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HCDA updates board on multiple bills, flags concerns over new TOD partnership structure
Summary
HCDA staff briefed the board on pending legislation affecting the authority, including HB1007, a proposal to expand HCDA powers and incorporate provisions of a separate TOD partnership bill; board members raised concerns about governance, duplication and funding for transitions.
The Hawaiʻi Community Development Authority received an update April 2 on several legislative measures affecting the agency and on a governor's message advancing a proposed appointment.
Craig Nakamoto, HCDA executive director, briefed the board on four items in the staff packet: House Bill 1007 (administration bill), House Bill 818 (listed in materials as "House Bill 8 18" related to Banyan Drive/Waiākea Peninsula), Senate Bill 534 (the Makai planning bill) and Governor's Message 735 (a confirmation hearing for a board member). Nakamoto also discussed a separate Senate bill, SB1669 (referred to in materials as 16 69), whose provisions were proposed for incorporation into HB1007.
Nakamoto told the board that HB1007 began as an administrative bill to let HCDA assist other state agencies and to streamline certain 206E administrative elements, but that Senate amendments added three substantive provisions: authority to issue bonds in transit-oriented development (TOD) areas and other community development districts; permission to use HCDA powers outside existing community development districts; and incorporation of SB1669 provisions to create a TOD partnership board and staff under a state department. Nakamoto said those additions have made the bill more complex and in some respects ‘‘administrative complication’’ rather than simplification.
Board members and agency staff raised concerns about SB1669-style governance embedded in HB1007, saying it could create a parallel or subsidiary board with its own executive director and staff that might duplicate existing TOD implementation structures, bypass current interagency TOD processes and raise questions about which body would be responsible for fiscal obligations such as bonds. HCDA staff noted the proposed partnership board would be state-heavy in membership and could have limited community representation under current drafts.
Member Evans and agency witnesses also raised duplication concerns. HCDA staff testified that some amenities named in SB1669 typically fall under county responsibilities (parks, facilities and related services), and OPSD (the state Office of Planning and Sustainable Development) expressed strong concerns that SB1669 duplicates existing TOD council functions and tools.
The board also discussed House Bill 818 (material described as relating to Banyan Drive/Waiākea Peninsula on Hawaiʻi island). Nakamoto said the bill originally would have transferred DLNR land to HCDA and created a community development district; DLNR objected to land transfer language and that portion was removed. Nakamoto said Chair Chang and staff worked with the bill sponsor to reframe the bill; the measure was not heard in the Senate this session and is effectively dead but planning funds — $1,000,000 in OPSD — are currently available for a master plan of Banyan Drive.
On the governor's message, Nakamoto said GM735 schedules a confirmation hearing on April 14 for a board nominee; staff are preparing the required materials for that hearing.
The presentation was informational. Board members did not vote on legislation at the April 2 meeting. The board did approve the minutes from its March 2025 regular meeting earlier in the session; that procedural action was recorded as approved "as presented."
