§206E-6  District-wide improvement program. (a)  The authority shall develop a district-wide improvement program toidentify necessary district-wide public facilities within a communitydevelopment district.

(b)  Whenever the authority shall determine toundertake, or cause to be undertaken, any public facility as part of thedistrict-wide improvement program, the cost of providing the public facilitiesshall be assessed against the real property in the community developmentdistrict specially benefiting from such public facilities.  The authority shalldetermine the areas of the community development district which will benefitfrom the public facilities to be undertaken and, if less than the entirecommunity development district benefits, the authority may establish assessmentareas within the community development district.  The authority may issue andsell bonds in such amounts as may be authorized by the legislature to providefunds to finance such public facilities.  The authority shall fix the assessmentsagainst real property specially benefited.  All assessments made pursuant tothis section shall be a statutory lien against each lot or parcel of landassessed from the date of the notice declaring the assessment until paid andsuch lien shall have priority over all other liens except the lien of propertytaxes.  As between liens of assessments, the earlier lien shall be superior tothe later lien.

(c)  Bonds issued to provide funds to financepublic facilities shall be secured solely by the real properties benefited orimproved, the assessments thereon, or by the revenues derived from the programfor which the bonds are issued, including reserve accounts and earningsthereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans andother agreements or any note or other undertaking, obligation, or property heldby the authority.  Bonds issued pursuant to this section and the incometherefrom shall be exempt from all state and county taxation, except transferand estate taxes.  The bonds shall be issued according and subject to theprovisions of the rules adopted pursuant to this section.

(d)  Any other law to the contrarynotwithstanding, in assessing real property for public facilities, theauthority shall assess the real property within an assessment area according tothe special benefits conferred upon the real property by the publicfacilities.  These methods may include assessment on a frontage basis or accordingto the area of real property within an assessment area or any other assessmentmethod which assesses the real property according to the special benefitconferred, or any combination thereof.  No such assessment levied against realproperty specially benefited as provided by this chapter shall constitute a taxon real property within the meanings of any constitutional or statutoryprovisions.

(e)  The authority shall adopt rules pursuantto chapter 91, and may amend the rules from time to time, providing for themethod of undertaking and financing public facilities in an assessment area oran entire community development district.  The rules adopted pursuant to thissection shall include, but are not limited to, the following:  methods by whichthe authority shall establish assessment areas; the method of assessment ofreal properties specially benefited; the costs to be borne by the authority,the county in which the public facilities are situated, and the propertyowners; the procedures before the authority relating to the creation of theassessment areas by the owners of real property therein, including provisionsfor petitions, bids, contracts, bonds, and notices; provisions relating toassessments; provisions relating to financing, such as bonds, revolving funds,advances from available funds, special funds for payment of bonds, payment ofprincipal and interest, and sale and use of bonds; provisions relating to fundsand refunding of outstanding debts; and provisions relating to limitations ontime to sue, and other related provisions.

(f)  Any provisions to the contrarynotwithstanding, the authority may, in its discretion, enter into any agreementwith the county in which the public facilities are located, to implement all orpart of the purposes of this section.

(g)  All sums collected under this sectionshall be deposited in the Hawaii community development revolving fundestablished by section 206E-16; except that notwithstanding section 206E-16,all moneys collected on account of assessments and interest thereon for anyspecific public facilities financed by the issuance of bonds shall be set apartin a separate special fund and applied solely to the payment of the principaland interest on these bonds, the cost of administering, operating, andmaintaining the program, the establishment of reserves, and other purposes asmay be authorized in the proceedings providing for the issuance of the bonds. If any surplus remains in any special fund after the payment of the bondschargeable against such fund, it shall be credited to and become a part of theHawaii community development revolving fund.  Moneys in the Hawaii communitydevelopment revolving fund may be used to make up any deficiencies in thespecial fund.

(h)  If the public facilities to be financedthrough bonds issued by the authority may be dedicated to the county in whichthe public facilities are to be located, the authority shall ensure that thepublic facilities are designed and constructed to meet county requirements.

(i)  Notwithstanding any law to the contrary,whenever as part of a district-wide improvement program it becomes necessary toremove, relocate, replace, or reconstruct public utility facilities, theauthority shall establish by rule the allocation of cost between the authority,the affected public utilities, and properties that may specially benefit fromsuch improvement, if any.  In determining the allocation of cost, the authorityshall consider the cost allocation policies for improvement districtsestablished by the county in which the removal, relocation, replacement, orreconstruction is to take place. [L 1976, c 153, pt of §1; am L 1982, c 228,§5; am L 1984, c 20, §§1, 2; am L 1985, c 38, §2 and c 51, §1; am L 1986, c 4,§1 and c 105, §1; am L 1987, c 8, §1 and c 355, §6]

 

Note

 

  Bond authorizationincrease.  L 1994, c 149, §1.