§206E-6  District-wide improvement program. 
(a)  The authority shall develop a district-wide improvement program to
identify necessary district-wide public facilities within a community
development district.



(b)  Whenever the authority shall determine to
undertake, or cause to be undertaken, any public facility as part of the
district-wide improvement program, the cost of providing the public facilities
shall be assessed against the real property in the community development
district specially benefiting from such public facilities.  The authority shall
determine the areas of the community development district which will benefit
from the public facilities to be undertaken and, if less than the entire
community development district benefits, the authority may establish assessment
areas within the community development district.  The authority may issue and
sell bonds in such amounts as may be authorized by the legislature to provide
funds to finance such public facilities.  The authority shall fix the assessments
against real property specially benefited.  All assessments made pursuant to
this section shall be a statutory lien against each lot or parcel of land
assessed from the date of the notice declaring the assessment until paid and
such lien shall have priority over all other liens except the lien of property
taxes.  As between liens of assessments, the earlier lien shall be superior to
the later lien.



(c)  Bonds issued to provide funds to finance
public facilities shall be secured solely by the real properties benefited or
improved, the assessments thereon, or by the revenues derived from the program
for which the bonds are issued, including reserve accounts and earnings
thereon, insurance proceeds, and other revenues, or any combination thereof. 
The bonds may be additionally secured by the pledge or assignment of loans and
other agreements or any note or other undertaking, obligation, or property held
by the authority.  Bonds issued pursuant to this section and the income
therefrom shall be exempt from all state and county taxation, except transfer
and estate taxes.  The bonds shall be issued according and subject to the
provisions of the rules adopted pursuant to this section.



(d)  Any other law to the contrary
notwithstanding, in assessing real property for public facilities, the
authority shall assess the real property within an assessment area according to
the special benefits conferred upon the real property by the public
facilities.  These methods may include assessment on a frontage basis or according
to the area of real property within an assessment area or any other assessment
method which assesses the real property according to the special benefit
conferred, or any combination thereof.  No such assessment levied against real
property specially benefited as provided by this chapter shall constitute a tax
on real property within the meanings of any constitutional or statutory
provisions.



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



(f)  Any provisions to the contrary
notwithstanding, the authority may, in its discretion, enter into any agreement
with the county in which the public facilities are located, to implement all or
part of the purposes of this section.



(g)  All sums collected under this section
shall be deposited in the Hawaii community development revolving fund
established by section 206E-16; except that notwithstanding section 206E-16,
all moneys collected on account of assessments and interest thereon for any
specific public facilities financed by the issuance of bonds shall be set apart
in a separate special fund and applied solely to the payment of the principal
and interest on these bonds, the cost of administering, operating, and
maintaining the program, the establishment of reserves, and other purposes as
may 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 bonds
chargeable against such fund, it shall be credited to and become a part of the
Hawaii community development revolving fund.  Moneys in the Hawaii community
development revolving fund may be used to make up any deficiencies in the
special fund.



(h)  If the public facilities to be financed
through bonds issued by the authority may be dedicated to the county in which
the public facilities are to be located, the authority shall ensure that the
public 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 to
remove, relocate, replace, or reconstruct public utility facilities, the
authority shall establish by rule the allocation of cost between the authority,
the affected public utilities, and properties that may specially benefit from
such improvement, if any.  In determining the allocation of cost, the authority
shall consider the cost allocation policies for improvement districts
established by the county in which the removal, relocation, replacement, or
reconstruction 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 authorization
increase.  L 1994, c 149, §1.