HB 416: RELATING TO HOUSING.

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 201H-38, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that [either]:

     (1)  The housing projects meet the following conditions:

          (A)  The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;

          (B)  The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;

          (C)  The legislative body of the county in which the housing project is to be situated has approved the project with or without modifications:

              (i)  The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body.  If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;

             (ii)  No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and

            (iii)  The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the preliminary plans and specifications.  The final plans and specifications for the project shall constitute the zoning, building, construction, and subdivision standards for that project.  For purposes of sections 501‑85 and 502-17, the executive director of the corporation or the responsible county official may certify maps and plans of lands connected with the project as having complied with applicable laws and ordinances relating to consolidation and subdivision of lands, and the maps and plans shall be accepted for registration or recordation by the land court and registrar;

              provided that projects that have received a financing commitment from the State within the urban land use district shall be exempt from approval by the legislative body of the county in which the housing project is to be situated; provided further that a county planning director may reject a permit application within thirty days of receiving the preliminary plans and specifications for reasons related to a lack of infrastructure for a project within a urban land use district that received a financing commitment from the State;

          (D)  The land use commission has approved, approved with modification, or disapproved a boundary change within forty-five days after the corporation has submitted a petition to the commission as provided in section 205‑4.  If, on the forty-sixth day, the petition is not disapproved, it shall be deemed approved by the commission; or

     (2)  The housing projects:

          (A)  Meet the conditions of paragraph (1);

          (B)  Do not impose stricter income requirements than those adopted or established by the State; and

          (C)  For the lifetime of the project, require one hundred per cent of the units in the project be exclusively for qualified residents."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Housing Development; HHFDC; County Council Approval Exemption; State‑Financing; Infrastructure

Description:

Exempts certain state-financed housing developments from the requirement to obtain approval from the applicable county council.  Authorizes a county planning director to reject certain permit applications due to a lack of infrastructure.  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.

A BILL FOR AN ACT

relating to housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 201H-38, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that [either]:

     (1)  The housing projects meet the following conditions:

          (A)  The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;

          (B)  The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;

          (C)  The legislative body of the county in which the housing project is to be situated has approved the project with or without modifications:

              (i)  The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body.  If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;

             (ii)  No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and

            (iii)  The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the preliminary plans and specifications.  The final plans and specifications for the project shall constitute the zoning, building, construction, and subdivision standards for that project.  For purposes of sections 501‑85 and 502-17, the executive director of the corporation or the responsible county official may certify maps and plans of lands connected with the project as having complied with applicable laws and ordinances relating to consolidation and subdivision of lands, and the maps and plans shall be accepted for registration or recordation by the land court and registrar;

              provided further that projects that have received financing from the State shall be exempt from approval by the legislative body of the county in which the housing project is to be situated; and

          (D)  The land use commission has approved, approved with modification, or disapproved a boundary change within forty-five days after the corporation has submitted a petition to the commission as provided in section 205‑4.  If, on the forty-sixth day, the petition is not disapproved, it shall be deemed approved by the commission; or

     (2)  The housing projects:

          (A)  Meet the conditions of paragraph (1);

          (B)  Do not impose stricter income requirements than those adopted or established by the State; and

          (C)  For the lifetime of the project, require one hundred per cent of the units in the project be exclusively for qualified residents."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Housing Development; County Council Approval Exemption; State‑Financing

Description:

Exempts state-financed housing developments from the requirement to obtain approval from the applicable county council.

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

STAND. COM. REP. NO.  585

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 416

      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. 416 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to exempt state-financed housing developments from the requirement to obtain approval from the applicable county council.

     Your Committee received testimony in support of this measure from the Hawaii Appleseed Center for Law & Economic Justice; Housing Hawai‘i's Future; Grassroot Institute of Hawaii; and Maui Chamber of Commerce.  Your Committee received testimony in opposition to this measure from the Department of Planning and Permitting of the City and County of Honolulu; Lāhainā Strong; LIMBY Hawai‘i; and three individuals.  Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation and Office of Planning and Sustainable Development.

     Your Committee finds that Hawaii's housing regulations are the strictest in the country and the need for streamlining the process to develop affordable housing is at an all-time high.  Your Committee further finds that only twenty percent of residents can afford the median home sale price, while over fifty percent of renters are cost-burdened, spending more than thirty percent of their income on housing.  State-financed projects undergo rigorous review by the Hawaii Housing Finance and Development Corporation and requiring county council approval may create redundancy that results in delays.  This measure will remove administrative barriers while preserving essential oversight and ensuring that critical health, safety, and affordability standards are upheld.

     Your Committee has amended this measure by:

     (1)  Specifying that projects that received a financing commitment from the State within the urban land use district are exempt for approval by a county legislative body;

     (2)  Authorizing a county planning director to reject a permit application within thirty days of receiving the preliminary plans and specifications for reasons related to a lack of infrastructure for a project within a urban land use district that received a financing commitment from the State;

     (3)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (4)  Making a technical, nonsubstantive amendment 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. 416, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 416, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Housing,