Housing; county powers. [Repeal and reenactment on June 30, 2028.
HRS §46-15.01
in effect46-15.01. Housing; county powers. [Repeal
and reenactment on June 30, 2028.
(1) Develop and construct dwelling units, alone or in
partnership with developers;
(2) Acquire necessary land by lease, purchase,
exchange, or eminent domain;
(3) Provide assistance and aid to a public agency or
other person in developing and constructing new housing and rehabilitating
existing housing for elders of low- and moderate-income, other persons of low-
and moderate-income, and persons displaced by any governmental action, by
making long-term mortgage or interim construction loans available;
(4) Contract with any eligible bidders to provide for
construction of urgently needed housing for persons of low- and
moderate-income;
(5) Guarantee the top twenty-five per cent of the
principal balance of real property mortgage loans, plus interest thereon, made
to qualified borrowers by qualified lenders;
(6) Enter into mortgage guarantee agreements with
appropriate officials of any agency or instrumentality of the United States to
induce those officials to commit to insure or to insure mortgages under the
National Housing Act, as amended;
(7) Make a direct loan to any qualified buyer for the
downpayment required by a private lender to be made by the borrower as a
condition of obtaining a loan from the private lender in the purchase of
residential property;
(8) Provide funds for a share, not to exceed fifty
per cent, of the principal amount of a loan made to a qualified borrower by a
private lender who is unable otherwise to lend the borrower sufficient funds at
reasonable rates in the purchase of residential property; and
(9) Sell or lease completed dwelling units.
For purposes of this section, a limitation is
applicable to the extent that it may reasonably be construed to apply to a
county.
(b) Each county shall recognize housing units
developed by the department of Hawaiian home lands and issue affordable housing
credits to the department of Hawaiian home lands. The credits shall be
transferable and shall be issued on a one-credit for one-unit basis, unless the
housing unit is eligible for additional credits as provided by adopted county
ordinances, rules, or any memoranda of agreement between a county and the
department of Hawaiian home lands. In the event that credits are transferred
by the department of Hawaiian home lands, twenty-five per cent of any monetary
proceeds from the transfer shall be used by the department of Hawaiian home
lands to develop units for rental properties. Credits shall be issued for each
single-family residence, multi-family unit, other residential unit, whether for
purposes of sale or rental, or if allowed under the county's affordable housing
programs, vacant lot, developed by the department of Hawaiian home lands. The
credits may be applied county-wide within the same county in which the credits
were earned to satisfy affordable housing obligations imposed by the county on
market-priced residential and non-residential developments. County-wide or
project-specific requirements for housing class, use, or type; or construction
time for affordable housing units shall not impair, restrict, or condition the
county's obligation to apply the credits in full satisfaction of all county
requirements, whether by rule, ordinance, or particular zoning conditions of a
project. Notwithstanding any provisions in this section to the contrary, the
department may enter into a memorandum of agreement with any of the counties to
establish, modify, or clarify the conditions for the issuance, transfer, and
redemption of the affordable housing credits in accordance with county
affordable housing ordinances or rules. At least half of the affordable
housing credits issued by the city and county of Honolulu shall be subject to a
memorandum of agreement pursuant to this subsection.
(c) Each county shall recognize housing units
developed pursuant to section 201H-38 and issue affordable housing credits to
the eligible developer for residences required to be sold or rented to
individuals within a specified income range, if a developer chooses to receive
affordable housing credits. Credits shall be issued for each single-family
residence, multi-family unit, other residential unit, whether for purposes of
sale, rental, or if allowed under the county's affordable housing programs,
vacant lot, developed pursuant to chapter 201H. Affordable housing credits
shall not be issued if low-income housing tax credits are utilized in
conjunction with the affordable housing developed pursuant to chapter 201H.
The credits shall be transferable and shall be issued on a one-credit for one-unit
basis, unless the housing unit is eligible for additional credits as provided
by adopted county ordinances, rules, or any memoranda of agreement between a
county and the Hawaii housing finance and development corporation. In the
event that the affordable housing credits are transferred to the Hawaii housing
finance and development corporation, twenty-five per cent of any monetary
proceeds from the transfer shall be used by the Hawaii housing finance and
development corporation to develop units for rental properties. The credits
may be applied county-wide within the same county in which the credits were
earned to satisfy affordable housing obligations imposed by the county on
market-priced residential and non-residential developments. The credits may be
applied to satisfy up to fifty per cent of the affordable housing obligations
imposed by the county for each market-priced residential or non-residential
development, unless the county allows for more than fifty per cent as provided
by county ordinances, rules, or any memoranda of agreement between the county
and the Hawaii housing finance and development corporation. County-wide or
project-specific requirements for housing class, use, or type, or construction
time for affordable housing units, shall not impair, restrict, or condition the
county's obligation to apply the credits in full satisfaction of all county
requirements, whether by rule, ordinance, or particular zoning conditions of a
project. Notwithstanding any provision of this section to the contrary, the
Hawaii housing finance and development corporation may enter into a memorandum
of agreement with any of the counties to establish, modify, or clarify the
conditions for the issuance, transfer, and redemption of the affordable housing
credits in accordance with county affordable housing ordinances or rules.
No affordable housing credit shall be issued
under this subsection until a certificate of occupancy has been issued.
Prior to the issuance of an affordable housing
credit under this subsection, an agreement, including affordable
housing-related agreements between a county or the Hawaii housing finance and
development corporation and an eligible developer, shall be executed and
include language requiring:
(1) A new and sequential identification number of at
least four digits in length for each affordable housing credit to be issued
within each county for tracking purposes;
(2) An agreement to be recorded on title of at least
one parcel or tax map key of the originating housing project, as defined in
section 201H-1; and
(3) The prompt amendment of an agreement when an
affordable housing credit originally generated by a housing project is sold,
transferred, or utilized to create an easily auditable trail of ownership.
(d) Notwithstanding any law to the contrary,
any county may:
(1) Authorize and issue bonds under chapter 47 and
chapter 49 to provide moneys to carry out the purposes of this section or
section 46-15.2, including the satisfaction of any guarantees made by the
county pursuant to this section;
(2) Appropriate moneys of the county to carry out the
purposes of this section;
(3) Obtain insurance and guarantees from the State or
the United States, or grants from either;
(4) Designate, after holding a public hearing on the
matter and with the approval of the respective council, any lands owned by it
for the purposes of this section;
(5) Provide interim construction loans to
partnerships of which it is a partner and to developers whose projects qualify
for federally assisted project mortgage insurance, or other similar programs of
federal assistance for persons of low and moderate income; and
(6) Adopt rules pursuant to chapter 91 as are
necessary to carry out the purposes of this section.
(e) Notwithstanding any law to the contrary, a
county may waive its right to repurchase a privately-developed affordable
housing unit built pursuant to a unilateral agreement or similar instrument,
and may transfer that right of repurchase to a qualified nonprofit housing
trust for the purpose of maintaining the unit as affordable for as long as
required by the county program.
(f) A qualified nonprofit housing trust shall
report the status and use of its housing units to its respective county by
November 30 of each calendar year.
(g) The provisions of this section shall be
construed liberally so as to effectuate the purpose of this section in
facilitating the development, construction, financing, refinancing, or other
provision of low- and moderate-income housing projects and mixed-use
developments by the various counties.
(h) For purposes of this section:
"Affordable housing obligation" means
the requirement imposed by a county, regardless of the date of its imposition,
to develop vacant lots, single-family residences, multi-family residences, or
any other type of residence for sale or rent to individuals within a specified
income range.
"Eligible developer" has the same
meaning as defined in section 201H-32.
"Low- and moderate-income housing
project" means any housing project that meets the definition of "low-
and moderate-income housing project" in section 39A-281.
"Mixed-use development" has the same
meaning as defined in section 201H-12(a).
"Qualified nonprofit housing trust"
means a corporation, association, or other duly chartered organization that:
(1) Is registered and in good standing with the
State;
(2) 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
(3) Has the capacity, resources, and mission to carry
out the purposes of this section as determined by the county in which the
housing unit is located.
L 2024, c 45, §4. Repeal and reenactment on
July 1, 2030. L 2023, c 90, §§2, 3. Repeal and reenactment on July 1, 2031.
L 2024, c 31, §4.] (a) Notwithstanding any law to the contrary, any
county shall have and may exercise the same powers, subject to applicable
limitations, as those granted the Hawaii housing finance and development
corporation pursuant to chapter 201H insofar as those powers may be reasonably
construed to be exercisable by a county for the purpose of developing,
constructing, financing, refinancing, or otherwise
providing low- and moderate-income housing projects and mixed-use developments;
provided that no county shall be empowered to cause the State to issue
general obligation bonds to finance a project pursuant to this section;
provided further that county projects shall be granted an exemption from
general excise or receipts taxes in the same manner as projects of the Hawaii
housing finance and development corporation pursuant to section 201H-36;
provided further that county projects shall prioritize walkability to the
extent practicable; provided further that section 201H-16 shall not apply to
this section unless federal guidelines specifically provide local governments
with that authorization and the authorization does not conflict with any state
laws. The powers shall include the power, subject to applicable limitations,
to: [L 1974, c 179, §2; am L 1977, c 207, §2; am L 1980, c
190, §1; am L 1981, c 39, §1; am L 1982, c 118, §1; am L 1987, c 80, §1 and c
337, §4; am L 1989, c 69, §2; am L 1990, c 67, §8; am L 1997, c 350, §6; am L
2005, c 196, §26(b); am L 2006, c 180, §16; am L 2007, c 37, §1 and c 249, §8;
am L 2009, c 141, §§1, 3; am L 2012, c 98, §§1, 3; am L 2014, c 96, §11; am L
2015, c 102, §§1, 3, 4; am L 2016, c 55, §50; am L 2017, c 159, §3; am L 2019,
c 80, §§1, 2; am L 2024, c 31, §2 and c 45, §2]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0046/HRS_0046-0015_0001.htmFetched: 11/10/2026