. The partnership shall be placed within the department of transportation for administrative purposes only.

(b) The partnership shall:

(1) Plan, coordinate, and administer programs and projects to develop meaningful infrastructure, housing, and amenities to create walkable communities along transit oriented corridors for working families that are affordable, livable, healthy, happy, equitable, and secure;

(2) Identify and designate each transit oriented community improvement area, and may assist communities with individual projects as may be appropriate;

(A) Infrastructure for utilities including sewer, water, power, and similar needs;

(B) Transportation infrastructure; provided that it shall be designed to have the capacity to enable at least seventy per cent of all daily commutes to, from, and within the area to be safely and comfortably made by walking, biking micro-mobility, or public transit, between common destinations, as well as for long-distance daily commuting without interruption pursuant to section 264-142 and shall include amenities such as rest stops, secure bicycle and micro-mobility device parking, emergency support stations with tools and other resources as may be appropriate;

(C) Public parking hubs of meaningful capacity, including charging for electric vehicles pursuant to section 225P-8, within a reasonable distance of which the partnership may waive requirements for or limit the number of parking stalls required by the State or counties;

(D) Affordable housing and related infrastructure; provided that at a minimum, a majority of the ground floor frontage facing each street shall include commercial space;

(E) Public spaces of meaningful scale and access with an overall ratio of residents to public spaces and accessible natural green spaces that shall include:

(i) Public parks and gathering spaces;

(ii) Public spaces for hosting markets and events;

(iii) Natural areas with open green space and water for passive relaxation;

(iv) Public spaces for active recreation; and

(v) Public spaces for pet and animals;

(F) Facilities for public arts and culture that include:

(i) Public libraries;

(ii) Public works of art;

(iii) Galleries, museums, and exhibitions;

(iv) Spaces for performances and events;

(v) Accessible education and narratives on the history, culture, and people of the area; and

(vi) Flexible spaces and infrastructure for seasonal, rotating, and evolving programming and engagement;

(G) Space for local economic development and community empowerment; provided that the primary focus is assisting local residents, entrepreneurs, and brands, which shall include:

(i) Community-based economic development hubs and cooperative spaces such as public commercial kitchens, processing facilities, or similar work hubs available to the community and small businesses;

(ii) Cooperative commercial and retail locations capable of supporting and aggregating products and services from numerous small businesses;

(iii) Spaces for hosting micro-businesses such as food trucks, market stalls, and similar temporary business fronts;

(iv) Spaces for hosting growing small businesses in permanent micro or small commercial locations or rotating pop-up locations; and

(v) Spaces for hosting larger maturing businesses in regular food, retail, and commercial locations; and

(H) Opportunities for revenue generation from any facility, lease, program, or other means as may be appropriate to help fund the projects, programs, and operations of the partnership, with a focus on financially sustaining the communities the partnership was created to support; provided that any revenue generation be secondary to the primary mission of the partnership; and

(5) Address established and adopted goals of the State, including the Aloha+ challenge, sustainable development goals, and other statutory goals.

(1) Through administrative rules, establish and implement a community improvement district, to be governed by an approved independent entity with a board represented by stakeholders from the community with the purpose of providing additional services or improvements to the district;

(2) Provide grant funding to support the establishment and up to one year of operations of a community improvement district;

(3) Adopt rules to establish a fee mechanism to provide long-term funding for a community improvement district, subject to approval by a majority of stakeholders which it is designed to serve;

(4) Establish regular communications to residents and businesses within a transit oriented community improvement area, or other community as may be appropriate, to provide regular updates, information, or similar communication that builds relations and a sense of community amongst those living and working in the area. The partnership may designate or contract with another entity to carrier out this function; and

(5) Require all or a portion of commercial lease rent to be used to subsidize the cost of property maintenance, security, or similar needs for residents in the building.

§ -3 Board of Directors. (a) The board of directors of the transit oriented community improvement partnership shall consist of seven voting members. The members shall include:

(1) The director of finance, or the director's designee;

(2) The department of transportation multimodal transportation coordinator, or the coordinator's designee;

(3) The co-chairs of the Hawaii climate change mitigation and adaptation commission, or the co-chairs' designee;

(4) A member with history and expertise in affordable housing, to be appointed by the governor;

(5) A member with history and expertise in public spaces, to be appointed by the governor;

(6) A member with history and expertise in urban planning, to be appointed by the president of the senate; and

(7) A member with history and expertise in community-based economic development, to be appointed by the speaker of the house of representatives.

Chairs of the house of representatives and senate standing committees with jurisdiction over transportation and housing shall serve as ex-officio non-voting members.

(b) No member shall have a financial interest or conflict of interest in any project, parcel, business, or development located in the community improvement district.

(c) The term of office of the two voting members appointed by the speaker of the house of representatives and the president of the senate shall be four years each.

(d) The board shall appoint an executive director, who shall serve at the pleasure of the board and be exempt from chapter 76. The salary of the executive director shall be set by the board.

(e) The board, through its executive director, may appoint officers, agents, and employees and:

(1) Prescribe their duties and qualifications; and

(2) Fix their salaries, without regard to chapter 76.

§ -4 Powers; generally. (a) Except as otherwise limited by this chapter, the partnership may:

(1) Sue and be sued;

(2) Have a seal and alter the same at its pleasure;

(3) Make and alter bylaws for its organization and internal management;

(4) Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its projects, operations, and properties;

(5) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(7) Acquire or contract to acquire by grant or purchase:

(8) Own, hold, improve, and rehabilitate any real, personal, or mixed property acquired; and sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber the same;

(9) By itself, or in partnership with qualified persons or other governmental agencies, acquire, construct, reconstruct, rehabilitate, improve, alter, or repair any infrastructure or accessory facilities in connection with any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of, or encumber any project; and develop or manage, by itself, or in partnership with qualified persons or other governmental agencies, any project that meets the purposes of this chapter;

(11) Assist developmental, transit oriented, recreational, and visitor industry related enterprises, or projects developed or managed by the partnership, by conducting detailed marketing analysis and developing marketing and promotional strategies to strengthen the position of those enterprises and to better exploit local, national, and international markets;

(13) Coordinate its activities with any federal or state programs;

(14) Grant options to purchase any project or to renew any lease entered into by the partnership in connection with any of its projects, on the terms and conditions it deems advisable;

(16) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

(17) Accept gifts or grants in any form from any public agency or other source;

(18) Issue bonds to finance the cost of a project and provide for the security thereof, in the manner and pursuant to the procedure prescribed in this chapter;

(19) Subject to approval by the board, assume management responsibilities for transit centers, infrastructure, parks and water features;

(20) Recommend to the department of transportation and the board of land and natural resources the purchase of any privately owned properties that may be appropriate for development; and

(21) Do all things necessary or proper to carry out the purposes of this chapter.

(d) The partnership may amend the community improvement plans as may be necessary or appropriate.

§ -6 Project facility program. (a) The partnership may develop a project to identify necessary project facilities within a project area.

(c) Unless and except as otherwise provided by law, the partnership may adopt rules pursuant to chapter 91 to establish the method of undertaking and financing project facilities in a project area.

(d) Any other law to the contrary notwithstanding, in assessing real property for project facilities, the partnership shall assess the real property within a project area according to the special benefits conferred upon the real property by the project facilities. These methods may include an assessment on a frontage basis or according to the area of real property within a project area, or any other assessment method that assesses the real property according to the special benefit conferred, or any combination thereof. No assessment levied under this section against real property specially benefited under this chapter shall constitute a tax on real property within the meaning of any law.

(e) Any other provisions to the contrary notwithstanding, the partnership, at its discretion, may enter into any agreement with the county in which project facilities are located, to implement the purposes of this section.

§ -7 Approval of projects, plans, and programs. Every project, plan, and project facility program developed by the partnership shall be approved by the board.

§ -8 Bonds. (a) The partnership, with the approval of the governor, may issue, from time to time, revenue bonds in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for the purpose of constructing, acquiring, remodeling, furnishing, and equipping any project facility, including the acquisition of the site of the facility; or acquiring non-public lands through purchase to sustain and preserve leisure or recreational enterprises within a contiguous geographic area.

(b) All revenue bonds shall be issued pursuant to part III of chapter 39, except as provided in this chapter.

(d) Any pledge made by the partnership shall create a perfected security interest in the revenues, moneys, or property pledged and thereafter received by the partnership, from and after the time that the financing statement with respect to the revenues, moneys, or property pledged and thereafter received are filed with the bureau of conveyances. Upon the filing, the revenues, moneys, or property pledged and thereafter received by the partnership shall immediately be subject to a lien of any pledge without any physical delivery thereof or having claims of any kind in tort, contract, or otherwise against the partnership, irrespective of whether the parties have notice thereof. This section shall apply to any financing statement heretofore or hereafter filed with the bureau of conveyances with respect to any pledge made to secure revenue bonds issued under this chapter.

(1) The cost of constructing, acquiring, remodeling, furnishing, and equipping the project facility, including the acquisition of the site of the facility;

(2) The cost of purchasing or funding loans or other agreements entered into for the project facility;

(3) The costs of studies and surveys;

(4) Insurance premiums;

(5) Underwriting fees;

(6) Financial consultant, legal, accounting, and marketing services incurred;

(7) Reserve account, trustee, custodian, and rating agency fees; and

(8) Any capitalized interest.

§ -11 Revenue bonds; investment of proceeds and redemption. Subject to any agreement with the holders of its revenue bonds, the partnership may:

(1) Invest moneys not required for immediate use, including proceeds from the sale of revenue bonds, in any investment in accordance with procedures prescribed in a trust indenture; and

(2) Purchase revenue bonds out of any fund or money of the partnership available therefor, and hold, cancel, or resell the revenue bonds.

§ -12 Revenue bonds; subaccounts. A separate subaccount shall be established for each project facility financed from the proceeds of the revenue bonds secured under the same trust indenture. Each subaccount shall be designated "project facility revenue bond subaccount" and shall bear additional designation as the partnership deems appropriate to properly identify the fund.

§ -13 Trustee; designation, duties. (a) The partnership shall designate a trustee for each issue of revenue bonds secured under the same trust indenture.

(1) Undertaking the project facility;

(2) Administering and operating the proceedings providing for the issuance of the revenue bonds;

(3) The principal or interest on these bonds;

(4) The establishment of reserves; and

(5) Other purposes as may be authorized in the proceedings providing for the issuance of the revenue bonds.

(c) Notwithstanding section 39-68 to the contrary, the director of finance may appoint the trustee to serve as fiscal agent for the:

(1) Payment of the principal of and interest on the revenue bonds; and

(2) Purchase, registration, transfer, exchange, and redemption of the bonds.

§ -14 Trust indenture. (a) A trust indenture may:

(1) Contain covenants and provisions authorized by part III of chapter 39, and as may be deemed necessary or convenient by the partnership for the purposes of this chapter;

(b) A trust indenture shall also contain provisions as to:

(3) The size of any property to be developed shall be deemed to be conclusively determined by the state surveyor.

(1) The principal and interest on the bonds;

(4) Other purposes as may be authorized in the proceedings providing for the issuance of the bonds.

If any surplus remains in any subaccount after the payment of the bonds chargeable against that subaccount, the surplus shall be credited to and become a part of the community improvement revolving fund, except as provided in paragraph (3). Notwithstanding any other law to the contrary, moneys in the fund may be used to make up any deficiencies in the subaccount.

(1) Purchase qualified securities issued by enterprises for the purpose of raising seed capital; provided that the investment shall comply with the requirements of this chapter;

(2) Make grants, loans, and provide other monetary forms of assistance necessary to carry out the purposes of this chapter; and

(3) Purchase securities as may be lawful investments for fiduciaries in the State.

(d) The partnership shall purchase qualified securities issued by an enterprise only after:

(1) Receiving:

(B) A statement of the amount, timing, and projected use of the capital required;

(C) A statement of the potential economic impact of the enterprise, including the number, location, and types of jobs expected to be created; and

(D) Any other information as the partnership shall require;

(2) Determining, based upon the application submitted, that:

(A) The proceeds of the investment will be used only to cover the seed capital needs of the enterprise, except as authorized in this section;

(B) The enterprise has a reasonable chance of success;

(C) The enterprise has the reasonable potential to create employment within the State and offers employment opportunities to residents;

(D) The coordinating entrepreneur and other founders of the enterprise have already made or are prepared to make a substantial financial and time commitment to the enterprise;

(E) The securities to be purchased are qualified securities;

(F) There is a reasonable possibility that the partnership will recoup at least its initial investment; and

(G) Binding commitments have been made to the partnership by the enterprise for adequate reporting of financial data to the partnership, which shall include a requirement for an annual or other periodic audit of the books of the enterprise, and for control by the partnership that it considers prudent over the management of the enterprise, in order to protect the investment of the partnership, including membership on the board of directors of the enterprise, ownership of voting stock, input in management decisions, and the right of access to the financial and other records of the enterprise; and

(f) The partnership shall make investments in qualified securities issued by an enterprise in accordance with the following limits:

(1) Not more than $500,000 shall be invested in the securities of any one enterprise, except that more than a total of $500,000 may be invested in the securities of any one enterprise if the partnership finds, after its initial investment, that additional investments in that enterprise are required to protect the initial investment of the partnership, and the other findings set forth in subsection (d) and this subsection are made as to the additional investment;

(3) Not more than fifty per cent of the assets of the partnership shall be invested in direct investments at any time.

(g) No investment, loan, grant, or use of corporate funds for the purposes of this chapter shall be subject to chapter 42F.

§ -17 Exemption from taxation. The partnership shall not be required to pay state taxes of any kind.

§ -19 Annual report. The partnership shall submit to the governor and the legislature a complete and detailed report of its plans and activities no later than twenty days prior to the convening of each regular session."

SECTION 3. Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:

"§206E-4 Powers; generally. Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(4) Make and alter bylaws for its organization and internal management;

(5) Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

(6) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;

(7) Prepare or cause to be prepared a community development plan for all designated community development districts;

(8) Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

(9) Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

(10) By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project that the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

(11) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;

(12) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on terms and conditions as it deems advisable;

(13) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify the plans, specifications, designs, or estimates;

(14) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(15) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

(16) Contract for and accept gifts or grants in any form from any public agency or from any other source;

(17) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter; [~~and~~]

(18) Allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction; provided that the authority may permit cash payments in lieu of providing reserved housing. The substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site. The authority shall establish the following priority in the development of reserved housing:

(A) Within the community development district;

(B) Within areas immediately surrounding the community development district;

(D) In outlying areas within the same island as the development project.

The Hawaii community development authority shall adopt rules relating to the approval of reserved housing that are developed outside of a community development district. The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities[.]; and

(19) Assist the transit oriented community improvement partnership established by section -2 in identifying lands and facilities that may be suitable for community improvement projects, carrying on marketing analysis to determine the best revenue-generating programs for some of the locations identified, entering into public-private agreements to appropriately develop these parcels, and providing the leadership for the development, financing, improvement, or enhancement of the selected development opportunities; provided that no assistance shall be provided unless the authority authorizes the assistance."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the community improvement revolving fund established under section -17.

SECTION 5. There is appropriated out of the community improvement revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for:

(1) The establishment and operation of the transit oriented community improvement partnership; and

(2) The establishment of three positions as follows:

(A) One full-time equivalent (1.0 FTE) executive director position;

(B) One full-time equivalent (1.0 FTE) planner position; and

The sums appropriated shall be expended by the transit oriented community improvement partnership for the purposes of this Act.

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

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

Report Title:

DOT; HCDA; Transit Oriented Community Improvement Partnership; Community Improvement Revolving Fund; Exemptions; Reports; Appropriations

Description:

Establishes the Transit Oriented Community Improvement Partnership within the Department of Transportation. Establishes the Community Improvement Revolving Fund. Authorizes the Hawaii Community Development Authority to assist the mission of the Partnership. Designates exemptions. Requires annual reports to the Legislature. Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

Date	Status
Dec 8, 2025	Carried over to 2026 Regular Session.
Feb 6, 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) Ward excused (1).
Feb 6, 2025	Reported from HSG/TRN (Stand. Com. Rep. No. 203) as amended in HD 1, recommending passage on Second Reading and referral to WAL.
Jan 30, 2025	The committee on TRN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Kila, Grandinetti, Evslin, Kitagawa, Miyake, Pierick; Ayes with reservations: Representative(s) Muraoka; Noes: none; and 2 Excused: Representative(s) Cochran, La Chica.
Jan 30, 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, Pierick; Ayes with reservations: Representative(s) Muraoka; Noes: none; and 2 Excused: Representative(s) Cochran, La Chica.
Jan 27, 2025	Bill scheduled to be heard by HSG/TRN on Thursday, 01-30-25 9:50AM in House conference room 430 VIA VIDEOCONFERENCE.
Jan 27, 2025	Referred to HSG/TRN, WAL, FIN, referral sheet 4
Jan 23, 2025	Introduced and Pass First Reading.

Date	Description	Location	Votes
Jan 30, 2025	The committee on TRN recommend that the measure be PASSED, WITH AMENDMENTS	House Standing Committee on Transportation	7 0 2 Passed
Jan 30, 2025	The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS	House Standing Committee on Housing	7 0 2 Passed

Key

Pro

Against

Did Not Vote

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STAND. COM. REP. NO. 203

Honolulu, Hawaii

, 2025

RE: H.B. No. 1484

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committees on Housing and Transportation, to which was referred H.B. No. 1484 entitled:

"A BILL FOR AN ACT RELATING TO TRANSIT ORIENTED DEVELOPMENT,"

beg leave to report as follows:

The purpose of this measure is to:

(1) Establish a Transit-Oriented Community Improvement Partnership and the Community Improvement Revolving Fund to coordinate transit-oriented community development; and

(2) Authorize the Hawaii Community Development Authority to assist the Transit-Oriented Community Improvement Partnership in identifying lands and facilities that may be suitable for community improvement projects.

Your Committees received testimony in support of this measure from one individual. Your Committees received testimony in opposition to this measure from four individuals. Your Committees received comments on this measure from the Hawaiʻi Community Development Authority.

Your Committees find that Hawaii's high cost of living, driven largely by the rising expenses of housing and transportation, continues to strain families and communities across the State. Housing projects are becoming prohibitively expensive due to added costs associated with parking and amenities. This measure will encourage transit-oriented development, thereby reducing transportation expenses and lowering overall living costs of residents.

Your Committees have amended this measure by:

(1) Deleting language that would have authorized the Hawaii Community Development Authority to assist the Transit-Oriented Community Improvement Partnership;

(2) Changing the number of positions to unspecified numbers;

(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.

Your Committees respectfully request your Committee on Finance, should it deliberate on this measure, to consider the following number of positions:

(1) One full-time equivalent (1.00 FTE) executive director position;

(2) One full-time equivalent (1.00 FTE) planner position; and

(3) One full-time equivalent (1.00 FTE) project development specialist position.

As affirmed by the records of votes of the members of your Committees on Housing and Transportation that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1484, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1484, H.D. 1, and be referred to your Committee on Water & Land.

Respectfully submitted on behalf of the members of the Committees on Housing and Transportation,

____________________________

DARIUS KILA, Chair

____________________________

LUKE A. EVSLIN, Chair

Date	Testimony PDF
Jan 29, 2025	HB1484_TESTIMONY_HSG-TRN_01-30-25_.PDF

Discussed in Hearing

1MIN

House Standing Committee on Housing

1MIN

House Standing Committee on Transportation

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HB1484_HD1 (2/5/2025)