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HCDA votes to begin rulemaking on 99‑year leasehold condominium program tied to SB 2061
Summary
The Hawaiʻi Community Development Authority authorized initiation of rulemaking to amend administrative rules for the 99‑year leasehold condominium program (chapter 15‑223) pending governor approval of SB 2061 CD1; members discussed procurement exemptions and prevailing wage implications and public commenters raised concerns about state‑managed lands and Native Hawaiian impacts.
The Hawaiʻi Community Development Authority on June 3 voted to authorize the executive director to initiate rulemaking to amend administrative rules for the 99‑year leasehold condominium program (administrative rules chapter 15‑223) and to conduct the requisite public hearings under HRS chapter 91 and chapter 206E, contingent on the governor’s approval of SB 2061 CD1.
Program specialist Deepo Nupane summarized the change: the bill would allow some affordability and owner‑occupancy requirements to be addressed through rulemaking instead of statute and would exempt design, development and construction from procurement requirements while maintaining prevailing‑wage obligations. Nupane said the rulemaking process will include public hearings and multiple opportunities for input.
Board members asked staff to clarify how private pricing formulas would operate and whether exempting procurement would increase labor costs due to prevailing wages. Staff replied that procurement exemptions remain subject to prevailing wage requirements and that the exemption is intended to reduce administrative burden and improve project feasibility for certain developments.
Public commenters raised concerns about how the state describes and manages lands that affect Native Hawaiian communities. Tara Roas said she had previously sought contested‑case rights and described being "sideswiped" during an earlier proceeding; John Kai urged consultations with people on the Hawaiian home list and raised concerns about enforcement actions he described as occurring on Hawaiian home lands.
Member Gordner moved and Member Strikes seconded the motion to begin rulemaking and conduct public hearings; the roll‑call vote passed with 16 votes in favor (chair noted one seat not voting).
