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t <br /> I <br /> 3 <br /> I <br /> {£3 <br /> Example: Washington D.C. Selected by lottery, prioritized by length of time on list <br /> For the Washington, D.C. inclusionary zoning program (rent or for-sale),when a home becomes <br /> available,there is first a lottery selection of a minimum of 4 and maximum of 10 eligible households <br /> from a list of qualified renters or buyers. This selected pool of candidates is then ordered by length of <br /> time on the waiting list and offered the available unit one at a time until a household selects the unit. If <br /> the unit is not selected, a new lottery is held and the process is repeated. <br /> Example: Vail,CO-Applicants who have been residents for at least 5 years receive extra lottery <br /> tickets. In Vail,extra lottery tickets are given to residents who have either worked or lived in Vail for 5 <br /> years. All income eligible applicants receive 1 lottery ticket, but a person can receive a second lottery I <br /> ticket if they have lived in Vail for 5 years or more,and a third ticket if they have also worked in Vail for 5 <br /> years or more. In this way a person is more likely to be selected if they have lived or worked in Vail for 5 i <br /> or more years, but it is not exclusive and a newly arrived resident could also be chosen. <br /> E <br /> Analysis: In both of these examples there is priority given to residents who have been in a district or on <br /> a list for longer, but it is not a requirement. In comparing these two approaches the D.C.system would <br /> seem to be more fair and less arbitrary.The Vail approach is somewhat blunt and inconsistent since a <br /> five year resident could have three times the tickets as a four year resident,while a 15 year resident is I <br /> given the same weight as a 5 year resident. A large distinction is created only between the four and five <br /> year mark,with no further adjustment. In contrast the DC system by first selecting randomly and then <br /> ordering by years on the list is able to provide everyone an opportunity,while also giving a consistent <br /> preference to households on the list for longer. The same distinction is given between a household <br /> waiting 3 years verses 4 years,as a household waiting 14 years verses 15 years. The household waiting <br /> longer is given priority,whereas in the Vail system after 5 years there is no priority by length of time. <br /> Recommendation: If some preference is desired based on length of time,the D.C. approach of selecting <br /> randomly and then ordering by years on the list would seem more fair,while still allowing all eligible <br /> households the opportunity to participate. <br /> Fifth Distinction: Definition of"working" in a district. Requiring a certain percentage of income be <br /> earned within a district,to ensure that program is benefiting residents who are living on local wages and <br /> not wages earned elsewhere. <br /> Examples: Vail,and Aspen,CO; Key West,FL <br /> In both the Vail and Aspen programs an applicant is considered a full-time worker if at least 75%of their <br /> income is earned with the local county. In Key West, a household or person must earn 70%of their <br /> income from employment within the county. <br /> Analysis: As more remote workers come to Maui,where they are living in Maui but receiving an income <br /> based on wages from another state or location,a policy is needed to prioritize residents earning local <br /> wages. Implementation of this policy would make a distinction between a remote sole proprietor <br /> business where 75%of income is generated within the county verses a person working remotely for a <br /> company outside of the county. This ensures that a housing program is targeted to residents living on <br /> wages earned locally <br /> Another approach: Artist or cultural practitioner preferences for LIHTC projects.This is a preference <br /> which is allowable under federal law for housing projects which receive federal tax subsidies also known <br /> as Low Income Housing Tax Credit(LIHTC) projects. <br /> 148 <br />