SECTION 1. The legislature finds and declares that there is a lack of affordable housing in Hawaii. At the same time, Hawaii also lacks land with the necessary infrastructure improvements to support residential development, which is a significant barrier to the development of affordable housing. The Hawaii housing finance and development corporation has both the capacity to develop and manage lands to generate income and to develop infrastructure for affordable housing, although it lacks available land. The University of Hawaii-West Oahu has extensive undeveloped or underdeveloped land holdings, but lacks the capacity to fully develop them to realize maximum income potential.

The legislature further finds that the University of Hawaii-West Oahu campus has grown and continues to grow. Because the university is supported with public funds, it is the legislature's responsibility to ensure that the university is fiscally sustainable. Transferring certain parcels of land from the University of Hawaii to the Hawaii housing finance and development corporation for affordable-housing related development will achieve the dual purpose of generating income for the support of the University of Hawaii-West Oahu and adding to the State's available affordable housing stock.

The legislature finds that the disposition of land to support the development of much needed affordable housing and the generation of revenue for the University of Hawaii-West Oahu is a matter of statewide concern and therefore subject to the purview of the legislature pursuant to article X, section 6, of the Hawaii state constitution.

The purpose of this Act is to allocate and transfer titles to certain parcels of land contained in the conceptual land use plan for the University of Hawaii-West Oahu dated July 27, 2011, between the University of Hawaii and the Hawaii housing finance and development corporation, for affordable housing development by the Hawaii housing finance and development corporation and revenue generation for the benefit of the University of Hawaii-West Oahu, including repayment of outstanding debt.

SECTION 2. Section 304A-2166, Hawaii Revised Statutes, is amended to read as follows:

"[[]§304A-2166[]] University of Hawaii-West Oahu special fund. (a) There is established the University of Hawaii-West Oahu special fund. [~~The~~] Except as otherwise provided in subsection (c), the proceeds of the special fund shall be used for the following purposes:

(1) Planning, land acquisition, design, construction, and equipment necessary for the development of the permanent campus of the University of Hawaii-West Oahu in Kapolei; and

(2) Planning, land acquisition, design, improvement, and construction of infrastructure and other public or common facilities necessary for the development of the permanent campus of the University of Hawaii-West Oahu in Kapolei.

(b) The following shall be deposited into the special fund:

(1) Appropriations by the legislature to the special fund;

(2) All net proceeds from the sale of public lands, all net rents from leases, licenses, and permits, or all net proceeds derived from development rights for public lands:

(A) Proposed for large lot subdivision as a five hundred acre parcel and designated as Lot 10077 in Land Court Application 1069[;], including those parcels of land contained in the conceptual land use plan for the University of Hawaii-West Oahu dated July 27, 2011, and identified by tax map keys (1)9-1-16:120, (1)9-1-16:179, (1)9-1-16:222, and (1)9-1-16:223 transferred to the Hawaii housing finance and development corporation pursuant to Act , Session Laws of Hawaii 2015; and

(B) Obtained from the Campbell Estate in the land exchange described in section 2 of Act 294, Session Laws of Hawaii 1996, located mauka of the H-1 Freeway and consisting of nine hundred forty-one acres, more or less; and

(3) Interest earned or accrued on moneys in the special fund.

(c) All net proceeds from the sale of public lands, all net rents from leases, licenses, and permits, or all net proceeds derived from development rights for public lands contained in the conceptual land use plan for the University of Hawaii-West Oahu dated July 27, 2011, and identified by tax map keys (1)9-1-16:120, (1)9-1-16:179, (1)9-1-16:222, and (1)9-1-16:223 transferred to the Hawaii housing finance and development corporation pursuant to Act , Session Laws of Hawaii 2015, shall be used solely for the following purposes:

(1) The repayment of any outstanding debt of the University of Hawaii-West Oahu; and

(2) The benefit of the University of Hawaii-West Oahu.

[~~(c)~~] (d) The fund shall be managed by the university, which shall also make expenditures from the fund.

[~~(d)~~] (e) Notwithstanding any other law to the contrary, no moneys from the special fund may be expended for any purposes other than the purposes set forth herein unless otherwise approved by the legislature."

SECTION 3. (a) The University of Hawaii is directed to transfer title, control, and custody of certain parcels of land contained in the conceptual land use plan for the University of Hawaii-West Oahu dated July 27, 2011, and identified by tax map keys (1)9-1-16:120, (1)9-1-16:179, (1)9-1-16:222, and (1)9-1-16:223 to the Hawaii housing finance and development corporation; provided that, upon transfer, if a portion of any of the identified parcels subject to transfer under this Act is being used by the University of Hawaii, the Hawaii housing finance and development corporation shall subdivide the parcel, insofar as practicable, to delineate the portion of the parcel being used by the University of Hawaii as a separate lot and transfer title, control, and custody of that separate lot back to the University of Hawaii.

(b) The Hawaii housing finance and development corporation is directed to assume management authority over the lands transferred to it by this Act.

(c) The Hawaii housing finance and development corporation shall develop and manage the lands transferred to it by this Act, pursuant to chapter 201H, Hawaii Revised Statutes, including:

(1) Developing infrastructure; and

(2) Ensuring that the land is used in such a way as to generate income for the University of Hawaii-West Oahu.

(d) All proceeds received by the Hawaii housing finance and development corporation from the sale, rental, lease, or development of lands transferred pursuant to this Act shall be deposited into the University of Hawaii-West Oahu special fund established under section 304A-2166, Hawaii Revised Statutes.

SECTION 4. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the University of Hawaii pursuant to the Hawaii Revised Statutes, which are applicable to the lands that are being transferred pursuant to this Act, shall remain in full force and effect, unless affirmatively amended by the appropriate agency, under due process. Upon transfer of the lands pursuant to this Act, every reference to the University of Hawaii applicable to the lands that are being transferred to the Hawaii housing finance and development corporation pursuant to this Act shall be construed as a reference to the Hawaii housing finance and development corporation.

SECTION 5. All rights, powers, functions, and duties of the University of Hawaii relating to the lands that are being transferred to the Hawaii housing finance and development corporation pursuant to this Act are transferred to the Hawaii housing finance and development corporation.

SECTION 6. During the time between the enactment of this Act and its effective date, the University of Hawaii shall make no decisions on deeds, leases, contracts, loans, agreements, permits, or other documents relating to the lands that are being transferred pursuant to this Act unless the Hawaii housing finance and development corporation concurs.

SECTION 7. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting part of this Act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned. Any rules in effect as a result of this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State or the city and county of Honolulu.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect upon its approval; provided that the conveyance of the lands subject to this Act shall not be finally executed until July 1, 2016, to allow for budgetary adjustments, rule changes, and other necessary transition actions.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1367
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII