HCDA staff report: budget appropriations, Act 252 expands authority powers and governance

Hawaiʻi Community Development Authority staff reported on July 2, 2025, that the state budget bill and an HCDA administrative bill were signed into law and include new funding, a new staff position and statutory changes that expand the authority’s powers.

Garrett Sasaki, reporting for HCDA staff, said the budget bill was signed into law and noted no changes from previous updates. Sasaki listed capital improvement appropriations included in the staff packet: $15,000,000 for the 99‑year leasehold program; $2,000,000 for a climate‑change impact assessment for Kakaʻako (as reported in the packet); $12,000,000 for infrastructure tied to a named project in the packet; $2,500,000 combined for Kakaʻako Makai planning; $1,000,000 for an infrastructure EIS noted in the packet; and $5,500,000 for Kupuna Supportive Housing. Sasaki also reported a single new staff position was established in the budget and is expected to be filled later in 2025.

Executive Director Craig Nakamoto described the administrative bill (identified in the meeting as House Bill 1007, which became Act 252) as the most significant statutory change to HCDA since 2022. Nakamoto said the law: codifies elements of HCDA’s strategic plan; allows the authority to provide assistance to other state and county agencies; permits use of HCDA powers outside existing community development districts; and streamlines certain governance by consolidating subboards into the general authority board for many matters. Nakamoto said the act also provides two bond pathways: one that would support city-created community facilities districts (CFDs) and another that would allow HCDA itself to issue bonds, with a ceiling cited in the presentation of $180,000,000. He emphasized that issuing bonds would require a dependable revenue source and standard underwriting analysis before any issuance.

Nakamoto said the bill creates a governance structure that adds two appointed TOD (transit‑oriented development) experts for relevant matters and four non‑voting ex‑officio members (the chairs of the state Senate and House housing and transportation committees) for certain proceedings. He said some matters (for example, the 99‑year leasehold program, hiring the executive director, and audit approvals) would be handled by the regular board without the additional members.

Member Nassar asked whether HCDA would compare the potential benefits of a city community facilities district (CFD) with what HCDA can already provide. Nakamoto replied that the bill’s option on page 7 allows the city to create a CFD, while HCDA’s statutory structure permits creation of improvement districts and assessments that can accomplish similar purposes; he said doing so would require rulemaking and staff capacity building. Nakamoto said staff will explore improvement‑district assessments for planned electrical upgrades and other field development projects and that implementation will require additional administrative work and coordination with legislative champions.

Board members did not take formal action on these items at the meeting; the presentation was informational and staff noted follow‑up implementation and rulemaking tasks.