RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY.

SB211

THE SENATE

S.B. NO.

211

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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The
legislature finds that the office of Hawaiian affairs was established under
article XII, section 5, of the Hawaii State Constitution to "hold title to
all the real and personal property now or hereafter set aside or conveyed to it
which shall be held in trust for native Hawaiians and Hawaiians."
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The office of Hawaiian affairs' board of
trustees is authorized by article XII, section 6, of the Hawaii State
Constitution:

[T]o manage and administer the proceeds from the sale or other
disposition of the lands . . . and income derived from whatever sources for
native Hawaiians and Hawaiians, including all income and proceeds from that pro
rata portion of the trust referred to in section 4 of this article [the public
land trust] for native Hawaiians.

The board
of trustees is also authorized under article XII, section 6, "to exercise
control over real and personal property set aside by state, federal or private
sources and transferred to the board for native Hawaiians and Hawaiians."

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In
section 1 of Act 15, Session Laws of Hawaii 2012 (Act 15), the legislature
found that a purpose of the Act was to:

[E]ffectively
and responsibly fulfill the constitutional obligation to native Hawaiians under
article XII, sections 4 and 6, of the State Constitution between November 7,
1978, up to and including June 30, 2012 . . . and providing additional
resources to the office in the form of fee simple title to certain parcels of
land.

In the same
section of Act 15, the legislature declared that the "[c]onveyance of the
fee simple interest to the lands . . . will allow the State to effectively and
responsibly meet those constitutional obligations to native Hawaiians."

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Further,
section 2 of Act 15 stated:

[T]he fee simple interest to [nine] parcels of land [including
parcels identified by tax map key (1) 2-1-58-129 (Lot A), tax map key (1)
2-1-58-6 (Lot E), tax map key (1) 2-1-60-26 (Lot F/G), tax map key (1) 2‑1-15-61
(Lot I), and tax map key (1) 2-1-15-51 (Lot L), was] conveyed to the Office of
Hawaiian Affairs as grantee, as of July 1, 2012, as is where is.

In the same
section of Act 15, however, the legislature specifically directed that:

The [nine parcels] are and shall remain (even after conveyance
to the office) under the jurisdiction and authority of the Hawaii community
development authority with respect to zoning, land use conditions[,] and all
other matters over which the authority has jurisdiction and authority to act,

and
"shall be subject to all laws, except sections 206E-8, 206E‑10, 206E‑34,
Hawaii Revised Statutes, and as otherwise provided in this Act."

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Particularly
pertinent to the purpose of Act 15, in section 6, the legislature further
declared that:

[T]he [p]roperties conveyed by this Act shall be deemed income
and proceeds from the public land trust, as if the [p]roperties had been paid
out of the income and proceeds from the public land trust pursuant to article
XII, section 6 of the State Constitution.

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Relying
on its board of trustees' authority to "exercise control" over lands
that the office of Hawaiian affairs holds in trust for native Hawaiians, and to
"manage and administer" the income and proceeds from the public land
trust lands it receives, the office of Hawaiian affairs has asked the
legislature to enact this Act to allow the office of Hawaiian affairs to
maximize the income or proceeds that five of the parcels of land conveyed by
Act 15 could generate for the purposes of bettering the conditions of native
Hawaiians, by allowing the parcels to be developed for residential use.

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The
legislature finds that the ongoing transformation of Kakaako into a place where
the people of Honolulu can live, work, and play should increase the revenue
generating potential of the land conveyed to the office of Hawaiian affairs by
Act 15 and concomitantly increase the number of programs and kinds of services for
native Hawaiians consistent with the purposes for which the office of Hawaiian
affairs was created.
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The legislature
further finds that even more revenue could be generated to provide programs and
services to better the conditions of native Hawaiians, if the office of
Hawaiian affairs were permitted to develop some or all of the parcels it
received under Act 15 for residential use.

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The
legislature agrees that the residential development restriction to which all of
the parcels transferred to the office of Hawaiian affairs by Act 15 were and
continue to be subject should be lifted to the extent necessary to allow the
office of Hawaiian affairs to realize the maximum income or proceeds that the
parcels identified by tax map key (1) 2‑1‑058‑129 (Lot A),
tax map key (1) 2-1-058-006 (Lot E), tax map key (1) 2-1-060-026 (Lot F/G), tax
map key (1) 2-1-015-061 (Lot I), and tax map key (1) 2-1-015-051 (Lot L) could
generate if they were developed for residential use.

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Finally,
the legislature finds that inasmuch as this Act furthers one of the principal
purposes for which the office of Hawaiian affairs was established as a state
agency, its provisions should be deemed consistent with and not violative of
article XI, section 5, of the Hawaii State Constitution.

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The
purpose of this Act is to enhance the revenue generating capacity of five
parcels of land that were transferred to the office of Hawaiian affairs by Act
15.
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To accomplish this purpose, this Act
raises the building height limit for two of the five parcels to four hundred
feet and for the five parcels lifts the current restriction against residential
development in Kakaako makai, to allow residential development by the office of
Hawaiian affairs or by third parties to which the office of Hawaiian affairs
conveys the parcels.

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SECTION
2.
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Chapter 206E, Hawaii Revised
Statutes, is amended by adding a new section to part II to be appropriately
designated and to read as follows:

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"
�206E-
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Limited residential development in
Kakaako; public hearing prerequisite; height limit; association fee; required
disclosures and nuisance mitigation efforts.
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(a)
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The authority may approve any plan or proposal for any residential
development in Kakaako on any parcels identified as tax map key (1)
2-1-058-129, tax map key (1) 2-1-058-006, tax map key (1) 2‑1-060-026,
tax map key (1) 2-1-015-061, and tax map key (1) 2‑1-015-051; provided
that the authorization for residential development pursuant to this section
shall apply to each of these parcels regardless of if a parcel's tax map key
number is amended; provided further that approval may be granted only after the
applicant seeking approval conducts a public hearing held in accordance with
subsection (b).

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(b)
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Prior to submission to the authority of any
plan or proposal for any residential development pursuant to this section, the
applicant seeking approval shall hold a public hearing that shall be exempt
from chapter 91.
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Notice shall be
published in accordance with section 1-28.5 at least thirty days prior to the
hearing.
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The notice shall include:

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(1)
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The date, time, and place of the
hearing;

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(2)
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A statement of the topic of the
hearing; and

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(3)
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A description of where, when, and
how the residential development proposal may be viewed by the public.

All
interested persons may submit data or opinions, orally or in writing, in
conjunction with the hearing.

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(c)
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Prior to submitting to the authority for
approval any plan or proposal for residential development pursuant to this
section, the applicant seeking approval shall fully address all written and
oral submissions permitted pursuant to subsection (b) regarding the proposed
residential development.

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(d)
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Prior to the approval of any plan or proposal
for residential development pursuant to this section:

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(1)
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The authority shall hold a public
hearing in accordance with subsection (b); and

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(2)
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The authority shall fully consider
all written and oral submissions received at the public hearings held by the
applicant and the authority.

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(e)
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Any other law to the contrary
notwithstanding, the building height limit shall be four hundred feet for
residential development pursuant to this section on the parcels identified by
tax map key (1) 2-1-058-006 and tax map key (1) 2-1-015-061; provided that the
building height limit for residential development pursuant to this section
shall apply to each of these land areas even if that a parcel's tax map key
number is amended.

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(f)
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The office of Hawaiian affairs and any
developer shall provide advance written notice to potential lessees and
residents of the possibility of noise, odor, and other aircraft‑related
nuisances before entering into any lease agreement.
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The office of Hawaiian affairs and any
developer shall assess and propose mitigation efforts to address possible
noise, odor, and other aircraft-related nuisances in any development plan or
proposal.
"

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SECTION
3
.
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Section 206E-12, Hawaii Revised Statutes, is
amended to read as follows:

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�206E-12
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Dedication for public facilities as condition
to development.
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(a)
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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.
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Where
state and county public facilities dedication laws, ordinances, or rules
differ, the provision for greater dedication shall prevail.

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(b)
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This section shall not apply to lands
identified in section 206E-
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(a).
"

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SECTION
4
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Section 206E-31.5, Hawaii Revised Statutes,
is amended to read as follows:

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"
�206E-31.5
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Prohibitions.
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Anything contained in this chapter to the
contrary notwithstanding,
and except as provided in section 206E-
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(a),
the authority is prohibited from:

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(1)
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Selling
or otherwise assigning the fee simple interest in any lands in the Kakaako
community development district to which the authority in its corporate capacity
holds title, except with respect to:

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(A)
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Utility
easements;

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(B)
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Remnants
as defined in section 171-52;

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(C)
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Grants
to any state or county department or agency;

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(D)
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Private
entities for purposes of any easement, roadway, or infrastructure improvements;
or

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(E)
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Reserved housing as defined in section
206E-101; or

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(2)
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Approving
any plan or proposal for any residential development in that portion of the
Kakaako community development district makai of Ala Moana boulevard and between
Kewalo Basin and the foreign trade zone."

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SECTION 5.
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This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

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SECTION 6.
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New statutory material is underscored.

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SECTION 7.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Hawaii
Community Development Authority; OHA; Residential Development; Kakaako Makai

Description:

Allows
the raising of the building height limit for 2 of the 5 parcels owned by the
Office of Hawaiian Affairs in the Kakaako Makai area to 400 feet.
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Lifts the current restriction against
residential development on the 5 OHA-owned parcels in Kakaako Makai to allow
residential development by OHA or by third parties to which OHA conveys the
parcels.
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Requires OHA and any developer
to provide written notice to any tenant or resident of potential aircraft
related nuisances before entering into a lease, and to assess and propose
mitigation efforts to address aircraft related nuisances in development plans
and proposals.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.