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HCDA board hears legislative update as HB1007 advances; $38 million in CIP projects listed
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Summary
At its May 7 at-large meeting, the Hawaiʻi Community Development Authority received an update on the state operating and capital budgets, including $38 million in FY26 CIP requests in HB300 and substantive changes to HB1007 that expand HCDA authority on transit-oriented development and bond issuance.
Sterling Higa, chairperson of the Hawaiʻi Community Development Authority, convened the authority’s May 7 at-large meeting and invited staff to brief members on the state budget and pending bills affecting HCDA operations.
Craig Nakamoto, HCDA executive director, and Garrett Sasaki, chief financial officer, presented an update on the operating and capital budgets and on several bills, including HB300 and HB1007. Sasaki told the board the FY26 CIP total in HB300 is $38,000,000 and listed project-level requests that would come to HCDA if the budget is finalized.
The CIP items described by Sasaki include a $15,000,000 state contribution for the 99-year leasehold program; $2,000,000 for a climate change impact assessment covering Kakaʻako and Kalaeloa; funds for planning and off-site infrastructure to support affordable housing in Iwilei–Kapalama; a $1,000,000 allocation for the Kilo infrastructure environmental impact statement; and a first-year $5,500,000 allocation for Kuna supportive housing. Those figures were reported by Garrett Sasaki during the budget briefing.
On HB1007, Nakamoto summarized changes made while the bill was in the Legislature. He said the bill originally aimed to streamline HCDA’s administrative authority and the four-county board structure in the TOD (transit-oriented development) section of Chapter 206E. Nakamoto described three substantive senate amendments: (1) language allowing HCDA to use its powers outside HCDA community development districts; (2) authorization language for HCDA to issue bonds for community facilities districts, intended in part to provide alternative financing tools for projects such as the stadium; and (3) insertion of provisions from Senate Bill 1669 that would have created a separate TOD partnership board. Nakamoto said the conference draft removed the separate board and instead added two technical/land-development experts appointed by the senate president and house speaker and four ex officio, nonvoting members (the chairs of the senate and house transportation and housing committees).
“This is not a new thing for HCDA to issue revenue bonds,” Nakamoto told the board, noting that issuing revenue bonds was among the authority’s original purposes when it was created in 1976. He also noted a bond ceiling of $180,000,000 referenced in the bill language that originated with the Stadium Authority and that the agency would likely need additional legislative action if it sought additional bond capacity.
Board members asked questions about funding and coordination. Member Strikes asked whether HB1007 includes funding for the park-and-ride transit hub at the Waiawa (Pearl Highlands) station; Nakamoto said HB1007 itself did not include funding for that work. Nakamoto and members discussed the need for coordinated planning in Iwilei–Kapalama and the larger neighborhood, and he said the agency will look to other financing tools (TIFs, CFDs, bond proceeds) and that additional bond-related policy and underwriting expertise will be needed before HCDA can act on large bond financings.
Nakamoto also told the board that some language in the bill’s preamble had been removed because it was inaccurate, but that the final preamble still specifically mentions the agency assisting with planning and implementation for a proposed park-and-ride transit and community hub adjacent to the Waiawa–Pearl Highlands station.
Members and staff exchanged follow-up items: Nakamoto said HCDA staff will analyze whether new positions are needed to carry out expanded TOD work and that the agency will seek additional information on bond mechanics (including underwriting and Department of Budget and Finance participation) to brief the board.
The board received the legislative and budget update with questions from members and no formal board action on the bills during the meeting.
Ending: HCDA members were advised to read the final text of HB1007 and track related budget bills; staff said additional briefings on financing, bond mechanics and coordination with city and utility partners will be scheduled if the governor signs budget provisions noted by staff.
