General Provisions

HRS div. 1, tit. 13, ch. 206E, pt. I

in effect

HRS §206E-1 Findings and purpose

206E-1. Findings and purpose 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 which make such 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 which do not have facilities necessary for basic liveability, such as parks and open space; and areas which are planned for extensive land allocation to one, rather than mixed uses. 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. 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, a public entity which shall determine community development programs and cooperate with private enterprise and the various components of federal, state, and county governments in bringing plans to fruition. For such areas designated as community development districts, the legislature believes that the planning and implementation program of the Hawaii community development authority will result in communities which 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 the issuance of bonds pursuant to this chapter to finance public facilities serve the public interest and are matters of statewide concern. [L 1976, c 153, pt of §1; am L 1985, c 38, §1; am L 1993, c 311, §3]

HRS §206E-2 Definitions

206E-2. Definitions 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]

HRS §206E-3 Hawaii community development authority; established

206E-3. Hawaii community development authority; established (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; and 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. 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, or 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 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; and (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. 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 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]

HRS §206E-4 Powers; generally

206E-4. Powers; generally 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]

HRS §206E-4.1 Assignment of powers and duties prohibited

206E-4.1. Assignment of powers and duties prohibited 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]

HRS §206E-4.2 Reserved and workforce housing units; transfer to qualified nonprofit housing trust

206E-4.2. Reserved and workforce housing units; transfer to qualified nonprofit housing trust (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]

HRS §206E-4.5 Urban gardening programs

206E-4.5. Urban gardening programs 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]

HRS §206E-5 Designation of community development districts; community development plans

206E-5. Designation of community development districts; community development plans (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]

HRS §206E-5.6 Public hearing for decision-making; separate hearings required; contested case hearing; judicial review

206E-5.6. Public hearing for decision-making; separate hearings required; contested case hearing; judicial review (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]

HRS §206E-6 District-wide improvement program

206E-6. District-wide improvement program (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]

HRS §206E-7 Community development rules

206E-7. Community development rules (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]

HRS §206E-8 Use of public lands; acquisition of state lands

206E-8. Use of public lands; acquisition of state lands (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]

HRS §206E-8.5 Developments within special management areas and shoreline setback

206E-8.5. Developments within special management areas and shoreline setback (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]

HRS §206E-9 Acquisition of real property from a county

206E-9. Acquisition of real property from a county 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]

HRS §206E-10 Condemnation of real property

206E-10. Condemnation of real property 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]

HRS §206E-10.5 Relocation

206E-10.5. Relocation (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 re-establishment 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]

HRS §206E-11 Construction contracts

206E-11. Construction contracts 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

HRS §206E-12 Dedication for public facilities as condition to development

206E-12. Dedication for public facilities as condition to development 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]

HRS §206E-13 Public projects

206E-13. Public projects 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

HRS §206E-15 Residential projects; cooperative agreements

206E-15. Residential projects; cooperative agreements (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]

HRS §206E-16 Hawaii community development revolving fund.

206E-16. Hawaii community development revolving fund. There is created the Hawaii community development revolving 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

HRS §206E-16.5 Expenditures of special funds under the authority exempt from appropriation and allotment

206E-16.5. Expenditures of special funds under the authority exempt from appropriation and allotment 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]

HRS §206E-17 Exemption from taxation

206E-17. Exemption from taxation 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

HRS §206E-18 Assistance by state and county agencies

206E-18. Assistance by state and county agencies Any state or county agency may render services upon request of the authority. L 1976, c 153, pt of §1

HRS §206E-19 Annual report

206E-19. Annual report 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

HRS §206E-21 Issuance of bonds

206E-21. Issuance of bonds 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

HRS §206E-22 Violations and penalty

206E-22. Violations and penalty (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]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0206E/HRS_0206E-.htmFetched: 11/10/2026