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chapter-206e•Hawaii Revised Statutes, Chapter 206E — Hawaii Community Development Authority
chapter-206eHaw. Rev. Stat. ch. 206ECodeJan 1, 1976
Division 1. Government — Title 13. Planning and Economic Development
Hawaii Revised Statutes as published by the Hawaii State Legislature (files updated 1/5/2026 7:14 PM).
The legislature finds that many areas of the State are substantially undeveloped, blighted, or economically depressed, and are or are potentially in need of renewal, renovation, or improvement to alleviate such conditions as dilapidation, deterioration, age, and other such factors or conditions that make the areas an economic or social liability.
The legislature further finds that there exists within the State vast, unmet community development needs. These include, but are not limited to, a lack of suitable affordable housing; insufficient commercial and industrial facilities for rent; residential areas that do not have facilities necessary for basic liveability, such as parks and open space; areas that are planned for extensive land allocation to one, rather than mixed uses; a lack of infrastructure necessary to facilitate community development; and insufficient culturally appropriate agriculture, education, and natural-resource restoration and management.
It is further determined that the lack of planning and coordination in such areas has given rise to these community development needs and that existing laws and public and private mechanisms have either proven incapable or inadequate to facilitate timely redevelopment and renewal, or restoration and management, as the case may be.
The legislature finds that a new and comprehensive authority for community development must be created to join the strengths of private enterprise, public development, and regulation into a new form capable of long-range planning and implementation of improved community development. The purpose of this chapter is to establish such a mechanism in the Hawaii community development authority, which is a public entity that shall determine community development programs and projects and cooperate with private enterprise and the various components of federal, state, and county governments in bringing plans and projects to fruition. The legislature believes that the planning and implementation expertise of the Hawaii community development authority will result in communities that serve the highest needs and aspirations of Hawaii's people.
The legislature finds that the creation of the Hawaii community development authority, the establishment of community development districts and program areas, the issuance of bonds pursuant to this chapter to finance public facilities, and the ability of the Hawaii community development authority to cooperate with or assist public and private sector entities to engage in projects that improve the State, serve the public interest and are matters of statewide concern.
The legislature also finds that there are many areas of the State, outside of the Hawaii community development authority's community development districts, where this comprehensive planning, and redevelopment agency should use its powers to facilitate timely redevelopment, renewal, community building, and economic development.
[L 1976, c 153, pt of §1; am L 1985, c 38, §1; am L 1993, c 311, §3; am L 2025, c 252, §3]
As used in this chapter, the following terms have the following meanings, unless the context indicates a different meaning or intent:
"Authority" means the Hawaii community development authority established by section 206E-3.
"County" means any county of the State.
"Local governing body" means the county council.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the authority, including a commercial project, a redevelopment project, or a residential project, all as defined as follows, or any combination thereof, which combination shall hereinafter be called and known as a "multipurpose project".
As used in this definition:
(1) "Commercial project" means an undertaking involving commercial or light industrial development, which includes a mixed-use development where commercial or light industrial facilities may be built into, adjacent to, under, or above residential units;
(2) "Redevelopment project" means an undertaking for the acquisition, clearance, replanning, reconstruction, and rehabilitation, or a combination of these and other methods, of an area for a residential project, for an incidental commercial project, and for other facilities incidental or appurtenant thereto, pursuant to and in accordance with this chapter. The terms "acquisition, clearance, replanning, reconstruction, and rehabilitation" shall include renewal, redevelopment, conservation, restoration, or improvement, or any combination thereof; and
(3) "Residential project" means a project or that portion of a multipurpose project, including residential dwelling units, designed and intended for the purpose of providing housing and any facilities as may be incidental or appurtenant thereto.
"Project cost" means the total of all costs incurred by the authority in carrying out all undertakings that it deems reasonable and necessary for the development of a project, including but not limited to: studies; surveys; plans; specifications; architectural, engineering, or any other development related services; acquisition of land and any improvement thereon; site preparation and development; construction; reconstruction; rehabilitation; the necessary expenses in administering the chapter; the cost of financing the project; and relocation costs.
"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.
"Public facilities" includes streets, utility and service corridors, and utility lines where applicable, sufficient to adequately service developable improvements in the district, sites for schools, parks, parking garage, sidewalks, pedestrian ways, and other community facilities. "Public facilities" shall also include public highways, as defined by statute, storm drainage systems, water systems, street lighting systems, off-street parking facilities, and sanitary sewerage systems.
"Qualified nonprofit housing trust" means a corporation, association, or other duly chartered organization that is registered and in good standing with the State; is recognized by the Internal Revenue Service as a charitable or otherwise tax-exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and has the capacity and resources as determined by the authority to carry out the requirements of the reserved housing and workforce housing programs.
"Qualified person" includes any individual, partnership, corporation, or any public agency possessing the competence, expertise, experience, and resources, including financial, personnel, and tangible resources, required for the purposes of the project and other qualifications as may be deemed desirable by the authority in administering this chapter.
"Real property" means lands, structures, and interests in land, including lands under water and riparian rights, space rights, and air rights and any and all other things and rights usually included within the term. Real property also means any and all interests in the property less than full title, such as easements, incorporeal hereditaments, and every estate, interest, or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages, or otherwise.
"Reserved housing" means housing designated for residents in the low-income or moderate-income ranges who meet such eligibility requirements as the authority may adopt by rule.
"Workforce housing" means new residential projects where at least seventy-five per cent of the residential units are set aside for purchase or rent for residents in the low-income or moderate-income ranges who meet such eligibility requirements as the authority may adopt by rules and that do not require financial assistance for design and construction from federal, state, or county government agencies.
[L 1976, c 153, pt of §1; am L 1979, c 126, §1; am L 1982, c 228, §4; am L 1984, c 21, §1; am L 2017, c 12, §22 and c 159, §6]
(a) There is established the Hawaii community development authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes.
(b) The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; the director of business, economic development, and tourism or the director's designee; the chairperson of the board of land and natural resources; the director of planning or planning and permitting of each county in which a community development district is located or the director's designee; a cultural specialist; an at-large member nominated by the president of the senate; an at-large member nominated by the speaker of the house of representatives; two representatives of the Heeia community development district, comprising one resident of that district or the Koolaupoko district, which consists of sections 1 through 9 of zone 4 of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Heeia community development district or Koolaupoko district; two representatives of the Kalaeloa community development district, comprising one resident of the Ewa zone (zone 9, sections 1 through 2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Ewa or Waianae zone; two representatives of the Kakaako community development district, comprising one resident of the district and one owner of a small business or one officer or director of a nonprofit organization in the district; two representatives of the Pulehunui community development district, consisting of one resident of the island of Maui, and one owner of a small business or one officer or director of a nonprofit organization on the island of Maui; and, for the purposes of part X of this chapter only, two experts on transit-oriented development, to be appointed one each by the president of the senate and the speaker of the house of representatives; and the following ex officio, nonvoting members: the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over transportation, and the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over housing.
All members except the director of finance; director of transportation; county directors of planning or planning and permitting; director of business, economic development, and tourism; chairperson of the board of land and natural resources; the two experts on transit-oriented development appointed by the president of the senate and speaker of the house of representatives, respectively; the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over transportation; the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over housing; or, where relevant, their respective designees shall be appointed by the governor pursuant to section 26-34. The two at-large members nominated by the president of the senate and speaker of the house of representatives shall each be invited to serve and appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.
The president of the senate and the speaker of the house of representatives shall each submit a list of six nominees for each district to the governor to fill the two district representative positions for each community development district. For each community development district, the governor shall appoint one member from a list of nominees submitted by the president of the senate and one member from a list of nominees submitted by the speaker of the house of representatives, and of the two appointees, one shall meet the district residency requirement and one shall meet the district small business owner or nonprofit organization officer or director requirement.
The president of the senate and the speaker of the house of representatives shall each appoint a member having expertise and experience in urban planning and community development to fill the two positions designated for experts on transit-oriented development.
The authority shall be organized and shall exercise jurisdiction as follows:
(1) For matters affecting the Heeia community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:
(A) The director of finance or the director's designee;
(B) The director of transportation or the director's designee;
(C) The director of business, economic development, and tourism or the director's designee;
(D) The director of planning and permitting for the county in which the Heeia community development district is located or the director's designee;
(E) The cultural specialist;
(F) The two at-large members; and
(G) The two representatives of the Heeia community development district;
(2) For matters affecting the Kalaeloa community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:
(A) The director of finance or the director's designee;
(B) The director of transportation or the director's designee;
(C) The director of business, economic development, and tourism or the director's designee;
(D) The director of planning and permitting for the county in which the Kalaeloa community development district is located or the director's designee;
(E) The cultural specialist;
(F) The two at-large members; and
(G) The two representatives of the Kalaeloa community development district;
(3) For matters affecting the Kakaako community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:
(A) The director of finance or the director's designee;
(B) The director of transportation or the director's designee;
(C) The director of business, economic development, and tourism or the director's designee;
(D) The director of planning and permitting for the county in which the Kakaako community development district is located or the director's designee;
(E) The cultural specialist;
(F) The two at-large members; and
(G) The two representatives of the Kakaako community development district;
(4) For matters affecting the Pulehunui community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:
(A) The director of finance or the director's designee;
(B) The director of transportation or the director's designee;
(C) The director of business, economic development, and tourism or the director's designee;
(D) The director of planning for the county in which the Pulehunui community development district is located or the director's designee;
(E) The chairperson of the board of land and natural resources or the chairperson's designee;
(F) The cultural specialist;
(G) The two at-large members; and
(H) The two representatives of the Pulehunui community development district; and
(5) For matters affecting part X of this chapter only, the following members shall be considered in determining quorum and majority and shall be eligible to vote:
(A) The director of finance or the director's designee;
(B) The director of transportation or the director's designee;
(C) The director of business, economic development, and tourism or the director's designee;
(D) The chairperson of the board of land and natural resources or the chairperson's designee;
(E) The director of planning for the county in which the program area is located or the director's designee;
(F) The cultural specialist;
(G) The two at-large members; and
(H) The two experts on transit-oriented development appointed by the president of the senate and the speaker of the house of representatives.
In the event of a vacancy, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.
The terms of the director of finance; director of transportation; county directors of planning and permitting; director of business, economic development, and tourism; and chairperson of the board of land and natural resources; or their respective designees shall run concurrently with each official's term of office. The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30. The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining three members shall be for four years. The terms on the authority of the chairpersons of the senate and house of representatives standing committees having jurisdiction over housing and the chairpersons of the senate and house of representatives standing committees having jurisdiction over transportation shall run concurrently with that respective legislator's term as the chairperson of that respective committee.
The governor may remove or suspend for cause any member after due notice and public hearing.
Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the authority valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.
For purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation.
(c) The authority shall appoint the executive director who shall be the chief executive officer. The authority shall set the salary of the executive director, who shall serve at the pleasure of the authority and shall be exempt from chapter 76.
(d) The authority shall annually elect the chairperson and vice chairperson from among its members.
(e) The members of the authority appointed under subsection (b) shall serve without compensation, but each shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.
[L 1976, c 153, pt of §1; am L 1983, c 180, §1; am L 1987, c 336, §7, c 339, §4, and c 355, §4; am L 1990, c 293, §8; am L 1993, c 311, §4; gen ch 1993; am L 2000, c 253, §150; am L 2002, c 184, §3; am L 2006, c 252, §1; am L 2008, c 132, §2; am L 2012, c 323, §2; am L 2014, c 61, §3; am L 2022, c 190, §2; am L 2025, c 252, §4]
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;
(C) Areas within the central urban core;
(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.
[L 1976, c 153, pt of §1; am L 1990, c 86, §6; am L 1997, c 359, §3; am L 2000, c 253, §150; am L 2002, c 184, §4; am L 2009, c 18, §1; am L 2011, c 55, §2; am L 2013, c 38, §6; am L 2014, c 61, §4]
Notwithstanding anything contained in this chapter to the contrary, the authority shall not assign to any person or agency, including the executive director of the authority, any of its powers and duties related to the approval of any variance, exemption, or modification of any provision of a community development plan or community development rules.
[L 2014, c 61, §1]
(a) Notwithstanding any law to the contrary, the authority may authorize a designated qualified nonprofit housing trust to administer the covenants and rules related to the reserved housing and workforce housing programs. Additionally, the authority may waive its right to repurchase a reserved or workforce housing unit during the restriction period and may transfer that right of repurchase to a qualified nonprofit housing trust for the purpose of maintaining the reserved or workforce housing unit as an affordable housing unit. If the repurchase rights are transferred to a qualified nonprofit housing trust, the restrictions prescribed in this chapter or in rules adopted by the authority shall be automatically extinguished and shall not attach in subsequent transfers of title; provided further that the qualified nonprofit housing trust shall establish new buyback restrictions for the purpose of maintaining the unit as affordable for as long as practicable, or as otherwise required by the authority.
(b) A qualified nonprofit housing trust shall report the status and use of its housing units to the authority by November 30 of each calendar year.
[L 2017, c 159, §2]
Notwithstanding any other provision of law, the authority may develop programs that provide incentives for the development of housing projects that incorporate urban gardening programs; provided that the college of tropical agriculture and human resources of the University of Hawaii at Manoa shall be consulted regarding best practices in urban gardening, including vertical gardening, aquaponics, and community gardening.
[L 2013, c 202, §3]
(a) The legislature, by statute, may designate an area as a community development district if it determines that there is need for replanning, renewal, or redevelopment of that area. The designation shall describe the boundaries of the district.
(b) After designation, the authority shall develop a community development plan for the designated district. The plan shall include but not be limited to community development guidance policies, district-wide improvement program and community development rules.
(c) The authority may enter into cooperative agreements with qualified persons or public agencies, where the powers, services, and capabilities of such persons or agencies are deemed necessary and appropriate for the development of the community development plan.
(d) Whenever possible, planning activities of the authority shall be coordinated with federal, state and county plans. Consideration shall be given to state goals and policies, adopted state plan or land use guidance policies, county general plans, development plans, and ordinances.
(e) The authority shall hold a public hearing on a proposed community development plan pursuant to chapter 91 and, after consideration of comments received and appropriate revision, shall submit the community development plan to the governor for the governor's approval.
After approval, the governor shall submit to the legislature requests for appropriations, authorization to issue bonds, or both, to implement the community development plan in an orderly, affordable, and feasible manner. The governor shall submit the requests to the legislature as part of the executive budget or supplemental budget, as appropriate. In addition to the information, data, and materials required under chapter 37, the requests shall be accompanied by:
(1) Plans, maps, narrative descriptions, and other appropriate materials on the:
(A) Locations and design of projects or public facilities proposed to be funded; and
(B) Phase of the community development plans proposed to be implemented with the requested funds; and
(2) Other information deemed by the governor of significance to the legislature regarding the projects or public facilities proposed to be funded, including a discussion of the public benefits intended by, and adverse effects which may result from, implementation of the projects or public facilities.
(f) The authority may amend the community development plan as may be necessary. Amendments shall be made in accordance with chapter 91.
[L 1976, c 153, pt of §1; gen ch 1985; am L 1987, c 355, §5]
(a) The authority shall adopt community and public notice procedures pursuant to chapter 91 that shall include at a minimum:
(1) A means to effectively engage the community in which the authority is planning a development project to ensure that community concerns are received and considered by the authority;
(2) The posting of the authority's proposed plans for development of community development districts, public hearing notices, and minutes of its proceedings on the authority's website;
(3) The posting of every application for a development permit for any project within a community development district on the authority's website when the application is deemed complete;
(4) Notification by the applicant of any application for a development permit for a project valued at $250,000 or more by first class United States mail, postage prepaid to owners and lessees of record of real property located within a three hundred foot radius of the perimeter of the proposed project identified from the most current list available from the real property assessment division of the department of budget and fiscal services of the county in which the proposed project is located when the application is deemed complete; provided that notice mailed pursuant to this paragraph shall include but not be limited to notice of:
(A) Project specifications;
(B) Requests for variance, exemption, or modification of a community development plan or the authority's community development rules; and
(C) Procedures for intervention and a contested case hearing; and
(5) Any other information that the public may find useful so that it may meaningfully participate in the authority's decision-making processes.
(b) The authority shall notify the president of the senate and speaker of the house:
(1) Of any public hearing upon posting of the hearing notice; and
(2) With a report detailing the public's reaction at the public hearing, within one week after the hearing.
[L 2006, c 251, pt of §1; am L 2014, c 61, §5]
(a) When rendering a decision regarding:
(1) An amendment to any of the authority's community development rules established pursuant to chapter 91 and section 206E‑7; or
(2) The acceptance of a developer's proposal to develop lands under the authority's control,
the authority shall render its decision at a public hearing separate from the hearing that the proposal under paragraph (1) or (2) was presented.
(b) The authority shall issue a public notice in accordance with section 1‑28.5 and post the notice on its website; provided that the decision-making hearing shall not occur earlier than five business days after the notice is posted. Public notice issued pursuant to this subsection for public hearings on the acceptance of a developer's proposal to develop lands under the authority's control shall state that any written motion to intervene as a formal party to the proceeding shall be received within twenty days after the publication date of the public notice.
(c) Prior to rendering a decision, the authority shall provide the general public with the opportunity to testify at its decision-making hearing; provided that members of the public who are not intervenors in the proceeding shall not be considered formal parties to the proceeding.
(d) The authority shall notify the president of the senate and speaker of the house:
(1) Of any public hearing upon posting of the hearing notice; and
(2) With a report detailing the public's reaction at the public hearing, within one week after the hearing.
(e) When considering any developer's proposal to develop lands under the authority's control that includes any request for a variance, exemption, or modification of a community development plan or of the authority's community development rules, the authority shall consider the request for variance, exemption, or modification at a public hearing, noticed in accordance with section 1-28.5, separate from and subsequent to the hearing at which the developer's proposal was presented; provided that the authority may consider all requests applicable to a single proposal at the same public hearing. The authority's decision on requests subject to this subsection shall be rendered at the decision-making hearing on the developer's proposal.
(f) No final decision of the authority on a developer's proposal shall be issued until after all proceedings required by this section are finally concluded.
(g) Proceedings regarding the acceptance of a developer's proposal to develop lands under the authority's control shall be considered a contested case hearing.
(h) Any party aggrieved by a final decision of the authority regarding the acceptance of a developer's proposal to develop lands under the authority's control may seek judicial review of the decision within thirty days. Chapter 91 shall apply to the judicial review except where chapter 91 conflicts with this chapter, in which case this chapter shall apply. Any other law to the contrary notwithstanding, including chapter 91, any contested case under this chapter shall be appealed from a final decision and order or a preliminary ruling that is of the nature defined by section 91-14(a) upon the record directly to the supreme court for final decision. Only a person aggrieved in a contested case proceeding provided for in this chapter may appeal from the final decision and order or preliminary ruling. For the purposes of this section, the term "person aggrieved" includes an agency that is a party to a contested case proceeding before that agency or another agency.
(i) The court shall give priority to contested case appeals of significant statewide importance over all other civil or administrative appeals or matters and shall decide these appeals as expeditiously as possible.
(j) The authority shall not approve any developer's proposal to develop lands under the authority's control unless the authority finds that the proposed development project is reasonable and is consistent with the development rules and policies of the relevant development district. In making its finding pursuant to this subsection, the authority shall consider:
(1) The extent to which the proposed project:
(A) Advances the goals, policies, and objectives of the applicable district plan;
(B) Protects, preserves, or enhances desirable neighborhood characteristics through compliance with the standards and guidelines of the applicable district rules;
(C) Avoids a substantially adverse effect on surrounding land uses through compatibility with the existing and planned land use character of the surrounding area; and
(D) Provides housing opportunities for all income groups, particularly low, moderate, and other qualified income groups;
(2) The impact of the proposed project on the following areas of urban design, as applicable:
(A) Pedestrian oriented development, including complete streets design;
(B) Transit oriented development, including rail, bus, and other modes of rapid transit; and
(C) Community amenities such as gathering places, community centers, culture and arts facilities, and the full array of public facilities normally provided by the public sector;
(3) The impact of the proposed project on the following areas of state concern:
(A) Preservation of important natural systems or habitats;
(B) Maintenance of valued cultural, historical, or natural resources;
(C) Maintenance of other resources relevant to the State's economy;
(D) Commitment of state funds and resources;
(E) Employment opportunities and economic development; and
(F) Maintenance and improvement of the quality of educational programs and services provided by schools;
(4) The representations and commitments made by the developer in the permit application process.
[L 2006, c 251, pt of §1; am L 2014, c 61, §6; am L 2016, c 48, §§8, 14; am L 2017, c 12, §76 and c 99, §1; am L 2019, c 213, §1]
(a) The authority shall develop a district-wide improvement program to identify necessary district-wide public facilities within a community development district.
(b) Whenever the authority shall determine to undertake, or cause to be undertaken, any public facility as part of the district-wide improvement program, the cost of providing the public facilities shall be assessed against the real property in the community development district specially benefiting from such public facilities. The authority shall determine the areas of the community development district which will benefit from the public facilities to be undertaken and, if less than the entire community development district benefits, the authority may establish assessment areas within the community development district. The authority may issue and sell bonds in such amounts as may be authorized by the legislature to provide funds to finance such public facilities. The authority shall fix the assessments against real property specially benefited. All assessments made pursuant to this section shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until paid and such lien shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien shall be superior to the later lien.
(c) Bonds issued to provide funds to finance public facilities shall be secured solely by the real properties benefited or improved, the assessments thereon, or by the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the authority. Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes. The bonds shall be issued according and subject to the provisions of the rules adopted pursuant to this section.
(d) Any other law to the contrary notwithstanding, in assessing real property for public facilities, the authority shall assess the real property within an assessment area according to the special benefits conferred upon the real property by the public facilities. These methods may include assessment on a frontage basis or according to the area of real property within an assessment area or any other assessment method which assesses the real property according to the special benefit conferred, or any combination thereof. No such assessment levied against real property specially benefited as provided by this chapter shall constitute a tax on real property within the meanings of any constitutional or statutory provisions.
(e) The authority shall adopt rules pursuant to chapter 91, and may amend the rules from time to time, providing for the method of undertaking and financing public facilities in an assessment area or an entire community development district. The rules adopted pursuant to this section shall include, but are not limited to, the following: methods by which the authority shall establish assessment areas; the method of assessment of real properties specially benefited; the costs to be borne by the authority, the county in which the public facilities are situated, and the property owners; the procedures before the authority relating to the creation of the assessment areas by the owners of real property therein, including provisions for petitions, bids, contracts, bonds, and notices; provisions relating to assessments; provisions relating to financing, such as bonds, special funds, advances from available funds, special funds for payment of bonds, payment of principal and interest, and sale and use of bonds; provisions relating to funds and refunding of outstanding debts; and provisions relating to limitations on time to sue, and other related provisions.
(f) Any provisions to the contrary notwithstanding, the authority may, in its discretion, enter into any agreement with the county in which the public facilities are located, to implement all or part of the purposes of this section.
(g) All sums collected under this section shall be deposited in the Hawaii community development special fund established by section 206E-16; except that notwithstanding section 206E-16, all moneys collected on account of assessments and interest thereon for any specific public facilities financed by the issuance of bonds shall be set apart in a separate special fund and applied solely to the payment of the principal and interest on these bonds, the cost of administering, operating, and maintaining the program, the establishment of reserves, and other purposes as may be authorized in the proceedings providing for the issuance of the bonds. If any surplus remains in any special fund after the payment of the bonds chargeable against that fund, it shall be credited to and become a part of the Hawaii community development special fund. Moneys in the Hawaii community development special fund may be used to make up any deficiencies in the special fund.
(h) If the public facilities to be financed through bonds issued by the authority may be dedicated to the county in which the public facilities are to be located, the authority shall ensure that the public facilities are designed and constructed to meet county requirements.
(i) Notwithstanding any law to the contrary, whenever as part of a district-wide improvement program it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities, the authority shall establish by rule the allocation of cost between the authority, the affected public utilities, and properties that may specially benefit from such improvement, if any. In determining the allocation of cost, the authority shall consider the cost allocation policies for improvement districts established by the county in which the removal, relocation, replacement, or reconstruction is to take place.
[L 1976, c 153, pt of §1; am L 1982, c 228, §5; am L 1984, c 20, §§1, 2; am L 1985, c 38, §2 and c 51, §1; am L 1986, c 4, §1 and c 105, §1; am L 1987, c 8, §1 and c 355, §6; am L Sp 2021, c 9, §22]
(a) The authority shall establish community development rules under chapter 91 on health, safety, building, planning, zoning, and land use which, upon final adoption of a community development plan, shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction thereon. Rules adopted under this section shall follow existing law, rules, ordinances, and regulations as closely as is consistent with standards meeting minimum requirements of good design, pleasant amenities, health, safety, and coordinated development. The authority may, in the community development plan or by a community development rule, provide that lands within a community development district shall not be developed beyond existing uses or that improvements thereon shall not be demolished or substantially reconstructed, or provide other restrictions on the use of the lands.
(b) Development rights under a master plan permit and master plan development agreement issued and approved by the authority are vested under the community development district rules in effect at the time of initial approval by the authority and shall govern development on lands subject to such permit and agreement.
[L 1976, c 153, pt of §1; am L 2014, c 61, §7]
(a) If state lands under the control and management of other public agencies are required by the authority for its purposes, the agency having the control and management of those required lands may, upon request by the authority and with the approval of the governor, convey or lease such lands to the authority upon such terms and conditions as may be agreed to by the parties.
(b) Notwithstanding the foregoing, no public lands shall be conveyed or leased to the authority as above provided if such conveyance or 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 such county, department, or board.
[L 1976, c 153, pt of §1; am L 2014, c 61, §8]
(a) Notwithstanding chapter 205A, all requests for developments within a special management area and shoreline setback variances for developments on any lands within a community development district, for which a community development plan has been developed and approved in accordance with section 206E-5, shall be submitted to and reviewed by the lead agency as defined in chapter 205A. In community development districts for which a community development plan has not been developed and approved in accordance with section 206E-5, parts II and III of chapter 205A shall continue to be administered by the applicable county authority until a community development plan for the district takes effect.
(b) In the review of such requests, the lead agency shall conform to the following, as deemed appropriate:
(1) Applicable county rules adopted in accordance with section 205A-26 for the review of developments within a special management area, except that paragraph (2)(C) of section 205A-26 shall not apply; and
(2) Part III of chapter 205A and applicable county rules for the review of developments within the shoreline setback.
(c) With the approval of the lead agency, the developments may be allowed without a special management area permit or shoreline setback variance as required by chapter 205A.
[L 1990, c 86, §§5, 18; am L 1999, c 35, §1; am L 2002, c 208, §2]
Notwithstanding the provision of any law or charter, any county, by resolution of its local governing body, may, without public auction, sealed bids, or public notice, sell, lease for a term not exceeding sixty-five years, grant or convey to the authority any real property owned by it which the authority certifies to be necessary for its purposes. The sale, lease, grant, or conveyance shall be made with or without consideration and upon such terms and conditions as may be agreed upon by the county and the authority. Certification shall be evidenced by a formal request from the authority. Before the sale, lease, grant, or conveyance may be made to the authority, a public hearing shall be held by the local governing body to consider the same. Notice of the hearing shall be published at least ten days before the date set for the hearing in such publication and in such manner as may be designated by such local governing body.
[L 1976, c 153, pt of §1]
The authority upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this chapter, may acquire the property by condemnation pursuant to chapter 101, including property already devoted to a public use. Such property shall not thereafter be taken for any other public use without the consent of the authority. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of a community development district or plan adopted pursuant to a designation, or the actual or proposed acquisition, use or disposition of any other real property by the authority.
[L 1976, c 153, pt of §1]
(a) Any provision of law to the contrary notwithstanding, the authority shall adopt rules pursuant to chapter 91 to insure the appropriate relocation within or outside the district of persons, families, and businesses displaced by governmental action within the district. The rules may include, but are not limited to, the establishment and operation of a central relocation office; relocation payments for actual moving costs; fixed payments for losses suffered; payments for replacement housing or business locations; relocation payments and loans to displaced businesses for certain costs related to the reestablishment of their business operations; and other similar relocation matters.
(b) The authority shall provide relocation assistance to persons, families, and businesses within the district that are displaced by private action; provided that such assistance shall not include any form of direct monetary payments except that the authority may make relocation loans to displaced businesses in accordance with rules adopted by the authority for the purposes of this section. Temporary relocation facilities within or outside the district may be made available to displacees; provided that those displaced by government action shall be afforded priority to the facilities.
[L 1982, c 228, §3; am L 1984, c 21, §2; am L 1990, c 86, §10]
The authority shall award construction contracts in conformity with the applicable provisions of chapter 103D.
[L 1976, c 153, pt of §1; am L Sp 1993, c 8, §54]
The authority shall establish rules requiring dedication for public facilities of land or facilities, or cash payments in lieu thereof, by developers as a condition of developing real property pursuant to the community development plan. Where state and county public facilities dedication laws, ordinances, or rules differ, the provision for greater dedication shall prevail.
[L 1976, c 153, pt of §1; am L 1984, c 15, §1]
Any project or activity of any county or agency of the State in a designated district shall be constructed, renovated, or improved in consultation with the authority.
[L 1976, c 153, pt of §1]
(a) The authority may, without recourse to public auction, sell, or lease for a term not exceeding sixty-five years, all or any portion of the real or personal property constituting a redevelopment project to any person, upon such terms and conditions as may be approved by the authority, if the authority finds that the sale or lease is in conformity with the community development plan.
For the stadium development district, leases shall not exceed a term of ninety-nine years.
(b) In the case of residential projects or redevelopment projects, the terms of the sale shall provide for the repurchase of the property by the authority at its option, in the event that the purchaser, if other than a state agency, desires to sell the property within ten years, provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the community development plan. The authority shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations including but not being limited to interest rates, land values, construction costs, and federal tax laws.
If the purchaser in a residential project is a state agency, the authority may include as a term of the sale a provision for the repurchase of the property in conformance with this section.
[L 1976, c 153, pt of §1; am L 1985, c 49, §1; am L 2019, c 268, §2]
(a) If the authority deems it desirable to develop a residential project, it may enter into an agreement with qualified persons to construct, maintain, operate, or otherwise dispose of the residential project. Sale, lease, or rental of dwelling units in the project shall be as provided by the rules established by the authority. The authority may enter into cooperative agreements with the Hawaii housing finance and development corporation for the financing, development, construction, sale, lease, or rental of dwelling units and projects.
(b) The authority may transfer the housing fees collected from private residential developments for the provision of housing for residents of low- or moderate-income to the Hawaii housing finance and development corporation for the financing, development, construction, sale, lease, or rental of such housing within or without the community development districts. The fees shall be used only for projects owned by the State or owned or developed by a qualified nonprofit organization. For the purposes of this section, "nonprofit organization" means a corporation, association, or other duly chartered organization registered with the State, which organization has received charitable status under the Internal Revenue Code of 1986, as amended.
[L 1976, c 153, pt of §1; am L 1979, c 126, §2; am L 1987, c 337, §8; am L 1990, c 86, §7; am L 1997, c 350, §14; am L 2005, c 196, §26(b); am L 2006, c 180, §16]
There is created the Hawaii community development special fund into which all receipts and revenues of the authority shall be deposited. Proceeds from the fund shall be used for the purposes of this chapter.
[L 1976, c 153, pt of §1; am L Sp 2021, c 9, §23]
Except as to administrative expenditures, and except as otherwise provided by law, expenditures from any special fund administered by the authority may be made by the authority without appropriation or allotment of the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any special fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended. Nothing in sections 37-31 to 37-41 shall require the proceeds of any special fund administered by the authority to be reappropriated annually.
[L Sp 1995, c 11, §4; am L Sp 2021, c 9, §24]
The authority shall not be required to pay assessments levied by any county, nor shall the authority be required to pay state taxes of any kind.
[L 1976, c 153, pt of §1]
Any state or county agency may render services upon request of the authority.
[L 1976, c 153, pt of §1]
The authority shall submit to the governor and the legislature, at least twenty days prior to the start of any regular session, a complete and detailed report of its activities.
[L 1976, c 153, pt of §1]
(a) Any action or proceeding to which the authority, the State, or the county may be a party, in which any question arises as to the validity of this chapter, shall be brought in the circuit court of the circuit where the case or controversy arises, and shall be heard and determined in preference to all other civil cases pending therein except election cases, irrespective of position on the calendar.
(b) Upon application of counsel to the authority, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the authority may be allowed to intervene.
(c) Any action or proceeding to which the authority, the State, or the county may be a party, in which any question arises as to the validity of this chapter or any portion of this chapter, may be filed in the circuit court of the circuit where the case or controversy arises, which court is hereby vested with original jurisdiction over the action.
(d) Notwithstanding any provision of law to the contrary, declaratory relief may be obtained for the action.
(e) Any party aggrieved by the decision of the circuit court may appeal in accordance with part I of chapter 641 and the appeal shall be given priority.
[L 1976, c 153, pt of §1; am L 1985, c 37, §1; am L 2001, c 251, §6]
The director of finance may, from time to time, issue general obligation bonds pursuant to chapter 39 in such amounts as may be authorized by the legislature, for the purposes of this chapter.
[L 1976, c 153, pt of §1]
(a) Notwithstanding section 206E-21 and 206E-225, the authority, pursuant to and in accordance with this subpart and section 46-80.1(a), may issue bonds for the purpose of financing the development of infrastructure for:
(1) Land owned by the authority or land within a community development district or area established under this chapter or the stadium development district established in section 206E-223; and
(2) Infrastructure projects under section 206E-246.
(b) All bonds issued by the authority for improvements by assessments, and the interest thereon, shall be exempt from all state, county, and municipal taxation, except inheritance, transfer, and estate taxes.
[L 2025, c 252, pt of §2]
(a) The authority may set, charge, and collect reasonable fines for violation of this chapter or any rule adopted pursuant to chapter 91. Any person violating any of the provisions of this chapter or any rule adopted pursuant to chapter 91, for which violation a penalty is not otherwise provided, shall be fined not more than $500 a day and shall be liable for administrative costs incurred by the authority.
(b) The authority may maintain an action for an injunction to restrain any violation of the provisions of this chapter and may take any other lawful action to prevent or remedy any violation.
(c) Any person violating any provision of this chapter shall, upon conviction, be punished by a fine not exceeding $1,000 or by imprisonment not exceeding thirty days, or both. The continuance of a violation after conviction shall be deemed a new offense for each day of such continuance.
[L 1982, c 228, §2; am L 1993, c 136, §1]
The legislature finds that:
(1) The Kakaako district is centrally located in Honolulu proper, in close proximity to the central business district, the government center, commercial, industrial and market facilities, major existing and contemplated transportation routes and recreational and service areas;
(2) Due to its present function as a service and light industrial area, the district is relatively underdeveloped and has especially in view of its proximity to the urban core where the pressure for all land uses is strong the potential for increased growth and development that can alleviate community needs such as low-income housing, parks and open space, and commercial and industrial facilities;
(3) The district, if not redeveloped or renewed, has the potential to become a blighted and deteriorated area. Due to its present economic importance to the State in terms of industry and subsequent employment, there is a need to preserve and enhance its value and potential;
(4) Kakaako has a potential, if properly developed and improved, to become a planned new community in consonance with surrounding urban areas.
In coordinating community development in the Kakaako district, the authority shall plan a mixed-use district whereby industrial, commercial, residential, and public uses may coexist compatibly within the same area.
The authority shall plan for the above uses, but shall also respect and support the present function of Kakaako as a major economic center, providing significant employment in such areas as light industrial, wholesaling, service, and commercial activity.
[L 1976, c 153, pt of §1]
Anything contained in this chapter to the contrary notwithstanding, the authority is prohibited from:
(1) Selling or otherwise assigning the fee simple interest in any lands in the Kakaako community development district to which the authority in its corporate capacity holds title, except with respect to:
(A) Utility easements;
(B) Remnants as defined in section 171-52;
(C) Grants to any state or county department or agency;
(D) Private entities for purposes of any easement, roadway, or infrastructure improvements; or
(E) Reserved housing as defined in section 206E-101; or
(2) Approving any plan or proposal for any residential development in that portion of the Kakaako community development district makai of Ala Moana boulevard and between Kewalo Basin and the foreign trade zone.
[L 2006, c 317, §1; am L 2014, c 61, §9]
[§206E-31.6] Lease of projects. (a) Notwithstanding any law to the contrary, including [section] 206E-14, except as prohibited by section 206E-31.5, the authority may, without recourse to public auction or public notice for sealed bids, lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a project to any person, upon such terms and conditions as may be approved by the authority, if the authority finds that the lease is in conformity with the community development plan.
(b) In the case of any sale of the leasehold interest in the project, the terms of the sale shall provide for the repurchase of the leasehold property by the authority at its option, in the event that the purchaser, if other than a state agency, desires to sell the property within ten years; provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the community development plan. The authority shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations including but not limited to interest rates, land values, construction costs, and federal tax laws.
If the purchaser in a residential project is a state agency, the authority may include as a term of the sale a provision for the repurchase of the property in conformance with this section.
[L 2012, c 323, §7]
The Kakaako community development district is established. The district shall include that area bounded by King Street; Piikoi Street from its intersection with King Street to Ala Moana Boulevard; Ala Moana Boulevard, inclusive, from Piikoi Street to its intersection with the Ewa boundary of Ala Moana Park also identified as the Ewa boundary of tax map key 2-3-37:01; the Ewa boundary of tax map key 2-3-37:01 from its intersection with Ala Moana Boulevard to the shoreline; the shoreline from its intersection with the property line representing the Ewa boundary of property identified by tax map key 2-3-37:01 to the property line between Pier 2 and Pier 4; the property line between Pier 2 and Pier 4 from its intersection with the shoreline to Ala Moana Boulevard; Ala Moana Boulevard from its intersection with the property line between lands identified by Pier 2 and Pier 4 to Punchbowl Street; and Punchbowl Street to its intersection with King Street; provided that the following parcels at Pier 1 and Pier 2 shall be deleted from the Kakaako community development district boundaries and conveyed to the department of land and natural resources to be set aside for the department of transportation and the foreign-trade zone division of the department of business, economic development, and tourism, to ensure continued maritime and foreign commerce use: all of lot 3 and parcels 2, 3-A, A, and B of the Forrest Avenue subdivision, as shown on the map filed with the bureau of conveyances of the State of Hawaii as file plan 2335; and lots A-1 and A-2, as shown on map 2, filed in the office of the assistant registrar of the land court of the State of Hawaii with land court application 1328; and provided further that all existing easements affecting and appurtenant to the parcels to be deleted from the Kakaako community development district boundaries shall not be affected by this change.
The district shall also include that parcel of land identified by tax map key 2-1-14:16, situated mauka of Pier 6 and Pier 7 and makai of Nimitz Highway, being the site for the existing Hawaiian Electric power plant and related facilities.
[L 1976, c 153, pt of §1; am L 1982, c 228, §6; am L 1987, c 355, §2; am L 1990, c 86, §4; am L 2006, c 165, §4]
The following shall be the development guidance policies generally governing the authority's action in the Kakaako community development district:
(1) Development shall result in a community which permits an appropriate land mixture of residential, commercial, industrial, and other uses. In view of the innovative nature of the mixed use approach, urban design policies should be established to provide guidelines for the public and private sectors in the proper development of this district; while the authority's development responsibilities apply only to the area within the district, the authority may engage in any studies or coordinative activities permitted in this chapter which affect areas lying outside the district, where the authority in its discretion decides that those activities are necessary to implement the intent of this chapter. The studies or coordinative activities shall be limited to facility systems, resident and industrial relocation, and other activities with the counties and appropriate state agencies. The authority may engage in construction activities outside of the district; provided that such construction relates to infrastructure development or residential or business relocation activities; provided further, notwithstanding section 206E-7, that such construction shall comply with the general plan, development plan, ordinances, and rules of the county in which the district is located;
(2) Existing and future industrial uses shall be permitted and encouraged in appropriate locations within the district. No plan or implementation strategy shall prevent continued activity or redevelopment of industrial and commercial uses which meet reasonable performance standards;
(3) Activities shall be located so as to provide primary reliance on public transportation and pedestrian facilities for internal circulation within the district or designated subareas;
(4) Major view planes, view corridors, and other environmental elements such as natural light and prevailing winds, shall be preserved through necessary regulation and design review; provided that no portion of any building or structure in the Kakaako Mauka area shall exceed four hundred eighteen feet in height;
(5) Redevelopment of the district shall be compatible with plans and special districts established for the Hawaii Capital District, and other areas surrounding the Kakaako district;
(6) Historic sites and culturally significant facilities, settings, or locations shall be preserved;
(7) Land use activities within the district, where compatible, shall to the greatest possible extent be mixed horizontally, that is, within blocks or other land areas, and vertically, as integral units of multi-purpose structures;
(8) Residential development may require a mixture of densities, building types, and configurations in accordance with appropriate urban design guidelines; integration both vertically and horizontally of residents of varying incomes, ages, and family groups; and an increased supply of housing for residents of low- or moderate-income may be required as a condition of redevelopment in residential use. Residential development shall provide necessary community facilities, such as open space, parks, community meeting places, child care centers, and other services, within and adjacent to residential development;
(9) Public facilities within the district shall be planned, located, and developed so as to support the redevelopment policies for the district established by this chapter and plans and rules adopted pursuant to it; and
(10) Development shall consider the impacts of climate change, sea level rise, and climate-resilient development in the design and siting of buildings.
[L 1976, c 153, pt of §1; am L 1978, c 119, §1; am L 1982, c 228, §7; am L 1990, c 86, §8; am L 2014, c 61, §10; am L 2023, c 221, §2]
(a) There shall be established within the Hawaii community development authority a state cultural public market.
(b) The cultural public market shall be located on state land within the Kakaako Makai area and developed pursuant to sections 206E-31, 206E-32, and 206E-33. A public parking lot shall be included.
(c) The Hawaii community development authority shall:
(1) Designate and develop the state-owned land for the cultural public market;
(2) Accept, for consideration, input regarding the establishment of the cultural public market from the following departments and agencies:
(A) The department of agriculture and biosecurity;
(B) The department of business, economic development, and tourism;
(C) The department of land and natural resources;
(D) The department of labor and industrial relations; and
(E) The Hawaii tourism authority;
(3) Consider and determine the propriety of using public-private partnerships in the development and operation of the cultural public market;
(4) Develop, distribute, and accept requests for proposals from private entities for plans to develop and operate the cultural public market; and
(5) Ensure that the Hawaiian culture is the featured culture in the cultural public market.
(d) Requests for proposals for the cultural public market shall contemplate but not be limited to the inclusion of the following types of facilities and services:
(1) Retail outlets for ethnically diverse products;
(2) Venues for businesses with ethnic themes, including restaurants and other service-related businesses;
(3) Theaters, stages, and arenas designed to showcase cultural performing artists as well as community performing arts;
(4) Exhibition space or museums that showcase artwork created by international and local artists; and
(5) Museums or other educational facilities focusing on the history and cultures of the various ethnic groups within Hawaii, including Hawaiian history.
[L 2005, c 231, §2; am L 2025, c 236, §17]
§206E-35 REPEALED. L 2011, c 234, §1.
[Repealed]
[. L 2018, c 9, §3]
The following words or terms as used in this part shall have the following meanings, unless a different meaning clearly appears from the context:
"Authority" means the Hawaii community development authority.
"Eligible borrower" means any person or family, irrespective of race, creed, national origin, or sex, who:
(1) Has never before obtained a loan under this part; and
(2) Meets other qualifications as established by rules adopted by the authority.
"Eligible loan" means a loan to an eligible borrower for the purchase of a reserved housing unit; provided that the property financed is located in the community development district, is and will be occupied as the principal place of residence by the eligible borrower, and meets other requirements as established by rules adopted by the authority.
"Mortgage lender" means any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, credit union, insurance company, or any other financial institution, or a holding company for any of the foregoing, which:
(1) Is authorized to do business in the State;
(2) Customarily provides service or otherwise aids in the financing of mortgages on single family or multi-family residential property; and
(3) Is a financial institution whose accounts are federally insured, or is an institution which is an approved mortgagee for the Federal Housing Administration, or is an approved lender for the Department of Veterans Affairs or the United States Department of Agriculture, or is an approved mortgage loan servicer for the Federal National Mortgage Association or the Federal Home Mortgage Corporation.
"Reserved housing" means housing designated for residents in the low- or moderate-income ranges who meet such eligibility requirements as the authority may adopt by rule.
"Reserved housing loan programs" includes all or any part of the loan to lenders program, the purchase of existing loans program, the advance commitments program, and the eligible loan and eligible project loan funding program authorized under this part.
"Revenue bonds" means bonds, notes, or other evidence of indebtedness of the authority issued to finance any of the reserved housing loan programs under this part.
"Trustee" means a national or state bank or trust company within or without the State which enters into a trust indenture.
"Trust indenture" means an agreement by and between the authority and the trustee, which sets forth the duties of the trustee with respect to the revenue bonds, the security therefor, and other provisions as deemed necessary or convenient by the authority to secure the revenue bonds.
[L 1982, c 228, pt of §8; am L 1997, c 258, §12; am L 2017, c 12, §1]
(a) The authority shall establish requirements for reserved housing units financed by an eligible loan, and may consider, but not be limited to the location, age, condition, and other characteristics of the reserved housing units.
(b) The authority shall establish restrictions on the terms, maturities, interest rates, collateral, and other requirements for eligible loans.
(c) All eligible loans made shall comply with applicable state and federal laws.
[L 1982, c 228, pt of §8]
(a) The authority, with the approval of the governor, may issue from time to time revenue bonds in amounts not exceeding the total amount of bonds authorized by the legislature for the purpose of undertaking and maintaining any of the reserved housing loan programs.
(b) All revenue bonds shall be issued pursuant to part III of chapter 39, except as provided in this part.
(c) The revenue bonds shall be issued in the name of the authority, and not in the name of the State. The final maturity date of the revenue bonds may be any date not exceeding forty years from the date of issuance.
[L 1982, c 228, pt of §8]
(a) The revenue bonds shall be payable from and secured by the revenues derived from the benefits of the reserved housing loan programs for which the revenue bonds are issued, including:
(1) Any payment made for eligible loans or eligible project loans or other agreements entered into for the reserved housing loan programs;
(2) Revenues derived from insurance proceeds;
(3) Reserve accounts and earnings thereon; and
(4) Revenues resulting from loans to mortgage lenders or from the payment on account of principal of and interest on loans purchased from mortgage lenders.
(b) The authority may pledge any revenue derived from the reserved housing loan programs 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 authority to secure the loans.
(d) Any pledge made by the authority shall create a perfected security interest in the revenues, moneys, or property so pledged and thereafter received by the authority from and after the time that a financing statement with respect to the revenues, moneys, or property so pledged and thereafter received shall be filed with the bureau of conveyances. Upon such filing, the revenues, moneys, or property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be prior to the lien of all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether such parties have notice thereof.
[L 1982, c 228, pt of §8]
(a) The revenue bonds shall bear interest at a rate or rates payable monthly, quarterly, or semi-annually.
(b) The authority shall include the costs of undertaking and maintaining the reserved housing loan programs for which the revenue bonds are issued in determining the cost of undertaking and maintaining the reserved housing loan programs, the authority may include the cost of purchasing or funding loans or other agreements entered into for the reserved housing loan programs; the costs of studies and surveys; insurance premiums; underwriting fees; financial consultant, legal, accounting, and marketing services incurred; reserve account, trustee, custodian, and rating agency fees; and interest on the bonds for a period not to exceed one year from the date of issuance.
(c) The revenue bonds may be sold at public or private sale, and for a price as may be determined by the authority to be in the best interest of the State.
(d) Section 39-65 shall not apply to revenue bonds issued for the purpose of undertaking and maintaining any of the reserved housing loan programs as permitted by this part. The legislature consents to the taxation by the United States of interest on revenue bonds issued for the purpose of undertaking and maintaining any of the reserved housing loan programs as permitted by this part.
[L 1982, c 228, pt of §8]
Subject to any agreement with the holders of its revenue bonds, the authority may:
(1) Notwithstanding any other law to the contrary, invest its moneys not required for immediate use, including proceeds from the sale of any revenue bonds, in any investment in accordance with procedures prescribed in a trust indenture;
(2) Purchase its revenue bonds out of any fund or money of the authority available therefor, and hold, cancel, or resell the revenue bonds.
[L 1982, c 228, pt of §8]
(a) The authority shall designate a trustee for each issue of revenue bonds secured under the same trust indenture; provided that the trustee shall be approved by the director of finance.
(b) The trustee shall be authorized by the authority to receive and receipt for, hold, and administer the proceeds of the revenue bonds, and to apply the proceeds to the purposes for which the bonds are issued.
(c) The trustee shall also be authorized by the authority to hold and administer the reserved housing loan program revenue bond special fund established pursuant to section 206E-109, and to receive and receipt for, hold, and administer the revenues derived by the authority from the benefits of the reserved housing loan program for which the revenue bonds are issued and to apply these revenues to the payment of the cost of administering, operating, and maintaining the reserved housing loan programs, to pay the principal of and interest on these bonds, to the establishment of reserves, and to other purposes as may be authorized in the proceedings providing for the issuance of the revenue bonds.
(d) Notwithstanding section 39-68, the director of finance may appoint the trustee to serve as fiscal agent for:
(1) The payment of the principal of and interest on the revenue bonds; and
(2) The purchase, registration, transfer, exchange, and redemption of the bonds.
(e) The trustee shall perform additional functions with respect to the payment, purchase, registration, transfer, exchange, and redemption, as the director of finance may deem necessary, advisable, or expeditious, including the holding of the revenue bonds and coupons which have been paid and the supervision of the destruction thereof in accordance with law.
(f) Nothing in this part shall limit or be construed to limit the powers granted to the director of finance in sections 36-3 and 39-13, and the third sentence of section 39-68, 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 and registrars to perform the functions referred to in those sections.
[L 1982, c 228, pt of §8]
(a) A trust indenture may contain covenants and provisions authorized by part III of chapter 39, and as deemed necessary or convenient by the authority for the purposes of this part.
(b) A trust indenture may allow the authority to pledge and assign to the trustee loans and other agreements related to the reserved housing loan programs, and the rights of the authority thereunder, including the right to receive revenues thereunder and to enforce the provision thereof.
(c) Where a trust indenture provides that any revenue bond issued under that trust indenture is not valid or obligatory for any purpose unless certified or authenticated by the trustee, all signatures of the officers of the State upon the revenue bonds required by section 39-56 may be facsimiles of their signatures.
(d) 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 reserved housing loan programs, 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.
(e) A trust indenture may also contain provisions deemed necessary or desirable by the authority to obtain or permit, by grant, interest subsidy, or otherwise, the participation of the federal government in the reserved housing loan programs or in the financing of the costs of administering, operating, or maintaining such reserved housing loan programs.
[L 1982, c 228, pt of §8]
[Repealed]
[L 2002, c 178, §11]
(a) The authority shall establish procedures for:
(1) The submission of requests or the invitation of proposals for loans to mortgage lenders;
(2) The purchase of existing loans by auction, invitation of tenders, or negotiation;
(3) The making of advance commitments to purchase and the purchasing of eligible loans or eligible project loans to be made by mortgage lenders by auction, invitation of tenders, or negotiation; and
(4) Loan applications made through mortgage lenders to eligible borrowers or qualified sponsors.
(b) The authority shall establish standards and requirements for:
(1) The allocation of loans to mortgage lenders;
(2) The allocation of funds to purchase existing loans from mortgage lenders;
(3) The making of advance commitments and allocation of funds to purchase eligible loans or eligible project loans from mortgage lenders; and
(4) The participation by mortgage lenders as originators and processors of eligible loans or eligible project loans on behalf of the authority.
(c) The standards and requirements for the allocation of funds to mortgage lenders adopted by the authority shall be designed to include the maximum number of qualified mortgage lenders as participants in the reserved housing loan programs.
(d) The authority may adopt rules necessary or convenient for the operation of the reserved housing loan programs under this part.
[L 1982, c 228, pt of §8]
(a) The authority may make, enter into, and enforce all contracts or agreements which are necessary, convenient, or desirable for the purpose of the performance of its duties in executing the reserved housing loan programs.
(b) The authority may require representations and warranties as it determines necessary to secure its loans.
[L 1982, c 228, pt of §8]
The interest rate, fees, charges, premiums, and other terms of the loans made under the reserved housing loan programs shall be at least sufficient to pay the cost of administering and maintaining the portion of the specific reserved housing loan programs for which the revenue bonds have been issued, and to assure payment of the principal of and interest on the revenue bonds as they become due.
[L 1982, c 228, pt of §8]
The authority may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient, for its reserved housing loan programs.
The fees, premiums, and charges shall be deposited into the reserved housing loan program revenue bond special fund established for the particular reserved housing loan program or part thereof from which the fees, premiums and charges are derived as determined by the authority.
[L 1982, c 228, pt of §8]
(a) Each mortgage lender who participates in any reserved housing loan program shall submit evidence, as deemed satisfactory by the authority, that eligible loans or eligible project loans have been made from the proceeds of the revenue bonds.
(b) The authority may inspect the books and records of the mortgage lenders as may be necessary for this section.
[L 1982, c 228, pt of §8]
(a) The authority may make loans to mortgage lenders under terms and conditions requiring that the loan proceeds be used within a time period prescribed by the authority to make eligible loans in an aggregate principal amount substantially equal to the amount of the loan.
(b) The loan made to a mortgage lender shall be a general obligation of the respective mortgage lender.
(c) The loan as determined by the authority shall:
(1) Bear a date or dates;
(2) Mature at a time or times;
(3) Be evidenced by a note, bond or other certificate of indebtedness;
(4) Contain other provisions consistent with this part.
(d) Subject to any agreement with the holders of its revenue bonds, the authority may consent to any modification to the rate of interest, time, and payment of any installment of principal or interest, security or any other term of any loan to a mortgage lender or any bond, note, contract, or agreement of any kind to which the authority is a party.
[L 1982, c 228, pt of §8]
(a) Loans made to mortgage lenders shall be additionally secured by a pledge of a lien upon collateral security in an amount as the authority deems necessary to assure the payment of principal of and interest on the loans as they become due.
(b) The authority shall determine the nature and type of collateral security required.
(c) A statement designating the collateral security pledged, the mortgage lender pledging the collateral, and the authority's interest in the pledged collateral may be filed with the bureau of conveyances. Where a statement has been filed, no possession, further filing, or other action under any state law shall be required to perfect any security interest which may be deemed to have been created in favor of the authority. The mortgage lender shall be deemed the trustee of an express trust for the benefit of the authority in all matters relating to the pledged collateral.
(d) Subject to any agreement with the holders of its revenue bonds, the authority may collect, enforce the collection of, and foreclose on any collateral securing its loans to mortgage lenders. The authority may acquire, take possession, sell at public or private sale with or without bidding, or otherwise deal with the collateral to protect its interests.
[L 1982, c 228, pt of §8]
(a) The authority may contract with a mortgage lender to purchase, in whole or in part, existing loans, whether or not eligible loans. The contract may contain provisions as determined by the authority to be necessary or appropriate to provide security for its revenue bonds, including but not limited to provisions requiring the:
(1) Repurchase of the loans, in whole or in part, by mortgage lenders at the option of the authority;
(2) Payments of premiums, fees, charges, or other amounts by mortgage lenders to provide a reserve or escrow fund for the purposes of protecting against loan defaults; and
(3) Guarantee by, or for recourse against, mortgage lenders, with respect to defaults on these loans of the authority.
(b) The authority shall require as a condition of each purchase of existing loans from a mortgage lender that the mortgage lender proceed to make and disburse eligible loans in an aggregate principal amount substantially equal to the amount of the proceeds from the purchase by the authority of loans therefrom.
[L 1982, c 228, pt of §8]
(a) The authority may contract with a mortgage lender for the advance commitment to purchase eligible loans or eligible project loans.
(b) The contract may contain provisions as determined by the authority to be necessary or appropriate to provide security for its revenue bonds.
[L 1982, c 228, pt of §8]
(a) The authority may contract with mortgage lenders to fund eligible loans or eligible project loans.
(b) The contract may contain provisions as determined by the authority to be necessary or appropriate to provide security for its revenue bonds.
[L 1982, c 228, pt of §8]
The authority may contract for the service and custody of its loans. The contract may provide for the payment of fees or charges for the services rendered; provided that the fees or charges shall not exceed the usual, customary, and reasonable charges for the services rendered.
[L 1982, c 228, pt of §8]
(a) Subject to any agreement with the holders of its revenue bonds, the authority may sell its loans at public or private sale at a price and upon terms and conditions as it determines.
(b) Subject to any agreement with the holders of its revenue bonds, the authority may pledge or assign its loans, other agreements, notes, or property to secure the loans or agreements.
[L 1982, c 228, pt of §8]
The authority may procure insurance or guarantees against any default of its loans, in amounts and from insurers or guarantors, as it deems necessary or desirable.
[L 1982, c 228, pt of §8]
The authority may:
(1) Renegotiate, refinance, or foreclose any loan in default;
(2) Waive any default or consent to the modification of the terms of any loan or security agreement;
(3) Commence any action to protect or enforce any right conferred upon it by any law, mortgage, insurance policy, contract, or other agreement;
(4) Bid for and purchase the property secured by the loan at any foreclosure or other sale or acquire or take possession of the property secured by the loan; and
(5) Operate, manage, lease, dispose of, or otherwise deal with the property secured by the loan.
[L 1982, c 228, pt of §8; am L 2018, c 18, §8]
L 2015, c 237, §28.
L 2002, c 208, §3.
For the purpose of this part, if not inconsistent with the context:
"Special facility" means one or more buildings or structures and the land thereof for the construction of facilities that provides benefits to the community at large including, without limitation, an ocean science center that incorporates research and education programs and which is the subject of a special facility lease.
"Special facility lease" includes a contract, lease, or other agreement, or any combination thereof, the subject matter of which is the same special facility.
[L 2001, c 180, pt of §2]
In addition and supplemental to the powers granted to the authority by law, the authority may:
(1) With the approval of the governor, enter into a special facility lease or an amendment or supplement thereto whereby the authority agrees to construct, acquire, or remodel and furnish or equip a special facility solely for the use by another person to a special facility lease;
(2) With the approval of the governor, issue special facility revenue bonds in principal amounts not to exceed the total amount of bonds authorized by the legislature, that may be necessary to yield all or a portion of the cost of any construction, acquisition, remodeling, furnishing, and equipping of any special facility;
(3) With the approval of the governor, issue refunding special facility revenue bonds, in principal amounts not to exceed the total amount of bonds authorized by the legislature, with which to provide for the payment of outstanding special facility revenue bonds (including any special facility revenue bonds theretofore issued for this purpose) or any part thereof; provided any issuance of refunding special facility revenue bonds shall not reduce the principal amount of the bonds which may be issued as provided in paragraph (2);
(4) Perform and carry out the terms and provisions of any special facility lease;
(5) Notwithstanding section 103-7 or any other law to the contrary, acquire, construct, or remodel and furnish or equip any special facility, or accept the assignment of any contract therefor entered into by the other person to the special facility lease;
(6) Construct any special facility on land owned by the State; provided that no funds derived herein will be expended for land acquisition; and
(7) Agree with the other person to the special facility lease whereby any acquisition, construction, remodeling, furnishing, or equipping of the special facility and the expenditure of moneys therefor shall be undertaken or supervised by another person.
[L 2001, c 180, pt of §2; am L 2004, c 216, §26; am L 2014, c 61, §11]
The authority shall not enter into any special facility lease unless the authority at or prior to the entering into of such special facility lease shall find and determine that the entering into of such special facility lease would not be in violation of or result in a breach of any covenant contained in any resolution or certificate authorizing any bonds of the authority then outstanding.
[L 2001, c 180, pt of §2]
(a) In addition to the conditions and terms set forth in this part, any special facility lease entered into by the authority shall at least contain provisions obligating the other person to the special facility lease:
(1) To pay to the authority during the initial term of the special facility lease, whether the special facility is capable of being used or occupied or is being used or occupied by the other person, a rental or rentals at the time or times and in the amount or amounts that will be sufficient:
(A) To pay the principal and interest on all special facility revenue bonds issued for the special facility;
(B) To establish or maintain any reserves for these payments; and
(C) To pay all fees and expenses of the trustees, paying agents, transfer agents, and other fiscal agents for the special facility revenue bonds issued for the special facility;
(2) To pay to the authority:
(A) A ground rental, as determined by the authority, if the land on which the special facility is located was not acquired from the proceeds of the special facility revenue bonds; or
(B) A properly allocable share of the administrative costs of the authority in carrying out the special facility lease and administering the special facility revenue bonds issued for the special facility, if the land was acquired from the proceeds of the special facility revenue bonds;
(3) To either operate, maintain, and repair the special facility and pay the costs thereof or to pay to the authority all costs of operation, maintenance, and repair of the special facility;
(4) To:
(A) Insure, or cause to be insured, the special facility under builder's risk insurance (or similar insurance) in the amount of the cost of construction of the special facility to be financed from the proceeds of the special facility revenue bonds;
(B) Procure and maintain, or cause to be procured or maintained, to the extent commercially available, a comprehensive insurance policy providing protection and insuring the authority and its officers, agents, servants, and employees (and so long as special facility revenue bonds are outstanding, the trustee) against all direct or contingent loss or liability for damages for personal injury or death or damage to property, including loss of use thereof, occurring on or in any way related to the special facility or occasioned by reason of occupancy by and the operations of the other person upon, in, and around the special facility;
(C) Provide all risk casualty insurance, including insurance against loss or damage by fire, lightning, flood, earthquake, typhoon, or hurricane, with standard extended coverage and standard vandalism and other malicious mischief endorsements; and
(D) Provide insurance for workers' compensation and employer's liability for personal injury or death or damage to property (the other party may self-insure for workers' compensation if permitted by law);
provided that all policies with respect to loss or damage of property including fire or other casualty and extended coverage and builder's risk shall provide for payments of the losses to the authority, the other person, or the trustee as their respective interests may appear; and provided further that the insurance may be procured and maintained as part of or in conjunction with other policies carried by the other person; and provided further that the insurance shall name the authority, and so long as any special facility revenue bonds are outstanding, the trustee, as additional insured; and
(5) To indemnify, save, and hold the authority, the trustee and their respective agents, officers, members, and employees harmless from and against all claims and actions and all costs and expenses incidental to the investigation and defense thereof, by or on behalf of any person, firm, or corporation, based upon or arising out of the special facility or the other person's use and occupancy thereof, including, without limitation, from and against all claims and actions based upon and arising from any:
(A) Condition of the special facility;
(B) Breach or default on the part of the other person in the performance of any of the person's obligations under the special facility lease;
(C) Fault or act of negligence of the other person or the person's agents, contractors, servants, employees, or licensees; or
(D) Accident to, or injury or death of, any person or loss of, or damage to any property occurring in or about the special facility, including any claims or actions based upon or arising by reason of the negligence or any act of the other person.
Any moneys received by the authority pursuant to paragraphs (2) and (3) shall be paid into the Hawaii community development special fund and shall not be nor be deemed to be revenues of the special facility.
(b) The term and all renewals and extensions of the term of any special facility lease (including any amendments or supplements thereto) shall not extend beyond the lesser of the reasonable life of the special facility which is the subject of the special facility lease, as estimated by the authority at the time of the entering into thereof, or thirty years.
(c) Any special facility lease entered into by the authority shall contain any other terms and conditions that the authority deems advisable to effectuate the purposes of this part.
[L 2001, c 180, pt of §2; am L Sp 2021, c 9, §25]
All special facility revenue bonds authorized to be issued in principal amounts not to exceed the total amount of bonds authorized by the legislature shall be issued pursuant to part III of chapter 39, except as follows:
(1) No revenue bonds shall be issued unless at the time of issuance the authority shall have entered into a special facility lease with respect to the special facility for which the revenue bonds are to be issued;
(2) The revenue bonds shall be issued in the name of the authority, and not in the name of the State;
(3) The revenue bonds shall be payable solely from and secured solely by the revenues derived by the authority from the special facility for which they are issued;
(4) The final maturity date of the revenue bonds shall not be later than either the estimated life of the special facility for which they are issued or the initial term of the special facility lease;
(5) If deemed necessary or advisable by the authority, or to permit the obligations of the other person to the special facility lease to be registered under the U.S. Securities Act of 1933, the authority, with the approval of the director of finance, may appoint a national or state bank within or without the State to serve as trustee for the holders of the revenue bonds and may enter into a trust indenture or trust agreement with the trustee. The trustee may be authorized by the authority to collect, hold, and administer the revenues derived from the special facility for which the revenue bonds are issued and to apply the revenues to the payment of the principal and interest on the revenue bonds. If any trustee shall be appointed, any trust indenture or agreement entered into by the authority with the trustee may contain the covenants and provisions authorized by part III of chapter 39 to be inserted in a resolution adopted or certificate issued, as though the words "resolution" or "certificate" as used in that part read "trust indenture or agreement". The covenants and provisions shall not be required to be included in the resolution or certificate authorizing the issuance of the revenue bonds if included in the trust agreement or indenture. Any resolution or certificate, trust indenture, or trust agreement adopted, issued, or entered into by the authority pursuant to this part may also contain any provisions required for the qualification thereof under the U.S. Trust Indenture Act of 1939. The authority may pledge and assign to the trustee the special facility lease and the rights of the authority including the revenues thereunder;
(6) If the authority, with the approval of the director of finance, shall have appointed or shall appoint a trustee for the holders of the revenue bonds, then notwithstanding the provisions of the second sentence of section 39-68, the director of finance may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the revenue bonds, or may elect to limit the functions the director of finance shall perform as the fiscal agent. The authority, with the approval of the director of finance, may appoint the trustee to serve as the fiscal agent, and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, that the authority may deem necessary, advisable, or expedient, including, without limitation, the holding of the revenue bonds and coupons which have been paid and the supervision and conduction of the destruction thereof in accordance with sections 40-10 and 40-11. Nothing in this paragraph shall be a limitation upon or construed as a limitation upon the powers granted in the preceding paragraph to the authority, with the approval of the director of finance, to appoint the trustee, or granted in sections 36-3 and 39-13 and the third sentence of section 39-68 to the director of finance to appoint the trustee or others, as fiscal agents, paying agents, and registrars for the revenue bonds or to authorize and empower the fiscal agents, paying agents, and registrars to perform the functions referred to in that paragraph and sections, it being the intent of this paragraph to confirm that the director of finance as aforesaid may elect not to serve as fiscal agent for the revenue bonds or may elect to limit the functions the director of finance shall perform as the fiscal agent, that the director of finance may deem necessary, advisable, or expedient;
(7) The authority may sell the revenue bonds either at public or private sale;
(8) If no trustee shall be appointed to collect, hold, and administer the revenues derived from the special facility for which the revenue bonds are issued, the revenues shall be held in a separate account in the treasury of the State, separate and apart from the Hawaii community development special fund, to be applied solely to the carrying out of the resolution, certificate, trust indenture, or trust agreement authorizing or securing the revenue bonds;
(9) If the resolution, certificate, trust indenture, or trust agreement shall provide that no revenue bonds issued thereunder shall be valid or obligatory for any purpose unless certified or authenticated by the trustee for the holders of the revenue bonds, signatures of the officers of the State upon the bonds required by section 39-56 may be facsimiles of their signatures;
(10) Proceeds of the revenue bonds may be used and applied by the authority to reimburse the other person to the special facility lease for all preliminary costs and expenses, including architectural and legal costs; and
(11) If the special facility lease shall require the other person to operate, maintain, and repair the special facility which is the subject of the lease, at the other person's expense, the requirement shall constitute compliance by the authority with section 39‑61(a)(2), and none of the revenues derived by the authority from the special facility shall be required to be applied to the purposes of section 39‑62(2). Sections 39-62(4), 39-62(5), and 39-62(6) shall not apply to the revenues derived from a special facility lease.
[L 2001, c 180, pt of §2; am L 2014, c 61, §12; am L Sp 2021, c 9, §26]
(a) A separate special fund shall be established for each special facility financed from the proceeds of the revenue bonds secured under the same trust indenture. Each fund shall be designated "special facility revenue bond special fund" and shall bear additional designation as the authority deems appropriate to properly identify the fund.
(b) Notwithstanding any other law to the contrary, including particularly section 206E-16, all revenues, income, and receipts derived from the special facility for which the revenue bonds are issued shall be paid into the special facility revenue bond fund established for that special facility and applied as provided in the proceedings authorizing the issuance of the revenue bonds.
[L 2001, c 180, pt of §2]
(a) The Hawaii community development authority shall be the designated agency of the State to implement this part.
(b) The authority shall act as the local redevelopment authority to facilitate the redevelopment of Barbers Point Naval Air Station in accordance with the Barbers Point Naval Air Station community reuse plan. In addition to any other duties that the authority may have pursuant to this chapter, the authority's duties shall include but not be limited to:
(1) Coordinating with the Navy and other entities during the conveyance of properties and conducting remediation activities for the Barbers Point Naval Air Station community reuse plan;
(2) Assisting landholders designated by the plan to market their properties and process conveyance requests;
(3) Working with the Navy and others to ensure that infrastructure support is provided to the existing developed area, referred to as the "downtown area", and other federally retained areas;
(4) Developing the infrastructure necessary to support the implementation of the Barbers Point Naval Air Station community reuse plan; and
(5) Providing, to the extent feasible, maximum opportunity for the reuse of surplus property by private enterprise or state and county government.
[L 2002, c 184, pt of §2; am L 2012, c 323, §3]
. (a) The federal Department of Defense declared approximately two thousand one hundred fifty acres of land at the Barbers Point Naval Air Station to be surplus to its needs and under a base realignment is conveying these surplus lands to the various end users identified by the community reuse plan. The governor has approved and forwarded to the Navy the community reuse plan for these surplus lands.
(b) The legislature hereby designates these surplus lands as the "Kalaeloa community development district".
[L 2002, c 184, pt of §2]
The Kalaeloa community development district is established. The district shall include that area within the boundaries described as follows: the eastern boundary begins at Geiger Gate and runs along East Hansen Road to the intersection with Essex Road until its termination at White Plains Beach Park, where it follows the eastern boundary of parcel 9-1-13:74 to the shoreline at the mean high water mark; the northern boundary begins at the eastern corner at the Geiger Road entry gate where it becomes Roosevelt Road and continues westward until its intersection with West Perimeter Road; the western boundary follows the West Perimeter Road until its termination and then follows the western border of parcel 9-1-13:30 to the shoreline at the mean high water mark; two parcels (9-1-13:01 and 9-1-13:09) lying west of West Perimeter Road toward its mauka end, and two parcels (9-1-31:28 and 9-1-31:47) lying west of West Perimeter Road on its makai end, all of which are physically separated from the western boundary by a storm water drainage canal, are also included; the southern boundary follows the shoreline at the mean high water mark from the western boundary of parcel 9-1-13:30 to the eastern boundary of White Plains Beach Park (9-1-13:74). All references to parcel numbers contained herein indicate the areas identified by such tax map key numbers as of March 18, 2002.
[L 2002, c 184, pt of §2]
The following development guidance policies shall generally govern the authority's actions in the Kalaeloa community development district:
(1) Development shall be in accordance with the community reuse plan, except as it conflicts with the Hawaii State Constitution and the Hawaii Revised Statutes, as they relate to the department of Hawaiian home lands;
(2) With the approval of the governor and concurrence of the Navy, and in accordance with state law governing lands owned by the department of Hawaiian home lands, the authority, upon the concurrence of a majority of its voting members, may modify and make changes to the reuse plan to respond to changing conditions; provided that prior to amending the reuse plan the authority shall conduct a public hearing to inform the public of the proposed changes and receive public input;
(3) Development shall seek to promote economic development and employment opportunities by fostering diverse land uses and encouraging private sector investments that utilize the opportunities presented by the receipt of property from the base closure consistent with the needs of the public;
(4) The authority may engage in planning, design, and construction activities within and outside of the district; provided that activities outside of the district shall relate to infrastructure development, area-wide drainage improvements, roadways realignments and improvements, business and industrial relocation, and other activities the authority deems necessary to carry out redevelopment of the district and implement this chapter. Studies or coordinating activities may be undertaken by the authority in conjunction with the county and appropriate state agencies and may address facility systems, industrial relocation, and other activities;
(5) Planning, replanning, rehabilitation, development, redevelopment, and other preparation for reuse of Barbers Point Naval Air Station under this chapter are public uses and purposes for which public money may be spent and private property acquired;
(6) Hawaiian archaeological, historic, and cultural sites shall be preserved and protected. Endangered species of flora and fauna and significant military facilities shall be preserved to the extent feasible;
(7) Land use and redevelopment activities within the district shall be coordinated with and to the extent possible complement existing county and state policies, plans, and programs affecting the district;
(8) Public facilities within the district shall be planned, located, and developed to support the redevelopment policies established by this chapter for the district, the reuse plan approved by the governor, and rules adopted pursuant to this chapter; and
(9) Development shall consider the impacts of climate change, sea level rise, and climate-resilient development in the design and siting of buildings.
[L 2002, c 184, pt of §2; am L 2023, c 221, §3]
(a) There is established in the state treasury the Kalaeloa community development special fund, into which shall be deposited:
(1) All revenues, income, and receipts of the authority for the Kalaeloa community development district, notwithstanding any other law to the contrary, including section 206E-16;
(2) Moneys directed, allocated, or disbursed to the Kalaeloa community development district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the Kalaeloa community development district; and
(3) Moneys appropriated to the fund by the legislature.
(b) Moneys in the Kalaeloa community development special fund shall be used for the purposes of this part.
(c) Investment earnings credited to the assets of the fund shall become part of the assets of the fund.
[L 2002, c 184, pt of §2; am L Sp 2021, c 9, §27]
(a) The authority shall have the power to assess all land users, except the federal government, for their fair share of the costs required to administer and operate the Kalaeloa community development district, which may include costs associated with staffing. Assessments shall be based on each landowner's proportionate share of the total acreage of the Kalaeloa community development district.
(b) The assessment shall be set by the authority annually, based upon the operating budget for the district, and adjusted for any actual expenditures made in the prior year in excess of the prior approved budget. The assessments shall be paid to the authority in semiannual payments commencing thirty days after the beginning of the fiscal year.
(c) The authority may charge interest or other fees on assessment amounts not paid on a timely basis, and may withhold services or approval of governmental permits for land users delinquent in payments.
(d) For the purposes of this section, "land user" includes the owner of land; provided that the landowner may assign the responsibility for payment of assessments to the lessee or licensee of the land.
[L 2002, c 184, pt of §2]
[§206E-197 Complaints.] The authority may establish procedures for receiving and processing district-related complaints, conducting research, monitoring matters that arise within the district, and reporting its findings.
[L 2004, c 188, pt of §2]
(a) The authority may research any complaint relating to the district that it determines to be an appropriate subject for investigation, including:
(1) Unkempt appearance of property;
(2) Brushfires on property;
(3) Rubbish disposed of inappropriately; or
(4) Conditions on property otherwise incongruous with generally accepted standards of maintenance.
(b) The authority may investigate, conduct research, or monitor any matter that arises within the district, in accordance with this part.
[(c)] If the authority decides not to research a complaint filed with the authority, it shall inform the complainant of its decision and shall state its reasons.
If the authority decides to research the complaint, it shall notify the complainant of its decision and shall also notify the landowner of its intention to investigate.
[(d)] Before giving any opinion or recommendation that is critical of a landowner or person who is the subject of the complaint, the authority shall consult with the landowner or person on the best means to remedy the situation.
[(e)] After a reasonable time has elapsed, the authority shall notify the complainant of the actions taken by it and by the landowner.
[L 2004, c 188, pt of §2]
(a)]After a reasonable time has elapsed, the authority may present its opinion and recommendations to the governor, the legislature, the public, or any of these. The authority shall include with this opinion any reply made by the landowner.
[(b)] The authority shall submit to the various landowners in the district a quarterly report discussing the authority's activities under this part. The report shall be made available to the public upon request.
[L 2004, c 188, pt of §2]
As used in this part:
"District" means the Heeia community development district.
"Fund" means the Heeia community development special fund.
[L 2011, c 210, pt of §2; am L Sp 2021, c 9, §28]
§206E-202 District established; boundaries. (a) The Heeia community development district is hereby established. The district shall include that area within the boundaries described as follows: the southern boundary begins at the southern property line of tax map key number (1) 4-6-16:001 and runs west to Kahekili Highway and east to Kamehameha Highway. The northern boundary begins at the northern property line of tax map key number (1) 4-6-16:001 and runs west to Kahekili Highway and east to Kamehameha Highway. The tax map key numbers are (1) 4-6-16:001 and (1) 4-6-16:002 (owned by the authority), and (1) 4‑6‑16:004, :011, :012, and :017 (owned by various owners of kuleana parcels).
(b) The authority shall serve as the local redevelopment authority of the district to facilitate culturally appropriate agriculture, education, and natural-resource restoration and management of the Heeia wetlands, in alignment with the Honolulu board of water supply's most current "Koolau Poko Watershed Management Plan" and the city and county of Honolulu's most current "Koolaupoko Sustainable Communities Plan". In addition to any other of its duties under this chapter, the authority shall:
(1) Consult with the following persons and entities:
(A) Recorded landowners in the district;
(B) Recorded landowners in section 6 of zone 4 of the first tax map key division;
(C) Koolaupoko Hawaiian Civic Club;
(D) Kailua neighborhood board;
(E) Kahaluu neighborhood board; and
(F) Kaneohe neighborhood board,
to implement activities related to and supportive of cultural practices, agriculture, education, and natural-resource restoration and management;
(2) Assist land users to manage their properties and implement activities related to and supportive of cultural practices, agriculture, education, and natural-resource restoration and management;
(3) Work with federal, state, county, and other agencies to ensure that infrastructural support is provided for the district;
(4) Develop the infrastructure necessary to support the implementation of the Heeia community development district master plan; and
(5) Provide, to the extent feasible, maximum opportunity for the restoration and implementation of sustainable, culturally appropriate, biologically responsible, or agriculturally beneficial enterprises.
[L 2011, c 210, pt of §2; am L 2012, c 323, §4]
The following general policies to guide development shall govern the authority's actions in the district:
(1) Development shall be in accordance with the Heeia master plan, except as it conflicts with the Hawaii State Constitution and the Hawaii Revised Statutes;
(2) With the approval of the governor, and in accordance with law, the authority, upon the concurrence of a majority of its voting members, may modify and make changes to the Heeia master plan to respond to changing conditions; provided that prior to amending the Heeia master plan, the authority shall conduct a public meeting pursuant to chapter 92 to inform the public of the proposed changes and receive public input;
(3) The authority shall provide, to the extent feasible, maximum opportunity for the restoration and implementation of sustainable, culturally appropriate, biologically responsible, or agriculturally beneficial enterprises;
(4) The authority may engage in planning, design, and construction activities within and outside the district; provided that activities outside the district shall relate to infrastructural development, area-wide drainage improvements and sediment transport mitigation, roadway realignments and improvements, and other activities the authority deems necessary to carry out redevelopment of the district and implement this part. Studies or coordinating activities may be undertaken by the authority in conjunction with the county and appropriate federal and state agencies and may address infrastructural systems, natural-resource systems, and other activities;
(5) Planning, replanning, rehabilitation, development, redevelopment, and other preparations for the restoration of cultural practices, education, natural resources, and agriculture related activities shall be pursued;
(6) Hawaiian archaeological, historic, and cultural sites shall be preserved and protected to the extent feasible while allowing for continued use of the property for cultural activities, education, agricultural and economic pursuits, and natural-resource restoration;
(7) Endangered species of flora and fauna shall be preserved and protected to the extent feasible;
(8) Land use and redevelopment activities within the district shall be coordinated with and, to the extent possible, complement existing county and state policies, plans, and programs affecting the district;
(9) Public facilities within the district shall be planned, located, and developed to support the redevelopment policies established by this part for the district, the master plan approved by the governor, and rules adopted pursuant to this chapter; and
(10) Special management area permit administration for the district shall continue to be under the authority of the city and county of Honolulu.
[L 2011, c 210, pt of §2]
(a) There is established in the state treasury the Heeia community development special fund, into which shall be deposited:
(1) All revenues, income, and receipts of the authority for the district, notwithstanding any other law to the contrary, including section 206E-16;
(2) Moneys directed, allocated, or disbursed to the district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the district; and
(3) Moneys appropriated to the fund by the legislature.
(b) Moneys in the fund shall be used only for the purposes of this part.
(c) Investment earnings credited to the assets of the fund shall become part of the fund.
[L 2011, c 210, pt of §2; am L Sp 2021, c 9, §29]
[§ 206E-205] Rules; adoption. The authority shall adopt rules in accordance with chapter 91 to carry out the purposes of this part.
[L 2011, c 210, pt of §2]
The legislature finds that the aloha stadium and lands under the jurisdiction of the stadium authority and department of business, economic development, and tourism are underutilized. The stadium facility has been in dire need of significant repair and maintenance for many years. The stadium authority has considered repairing, upgrading, and replacing the existing facility to optimize the public's enjoyment and ensure public safety. Redeveloping, renovating, or improving these public lands in a manner that will provide suitable recreational, residential, educational, and commercial areas, where the public can live, congregate, recreate, attend schools, and shop, as part of a thoughtfully integrated experience, is in the best interests of the State and its people.
This part establishes the stadium development district to make optimal use of public land for the economic, residential, educational, and social benefit of the people of Hawaii.
The legislature finds that the jurisdiction of the authority shall include development within the stadium development district. Any development within the district shall require a permit from the authority.
[L 2019, c 268, pt of §1; am L 2022, c 220, §7]
As used in this part, unless the context otherwise requires:
"Authority" or "stadium authority" means the stadium authority established pursuant to section 109-1.
"District" means the stadium development district established by this part.
[L 2019, c 268, pt of §1; am L 2021, c 146, §7]
(a) The stadium development district is established and shall be composed of all real property under the jurisdiction of the stadium authority established pursuant to section 109-1. The stadium authority shall have sole jurisdiction over the development of the stadium development district.
(b) The authority shall facilitate the development of all property belonging to the State within the district; provided that development is carried out in accordance with any county transit-oriented development plans for lands surrounding the district. In addition to any other duties that the authority may have pursuant to this chapter, the authority's duties shall include:
(1) Coordinating with the federal government regarding the ownership and use of, or restrictions on, properties within the district that were previously owned or are currently owned by the federal government;
(2) Coordinating with other state entities during the conveyance of properties and conducting remediation activities for the property belonging to the State within the district;
(3) Developing the infrastructure necessary to support the development of all property belonging to the State within the district; and
(4) Providing, to the extent feasible, maximum opportunity for the reuse of property belonging to the State within the district by private enterprise or state and county government.
[L 2019, c 268, pt of §1; am L 2021, c 146, §10]
The following shall be the development guidance policies generally governing the authority's actions in the district:
(1) Development shall be in accordance with stadium development district development plans adopted by the stadium authority for the development of the district; provided that the plan or plans shall consider any county development plan and allow for public input in the plan's preparation and updates;
(2) The authority, upon the concurrence of a majority of its voting members, may modify and make changes to a transit-oriented development plan with respect to the district to respond to changing conditions; provided that before amending a transit-oriented development plan, the authority shall conduct a public hearing to inform the public of the proposed changes and receive public input;
(3) The authority shall seek to promote economic development and employment opportunities by fostering diverse land uses and encouraging private sector investments that use the opportunities presented by the high-capacity transit corridor project consistent with the needs of the public, including mixed-use housing and housing in transit-oriented developments;
(4) The authority may engage in planning, design, and construction activities within and outside the district; provided that activities outside the district shall relate to infrastructure development, area-wide drainage improvements, roadway realignments and improvements, business and industrial relocation, and other activities the authority deems necessary to carry out development of the district and implement this part. The authority may undertake studies or coordinate activities in conjunction with the county and appropriate state agencies and may address facility systems, industrial relocation, and other activities;
(5) Archaeological, historic, and cultural sites shall be preserved and protected in accordance with chapter 6E;
(6) Endangered species of flora and fauna shall be preserved to the extent required by law;
(7) Land use and development activities within the district shall be coordinated with and, to the extent possible, complement existing county and state policies, plans, and programs affecting the district; and
(8) Public facilities within the district shall be planned, located, and developed to support the development policies established by this chapter for the district and rules adopted pursuant to this chapter.
[L 2019, c 268, pt of §1; am L 2021, c 146, §11; am L 2022, c 220, §8]
§206E-225 Stadium development district governance; memorandum of agreement. Notwithstanding sections 206E-3 and 206E-4.1, the stadium authority established pursuant to section 109-1 shall have sole jurisdiction regarding matters affecting the stadium development district; provided that the Hawaii community development authority; department of business, economic development, and tourism; and stadium authority shall enter into a memorandum of agreement regarding the implementation of responsibilities of the respective agencies.
[L 2019, c 268, pt of §1; am L 2021, c 146, §12; am L 2022, c 220, §9]
Not less than twenty days prior to the convening of each regular session of the legislature, the authority shall submit to the legislature an annual comprehensive status report on the progress of development within the stadium development district.
[L 2019, c 268, pt of §1]
The legislature finds that construction, installation, and improvement of certain infrastructure is necessary and desirable to facilitate renewal and redevelopment of areas designated by the State and the counties for transit-oriented development. Transit-oriented development is a powerful tool that can ultimately deliver a wide range of social, environmental, and economic benefits. Transit-oriented development promotes development patterns that support quality of life, preserves the natural environment, provides a range of housing choices for residents, and encourages walking, biking, and use of mass transit. The State plays an important role in overcoming barriers to transit-oriented development, including encouraging needed investments in improving regional infrastructure such as roads, sewers, water, power, communication, and storm water management systems. This part is intended to move transit-oriented development planning efforts forward into infrastructure improvements that benefit the community. The legislature further finds that, currently, no single state agency has the authority to improve infrastructure along a transit corridor in the best interest of the State. This part will enable the delivery of infrastructure needed to support development on lands within designated transit-oriented development zones.
Accordingly, there shall be established the transit-oriented development infrastructure improvement program, to be administered by the authority to foster community development by strategically investing in infrastructure improvements.
[L 2022, c 184, pt of §1; am L 2025, c 252, §5]
As used in this part:
"Fund" means the transit-oriented development infrastructure improvement program special fund established under section 206E-247.
"Program" means the transit-oriented development infrastructure improvement program developed by the authority pursuant to section 206E-246.
[L 2022, c 184, pt of §1; am L 2025, c 252, §5]
(a) The transit-oriented development infrastructure improvement program areas shall comprise the parcels of land and associated rights-of-way, either within county-designated transit-oriented development zones, or within a one-half mile radius of a proposed or existing transit station if the county has not designated transit-oriented development zones, as determined by the authority, which shall take into account proximity, walkability, adopted county plans, and other relevant factors. The program areas may include all parcels of land of which any portion of the parcels are located within the county-designated transit-oriented development zones, or within a one-half mile radius around proposed or existing transit stations if the county has not designated transit-oriented development zones.
(b) The authority may establish and administer transit-oriented development infrastructure improvement program areas.
[L 2022, c 184, pt of §1; am L 2025, c 252, §5]
L 2025, c 252, §5.
(a) The authority shall develop a transit-oriented development infrastructure improvement program to identify infrastructure improvements within each program area. In determining the required infrastructure improvements to be undertaken, the authority shall consider the infrastructure needs of transit-supportive density requirements, the strategic plan prepared and the prioritization of transit-oriented development projects established by the Hawaii interagency council for transit-oriented development, pursuant to section 226-63(c), and subsequent plans and studies prepared by, or approved by, an appropriate governmental agency to further implement the strategic plan and the transit-oriented development projects therein.
(b) The authority may assess all beneficiaries of the program a user fee for their fair share of the cost of providing any infrastructure improvement the user may be specially benefiting from. The authority shall determine the program areas that will benefit from the infrastructure improvement to be undertaken, and if less than the entire transit-oriented development zone benefits, the authority may establish user fee areas within the program area. The authority may issue and sell bonds in amounts as may be authorized by the legislature to provide funds to finance the infrastructure improvements.
(c) Bonds issued to provide funds to finance transit-oriented development infrastructure improvements shall be secured in a manner to be determined through the bond issuance process, or the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the authority. Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes. The bonds shall be issued subject to rules adopted by the authority pursuant to this section.
(d) The authority may adopt rules for the purposes of this part, pursuant to chapter 91, and to provide for the method of undertaking and financing transit-oriented development infrastructure improvement in a program area or transit-oriented development zone.
(e) Notwithstanding any other provisions to the contrary, the authority may, in its discretion, enter into any agreement with the county in which the program areas are located to implement all or part of the purposes of this section.
(f) All sums collected under this section shall be deposited into the transit-oriented development infrastructure improvement program special fund established under section 206E-247 and shall be applied solely to:
(1) The payment of the principal and interest on the bonds and the cost of administering, operating, and maintaining the program;
(2) The establishment of reserves; and
(3) Other purposes as may be authorized in the proceedings providing for the issuance of the bonds.
If any surplus remains in the fund after the payment of the bonds chargeable against the fund, it shall be credited to and become a part of the fund.
(g) The transit-oriented development infrastructure improvements may be dedicated to the county in which the infrastructure improvements are to be located. The authority shall ensure that the infrastructure improvements are designed and constructed to meet county requirements and shall enter into an agreement with the county for dedication of the public facilities.
(h) Notwithstanding any law to the contrary, whenever it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities that are part of a program, the authority shall establish by rule the allocation of cost between the authority, the affected public utilities, and the users that may specially benefit from the improvement, if any. In determining the allocation of cost, the authority shall consider the cost allocation policies for districts established by the county in which the removal, relocation, replacement, or reconstruction is to take place.
[(i)] For the purposes of this section:
"County-designated transit-oriented development area" has the same meaning as defined in section 226-63(d).
"Floor area ratio" means the quotient, expressed as a decimal number, that results from dividing a structure's total floor area by the total area of the lot or parcel on which the structure is located.
"Ministerial" means a permit process based upon standards established through county ordinance or rule and issued by the director of the county agency responsible for land use or a single county officer designated by ordinance.
"Transit-supportive density" means a county-designated transit-oriented development area:
(1) With development standards that allow a floor area ratio of at least:
(A) 4.0 for all uses that are permitted in a county-designated transit-oriented development area or by the underlying county zoning;
(B) 6.0 for all uses that are permitted in a county-designated transit-oriented development area within one-half mile of a station of a locally preferred alternative for a mass transit project; and
(C) For all uses that are permitted within one-quarter mile of a station of a locally preferred alternative for a mass transit project, whichever is greater:
(i) 7.0;
(ii) The maximum floor area ratio allowed by the adopted transit-oriented development special district; or
(iii) The maximum floor area ratio allowed by the applicable transit-oriented development plan;
(2) For which permits for development are processed as a ministerial permit subject to applicable objective design standards;
(3) Where there is no imposition of a development standard that renders it impracticable to build a usable structure for the permitted uses at the applicable transit-supportive density; and
(4) Where funds collected pursuant to section 46-16.8 have been expended in the county-designated transit-oriented development area in which the development is located.
[L 2022, c 184, pt of §1; am L 2025, c 159, §4 and c 252, §5]
(a) There shall be established in the state treasury the transit-oriented development infrastructure improvement program special fund, into which shall be deposited:
(1) All revenues, income, and receipts from the transit-oriented development infrastructure improvement program;
(2) Moneys directed, allocated, or disbursed to the program from government agencies or private individuals or organizations, including grants, gifts, awards, and donations for costs to administer and operate the program;
(3) User fees collected under section 206E-246; and
(4) Moneys appropriated to the fund by the legislature.
(b) Moneys in the fund shall be used only for the purposes of this part.
(c) Investment earnings credited to the assets of the fund shall become part of the fund.
[L 2022, c 184, pt of §1; am L 2025, c 252, §5]
The authority, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the authority. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the transit-oriented development infrastructure improvement program areas, or the actual or proposed acquisition, use, or disposition of any other real property by the authority.
[L 2025, c 252, pt of §2]
The authority may execute memoranda of agreement with appropriate governmental agencies for purposes of this part.
[L 2022, c 184, pt of §1; am L 2025, c 252, §5]
The authority shall submit an annual comprehensive report on the progress of the program to the legislature no later than twenty days prior to the convening of each regular session.
[L 2022, c 184, pt of §1; am L 2025, c 252, §5]
The legislature finds that public lands in Pulehunui, Maui, are underutilized. Redeveloping, renovating, or improving these public lands to provide suitable recreational, residential, educational, industrial, governmental, and commercial areas where the public can live, congregate, recreate, attend schools, and shop as part of a thoughtfully integrated experience is in the best interest of the State.
[L 2022, c 190, pt of §1]
As used in this part:
"District" means the Pulehunui community development district.
"Fund" means the Pulehunui community development district special fund.
[L 2022, c 190, pt of §1]
(a) The Pulehunui community development district is hereby established under the authority.
(b) The authority shall serve as the local redevelopment agency for the district.
(c) The district shall comprise the following properties:
(1) TMK 2-3-8-008-001;
(2) TMK 2-3-8-008-007;
(3) TMK 2-3-8-008-037; and
(4) TMK 2-3-8-008-038.
[L 2022, c 190, pt of §1]
The following development policies shall guide the authority in the district:
(1) Archaeological, historical, and cultural sites shall be preserved and protected in accordance with chapter 6E;
(2) Endangered species of flora and fauna shall be preserved to the extent required by law;
(3) Land use and development activities within the district shall be coordinated with and, to the extent possible, complement existing county and state policies, plans, and programs affecting the district; and
(4) Public facilities within the district shall be planned, located, and developed to support the development policies established by this section and any rules adopted pursuant to this part.
[L 2022, c 190, pt of §1]
(a) The authority may secure financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.
(b) In addition, and supplemental to the powers granted to the authority under section 206E-4, the authority may:
(1) Borrow moneys or accept grants from the federal government in aid of or for any development project the authority is authorized to undertake pursuant to this part;
(2) Issue bonds or other evidence of indebtedness and pledge revenues and other assets as security for indebtedness incurred pursuant to this part;
(3) Repay any indebtedness, including any interest incurred thereon by the authority pursuant to this part;
(4) Procure insurance or loan guarantees from the federal government for the payment of any debts or parts thereof secured by mortgages made by or held by the authority;
(5) Execute contracts with the federal government in accordance with this part; and
(6) Comply with terms and conditions required by the federal government in any contract or grant for federal assistance.
(c) It is the purpose and intent of this section to authorize the authority to do all things necessary to secure the cooperation of and financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.
[L 2022, c 190, pt of §1]
(a) There is established in the state treasury the Pulehunui community development district special fund, into which shall be deposited:
(1) All revenues, income, and receipts of the authority for the district;
(2) Moneys directed, allocated, or disbursed to the district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the district; and
(3) Moneys appropriated to the fund by the legislature.
(b) Moneys in the fund shall be used only for the purposes of this part.
(c) Investment earnings credited to the assets of the fund shall become assets of the fund.
[L 2022, c 190, pt of §1]
No later than twenty days prior to the convening of each regular session, the authority shall submit to the legislature an annual comprehensive report on the progress of development within the district.
[L 2022, c 190, pt of §1]
[Part XII.] ninety-nine year leasehold program
[ § 206E -281] Definitions. As used in this part, unless the context otherwise requires:
"Mixed-use project" means a project consisting of any combination of a commercial project, redevelopment project, or residential project.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy. "Owner-occupied residential use" does not include renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee of any kind.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the authority, including a commercial project, redevelopment project, residential project, or mixed-use project.
"Public transit station" means a planned or existing station connected to a locally preferred alternative for a mass transit project.
"Urban redevelopment site" means non-ceded state-owned lands within a one-mile radius of a public transit station in a county having a population greater than five hundred thousand.
[L 2023, c 97, pt of §3]
(a) There is established the ninety-nine year leasehold program for the purpose of providing low-cost, leasehold residential condominium units for sale to Hawaii residents on state-owned lands within an urban redevelopment site.
(b) The program shall be limited to one project on non-ceded lands within an urban redevelopment site, which shall be selected by the authority.
[L 2023, c 97, pt of §3]
(a) Residential condominium units within urban redevelopment sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use. The authority, by rule, shall establish penalties for violations of this subsection up to and including forced sale of a residential condominium unit within an urban redevelopment site.
(b) The design and development contracts for residential condominium units within an urban redevelopment site shall be subject to chapter 103D.
(c) Development should be revenue-neutral to the greatest extent possible.
(d) Urban redevelopment sites shall maximize walkability.
[L 2023, c 97, pt of §3]
(a) The authority shall adopt rules pursuant to chapter 91 for the sale of the leasehold interest of residential condominium units under its control within urban redevelopment sites; provided that each lease shall be for a term of ninety-nine years. The rules shall include the following requirements for an eligible buyer or owner of a residential condominium unit within an urban redevelopment site:
(1) The person shall be a qualified resident of the State, as defined in section 201H-32;
(2) The person shall not use a residential condominium unit within an urban redevelopment site for any purpose other than owner-occupied residential use; and
(3) The person, the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential and non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning a residential condominium unit within an urban redevelopment site; provided that an eligible buyer may own real property up to six months after closing on the purchase of a residential condominium unit within an urban redevelopment site; provided further that an owner of a residential condominium unit within an urban redevelopment site in the process of selling the residential condominium unit may own other real property up to six months prior to closing on the sale of the residential condominium unit to an eligible buyer;
provided that the rules adopted pursuant to this subsection may require at least fifty per cent of the residential condominium units be sold to an individual or household with an income of up to one hundred forty per cent of the area median income. The rules shall include strict enforcement of owner-occupancy, including a prohibition on renting or subleasing a residential condominium unit within an urban redevelopment site to any tenant or sublessee. The authority may also establish rules for a minimum number of days residents shall be physically present on the premises and a maximum number of days non-residents may have access to the premises.
(b) The median price of residential condominium units within an urban redevelopment site shall be priced at the minimum levels necessary to ensure that the development is revenue-neutral for the State.
(c) Residential condominium units within an urban redevelopment site shall be sold only to other eligible buyers.
(d) An owner of a residential condominium unit within an urban redevelopment site may sell the owner's residential condominium unit; provided that the authority shall have the right of first refusal to purchase the residential condominium unit for certain period of time and for a buyback price to be determined by the authority. If the authority does not exercise its right to purchase the residential condominium unit, the residential condominium unit may be sold by the owner to an eligible buyer. Upon the death of the owner of a residential condominium unit within an urban redevelopment site, the residential condominium unit may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that the deceased's heir shall meet the requirements listed in subsection (a); provided further that if the deceased's heir does not meet requirements to accept transfer of the residential condominium unit, the deceased's heir shall sell the residential condominium unit to an eligible buyer.
(e) The authority may adopt rules pursuant to chapter 91 that authorize the executive director to waive the requirements set forth in subsection (a), where the inability of an owner to reside in the residential condominium unit is due to unforeseen circumstances, military transfer, serious illness, or other hardship circumstances as determined by the executive director.
[L 2023, c 97, pt of §3]
(a) If state lands under the control and management of other public agencies are required by the authority for the purposes of this part, the agency having the control and management of those required lands, upon request by the authority and with the approval of the governor, may convey or lease those lands to the authority upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding the foregoing, no public lands shall be conveyed or leased to the authority pursuant to this section if the conveyance or 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 that county, department, or board.
[L 2023, c 97, pt of §3]
Notwithstanding the provision of any law or charter, any county, by resolution of its county council, without public auction, sealed bids, or public notice, may sell, lease, grant, or convey to the authority any real property owned by it that the authority certifies to be necessary for the purposes of this part. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the authority. Certification shall be evidenced by a formal request from the authority. Before the sale, lease, grant, or conveyance may be made to the authority, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
[L 2023, c 97, pt of §3]
The authority, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the authority. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the authority.
[L 2023, c 97, pt of §3]
Construction contracts for residential condominium units within an urban redevelopment site shall be subject to chapter 103D.
[L 2023, c 97, pt of §3]
Notwithstanding any law to the contrary, the authority, without recourse to chapter 103D, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a commercial project to any person, upon terms and conditions as may be approved by the authority; provided that all revenues generated from the lease shall be used to support the purpose of the program.
[L 2023, c 97, pt of §3]
Any state or county agency, upon request of the authority, may render services for the purposes of this part.
[L 2023, c 97, pt of §3]
Lands acquired by the authority from another government agency that are no longer needed by the authority for the program shall be returned to the previous owner of those lands. Lands acquired by the authority from a private party that are owned by the authority and designated for the program but are subsequently no longer needed for the program shall be retained by the authority.
[L 2023, c 97, pt of §3]
The authority may adopt rules pursuant to chapter 91 that are necessary for the purposes of this part.
[L 2023, c 97, pt of §3]
(a) The authority may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this part on state land to a qualified resident as defined in section 201H-32.
(b) The term of the lease may be for ninety-nine years, and the authority may extend or modify the fixed rental period of the lease or extend the term of the lease.
(c) The powers conferred upon the authority by this section shall be in addition and supplemental to the powers conferred by any other law, and nothing in this section shall be construed as limiting any powers, rights, privileges, or immunities so conferred.
[L 2023, c 97, pt of §3]
The authority shall submit a report to the legislature on the progress of the program projects no later than twenty days prior to the convening of each regular session. The annual report shall include the feasibility of expanding the program, the demand of leasehold projects developed under this part, and an appropriate leasehold duration.
[L 2023, c 97, pt of §3]
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