HB2538 Summary

• Allows fee in lieu funds in the Kalihi to Ala Moana school impact district (urban Honolulu) to be used for purchasing completed construction, constructing new school facilities, improving or renovating existing structures for school use, or leasing land or facilities for school use.

• Creates an exception to the statewide rule that prohibits fee in lieu funds from being used for maintenance, operation, construction costs (including architectural, permitting, or financing), or administrative expenses.

• Defines "urban Honolulu" as the Kalihi to Ala Moana school impact district for purposes of this exception.

• Maintains existing requirements that all school impact fees must be expended or encumbered within twenty years of collection and that an expenditure plan be incorporated into the department's annual budget.

• Takes effect on July 1, 2050.