SB 2544: HHFDC; DURF; Hawaii Builds Pilot Program; Exemptions; Permit Reviews; Interagency Coordination; Reports

A BILL FOR AN ACT

RELATING TO HOUSING.

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

     SECTION 1.  The legislature finds that the State continues to experience a severe shortage of housing that is affordable for households earning between sixty per cent and one hundred forty per cent of the area median income, a portion of the housing market commonly referred to as "missing middle" housing.  The legislature further finds that successful housing programs in other jurisdictions, such as the BC Builds program implemented in British Columbia, Canada, demonstrate that a housing agency must act as a public developer by proactively acquiring land, securing entitlements, and prepackaging shovel-ready projects to cut delivery times.

     The legislature finds that the BC Builds program is structured according to a "rocket fuel" project timeline strategy, which has contributed substantially to the program's success.  BC Build's rocket fuel strategy replaces the standard thirty-six to sixty-month timeline typical of most construction projects with a much shorter twelve to eighteen-month project timeline.  BC Builds accomplishes this significant reduction in project timelines by streamlining development processes and working collaboratively with landowners, municipalities, and residential developers to work through and remove any barriers.  BC Builds also leverages underused public lands to create more viable rental projects, along with grant money to keep rents more affordable and get projects off the ground.  BC Build's approach to housing development has resulted in over thirty projects in pre-development in the two years since the program was launched.  Many of these projects will deliver over one hundred units each, significantly expanding the available housing supply.

     Accordingly, the purpose of this Act is to:

     (1)  Establish within the Hawaii housing finance and development corporation the Hawaii builds pilot program as a five-year pilot program, under which:

          (A)  The corporation may deploy moneys from the dwelling unit revolving fund for certain development activities and as active construction equity;

          (B)  Interagency coordination and expedited review for designated pilot projects are required by law; and

          (C)  A majority of housing units must comply with requirements established by the Hawaii housing finance and development corporation under section 201H-38, Hawaii Revised Statutes; and

     (2)  Establish an annual expenditure cap on the use of dwelling unit revolving funds that may be used to implement the Hawaii builds pilot program.

     SECTION 2.  (a)  There is established the Hawaii builds pilot program within the Hawaii housing finance and development corporation.  The pilot program shall run for a period of five years as provided in subsection (m).

     (b)  The board of directors of the corporation shall designate specific projects as Hawaii builds pilot program projects, pursuant to the requirements of this Act.  To qualify as a Hawaii builds pilot program project, a project shall:

     (1)  Be located on a site that possesses, at a minimum, adequate existing infrastructure capacity, including water, sewer, and transportation access, to support the density of the proposed project;

     (2)  Preferably be located on land zoned for residential use; provided that project sites that have adequate infrastructure but are not zoned for residential use shall remain eligible through the use of exemptions authorized under section 201H-38, Hawaii Revised Statutes; and

     (3)  Ensure that all units in a housing project shall be consistent with the purposes and intent of chapter 201H, Hawaii Revised Statutes.

     (c)  The corporation shall designate at least one Hawaii builds pilot project in each county of the State to ensure statewide participation in the pilot program.

     (d)  Notwithstanding any provision of part III, subpart I, of chapter 201H, Hawaii Revised Statutes, or any other law to the contrary, the corporation may use not more than $20,000,000 each fiscal year, in the aggregate, from the dwelling unit revolving fund for the Hawaii builds pilot program for:

     (1)  Predevelopment activities, including land acquisition, architectural and engineering services, environmental and due diligence studies, entitlement processing, and other preparatory activities necessary to advance a project; and

     (2)  Construction equity, including short-term construction equity or equity investment, as deemed appropriate by the corporation's board of directors.

     (e)  Predevelopment activities under subsection (d)(1) shall not require separate gubernatorial approval for each specific disbursement; provided that the project has been designated and approved as a Hawaii builds pilot program project by the corporation's board of directors.

     (f)  Any use of moneys from the dwelling unit revolving fund, including but not limited to construction equity or equity investment under subsection (d)(2), shall be structured to ensure a reasonable return to the dwelling unit revolving fund.

     (g)  Notwithstanding any other law to the contrary, while the Hawaii builds pilot program is active, the corporation shall give the highest priority to Hawaii builds pilot program projects when allocating and disbursing moneys from the dwelling unit revolving fund.

     (h)  The executive director of the corporation may convene a Hawaii builds expedited review team.  The team shall consist of the directors of relevant state and county agencies or their designees, including the chairperson of the board of land and natural resources, director of health, and each county's planning and public works departments.

     (i)  Notwithstanding any other law to the contrary, all state and county agencies shall cooperate with the corporation in processing Hawaii builds pilot program projects, including prioritizing the review of permits, licenses, and entitlements for pilot projects above all other non-emergency applications.

     (j)  Contracts for professional services, construction, and development related to Hawaii builds pilot program projects shall be subject to approval by the corporation's board of directors and shall be exempt from chapter 103D, Hawaii Revised Statutes.

     (k)  The department of health shall complete its review of hazard evaluation, wastewater, and safe drinking water applications for Hawaii builds pilot program projects within sixty days.  If additional time is required to complete a review under this subsection, the department of health shall provide written justification for the extension before the sixty-day period expires.  If the department of health does not provide written justification, the application shall be deemed approved.

     (l)  The appropriate county planning director, or an equivalent official having jurisdiction over permitting and exemptions, shall grant a Hawaii builds pilot program project all necessary exemptions from county ordinances and rules pursuant to section 201H-38, Hawaii Revised Statutes.  Notwithstanding any law, county charter provision, or ordinance to the contrary, an exemption under this subsection shall not require approval by the county legislative body.  The processing of an exemption for a Hawaii builds pilot program project shall be deemed a ministerial act and shall be completed within forty‑five days of receipt by the planning director or equivalent official.

     (m)  The authority of the corporation to designate new Hawaii builds pilot program projects under this section shall expire on June 30, 2031; provided that any project designated as a Hawaii builds pilot program project before July 1, 2031, shall continue to be governed by this section until the completion of the project.

     (n)  For the purposes of this section, "corporation" means the Hawaii housing finance and development corporation.

     SECTION 3.  No later than twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, 2030, 2031, and 2032, the Hawaii housing finance and development corporation shall submit to the legislature a report on the Hawaii builds pilot program that includes:

     (1)  A list and description of all Hawaii builds pilot program projects designated, approved, or advanced during the prior fiscal year;

     (2)  The amount and type of dwelling unit revolving fund moneys expended for predevelopment activities and construction equity, including the status of repayment or monetization;

     (3)  The number of housing projects approved, under construction, and completed, disaggregated by county and area median income category;

     (4)  A summary of interagency coordination efforts and the extent to which statutory timelines were met;

     (5)  Any barriers encountered in project delivery, including statutory, regulatory, or infrastructure constraints;

     (6)  Recommendations for any amendments to the pilot program and whether the pilot program should be continued or terminated; and

     (7)  Any proposed legislation.

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

Report Title:

HHFDC; DURF; Hawaii Builds Pilot Program; Exemptions; Permit Reviews; Interagency Coordination; Reports

Description:

Establishes a 5-year Hawaii Builds Pilot Program within the Hawaii Housing Finance and Development Corporation.  Authorizes the use of the Dwelling Unit Revolving Fund for the Pilot Program, subject to an annual cap.  Mandates interagency coordination and expedited review for projects to facilitate timely delivery of projects.  Requires annual reports to the Legislature.  Sunsets 6/30/2031.  (CD1)

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.  The legislature finds that the State continues to experience a severe shortage of housing that is affordable for households earning between sixty per cent and one hundred forty per cent of the area median income, a portion of the housing market commonly referred to as "missing middle" housing.  The legislature further finds that successful housing programs in other jurisdictions, such as the BC Builds program implemented in British Columbia, Canada, demonstrate that a housing agency must act as a public developer by proactively acquiring land, securing entitlements, and prepackaging shovel-ready projects to cut delivery times.

     The legislature finds that the BC Builds program is structured according to a rocket fuel project timeline strategy, which has contributed substantially the program's success.  BC Build's rocket fuel strategy replaces the standard thirty-six to sixty-month timeline typical of most construction projects with a much shorter twelve to eighteen-month project timeline.  BC Builds accomplishes this significant reduction in project timelines by streamlining development processes and working collaboratively with landowners, municipalities, and residential developers to work through and remove any barriers.  BC Builds also leverages underused public lands to create more viable rental projects, along with grant money to keep rents more affordable and get projects off the ground.  BC Build's approach to housing development has resulted in over thirty projects in pre-development in the two years since the program was launched.  Many of these projects will deliver over one hundred units each, significantly expanding the available housing supply.

     Accordingly, the purpose of this Act is to:

     (1)  Establish within the Hawaii housing finance and development corporation the Hawaii builds pilot program as a five-year pilot program, under which:

          (A)  The corporation may deploy moneys from the dwelling unit revolving fund for certain development activities and as active construction equity;

          (B)  Interagency coordination and expedited review for designated pilot projects are required by law; and

          (C)  A majority of housing units must comply with requirements established by the Hawaii housing finance and development corporation under section 201H-38, Hawaii Revised Statutes; and

     (2)  Establish an annual expenditure cap on the use of dwelling unit revolving funds that may be used to implement the Hawaii builds pilot program.

     SECTION 2.  (a)  There is established the Hawaii builds pilot program within the Hawaii housing finance and development corporation.  The pilot program shall run for a period of five years as provided in subsection (m).

     (b)  The board of directors of the corporation shall designate specific projects as Hawaii builds pilot projects, pursuant to the requirements of this Act.  To qualify as a Hawaii builds pilot project, a project shall:

     (1)  Be located on a site that possesses, at a minimum, adequate existing infrastructure capacity, including water, sewer, and transportation access, to support the density of the proposed project;

     (2)  Preferably be located on land zoned for residential use; provided that project sites that have adequate infrastructure but are not zoned for residential use shall remain eligible through the use of exemptions authorized under section 201H-38, Hawaii Revised Statutes; and

     (3)  Ensure that all units in a housing project shall be consistent with the purposes and intent of chapter 201H, Hawaii Revised Statutes.

     (c)  The corporation shall designate at least one Hawaii builds pilot project in each county of the State to ensure statewide participation in the pilot program.

     (d)  Notwithstanding any provision of part III, subpart I, of chapter 201H, Hawaii Revised Statutes, or any other law to the contrary, the corporation may use no more than $           each fiscal year, in the aggregate, from the dwelling unit revolving fund for the Hawaii builds pilot project for:

     (1)  Predevelopment activities, including land acquisition, architectural and engineering services, environmental and due diligence studies, entitlement processing, and other preparatory activities necessary to advance a project; and

     (2)  Construction equity, including short-term construction equity or equity investment, as deemed appropriate by the corporation's board of directors.

     (e)  Predevelopment activities under subsection (d)(1) shall not require separate gubernatorial approval for each specific disbursement; provided that the project has been designated and approved as a Hawaii builds pilot project by the corporation's board of directors.

     (f)  Any use of moneys from the dwelling unit revolving fund, including but not limited to construction equity or equity investment under subsection (d)(2), shall be structured to ensure a reasonable return to the dwelling unit revolving fund.

     (g)  Notwithstanding any other law to the contrary, while the Hawaii builds pilot program is active, the corporation shall give the highest priority to Hawaii builds pilot projects when allocating and disbursing moneys from the dwelling unit revolving fund.

     (h)  The executive director of the corporation may convene a Hawaii builds expedited review team.  The team shall consist of the directors of relevant state and county agencies or their designees, including the chairperson of the board of land and natural resources, director of health, and each county's planning and public works departments.

     (i)  Notwithstanding any other law to the contrary, all state and county agencies shall cooperate with the corporation in processing Hawaii builds pilot projects, including prioritizing the review of permits, licenses, and entitlements for pilot projects above all other non-emergency applications.

     (j)  Contracts for professional services, construction, and development related to Hawaii builds pilot projects shall be subject to approval by the corporation's board of directors and shall be exempt from chapter 103D, Hawaii Revised Statutes.

     (k)  The department of health shall complete its review of hazard evaluation, wastewater, and safe drinking water applications for Hawaii builds pilot projects within sixty days.  If additional time is required to complete a review under this subsection, the department of health shall provide written justification for the extension before the sixty-day period expires.  If the department of health does not provide written justification, the application shall be deemed approved.

     (l)  The appropriate county planning director, or an equivalent official having jurisdiction over permitting and exemptions, shall grant a Hawaii builds pilot project all necessary exemptions from county ordinances and rules pursuant to section 201H-38, Hawaii Revised Statutes.  Notwithstanding any law, county charter provision, or ordinance to the contrary, an exemption under this subsection shall not require approval by the county legislative body.  The processing of an exemption for a Hawaii builds pilot project shall be deemed a ministerial act and shall be completed within forty-five days of receipt by the planning director or equivalent official.

     (m)  The authority of the corporation to designate new Hawaii builds pilot projects under this section shall expire on June 30, 2031; provided that any project designated as a Hawaii builds pilot project before July 1, 2031, shall continue to be governed by this section until the completion of the project.

     (n)  As used in this section, "corporation" means the Hawaii housing finance and development corporation.

     SECTION 3.  No later than twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, 2030, 2031, and 2032, the Hawaii housing finance and development corporation shall submit to the legislature a report on the Hawaii builds pilot program that includes:

     (1)  A list and descriptions of all Hawaii builds pilot projects designated, approved, or advanced during the prior fiscal year;

     (2)  The amount and type of dwelling unit revolving fund moneys expended for predevelopment activities and construction equity, including the status of repayment or monetization;

     (3)  The number of housing projects approved, under construction, and completed, disaggregated by county and area median income category;

     (4)  A summary of interagency coordination efforts and the extent to which statutory timelines were met;

     (5)  Any barriers encountered in project delivery, including statutory, regulatory, or infrastructure constraints;

     (6)  Recommendations for any amendments to the pilot program and whether the pilot program should be continued or terminated; and

     (7)  Any proposed legislation.

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

Report Title:

HHFDC; DURF; Hawaii Builds Pilot Program; Exemptions; Permit Reviews; Interagency Coordination; Reports

Description:

Establishes a 5-year Hawaii Builds Pilot Program within the Hawaii Housing Finance and Development Corporation.  Authorizes  the use of the Dwelling Unit Revolving Fund for Pilot Program, subject to an annual cap.  Mandates interagency coordination and expedited review for projects to facilitate timely delivery of projects.  Requires annual reports to the Legislature.  Sunsets 6/30/2031.  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.  The legislature finds that the State continues to experience a severe shortage of housing that is affordable for households earning between sixty per cent and one hundred forty per cent of the area median income, a portion of the housing market commonly referred to as "missing middle" housing.  The legislature further finds that successful housing programs in other jurisdictions, such as the BC Builds program implemented in British Columbia, demonstrate that a housing agency must act as a public developer by proactively acquiring land, securing entitlements, and prepackaging shovel-ready projects to cut delivery times.

     The legislature finds that the BC Builds program is structured according to a "rocket fuel" project timeline strategy, which has contributed substantially the program's success.  BC Build's rocket fuel strategy replaces the standard thirty-six to sixty-month timeline typical of most construction projects with a much shorter twelve to eighteen-month project timeline.  BC Builds accomplishes this significant reduction in project timelines by streamlining development processes and working collaboratively with landowners, municipalities, and residential developers to work through and remove any barriers.  BC Builds also leverages underused public lands to create more viable rental projects, along with grant money to keep rents more affordable and get projects off the ground.  BC Build's approach to housing development has resulted in over thirty projects in pre-development in the two years since the program was launched.  Many of these projects will deliver over one hundred units each, significantly expanding the available housing supply.

     Accordingly, the purpose of this Act is to:

     (1)  Establish within the Hawaii housing finance and development corporation the Hawaii builds pilot program as a five-year pilot program, under which:

          (A)  The corporation may deploy moneys from the dwelling unit revolving fund for certain development activities and as active construction equity;

          (B)  Interagency coordination and expedited review for designated pilot projects are required by law; and

          (C)  A majority of housing units must comply with requirements established by the Hawaii housing finance and development corporation under section 201H-38, Hawaii Revised Statutes; and

     (2)  Establish an annual expenditure cap on the use of dwelling unit revolving funds that may be used to implement the Hawaii builds pilot program.

     SECTION 2.  (a)  There is established the Hawaii builds pilot program within the Hawaii housing finance and development corporation.  The pilot program shall run for a period of five years as provided in subsection (n).

     (b)  The board of directors of the corporation shall designate specific projects as Hawaii builds pilot projects, which shall be governed pursuant to this Act.  To qualify as a Hawaii builds pilot project, a project shall:

     (1)  Be located on a site that possesses, at a minimum, adequate existing infrastructure capacity, including water, sewer, and transportation access, to support the density of the proposed project;

     (2)  Preferably be located on land zoned for residential use; provided that project sites that have adequate infrastructure but are not zoned for residential use shall remain eligible through the use of exemptions authorized under section 201H-38, Hawaii Revised Statutes; and

     (3)  Provide a majority of the housing units delivered under the project comply with requirements established by the corporation under section 201H-38, Hawaii Revised Statutes.

     (c)  The corporation shall designate at least one Hawaii builds pilot project in each county of the State to ensure statewide participation in the pilot program.

     (d)  Except as provided in section 3 of this Act but notwithstanding any provision of part III, subpart I, of chapter 201H, Hawaii Revised Statutes, or any other law to the contrary, the corporation may use moneys from the dwelling unit revolving fund for any Hawaii builds pilot project; provided that dwelling unit revolving fund moneys may be expended for:

     (1)  Predevelopment activities, including land acquisition, architectural and engineering services, environmental and due diligence studies, entitlement processing, and other preparatory activities necessary to advance a project; and

     (2)  Construction equity, including short-term construction equity or equity investment, as deemed appropriate by the corporation's board of directors.

     (e)  Predevelopment activities under subsection (d)(1) shall not require separate gubernatorial approval for each specific disbursement; provided that the project has been designated and approved as a Hawaii builds pilot project by the corporation's board of directors.

     (f)  Any use of moneys from the dwelling unit revolving fund, including but not limited to construction financing or equity investment under subsection (d)(2), shall be structured to ensure a reasonable return to the dwelling unit revolving fund.

     (g)  Notwithstanding any other law to the contrary, while the Hawaii builds pilot program is active, the corporation shall give the highest priority to Hawaii builds pilot projects when allocating and disbursing moneys from the dwelling unit revolving fund.

     (h)  The executive director of the corporation may convene a Hawaii builds expedited review team.  The team shall consist of the directors of relevant state and county agencies or their designees, including the chairperson of the board of land and natural resources, director of the department of health, and each county's planning and public works departments.

     (i)  Notwithstanding any other law to the contrary, all state and county agencies shall cooperate with the corporation in processing Hawaii builds pilot projects, including prioritizing the review of permits, licenses, and entitlements for pilot projects above all other non-emergency applications.

     (j)  Contracts for professional services, construction, and development related to Hawaii builds pilot projects shall be subject to approval by the corporation's board of directors and shall be exempt from chapter 103D, Hawaii Revised Statutes.

     (k)  The state historic preservation division shall complete its review of any Hawaii builds pilot project application within sixty days of the receipt of a completed application.  If the division fails to issue a determination within that period, the application shall be deemed approved.

     (l)  The department of health shall complete its review of hazard evaluation, wastewater, and safe drinking water applications for Hawaii builds pilot projects within sixty days.  If additional time is required to complete a review under this subsection, the department of health shall provide written justification for the extension before the sixty-day period expires.  If the department of health does not provide written justification, the application shall be prioritized for immediate final action.

     (m)  The appropriate county planning director, or an equivalent official having jurisdiction over permitting and exemptions, shall grant a Hawaii builds pilot project all necessary exemptions from county ordinances and rules pursuant to section 201H-38, Hawaii Revised Statutes.  Notwithstanding any law, county charter provision, or ordinance to the contrary, an exemption under this subsection shall not require approval by the county legislative body.  The processing of an exemption for a Hawaii builds pilot project shall be deemed a ministerial act and shall be completed within forty-five days of receipt by the planning director or equivalent official.

     (n)  The authority of the corporation to designate new Hawaii builds pilot projects under this section shall expire on June 30, 2031; provided that any project designated as a Hawaii builds pilot project before July 1, 2031, shall continue to be governed by this section until the completion of the project.

     (o)  As used in this section, "corporation" means the Hawaii housing finance and development corporation.

     SECTION 3.  In each fiscal year commencing with the 2026‑2027 fiscal year, no more than $          from the dwelling unit revolving fund established pursuant to section 201H-191, Hawaii Revised Statutes, shall be expended by the Hawaii housing and development corporation for projects designated under the Hawaii builds pilot program.

     SECTION 4.  No later than twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, 2030, 2031, and 2032, the Hawaii housing finance and development corporation shall submit to the legislature a report on the Hawaii builds pilot program that includes:

     (1)  A list and descriptions of all Hawaii builds pilot projects designated, approved, or advanced during the prior fiscal year;

     (2)  The amount and type of dwelling unit revolving fund moneys expended for predevelopment activities and construction equity, including the status of repayment or monetization;

     (3)  The number of housing units approved, under construction, and completed, disaggregated by county and area median income category;

     (4)  A summary of interagency coordination efforts and the extent to which statutory timelines were met;

     (5)  Any barriers encountered in project delivery, including statutory, regulatory, or infrastructure constraints;

     (6)  Recommendations for any amendments to the pilot program and whether the pilot program should be continued or terminated; and

     (7)  Any proposed legislation.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

HHFDC; DURF; Hawaii Builds Pilot Program; Exemptions; Permit Reviews; Interagency Coordination; Reports

Description:

Establishes a 5-year Hawaii Builds Pilot Program within the Hawaii Housing Finance and Development Corporation.  Authorizes the Corporation to deploy moneys from the Dwelling Unit Revolving Fund for predevelopment activities or as active construction equity, subject to an annual cap.  Provides that a majority of housing units made available under pilot program projects shall comply with requirements established by HHFDC under section 201H-38, HRS.  Mandates interagency coordination and expedited review for projects to facilitate timely delivery of projects.  Requires annual reports to the Legislature.  Sunsets 6/30/2031.  Effective 7/1/2050.  (SD2)

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.  The legislature finds that the State continues to experience a severe shortage of housing that is affordable for households earning between sixty per cent and one hundred forty per cent of the area median income, a portion of the housing market commonly referred to as "missing middle" housing.  The legislature further finds that successful housing programs in other jurisdictions, such as the BC Builds program implemented in British Columbia, demonstrate that a housing agency must act as a public developer by proactively acquiring land, securing entitlements, and prepackaging shovel-ready projects to cut delivery times.

     The legislature finds that the BC Builds program is structured according to a "rocket fuel" project timeline strategy, which has contributed substantially the program's success.  BC Build's rocket fuel strategy replaces the standard thirty-six to sixty-month timeline typical of most construction projects with a much shorter twelve to eighteen-month project timeline.  BC Builds accomplishes this significant reduction in project timelines by streamlining development processes and working collaboratively with landowners, municipalities, and residential developers to work through and remove any barriers.  BC Builds also leverages underused public lands to create more viable rental projects, along with grant money to keep rents more affordable and get projects off the ground.  BC Build's approach to housing development has resulted in over thirty projects in pre-development in the two years since the program was launched.  Many of these projects will deliver over one hundred units each, significantly expanding the available housing supply.

     Accordingly, the purpose of this Act is to:

     (1)  Establish within the Hawaii housing finance and development corporation the Hawaii builds pilot program as a five-year pilot program, under which:

          (A)  The corporation may deploy moneys from the dwelling unit revolving fund for certain development activities and as active construction equity;

          (B)  Interagency coordination and expedited review for designated pilot projects are required by law; and

          (C)  A majority of housing units must comply with requirements established by the Hawaii housing finance and development corporation under section 201H-38, Hawaii Revised Statutes; and

     (2)  Appropriate funds to implement the Hawaii builds pilot program.

     SECTION 2.  (a)  There is established the Hawaii builds pilot program within the Hawaii housing finance and development corporation.  The pilot program shall run for a period of five years as provided in subsection (n).

     (b)  The board of directors of the corporation shall designate specific projects as Hawaii builds pilot projects, which shall be governed pursuant to this Act.  To qualify as a Hawaii builds pilot project, a project shall:

     (1)  Be located on a site that possesses, at a minimum, adequate existing infrastructure capacity, including water, sewer, and transportation access, to support the density of the proposed project;

     (2)  Preferably be located on land zoned for residential use; provided that project sites that have adequate infrastructure but are not zoned for residential use shall remain eligible through the use of exemptions authorized under section 201H-38, Hawaii Revised Statutes; and

     (3)  Provide a majority of the housing units delivered under the project comply with requirements established by the corporation under section 201H-38, Hawaii Revised Statutes.

     (c)  The corporation shall designate at least one Hawaii builds pilot project in each county of the State to ensure statewide participation in the pilot program.

     (d)  Notwithstanding any provision of part III, subpart I, of chapter 201H, Hawaii Revised Statutes, or any other law to the contrary, the corporation may use moneys from the dwelling unit revolving fund for any Hawaii builds pilot project; provided that dwelling unit revolving fund moneys may be expended for:

     (1)  Predevelopment activities, including land acquisition, architectural and engineering services, environmental and due diligence studies, entitlement processing, and other preparatory activities necessary to advance a project; and

     (2)  Construction equity, including short-term construction equity or equity investment, as deemed appropriate by the corporation's board of directors.

     (e)  Predevelopment activities under subsection (d)(1) shall not require separate gubernatorial approval for each specific disbursement; provided that the project has been designated and approved as a Hawaii builds pilot project by the corporation's board of directors.

     (f)  Any use of moneys from the dwelling unit revolving fund, including but not limited to construction financing or equity investment under subsection (d)(2), shall be structured to ensure a reasonable return to the dwelling unit revolving fund.

     (g)  Notwithstanding any other law to the contrary, while the Hawaii builds pilot program is active, the corporation shall give the highest priority to Hawaii builds pilot projects when allocating and disbursing moneys from the dwelling unit revolving fund.

     (h)  The executive director of the corporation may convene a Hawaii builds expedited review team.  The team shall consist of the directors of relevant state and county agencies or their designees, including the chairperson of the board of land and natural resources, director of the department of health, and each county's planning and public works departments.

     (i)  Notwithstanding any other law to the contrary, all state and county agencies shall cooperate with the corporation in processing Hawaii builds pilot projects, including prioritizing the review of permits, licenses, and entitlements for pilot projects above all other non-emergency applications.

     (j)  Contracts for professional services, construction, and development related to Hawaii builds pilot projects shall be subject to approval by the corporation's board of directors and shall be exempt from chapter 103D, Hawaii Revised Statutes.

     (k)  The state historic preservation division shall complete its review of any Hawaii builds pilot project application within sixty days of the receipt of a completed application.  If the division fails to issue a determination within that period, the application shall be deemed approved.

     (l)  The department of health shall complete its review of hazard evaluation, wastewater, and safe drinking water applications for Hawaii builds pilot projects within sixty days.  If additional time is required to complete a review under this subsection, the department of health shall provide written justification for the extension before the sixty-day period expires.  If the department of health does not provide written justification, the application shall be prioritized for immediate final action.

     (m)  The appropriate county planning director, or an equivalent official having jurisdiction over permitting and exemptions, shall grant a Hawaii builds pilot project all necessary exemptions from county ordinances and rules pursuant to section 201H-38, Hawaii Revised Statutes.  Notwithstanding any law, county charter provision, or ordinance to the contrary, an exemption under this subsection shall not require approval by the county legislative body.  The processing of an exemption for a Hawaii builds pilot project shall be deemed a ministerial act and shall be completed within forty-five days of receipt by the planning director or equivalent official.

     (n)  The authority of the corporation to designate new Hawaii builds pilot projects under this section shall expire on June 30, 2031; provided that any project designated as a Hawaii builds pilot project before July 1, 2031, shall continue to be governed by this section until the completion of the project.

     (o)  As used in this section, "corporation" means the Hawaii housing finance and development corporation.

     SECTION 3.  No later than twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, 2030, 2031, and 2032, the Hawaii housing finance and development corporation shall submit to the legislature a report on the Hawaii builds pilot program that includes:

     (1)  A list and descriptions of all Hawaii builds pilot projects designated, approved, or advanced during the prior fiscal year;

     (2)  The amount and type of dwelling unit revolving fund moneys expended for predevelopment activities and construction equity, including the status of repayment or monetization;

     (3)  The number of housing units approved, under construction, and completed, disaggregated by county and area median income category;

     (4)  A summary of interagency coordination efforts and the extent to which statutory timelines were met;

     (5)  Any barriers encountered in project delivery, including statutory, regulatory, or infrastructure constraints;

     (6)  Recommendations for any amendments to the pilot program and whether the pilot program should be continued or terminated; and

     (7)  Any proposed legislation.

     SECTION 4.  There is appropriated out of the dwelling unit revolving fund the sum of $          or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii builds pilot program.

     The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

HHFDC; DURF; Hawaii Builds Pilot Program; Exemptions; Permit Reviews; Interagency Coordination; Reports; Appropriation

Description:

Establishes a 5-year Hawaii Builds Pilot Program within the Hawaii Housing Finance and Development Corporation.  Authorizes the Corporation to deploy moneys from the Dwelling Unit Revolving Fund for predevelopment activities or as active construction equity.  Provides that a majority of housing units made available under pilot program projects shall comply with requirements established by HHFDC under section 201H-38, HRS.  Mandates interagency coordination and expedited review for projects to facilitate timely delivery of projects.  Requires annual reports to the Legislature.  Sunsets 6/30/2031.  Effective 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.

A BILL FOR AN ACT

relating to housing.

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

     SECTION 1.  The legislature finds that the State continues to experience a severe shortage of housing that is affordable for households earning between sixty per cent and one hundred forty per cent of the area median income, a portion of the housing market commonly referred to as "missing middle" housing.  The legislature further finds that successful housing programs in other jurisdictions, such as the BC Builds program implemented in British Columbia, demonstrate that a housing agency must act as a public developer by proactively acquiring land, securing entitlements, and prepackaging shovel-ready projects to cut delivery times.

     Accordingly, the purpose of this Act is to:

     (1)  Establish within the Hawaii housing finance and development corporation the Hawaii builds pilot program as a five-year pilot program, under which:

          (A)  The corporation may deploy moneys from the dwelling unit revolving fund for certain development activities and as active construction equity;

          (B)  Interagency coordination and expedited review for designated pilot projects are required by law; and

          (C)  At least fifty per cent of housing units must be for households having incomes between sixty per cent and one hundred forty per cent of the area median income, thus facilitating the timely delivery of missing middle housing throughout the State; and

     (2)  Appropriate moneys to implement the Hawaii builds pilot program.

     SECTION 2.  (a)  There is established the Hawaii builds pilot program within the Hawaii housing finance and development corporation.  The pilot program shall run for a period of five years as provided in subsection (n).

     (b)  The board of directors of the corporation shall designate specific projects as Hawaii builds pilot projects, which shall be governed pursuant to this Act.  To qualify as a Hawaii builds pilot project, a project shall:

     (1)  Be located on a site that possesses, at a minimum, adequate existing infrastructure capacity, including water, sewer, and transportation access, to support the density of the proposed project;

     (2)  Preferably be located on land zoned for residential use; provided that project sites that have adequate infrastructure but are not zoned for residential use shall remain eligible through the use of exemptions authorized under section 201H-38, Hawaii Revised Statutes; and

     (3)  Provide at least fifty per cent of the housing units delivered under the project for households having incomes between sixty per cent and one hundred forty per cent of the area median income as determined by the United States Department of Housing and Urban Development.

     (c)  The corporation shall designate at least one Hawaii builds pilot project in each county of the State to ensure statewide participation in the pilot program.

     (d)  Notwithstanding any provision of part III, subpart I, of chapter 201H, Hawaii Revised Statutes, or any other law to the contrary, the corporation may use moneys from the dwelling unit revolving fund for any Hawaii builds pilot project; provided that dwelling unit revolving fund moneys may be expended for:

     (1)  Predevelopment activities, including land acquisition, architectural and engineering services, environmental and due diligence studies, entitlement processing, and other preparatory activities necessary to advance a project; and

     (2)  Construction equity, including short-term construction equity or equity investment, as deemed appropriate by the corporation's board of directors.

     (e)  Predevelopment activities under subsection (d)(1) shall not require separate gubernatorial approval for each specific disbursement; provided that the project has been designated and approved as a Hawaii builds pilot project by the corporation's board of directors.

     (f)  Any use of moneys from the dwelling unit revolving fund for construction equity or equity investment under subsection (d)(2) shall be temporary in nature and structured to ensure repayment or monetization to the dwelling unit revolving fund.

     (g)  Notwithstanding any other law to the contrary, while the Hawaii builds program is active, the corporation shall give the highest priority to Hawaii builds pilot projects when allocating and disbursing moneys from the dwelling unit revolving fund.

     (h)  The executive director of the corporation may convene a Hawaii builds expedited review team.  The team shall consist of the directors of relevant state and county agencies or their designees, including the directors of the department of land and natural resources, department of health, and each county's planning and public works departments.

     (i)  Notwithstanding any other law to the contrary, all state and county agencies shall cooperate with the corporation in processing Hawaii builds pilot projects, including prioritizing the review of permits, licenses, and entitlements for pilot projects above all other non-emergency applications.

     (j)  Contracts for professional services, construction, and development related to Hawaii builds pilot projects shall be subject to approval by the corporation's board of directors and shall be exempt from chapter 103D, Hawaii Revised Statutes.

     (k)  The state historic preservation division shall complete its review of any Hawaii builds pilot project application within sixty days of the receipt of a completed application.  If the division fails to issue a determination within that period, the application shall be deemed approved.

     (l)  The department of health shall complete its review of hazard evaluation, wastewater, and safe drinking water applications for Hawaii builds pilot projects within sixty days.  If additional time is required to complete a review under this subsection, the department of health shall provide written justification for the extension before the sixty-day period expires.  If the department of health does not provide written justification, the application shall be prioritized for immediate final action.

     (m)  The appropriate county planning director, or an equivalent official having jurisdiction over permitting and exemptions, shall grant a Hawaii builds pilot project all necessary exemptions from county ordinances and rules pursuant to section 201H-38, Hawaii Revised Statutes.  Notwithstanding any law, county charter provision, or ordinance to the contrary, an exemption under this subsection shall not require approval by the county legislative body.  The processing of an exemption for a Hawaii builds pilot project shall be deemed a ministerial act and shall be completed within forty-five days of receipt by the planning director or equivalent official.

     (n)  The authority of the corporation to designate new Hawaii builds pilot projects under this section shall expire on June 30, 2031; provided that any project designated as a Hawaii builds pilot project prior to July 1, 2031, shall continue to be governed by this section until the completion of the project.

     (o)  As used in this section, "corporation" means the Hawaii housing finance and development corporation.

     SECTION 3.  No later than twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, 2030, 2031, and 2032, the Hawaii housing finance and development corporation shall submit to the legislature a report on the Hawaii builds pilot program that includes:

     (1)  A list and descriptions of all Hawaii builds pilot projects designated, approved, or advanced during the prior fiscal year;

     (2)  The amount and type of dwelling unit revolving fund moneys expended for predevelopment activities and construction equity, including the status of repayment or monetization;

     (3)  The number of housing units approved, under construction, and completed, disaggregated by county and area median income category;

     (4)  A summary of interagency coordination efforts and the extent to which statutory timelines were met;

     (5)  Any barriers encountered in project delivery, including statutory, regulatory, or infrastructure constraints;

     (6)  Recommendations for any amendments to the pilot program and whether the pilot program should be continued or terminated; and

     (7)  Any proposed legislation.

     SECTION 4.  There is appropriated out of the dwelling unit revolving fund the sum of $          or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii builds pilot program.

     The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

     SECTION 5.  This Act shall take effect on July 1, 2026.

Report Title:

Affordable Housing; HHFDC; Pilot Program; Missing Middle Housing; Exemptions; Permit Reviews; Interagency Coordination; Appropriation; Reports

Description:

Establishes a 5-year Hawaii Builds Pilot Program within the Hawaii Housing Finance and Development Corporation.  Authorizes the Corporation to deploy moneys from the dwelling unit revolving fund for predevelopment activities or as active construction equity.  Requires 50% of housing units made available under pilot program projects for households having incomes between 60% and 140% of the area median income.  Mandates interagency coordination and expedited review for projects to facilitate timely delivery of projects.  Requires annual reports to the Legislature.  Sunsets 6/30/2031.

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. 2712

Honolulu, Hawaii

RE:     S.B. No. 2544

        S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2544, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a five-year pilot program to build additional housing units in Hawaii.

Specifically, this measure:

     (1)  Establishes and appropriates moneys for the Hawaii Builds pilot program within the Hawaii Housing Finance and Development Corporation;

     (2)  Requires the Hawaii Housing Finance and Development Corporation to designate specific projects for the pilot program, including one project in each county;

     (3)  Authorizes the Hawaii Housing Finance and Development Corporation to expend moneys from the dwelling unit revolving fund for the pilot program; and

     (4)  Requires the Hawaii Housing Finance and Development Corporation to submit annual reports on the pilot program to the Legislature.

     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation.

     Your Committee received written comments in opposition to this measure from UNITE HERE Local 5 and one individual.

     Your Committee received written comments on this measure from the State Procurement Office and Office of Hawaiian Affairs.

     Your Committee finds that Hawaii continues to experience a shortage of affordable housing, caused in part by the lengthy review process for affordable housing projects.  This measure will help to expedite housing construction by allowing the Hawaii Housing Finance and Development Corporation to act as a proactive developer and to streamline agency approvals and permitting.

     Your Committee has amended this measure by:

     (1)  Deleting the provision appropriating moneys out of the dwelling unit revolving fund for the Hawaii Builds pilot program; and

     (2)  Placing a cap on the moneys the Hawaii Housing Finance and Development Corporation may expend annually from the dwelling unit revolving fund for purposes of the Hawaii Builds pilot program.

     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 S.B. No. 2544, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2544, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 2192

Honolulu, Hawaii

RE:     S.B. No. 2544

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 2544 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish a five-year Hawaii Builds Pilot Program within the Hawaii Housing Finance and Development Corporation;

     (2)  Authorize the Corporation to deploy moneys from the Dwelling Unit Revolving Fund for predevelopment activities or as active construction equity;

     (3)  Require fifty percent of housing units under pilot program projects to be made available for households having incomes between sixty and one hundred forty percent of the area median income;

     (4)  Mandate interagency coordination and expedited review for projects to facilitate timely delivery of projects;

     (5)  Require annual reports to the Legislature; and

     (6)  Appropriate funds for the Hawaii Builds Pilot Program.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; State Council on Developmental Disabilities; Hawaiʻi Association of REALTORS; Maui Chamber of Commerce; Centre Urban Real Estate Hawaii, LLC; and one individual.

     Your Committee received testimony in opposition to this measure from one individual.

     Your Committee received comments on this measure from the State Procurement Office.

     Your Committee finds that the BC Builds Program, a successful housing program implemented in British Columbia, has experienced remarkable success in delivering housing units to renters at a wide range of income levels.  The program relies on its "rocket fuel" strategy, which is a novel approach to project implementation that shortens traditional timelines of thirty-six to sixty months to only twelve to eighteen months.  These drastically reduced timelines are possible because of the BC Builds Program's streamlined development processes and collaborative approach to working with landowners, municipalities, and residential developers.

     Your Committee further finds that this measure establishes a Hawaii Builds Pilot Program that is modeled on the BC Builds Program.  Under the Hawaii Builds Pilot Program, the Hawaii Housing Finance and Development Corporation would be authorized to use moneys from the Dwelling Unit Revolving Fund for certain development activities.  Additionally, the pilot program would require interagency coordination and expedited project review to ensure rapid project development and timely delivery of housing statewide.

     Your Committee notes the testimony of the State Procurement Office, which expresses concern that the Hawaii Builds Pilot Program lacks justification for an exemption to the Public Procurement Code established by Chapter 103D, Hawaii Revised Statutes. However, your Committee also notes that the Governor's Seventeenth Proclamation Relating To Affordable Housing already exempts housing agencies from the Public Procurement Code.  Consequently, the Hawaii Builds Pilot Program would codify existing exemptions to the Public Procurement Code instead of establishing new exemptions.

     Your Committee has amended this measure by:

     (1)  Amending the requirement that fifty percent of housing units under pilot program projects be made available for households having incomes between sixty and one hundred forty percent of the area median income to instead require that a majority of units made available under the pilot program comply with requirements established by the Hawaii Housing Finance and Development Corporation under section 201H-38, Hawaii Revised Statutes;

     (2)  Clarifying that authorized uses of Dwelling Unit Revolving Fund moneys include but are not limited to construction financing or equity investment and shall be structured to ensure a reasonable return to the Fund;

     (3)  Amending section 1 to reflect its amended purpose and inserting additional findings on the structure and successes of the BC Builds program on which this measure is modeled;

     (4)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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 S.B. No. 2544, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2544, S.D. 1, and be referred to your Committee on Ways and Means.

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