HawaiiHB 10072025–2026 Regular Session (Year 1)HouseWALLET

RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY.

Sponsored By: Nadine K. Nakamura (Democratic)

Signed by Governor

Summary

Authorizes the Hawaii Community Development Authority to cooperate with or assist public and private sector entities to engage in projects that improve the State. Amends the membership of the HCDA board of directors. Establishes the Transit-oriented Development Infrastructure Improvement Program under HCDA. Repeals the Transit-oriented Development Infrastructure Improvement District Board. Authorizes HCDA to issue bonds to finance the development of infrastructure outside of HCDA's community development districts. (CD1)

HCDADepartment of Business, Economic Development, and TourismTransit-Oriented Community Improvement ProgramSpecial FundAppropriationsTCA, WAM

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 2 costs, 0 mixed.

Hawaii gains $180 million infrastructure financing

The Hawaii Community Development Authority can issue up to $180 million in revenue bonds for infrastructure. Eligible locations include transit program areas, community development districts, the stadium district, and authority-owned land. Refunding bonds do not count toward the cap up to the principal they replace; bonds outstanding July 1, 2025, do not reduce it. The law appropriates up to $180 million in bond proceeds for fiscal year 2025–2026; unused money lapses June 30, 2030. Debt payments not covered by bond proceeds rely only on authority and program revenues, not the state's general obligation.

Landowners face takings for transit projects

The authority can acquire private property through condemnation when needed for immediate or future transit infrastructure program use. Compensation cannot rise because the program area's designation increased the property's value. It also excludes increases caused by the authority's actual or planned acquisition, use, or sale of other property. A later taking for another public use requires the authority's consent.

Investors get infrastructure bond tax exemptions

Authority bonds issued for improvements funded through assessments, and their interest, are exempt from state, county, and municipal taxes. The exemption does not cover inheritance, transfer, or estate taxes. The law does not set a dollar amount for investors' tax savings.

More infrastructure support for transit communities

Beginning July 1, 2025, the Hawaii Community Development Authority runs a statewide program supporting infrastructure and walkable communities near transit. Program areas can include county-designated transit zones; without those zones, parcels within one-half mile of existing or proposed stations qualify. In counties with over 500,000 people, the transit zone must include an existing or planned rail station. The authority sets boundaries using transit access, walkability, county plans, and other relevant factors. It can also develop park-and-ride community hubs and transfer improvements to counties, including projects not financed with bonds. Transfers require county-compliant design and construction, plus a county agreement.

Transit project beneficiaries face infrastructure charges

The authority can charge users their fair share of infrastructure costs when they specially benefit from an improvement. It can create a separate fee area when only part of a program area benefits. It can also assess specially benefiting properties; government-owned property requires the owner's prior written consent. The authority must set utility relocation and rebuilding cost-sharing rules for itself, affected utilities, and specially benefiting users, while considering county policies. The law sets no user-fee amount or utility cost share, and property assessments are special benefit charges, not taxes.

Sponsors & Cosponsors

Sponsor

  • Nadine K. Nakamura

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 253 • No: 0

Senate vote • 4/30/2025

Senate Floor Vote

Yes: 25 • No: 0

House vote • 4/30/2025

House Floor Vote

Yes: 50 • No: 0

House vote • 4/25/2025

The Conference Committee recommends that the measure be Passed, with Amendments....

Yes: 4 • No: 0

Senate vote • 4/25/2025

The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....

Yes: 4 • No: 0

Senate vote • 4/8/2025

Senate Floor Vote

Yes: 24 • No: 0

Senate vote • 4/3/2025

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 13 • No: 0

Senate vote • 3/20/2025

The committee(s) on TCA recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 5 • No: 0

House vote • 2/28/2025

House Floor Vote

Yes: 47 • No: 0

House vote • 2/24/2025

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes ...

Yes: 14 • No: 0

House vote • 2/12/2025

The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 10 • No: 0

House vote • 2/4/2025

Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA...

Yes: 48 • No: 0

House vote • 1/30/2025

The committee on WAL recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 9 • No: 0

Actions Timeline

  1. Act 252, 07/01/2025 (Gov. Msg. No. 1355).

    7/1/2025Senate
  2. Act 252, on 07/01/2025 (Gov. Msg. No. 1355).

    7/1/2025House
  3. Received notice of passage on Final Reading in House (Hse. Com. No. 821).

    5/2/2025Senate
  4. Received notice of Final Reading (Sen. Com. No. 888).

    5/1/2025House
  5. Transmitted to Governor.

    5/1/2025House
  6. Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: Senator(s) Fevella. Noes, 0 (none). Excused, 0 (none).

    4/30/2025Senate
  7. Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and Representative(s) Cochran excused (1).

    4/30/2025House
  8. Conference Committee Meeting will reconvene on Friday, 04-25-25 at 1:00PM in Conference Room 229.

    4/25/2025House
  9. Conference Committee Meeting will reconvene on Friday, 04-25-25 at 4:00PM in Conference Room 411.

    4/25/2025House
  10. Senate Conferees Changed: Senator Aquino added as Co-Chair. Senator Hashimoto discharged as Co-Chair.

    4/25/2025Senate
  11. Conference Committee Meeting will reconvene on Friday, 04-25-25 at 5:30PM in Conference Room 411.

    4/25/2025House
  12. Conference committee meeting to reconvene on 04-25-25 5:30 PM; Conference Room 411.

    4/25/2025Senate
  13. Received notice of change in Senate conferees (Sen. Com. No. 880).

    4/25/2025House
  14. The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 4 Aye(s): Senator(s) Lee, C., Aquino, DeCorte, Inouye; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Kanuha.

    4/25/2025Senate
  15. The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 4 Ayes: Representative(s) Hashem, Tarnas, Lamosao, Shimizu; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Evslin.

    4/25/2025House
  16. Reported from Conference Committee (Conf Com. Rep. No. 239) as amended in (CD 1).

    4/25/2025House
  17. Forty-eight (48) hours notice Wednesday, 04-30-25.

    4/25/2025House
  18. Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 239).

    4/25/2025Senate
  19. 48 Hrs. Notice (as amended CD 1) 04-30-25

    4/25/2025Senate
  20. Bill scheduled for Conference Committee Meeting on Friday, 04-25-25 9:00AM in conference room 229.

    4/24/2025House
  21. Received notice of appointment of House conferees (Hse. Com. No. 800).

    4/23/2025Senate
  22. House Conferees Appointed: Hashem, Tarnas, Lamosao Co-Chairs; Evslin, Shimizu.

    4/22/2025House
  23. Senate Conferees Added: Senator Inouye added as Conferee.

    4/17/2025Senate
  24. Received notice of change in Senate conferees (Sen. Com. No. 830).

    4/17/2025House
  25. Senate Conferees Appointed: Lee, C. Chairs; Hashimoto Co-Chair; Kanuha, DeCorte.

    4/16/2025Senate

Bill Text

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