Urban Redevelopment Act

HRS div. 1, tit. 6, ch. 53, pt. I

in effect

HRS §53-1 Definitions

53-1. Definitions The following terms wherever used or referred to in part I, part II and, unless specifically indicated otherwise therein, part III of this chapter have the following respective meanings, unless a different meaning clearly appears from the context: "Agency", "local agency", or "local redevelopment agency" means a local redevelopment agency of the county in which a redevelopment project or the redevelopment project concerned is situated, created pursuant to this chapter. Each agency shall be designated by the name of the county followed by the words "redevelopment agency", e.g., "Maui redevelopment agency". "Blighted area" means an area (including a slum area), whether it is improved or unimproved, in which conditions such as: the dilapidation, deterioration, age, or obsolescence of the buildings or improvements thereon; inadequate ventilation, light, sanitation, or open spaces, or other insanitary or unsafe conditions; high density of population and overcrowding; defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility, or usefulness; diversity of ownership; tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; improper subdivision or obsolete platting; existence of conditions which endanger life or property by fire or other causes; or any combination of these factors or conditions predominate, thus making the area an economic or social liability, or conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, or otherwise detrimental to the public health, safety, morals, and welfare. "Bonds" means any bonds, notes, interim certificates, debenture, or other obligations. "Council" means the county or city council of a county or of the county in which the redevelopment project concerned is situated. "County" has the meaning set forth in section 1-22 and, where appropriate, means the county in which the redevelopment project concerned is situated. "Hawaii housing finance and development corporation", "corporation", "government", "federal government", and "real property" have the respective meanings set forth for these terms in chapter 201H. "Obligee" includes any bondholder, agents or trustees for any bondholders, or lessor demising to the agency property used in connection with a redevelopment project, or any assignee or assignees of the lessor's interest or any part thereof, and the federal government when it is a party to any contract with the agency. "Planning commission" means the planning commission for the county established by or pursuant to any state law, or, if there is no planning commission, then the council of the county. "Public notice" means notice stating generally the purpose and the time and place for the hearing or meeting to which the notice relates, or stating generally the information required to be covered by the notice, given at least once (unless a greater number is specifically required) in the county in which the hearing or meeting is to be held, or in which the redevelopment project concerned is situated. Unless otherwise specifically provided, the notice, or the first notice (if more than one), must be made at least three days prior to the date of the hearing or meeting to which it relates. "Redevelopment" means the planning, development, replanning, redesign, clearance, reconstruction or rehabilitation, or any combination of these, of a redevelopment area or part thereof, and the provision of the residential, commercial, industrial, public, or other structures or spaces as may be appropriate or necessary in the interest of the general welfare, including recreational and other facilities incidental or appurtenant thereto. The term does not exclude the continuance of existing buildings or uses whose demolition and rebuilding or change of use are not deemed essential to the redevelopment and rehabilitation of the area. The term includes provision for open space types of use, such as streets and other public grounds and space around buildings, as well as buildings, structures, and improvements, public or private, and improvements of recreation areas, public or private, and other public grounds. "Redevelopment area" means all or a portion of an area in a county which the planning commission thereof has determined to be a blighted area and whose redevelopment is necessary to effectuate the public purposes declared in this chapter. "Redevelopment corporation" means a corporation created pursuant to section 53-23. "Redevelopment plan" means a plan, together with any amendments thereto, for the redevelopment of all or any part of a blighted area. "Redevelopment project" means a specific work or improvements to effectuate all or any part of a redevelopment plan. "Resolution", unless specifically otherwise provided, means a resolution requiring no notice before, and only one reading for, its adoption. "State" means the State of Hawaii. "Urban area" means any closely settled community in a county. [L 1949, c 379, §3; am L 1951, c 244, §1; am L 1955, c 271, §1(d); RL 1955, §143-2; am L 1965, c 101, §1(a); HRS §53-1; am L 1974, c 123, §1; am L 1997, c 350, §8; am L 1998, c 2, §19; am L 2006, c 180, §13]

HRS §53-2 Redevelopment agency; creation

53-2. Redevelopment agency; creation (a) The council of a county by resolution may create a local redevelopment agency for the county, which shall be a county agency and a public body, corporate and politic, and shall consist of five members, appointed by the mayor, with the approval of the council, who shall be outstanding and public-spirited citizens and who shall have resided in the county for at least three years immediately preceding their appointment. The members of the agency shall serve for terms of five years each; provided that upon the initial appointment of the members of the agency, one member shall be appointed for a term of one year, the second member for a term of two years, the third member for a term of three years, the fourth member for a term of four years and a fifth member for a term of five years. Each vacancy shall be filled by the appointing power for the remainder of the unexpired term. No more than three of the members shall belong to the same political party. (b) The appointing power which appoints a member may appoint an acting member to serve during the absence or inability to serve of such member, and the acting member shall, while so acting, have all of the powers of the member in whose place the acting member is temporarily appointed. Members shall hold over until their respective successors are appointed and qualify. Members shall receive no remuneration for their services except actual expenses incurred in the performance of their duties. No member shall hold any elective or other appointive office or position of the member's county. Each member shall be required to give bond in the sum of $15,000 for the faithful performance of the member's duties, and the agency may also require any of its subordinates to give bond, the premiums upon the bonds to be paid by the agency. [L 1949, c 379, pt of §4; am L 1951, c 244, §2; RL 1955, §143-3; am L 1957, c 64, §1; am imp L 1967, c 80, §1; HRS §53-2; gen ch 1985]

HRS §53-3 Interest in project prohibited; disclosure of interest

53-3. Interest in project prohibited; disclosure of interest No member or employee of the redevelopment agency shall acquire any interest, direct or indirect, in any redevelopment project or in any property included or planned to be included in any such project, nor shall the member or employee have any interest, direct or indirect, in any contract or proposed contract, for materials or services to be furnished or used in connection with the project. If any member or employee owns or controls an interest, direct or indirect, in any property included or planned to be included in any redevelopment project, the member or employee shall immediately disclose the same in writing to the agency and the disclosure shall be entered upon the minutes of the agency. Failure to so disclose the interest shall constitute misconduct sufficient to warrant removal. [L 1949, c 379, pt of §4; am L 1955, c 271, pt of §1(e); RL 1955, §143-4; HRS §53-3; gen ch 1985]

HRS §53-4 Removal of members

53-4. Removal of members Any member of a redevelopment agency may be removed for any inefficiency, neglect of duty, or misconduct in office by the mayor with the approval of the council. L 1949, c 379, pt of §4; am L 1955, c 271, pt of §1(e); RL 1955, §143-5; am L 1957, c 64, §3; HRS §53-4

HRS §53-6 Initiation and approval of redevelopment plan

53-6. Initiation and approval of redevelopment plan (a) Before adopting a redevelopment plan, the redevelopment agency shall be assured that satisfactory housing facilities are available or that reasonable provisions will be made for the temporary housing of individuals and families displaced by the removal of living facilities from the redevelopment project. In making the determination the agency may confer with the Hawaii public housing authority with respect to the possible placement of displaced families in projects owned and operated by the authority. (b) The agency shall submit the redevelopment plan to the planning commission for study and approval thereof. The planning commission may approve, amend and approve, or disapprove the plan. If the planning commission disapproves the plan or amends the plan and the amendment is not approved by the agency, the agency may submit the plan as disapproved or amended to the council which may nevertheless approve or amend and approve the plan by resolution, but only by the affirmative vote of at least five of its members, after holding a public hearing and subject to the procedure set forth in the next paragraph. After the planning commission has approved a redevelopment plan, and upon acceptance thereof by the agency if amended, the agency shall submit the plan to the council which shall hold a public hearing thereon, after giving published notice thereof on three separate days, the first publication to be at least ten days before the date of the hearings, and may approve, amend and approve, or disapprove the plan by resolution; provided that the council shall not approve, or amend and approve, the plan unless it finds that the redevelopment project area is a blighted area within the urban limits of the county; and provided further that any amendment made by the council must be accepted by the agency before final approval by the council. If the council approves a redevelopment plan, published notice of the approval shall be given by at least three publications and further proceedings with respect to the redevelopment project covered by the plan shall be stayed for a period of thirty days after the first publication of the notice. Actions, suits, or proceedings to contest the validity of the proceedings prescribed by the foregoing provisions of this chapter or of the redevelopment plan shall be barred upon the expiration of the period of thirty days, and no action thereafter commenced shall raise any question concerning the validity of the proceedings provided by the foregoing provisions of this chapter or of the redevelopment plan, and in all actions, suits, or proceedings commenced after the expiration of the period of thirty days, except as to matters affecting jurisdiction, the validity of the proceedings prescribed by the foregoing provisions of this chapter and of the plan shall be conclusively presumed. Upon the expiration of the thirty-day period, the agency may further proceed with the redevelopment project or projects covered by the redevelopment plan. Upon acquisition of the lands in the redevelopment project by the agency, the lands shall automatically be rezoned as to land use in conformance with provisions of the approved redevelopment plan. (c) Hearings and trial upon any issue raised in any action, suit, or proceeding in any court involving the construction, interpretation, or validity of this chapter, or involving the legality or validity of any action taken or proposed to be taken under or pursuant to this chapter, whether by way of injunction, suit for declaratory judgment, submission on agreed statement of facts, or otherwise, shall be given precedence in the trial courts and, on appeal. An appeal to the intermediate appellate court, subject to chapter 602, shall lie from any decision of any trial court holding valid or invalid any provision of this chapter, or any contract made or proposed, or other action taken or proposed to be taken, under or pursuant to this chapter. (d) Whenever the agency determines that a proposed redevelopment project or an auxiliary redevelopment project initiated pursuant to this chapter may be undertaken by the owners of project lands therein or by developers of the owners as effectively, expeditiously, and economically as if undertaken as a public undertaking by the agency itself, then the redevelopment plan for the project approved and adopted pursuant to this section shall include a provision for the execution of the project by an alternative method of private development thereof on the basis of an agreement between the agency and the owners or developers and imposing such requirements, restrictions, and sanctions as the agency may deem necessary to effectuate the basic purposes of this chapter and to assure the successful completion of the project by private development. If at any time after the initial adoption of the redevelopment plan, the agency determines that a change in the plan is in the public interest and in furtherance of the purpose of redevelopment, the plan or any part thereof may be amended by following the same procedure as set forth above for the adoption of the original plan. [L 1949, c 379, pt of §4; am L 1951, c 244, pt of §3; am L 1955, c 271, §1(g); RL 1955, §143-7; am L 1959, c 63, §1 and c 214, §1; am L 1965, c 101, §1(f) and (g); HRS §53-6; am L 1987, c 337, §5(1); am L 1997, c 350, §14; am L 2004, c 202, §7; am L 2005, c 196, §26(a); am L 2006, c 94, §1 and c 180, §16; am L 2010, c 109, §1]

HRS §53-7 Urban renewal projects in disaster areas

53-7. Urban renewal projects in disaster areas Notwithstanding any other provisions of this chapter, where the council of a county certifies that an area within the county is in need of renewal, redevelopment, or rehabilitation as a result of a seismic wave, flood, fire, hurricane, earthquake, storm, volcanic activity, explosion, or other catastrophe, natural or of human origin (herein called "disaster area") respecting which the governor of the State has certified the need for disaster assistance under Public Law 875, Eighty-first Congress (64 Stat. 1109), or other federal law, the council of a county may approve an urban renewal plan and an urban renewal project with respect to the area without regard to: (1) The provisions of this chapter as follows: the definitions of "redevelopment area" and "urban area" in section 53-1; the proviso of the first sentence of paragraph (4) of section 53-5; the requirements for housing of displaced families, approval of the plan by planning commission, public hearings and findings required by the county council prior to the approval of the plan as contained in section 53-6, provided that the limitation of time in which to contest validity of the proceedings or of the renewal plan provided in section 53-6 in the case of an urban renewal project for disaster areas shall be twenty days instead of thirty days; the exceptions set forth in the second sentence of section 53-20; the proviso of the second sentence of section 53-21; and (2) Any of the provisions of this chapter requiring public hearings or requiring that the urban renewal plan conform to the master plan for the development of the county or locality as a whole, or that the urban renewal area be a slum area, or a blighted, deteriorated, or deteriorating area, or that the urban renewal area be predominantly residential in character or be developed or redeveloped for residential use. In the preparation, planning, financing, acquisition, and disposal of real property, and the execution generally of an urban renewal project for disaster areas, a redevelopment agency shall have all of the rights, powers, privileges, and immunities conferred upon the agency by this chapter including any amendment thereof or addition thereto, or by any other law, in the same manner as though all provisions of law relating to urban renewal projects were applicable to the redevelopment and renewal of the disaster areas as in this section provided, subject to the exceptions hereinabove set forth. [L Sp 1960, c 5, §1; Supp, §143-7.1; HRS §53-7; am L 1987, c 283, §5; am L 1999, c 18, §1]

HRS §53-8 Acquisition of lands in redevelopment project

53-8. Acquisition of lands in redevelopment project After the redevelopment plan is officially approved by the council, or after the thirty-day period has expired or, after the final dismissal or determination of any action, suit or proceeding, if filed (unless the determination holds that the proceedings with reference to the redevelopment plan or the plan are invalid), the redevelopment agency may proceed to acquire land in the redevelopment project. Private real property in an area, needed for a redevelopment project, which is to be acquired pursuant to this part, may be acquired by the agency by condemnation or otherwise, including any property devoted to a public use, whether or not held in trust, notwithstanding that the property may have been previously acquired by condemnation or is owned by a public utility, it being hereby expressly determined that the public use in conformity with this part shall be deemed a superior public use; provided that real property belonging to a public utility may not be acquired without the approval of the public utilities commission or tribunal having regulatory power over the public utility. The council may consent to the condemnation of property owned by the county, whether or not the property is held in trust, or may sell or lease to an agency any such property necessary or convenient for a redevelopment project, with or without right to assign or sublease and without public bidding, provided published notice of a meeting to consider the sale or lease is given and a public hearing is held by the council before the action. The term of any such lease shall not be limited by any provision of any other law limiting the period of time during which a lease or any renewal thereof may run. An award of compensation shall not be increased by reason of any increase in the value of the real property caused by the assembly, clearance, or reconstruction, or proposed assembly, clearance or reconstruction for the purposes of this part of the real property in a redevelopment area. A council, upon payment therefor or upon exchange for other lands, or without consideration, may convey to an agency land owned by the county in any street or public place which is duly closed or discontinued pursuant to the plan of a redevelopment project. Public lands or lands owned by any other agency or instrumentality of the government, may, with the approval of the governor, be transferred to an agency by the officer, agency, or instrumentality authorized to convey the same upon payment therefor or upon exchange for other lands, or without consideration, notwithstanding any other law to the contrary. The procedure upon condemnation by an agency shall be the same as that prescribed by the laws of the State for condemnation by a county except that the members of the agency shall be substituted for the council whenever mentioned in the laws, and that the proceeding shall be brought and title shall be acquired in the name of the agency. In the event the improvements on any private real property located in any proposed redevelopment area (1) are destroyed by seismic wave, flood, fire, hurricane, earthquake, storm, volcanic activity, explosion, or other catastrophe, natural or of human origin, or (2) are declared by an appropriate state or local authority to be unsafe or unfit for human use or habitation, or (3) the owner or owners thereof are unable or unwilling to improve the property in accordance with the land uses in the proposed redevelopment plan and are willing to sell the property to the agency, the agency may, any provision of law to the contrary notwithstanding and in addition to any authority granted to it, acquire the private real property in the proposed redevelopment area by negotiated purchase from the owner or owners and undertake work thereon as provided in section 53-9, upon authorization from the council, by resolution of one reading to purchase the real property, regardless of the stage of development of the redevelopment plan therefor, whether or not the plan has been officially approved by the council or the period of thirty days following the approval has expired. The agency shall not sell, transfer, convey, or otherwise dispose of the real property, except in connection with first mortgages or other prior liens upon the real property to the federal government for the purpose of securing loans or advances of money made available to the agency, until the redevelopment plan is approved by the council, but if the plan is not approved by the council or is amended to exclude the acquired real property from the redevelopment area or the redevelopment plan is abandoned for any reason, the agency shall dispose of the real property, subject, however, to any first mortgage or other prior lien of the federal government upon the real property, by first offering the same to the former owner or owners for repurchase at the same price paid by the agency for the purchase thereof and if the owner or owners refuse or fail within a reasonable time to exercise the right of repurchase, then the same may be sold at public auction or in the manner provided by law. Pursuant to section 101-5, the agency may take and acquire any right, interest, or estate less than a fee simple estate, which are necessary for the undertaking and execution of an urban redevelopment or renewal project and related activities under this chapter, including the acquisition of air space rights and the imposition of restrictions, covenants, and controls to assure the development of a continued use of project property in accordance with the redevelopment or renewal plan. [L 1949, c 379, pt of §4; am L 1951, c 244, pt of §3; RL 1955, §143-8; am L Sp 1960, c 5, §2; am L 1965, c 101, §1(h); HRS §53-8; gen ch 1993]

HRS §53-9 Work on acquired areas; competitive contracts

53-9. Work on acquired areas; competitive contracts The redevelopment agency may, by letting of contracts therefor, or by using its own employees, clear the acquired areas and maintain and repair or rehabilitate, but not reconstruct or enlarge, any structure (except structures to be held and used by the government for public purposes); provided that any work, the estimated cost of which is in excess of $1,000, shall be let only in accordance with chapter 103D. [L 1949, c 379, pt of §4; RL 1955, §143-9; HRS §53-9; am L Sp 1993, c 8, §54]

HRS §53-10 Appraisal of lands of agency

53-10. Appraisal of lands of agency At any time after the approval of the redevelopment plan and before disposing of any of its lands or properties, the redevelopment agency shall appoint one or more, but not more than three competent persons to make independent appraisals of the value of its property, based upon the future use of the area under the redevelopment plan. The appraisals shall serve only as a guide for the agency in determining a fair price for the disposal of its land and property but need not be adhered to in making the disposal, and shall become a public record and subject to examination by any interested person after the disposal. [L 1949, c 379, pt of §4; am L 1951, c 244, pt of §3; am L 1953, c 210, §3; RL 1955, §143-10; HRS §53-10]

HRS §53-13 New constructions by agency

53-13. New constructions by agency The redevelopment agency may not erect new structures upon any of its property (except structures to be held and used by the government for public purposes), but, if it will promote the realization of the redevelopment plan, it may grade, drain, construct streets, and install necessary utilities such as sewers, water, and lights. [L 1949, c 379, pt of §4; RL 1955, §143-13; HRS §53-13]

HRS §53-14 Agency exempt from real property taxes

53-14. Agency exempt from real property taxes The redevelopment agency shall be exempt from real property taxes upon any of its land or buildings so long as title is held by it, but not exceeding two years from the date of their acquisition; provided that the tax exemption shall not apply to any land or structure from which the agency is receiving an income. [L 1949, c 379, pt of §4; RL 1955, §143-14; HRS §53-14]

HRS §53-16 Bonds of agency

53-16. Bonds of agency (a) A redevelopment agency may issue bonds from time to time in its discretion for any of its corporate purposes including the payment of principal and interest upon any advances for surveys and plans for redevelopment projects. An agency may also issue refunding bonds for the purpose of paying or retiring or in exchange for bonds previously issued by it. An agency may issue such types of bonds as it may determine, including (without limiting the generality of the foregoing) bonds on which the principal and interest are payable: (1) Exclusively from the income, proceeds, and revenues of the redevelopment project financed with the proceeds of the bonds; or (2) Exclusively from the income, proceeds, and revenues of any of its redevelopment projects whether or not they are financed in whole or in part with the proceeds of the bonds; provided that the bonds may be additionally secured by a pledge of any loan, grant, or contributions, or parts thereof, from the federal government or other source, or a mortgage of any redevelopment project or projects of the agency. (b) Neither the members of an agency nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance thereof. The bonds and other obligations of the agency (and such bonds and obligations shall so state on their face) shall not be a debt of the county or the State and neither the county nor the State shall be liable thereon, nor in any event shall such bonds or obligations be payable out of any county or state funds or properties other than those of the agency acquired for the purposes of this part. The bonds shall not constitute an indebtedness within the meaning of any debt limitation or restriction. Bonds of an agency are declared to be issued for an essential public and governmental purpose and to be public instrumentalities and, together with interest thereon and income therefrom, shall be exempt from all taxes. (c) Bonds of an agency shall be authorized by its resolution and may be issued in one or more series and shall bear such date or dates, be payable upon demand or mature at such time or times, bear interest at such rate or rates, as established by the legislative bodies of the counties, be in such denomination or denominations, be in such form either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms or redemption (with or without premium) as the resolution, its trust indenture, or mortgage may provide. (d) The bonds shall be sold at not less than par at public sale held after public notice given once at least ten days prior to the sale in the county; provided that the bonds may be sold to the federal government at private sale at not less than par, and, in the event less than all of the bonds authorized in connection with any project or projects are sold to the federal government, the balance of the bonds may be sold at private sale at not less than par at an interest cost to the agency of not to exceed the interest cost to the agency of the portion of the bonds sold to the federal government. (e) In case any of the members or officers of the agency whose signatures appear on any bonds or coupons cease to be members or officers before the delivery of the bonds, the signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the members or officers had remained in office until the delivery. Any provision of any law to the contrary notwithstanding, any bonds issued pursuant to this part shall be fully negotiable. (f) In any suit, action, or proceedings involving the validity or enforceability of any bond of an agency or the security therefor, any bond reciting in substance that it has been issued by the agency to aid in financing a redevelopment project, as herein defined, shall be conclusively deemed to have been issued for the purpose and the project shall be conclusively deemed to have been planned, located, and carried out in accordance with the purposes of this part. (g) In connection with the issuance of bonds and in order to secure the payment of the bonds or obligations, an agency, in addition to its other powers, may: (1) Pledge all or any part of its gross or net rents, fees, or revenues to which its right then exists or may thereafter come into existence; (2) Mortgage all or any part of its real or personal property, then owned or thereafter acquired; (3) Covenant against pledging all or any part of its rents, fees, and revenues, or against mortgaging all or any part of its real or personal property, to which its right or title then exists or may thereafter come into existence or against permitting or suffering any lien on the revenues or property; covenant with respect to limitations on its right to sell, or otherwise dispose of any redevelopment project or any part thereof; and covenant as to what other, or additional debts or obligations may be incurred by it; (4) Covenant as to the bonds to be issued and as to the issuance of the bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof; provide for the replacement of lost, destroyed, or mutilated bonds; covenant against extending the time for the payment of its bonds or interest thereon; and covenant for the redemption of the bonds and provide the terms and conditions thereof; (5) Covenant (subject to the limitations contained in this part) as to the amount of revenues to be raised each year or other period of time by fees and other revenues, and as to the use and disposition to be made thereof; create or authorize the creation of special funds for moneys held for operating costs, debt service, reserves, or other purposes, and covenant as to the use and disposition of the moneys held in the funds; (6) Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which the consent may be given; (7) Covenant as to the use, maintenance, and replacement of any or all of its real or personal property, the insurance to be carried thereon, and the use and disposition of insurance moneys, and warrant its title to the property; (8) Covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation; and covenant and prescribe as to events of default and terms and conditions upon which any or all of its bonds or obligations shall become or may be declared due before maturity, and as to the terms and conditions upon which the declaration and its consequences may be waived; (9) Vest in any obligees of the agency the right to enforce the payment of the bonds or any covenants securing or relating to the bonds; vest in any obligee or obligees holding a specified amount in bonds the right, in the event of a default by the agency, to take possession of and use, operate and manage any redevelopment project or any part thereof, title to which is in the agency, or any funds connected therewith, and collect the rents and revenues arising therefrom and dispose of the moneys in accordance with the agreement of the agency with the obligees; provide for the powers and duties of the obligees and limit the liabilities thereof; and provide the terms and conditions upon which the obligees may enforce any covenant or rights securing or relating to the bonds; (10) Exercise all or any part or combination of the powers herein granted; make the covenants (other than and in addition to the covenants herein expressly authorized) and do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or, in the absolute discretion of the agency, as will tend to make the bonds more marketable notwithstanding that the covenants, acts, or things may not be enumerated herein. (h) An agency may by its resolution, trust indenture, mortgage, or other contract confer upon any obligee holding or representing a specified amount in bonds, the right (in addition to all rights that may otherwise be conferred), upon the happening of an event of default as defined in the resolution or instrument, by suit, action, or proceeding in any court of competent jurisdiction: (1) To cause possession of any redevelopment project or any part thereof, title to which is in the agency, to be surrendered to the obligee; (2) To obtain the appointment of a receiver of any redevelopment project of the agency or any part thereof, title to which is in the agency, and of the rents and profits therefrom. If the receiver is appointed, the receiver may enter and take possession of, carry out, operate, and maintain the project or any part thereof and collect and receive all fees, rents, revenues, or other charges thereafter arising therefrom, and shall keep the moneys in a separate account or accounts and apply the same in accordance with the obligations of the agency as the court shall direct; and (3) To require the agency and the commissioners, officers, agents, and employees thereof to account as if it and they were the trustees of an express trust. (i) An obligee of an agency shall have the right in addition to all other rights which may be conferred on the obligee, subject only to any contractual restrictions binding upon the obligee: (1) By appropriate action to compel the agency and the members, officers, agents, or employees thereof to perform each and every term, provision, and covenant contained in any contract of the agency with or for the benefit of the obligee, and to require the carrying out of any or all the covenants and agreements of the agency and the fulfillment of all duties imposed upon the agency by this part; and (2) By appropriate action to enjoin any acts or things which may be unlawful, or the violation of any of the rights of the obligee of the agency. [L 1949, c 379, pt of §4; am L 1951, c 244, pt of §3; RL 1955, §143-16; HRS §53-16; am L 1968, c 43, §2; am L 1981, c 79, §1; gen ch 1985; am L 1998, c 2, §20]

HRS §53-17 Bonds of agency to be legal investments

53-17. Bonds of agency to be legal investments Bonds issued by a redevelopment agency in connection with one or more redevelopment plans or redevelopment projects pursuant to this part shall be legal investments and security for public deposits to the same extent and for the same public officers and bodies, political subdivisions, persons, companies, corporations, associations, banks, institutions, and fiduciaries as bonds or obligations issued by the Hawaii housing finance and development corporation under chapter 201H in connection with slum clearance and housing projects. [L 1949, c 379, pt of §4; RL 1955, §143-17; HRS §53-17; am L 1987, c 337, §5(2); am L 2005, c 196, §26(b); am L 2006, c 180, §16; am L 2007, c 249, §10]

HRS §53-18 Investment of funds

53-18. Investment of funds A redevelopment agency may invest any of its funds not required for immediate disbursement in securities which constitute legal investments under state laws relating to investment of trust funds by trust companies, including those authorized by article 8 of chapter 412. [L 1949, c 379, pt of §4; RL 1955, §143-18; HRS §53-18; am L 1993, c 350, §2]

HRS §53-19 Report

53-19. Report Each redevelopment agency shall make an annual report of its receipts, expenditures, and activities, and of its proposed program and estimated cost thereof for the ensuing year to the council of its county, before August 1 as of the end of the preceding fiscal year. [L 1949, c 379, pt of §4; am L 1955, c 271, §1(i); RL 1955, §143-19; am imp L 1965, c 166, §§1, 2; HRS §53-19]

HRS §53-21 Auxiliary redevelopment area; displaced persons

53-21. Auxiliary redevelopment area; displaced persons Where the redevelopment agency of a county finds: (1) That there is a shortage of decent, safe, and sanitary housing in the county; (2) That the provision of decent, safe, and sanitary housing for rent or dwelling units for sale is necessary to accomplish the relocation of families displaced or to be displaced from areas acquired by governmental agencies for public purposes or displaced from disaster areas as defined by this chapter; and (3) That the acquisition of a fee or leasehold interest of a particularly described area in a county (hereinafter also called an auxiliary redevelopment project), suitable for development for predominantly residential uses and so characterized in the master plan, is essential to provide for the development of housing facilities at rents the displaced families can afford or of dwelling units at prices the displaced families can pay, then the planning, acquisition, preparation for development or disposal of the auxiliary redevelopment area shall constitute a redevelopment project which may be undertaken by the agency in the manner provided by this chapter. The procedure and exceptions set forth in section 53-20 shall apply to any projects; provided that pursuant to section 101-5, the agency may take and acquire any estate less than a fee simple estate in lands whenever it appears that the purposes of this section shall be best achieved and promoted by the taking. Where the redevelopment plan for the project makes provision for the development of housing facilities for rent, the agency shall sell, lease, or sublease the land or the completed development to qualified developers or nonprofit sponsors for use in accordance with the redevelopment plan. The sale, lease, or sublease shall be made at a fair value reflecting the restrictions imposed on developers and covenants running with the project land, including restrictions on rent ceilings and modification thereof which the agency may impose by regulation for a period up to thirty years for the development in order to achieve private ownership and operation of the properties at a reasonable profit while providing for rentals which displaced families can afford. Where the redevelopment plan for the project makes provision for the subdivision and development of the land for single family dwelling units for sale to the displaced families, the agency shall sell the land or the completed development to qualified developers or nonprofit sponsors for development and use in accordance with the redevelopment plan. The sale shall be made at a fair value reflecting the restrictions imposed on developers and covenants running with the project lands to limit the price of sale thereof, the prices which displaced families can afford while permitting developers a reasonable profit therefrom, and preventing speculative resale thereof by purchasers and their assigns. All developers of auxiliary redevelopment projects authorized by this section shall be entitled to claim exemption or relief from taxes as provided by section 53-38 for all project lands and improvements providing for housing facilities for rent to families displaced from public projects or from disaster areas. [L 1957, c 101, §1; am L 1959, c 45, §1; am L Sp 1960, c 5, §4; am 1965, c 101, §1(k); Supp, §143-20.1; am L 1967, c 168, §1; HRS §53-21; am L 1974, c 137, §1]

HRS §53-22 Governmental advances, donations, and other appropriations

53-22. Governmental advances, donations, and other appropriations (a) The governor shall submit to the legislature at each regular session in an odd-numbered year, estimates of the amount reasonably required in the governor's judgment for administrative expenses and overhead of agencies concerned with the administration of this part, together with other amounts deemed necessary by the governor for state contributions for redevelopment projects, for the succeeding fiscal biennium, so that the legislature may make appropriations therefor if it deems the action advisable. (b) Any county within which a redevelopment project is located or is about to be located may from time to time make loans, donations, or advances to the local redevelopment agency of such sums as in its discretion it may determine, the loans, advances, or donations to be made for the purpose of aiding or cooperating in the prosecution of the redevelopment project. The local agency, when it has money available therefor, shall reimburse the county for all advances made by way of a loan to it. For the purpose of raising funds for donation to an agency, any county within which a redevelopment project is located may issue and sell its bonds. Any bonds to be issued by the county pursuant to this section shall be issued in the manner and within the limitation prescribed by the laws of the State for the issuance and authorization of bonds for public purposes generally. (c) In order to qualify for the allotment and expenditure of funds appropriated by the State under this section, for any redevelopment project or for assistance to a local redevelopment agency, the county shall make funds available to the agency in amounts at least equal to the funds granted or contributed, or to be granted or contributed, by the State. The council may make funds available for any of the purposes (including studies by the planning commission to determine and recommend for redevelopment blighted areas, and other activities of the planning commission under this part) of this part (whether or not state funds shall be available for any of such purposes) out of any moneys in the general fund of the county, and may include necessary amounts therefor in determining the real property tax rate for the county. The amount which, pursuant to this subsection, is included in determining the real property tax rate for the county, shall be paid into the redevelopment fund of the county for expenditure by the agency for the purposes of this part. (d) All state appropriations made under this section shall be allocated to the respective redevelopment agencies upon the basis of actual need therefor, or as otherwise provided by law. (e) The governor shall submit to the legislature at each regular session in an odd-numbered year, estimates of the amount of additional appropriation necessary in the governor's judgment for use by the Hawaii housing finance and development corporation in the succeeding fiscal biennium, in providing living facilities necessary to care for families displaced or to be displaced by redevelopment projects, so that the legislature may make appropriations therefor if it deems the action advisable. [L 1949, c 379, §5; am L 1951, c 244, §4; am L 1955, c 271, §1(j); RL 1955, §143-21; am L Sp 1957, c 1, §15(b); am L Sp 1959 1st, c 13, §2; am L 1963, c 142, §10 and c 193, §39; HRS §53-22; am L 1979, c 105, §8; gen ch 1985; am L 1987, c 337, §5(3); am L 1997, c 350, §14; am L 2005, c 196, §26(b); am L 2006, c 180, §16]

HRS §53-24 Consent of agency to incorporation of redevelopment corporations

53-24. Consent of agency to incorporation of redevelopment corporations If any articles of association of a redevelopment corporation are presented to the state director of commerce and consumer affairs, the director shall not file the articles unless a certificate of the consent of the redevelopment agency accompanies the same. No certificate of amendment of the articles of association, or certificate of increase or decrease or change in par value of the capital stock, of a development corporation shall be filed by the director unless a certificate of the consent of the agency of the county in which the project is located accompanies the same. [L 1949, c 379, §7; RL 1955, §143-23; am L Sp 1959 2d, c 1, §15; am L 1963, c 114, §3; HRS §53-24; am L 1982, c 204, §8; am L 1983, c 124, §17; gen ch 1985]

HRS §53-26 Powers of redevelopment corporations

53-26. Powers of redevelopment corporations Each redevelopment corporation shall have and may exercise such of the powers conferred by the general corporation laws as are necessary in conducting the business of a redevelopment corporation and consistent with this part. [L 1949, c 379, §9; RL 1955, §143-25; HRS §53-26]

HRS §53-28 Consideration for issuance of stocks and bonds

53-28. Consideration for issuance of stocks and bonds No redevelopment corporation shall issue stock, bonds, or income debenture certificates except for money or property actually received for the use and lawful purposes of the redevelopment corporation. No stock, bonds, or income debenture certificates shall be issued for property except upon a valuation approved by the redevelopment agency and the valuation shall be used in computing actual or estimated cost. [L 1949, c 379, §11; RL 1955, §143-27; HRS §53-28]

HRS §53-29 Minimum amount of stock and debentures

53-29. Minimum amount of stock and debentures Except as provided in this section the stock and income debenture certificates issued by the redevelopment corporation shall in no event be less than the total of ten per cent of the total actual final cost, as defined in [paragraph] (2) of section 53-32, of any project or projects undertaken pursuant to this part. The redevelopment agency may permit stock or income debenture certificates to be issued for working capital to be used in connection with the project to an amount not exceeding five per cent of the estimated cost, or five per cent of the total actual final cost, if that should exceed the estimated cost of a project. [L 1949, c 379, §12; RL 1955, §143-28; am L 1959, c 96, §1; HRS §53-29]

HRS §53-30 Income debentures

53-30. Income debentures With the approval of the redevelopment agency, the articles of association, or amended articles, may authorize the issuance of income debenture certificates bearing no greater interest than six per cent a year. The income debenture certificates and any instrument under which they are issued may contain other provisions, including provisions for amortization by serial maturities, through the operation of a sinking fund or otherwise, which may be approved by the agency. [L 1949, c 379, §13; RL 1955, §143-29; HRS §53-30]

HRS §53-31 Mortgages and mortgage bonds

53-31. Mortgages and mortgage bonds Any redevelopment corporation, subject to the approval of the redevelopment agency, may borrow funds and secure the repayment thereof by bond and mortgage or by an issue of bonds under a trust indenture. Each mortgage or issue of bonds of a redevelopment corporation shall relate only to a single specified project and to no other and the bonds shall be secured by mortgage upon all of the real property of which the project consists. First lien bonds of the redevelopment corporation when secured by a mortgage not exceeding ninety per cent of the estimated cost prior to the completion of the project, or ninety per cent of the appraised value or actual cost, but in no event, in excess of ninety per cent of the total actual final cost, after the completion, as certified by the agency, are hereby declared securities in which all public officers and bodies of the State, all political subdivisions of the State, all insurance companies and associations, all savings banks and savings institutions, including savings and loan associations, personal representatives, guardians, trustees, and all other persons and fiduciaries in the State may properly and legally invest the funds within their control and available for investment under other provisions of law. The bonds so issued and secured and the mortgage or trust indenture relating thereto, may create a first or senior lien and a second or junior lien upon the real property embraced in any project; provided that the total mortgage liens shall not exceed ninety per cent of the estimated cost prior to the completion of the project, or ninety per cent of the appraised value or actual cost, but in no event in excess of ninety per cent of the total actual final cost after the completion, as certified by the agency. Where there are first and second mortgage liens upon the property embraced in a project, only the first or senior lien thereon shall be deemed a security in which the officer, bodies, subdivisions, corporations, associations, and fiduciaries, may invest the funds within their control. The bonds and mortgages may contain such other clauses and provisions as are approved by the agency, including the right to assignment of rents and entry into possession in case of default; but the operation of the redevelopment project in the event of the entry by mortgage or receiver shall be subject to regulations promulgated by the agency. Provisions for the amortization of the bonded indebtedness of corporations formed under this part shall be subject to the approval of the agency. So long as funds made available by the federal government or by instrumentality thereof or any mortgage or mortgage bonds, insured by the federal housing administrator or any other instrumentality of the federal government are used in financing, in whole or in part, any project under this part, the proportionate amount of the cost of the lands and improvements to be represented by mortgages or bonds shall be entirely in the discretion of the agency, and all restrictions as to the amounts to be represented by mortgages or bonds shall be inapplicable to the projects or to redevelopment corporations undertaking the projects, except that the bonds and mortgages covering any project shall not exceed the total actual final cost of such project as defined in [paragraph] (2) of section 53-32. Interest rates on mortgage indebtedness shall not exceed such rates to be approved by the agency. [L 1949, c 379, §14; RL 1955, §143-30; am L 1959, c 96, §2; HRS §53-31; am L 1976, c 200, pt of §1]

HRS §53-33 Advances by redevelopment corporation

53-33. Advances by redevelopment corporation A redevelopment agency may enter into a contract with a redevelopment corporation at any time after approval of a redevelopment plan whereby the corporation will pay or agree to pay an agreed sum or sums, or such sums as may be necessary, to be expended by the agency in the acquisition or clearing, or both, of real property for a redevelopment project, under such terms as are satisfactory to the agency; provided that no contract may obligate the agency to refund any portion of the sums so paid except such portion as may remain unexpended after the acquisition or clearing, or both. The contract may include an agreement to sell or lease property subject to sale or lease covered by the redevelopment project to the redevelopment corporation after acquisition and clearing of the land in the project. [L 1949, c 379, §16; am L 1951, c 244, §7; RL 1955, §143-32; am L 1959, c 44, §4; HRS §53-33]

HRS §53-34 Regulation of redevelopment corporations

53-34. Regulation of redevelopment corporations The redevelopment agency shall examine each redevelopment corporation and keep informed as to its general condition, its capitalization, and the manner in which its property is constructed, leased, operated, or managed with respect to its compliance with all provisions of law and orders of the agency. The agency may: (1) Either itself or through its inspectors or employees, duly authorized by it, enter in or upon and inspect the property, equipment, buildings, plants, offices, apparatus, and devices of any redevelopment corporation; examine all books, contracts, records, documents, and papers of any redevelopment corporation and by subpoena duces tecum compel the production thereof. At the request of the agency the state commissioner of financial institutions shall assist in examination of the books, contracts, records, documents, and papers and report thereon to the agency; (2) In its discretion, prescribe uniform methods and forms of keeping accounts, records, and books to be observed by redevelopment corporations, and after a hearing prescribe by order accounts in which particular outlays and receipts shall be entered, charged, or credited; (3) Require specific answers to questions upon which it may desire information and require the filing of periodic reports in the form, covering the period, and at the time prescribed by it; (4) In the deed or contract selling or leasing property in a redevelopment project to any other person or corporation, reserve such of the powers hereinabove mentioned as are appropriate and necessary or proper to effectuate the requirements of this chapter. [L 1949, c 379, §17; am L 1951, c 244, §8; RL 1955, §143-33; am L 1959, c 44, §5; HRS §53-34; am L 1985, c 269, §55]

HRS §53-35 Transfer of title or foreclosure of project

53-35. Transfer of title or foreclosure of project Until the expiration of thirty-five years from the date of acquisition of property of or in a redevelopment project by a redevelopment corporation, it shall not have power to sell the property or any interest therein without the consent of the redevelopment agency. Upon acquisition of the project by any person, firm, or corporation other than another redevelopment corporation, by lease or sale, or upon the initiation of foreclosure proceedings any tax exemption or partial tax exemption granted to the project shall immediately terminate. [L 1949, c 379, §18; RL 1955, §143-34; HRS §53-35]

HRS §53-36 Dissolution

53-36. Dissolution (a) After termination of any tax exemption granted pursuant to section 53-38, whether by expiration or by any other cause, or if prior thereto the redevelopment corporation elects to pay to the county the total of (1) all accrued taxes for which the exemption was granted and received, (2) interest at the rate of five per cent a year thereon, and (3) any additional amount with or without interest, not exceeding five per cent a year, prescribed in the contract between the redevelopment agency and the corporation as a condition precedent to the enjoyments of the privileges granted by this section, the redevelopment corporation may voluntarily dissolve, and title to the project may be conveyed in fee to the owner or owners of its capital stock or to any corporation designated by it or them for the purpose, or the redevelopment corporation may be dissolved and reconstituted pursuant to appropriate laws relating to the formation and conduct of corporations, after providing, in any case, for the payment of all current operating expenses, taxes, indebtedness and all accrued interest thereon, and the par value of and accrued dividends on the outstanding stock of the redevelopment corporation. If, after making the provision and after the conveyance of the project, a cash surplus remains in the treasury of the redevelopment corporation, the cash surplus shall, upon dissolution, be paid into the redevelopment fund of the county. After the dissolution and conveyance or the reconstitution, any tax exemption granted to the redevelopment corporation pursuant to section 53-38 shall cease and terminate, and the provisions of this part regulating redevelopment corporations only shall become and be inapplicable to the project. (b) If prior to the expiration of the thirty-five-year period the project is sold for any reason, the redevelopment corporation shall dissolve and any tax exemption granted to the redevelopment corporation pursuant to section 53-38 shall cease and terminate. In such case the stockholders and income debenture certificate holders shall in no event receive more than the par value of their stock and the face value of their income debenture certificates with accrued and unpaid dividends or interest upon such stock and income debenture certificates, and any remaining surplus shall be paid into the redevelopment fund of the agency. (c) In no event shall a redevelopment corporation be voluntarily dissolved unless provision is made for the payment in full of the remaining balance of principal and interest due or unpaid upon any mortgage on its property or any part thereof, but any project may, with the consent of the agency, be conveyed and transferred to the agency subject to the mortgage and accrued interest. (d) Unless the agency consents to the voluntary dissolution of a redevelopment corporation, the corporation shall not dissolve except in accordance with subsections (a) and (b) of this section or upon the expiration of the period of corporate existence as fixed by its articles. (e) The contract with the agency may contain such other provisions for the dissolution of the redevelopment corporation as may be deemed advisable, not inconsistent with the provisions of this section. (f) Upon dissolution as provided in this section, the provisions of this part regulating redevelopment corporations only shall become and be inapplicable to the project and its owner or owners. (g) Nothing in this section shall have the effect of releasing the successors in interest of the redevelopment corporation from covenants, conditions, restrictions, and limitations running with the land and not appropriate solely to a redevelopment corporation. [L 1949, c 379, §19; RL 1955, §143-35; HRS §53-36]

HRS §53-37 Participation by certain corporations

53-37. Participation by certain corporations One or more insurance companies may organize, or cause to be organized, a redevelopment corporation formed pursuant to the provisions of this part, and purchase for cash or receive and hold in exchange for property, and own and control, the stock or the income debenture certificates or both of any redevelopment corporation and may also invest, singly or jointly, in a bond and first mortgage or in an issue of bonds secured by mortgage or trust indenture constituting a first lien upon any project as provided in this part. An insurance company, however, which owns stock or income debenture certificates of a redevelopment corporation and also owns bonds or a bond and mortgage or an interest in a bond and mortgage of the same redevelopment corporation shall not, without the consent of the agency, sell all or any part of the bonds or the bond and mortgage or of its interest in the bond or mortgage unless it shall simultaneously sell the stock and the income debenture certificates owned by it. Notwithstanding any other provisions of law, an insurance company owning all or a part of the stock of a redevelopment corporation may enter into contracts contemplated by this part and agree by contract with the redevelopment agency not to sell, assign, or otherwise transfer the stock, income debentures, or mortgage bonds of the redevelopment corporation during the period of tax exemption provided for by the contract pursuant to this part without the consent of the agency. The insurance company may make such capital contributions to the redevelopment corporation, in cash or by cancellation of securities or otherwise, as may be necessary to enable the redevelopment corporation to comply with all conditions precedent to its dissolution and conveyance of its property in accordance with subsection (a) of section 53-36, and upon dissolution of the redevelopment corporation, acquire the project and own and operate the same as a permanent investment for such period as it or they may deem desirable either directly or through acquisition and ownership of the capital stock of any corporation which may acquire title to the project pursuant to subsection (a) of section 53-36. Except as specifically provided herein this part shall not be deemed to limit or restrict any power or authority granted to insurance companies or to any other corporation or to any fiduciary by any other provision of law. [L 1949, c 379, §20; RL 1955, §143-36; HRS §53-37]

HRS §53-38 Tax exemption

53-38. Tax exemption Where and so long as the major portion of a redevelopment project of a redevelopment corporation is composed of residential units and the rents for the residential units are reasonable as compared with prevailing rental levels for comparable accommodations, the land and improvements in the project shall be exempted (1) for ten years from the date of acquisition of such project by the redevelopment corporation, from real property taxes, other than assessments for local improvements in excess of the total real property taxes paid upon the land and improvements for the year prior to the commencement of proceedings by the agency for the acquisition of the lands and improvements; and (2) for the next succeeding fifteen-year period following such ten-year period, from real property taxes on fifty per cent of the assessed valuation of the property and improvements; provided that: (A) Where the cost of acquisition of the land and improvements in the redevelopment project by the redevelopment corporation is at least ninety per cent of the cost of acquisition, clearing and improvement of the land and improvements by the redevelopment agency, the tax exemption granted under clause (1) of this section shall be for fifteen years from the date of acquisition of the project by the redevelopment corporation, with no further exemption thereafter, except that, if the net earnings from the project for the last five of the fifteen-year period, above expenses, taxes, assessments, and depreciation or amortization (as provided in section 53-27), available for payment of interest and dividends, shall be less than three per cent of the total actual final cost of the project (as defined by [paragraph] (2) of section 53-32), then the tax exemption granted under this proviso (A) shall be extended for an additional ten years; and (B) No such tax exemption shall be allowed for any land and improvements which are used for commercial, industrial, or any other nonresidential purposes. [L 1949, c 379, §21; am L 1951, c 244, §9; am L 1955, c 271, §1(m); RL 1955, §143-37; am L 1959, c 44, §6; HRS §53-38]

HRS §53-39 No limitation of provisions by implication

53-39. No limitation of provisions by implication No provision in this part applicable specially or only to a redevelopment corporation shall be construed to limit by implication the applicability of this part or any other provision thereof to any other person or corporation. [L 1949, c 379, §23; RL 1955, §143-38; HRS §53-39]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0053/HRS_0053-.htmFetched: 11/10/2026