SB 27: 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 further that projects that have received a financing commitment 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 Commitments

Description:

Exempts housing developments that have obtained financing commitments from the State from the requirement to obtain approval from the applicable county council.  (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.  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. 30

Honolulu, Hawaii

RE:    S.B. No. 27

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 27 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent 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 and Economic Justice, Housing Hawaiʻi's Future, Maui Chamber of Commerce, and one individual.

     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, HI Good Neighbor, and sixteen individuals.

     Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation.

     Your Committee finds that state financing is essential to the development of housing for low-income individuals and families.  Presently, the Hawaii Housing Finance and Development Corporation (HHFDC) requires developers to undergo rigorous reviews for proposed housing developments.  Mandating additional approval from a county legislative body introduces duplicate layers of bureaucracy, significantly increasing costs and delays for the development.  As the State has a critical housing shortage, providing certain exemptions for housing developments that have received financing from the State and have been reviewed by HHFDC will alleviate certain barriers to promote, rather than hinder, the development of housing.

     Your Committee notes that developers who receive state financing or financing commitments from the State to build housing classified as "affordable" are required to complete an extensive process to receive approval pursuant to section 201H-38, Hawaii Revised Statutes.  Your Committee further notes testimony asserting that this measure would "skew" the approval process so that even a small amount of state funding would allow a developer to bypass the county approval process.  However, HHFDC does not provide nominal financing for projects and typically, state financing constitutes a majority of a project's costs.  Therefore, this measure expedites the process for certain developments while promoting operational efficiency for housing developments that receive financing from the State.

     Your Committee has amended this measure by clarifying that projects that have received a financing commitment from the State shall be exempt from approval by the legislative body of the county in which the housing project is to be situated.

     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. 27, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 27, 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,