COM 0948.002 2022-2024 - Laserfiche WebLink

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and project developers would facilitate a more efficient permitting process. The coordinated approach would reduce costs and improve approval timelines. Finished Lots: While building affordable housing on finished lots was historically feasible, rising construction costs and financing difficulties have made this option increasingly challenging. The Ad Hoc Committee prioritizes turn -key homes but acknowledges the need for diverse solutions, including finished lots, to meet affordable housing requirements. To make finished lots more viable, the committee recommends expanding the affordability range to 120-140% of the area median income (AMI), making it more feasible for developers. Additionally, exploring financial assistance programs for buyers of finished lots would help ensure home construction, and extending the timeframe to build from three to five years would provide buyers with sufficient time to finance, design, permit, and construct their homes. Density Bonus Program: This program, though potentially valuable, remains underutilized due to vague language and limited infrastructure. Revising program language to clarify guidelines and incentives, and possibly relocating it to Chapter 25 (Zoning) to improve its visibility, may increase its impact. Regardless of its location in the County Code, effective administration and inter -agency coordination are essential for success. In -Lieu Fees: In -lieu fees would provide an alternative for developers who opt not to build the required affordable housing units, allowing the County to redirect these funds toward affordable housing development elsewhere. The in -lieu fee would be calculated as half the affordable sales prices for the unit, with adjustments based on geographic location. Two approaches are under consideration to limit reliance on the in -lieu fees: - Approach #1 —Projects with 50 or more units would be prohibited from using in -lieu fees to fulfill their affordable housing requirement. - Approach #2 — Projects with 200+ units may not use in -lieu fees, while those with 100-199 units could use this option to fulfill up to 50% of their obligation. Clarification is needed regarding the timing of in -lieu fee payments. The Ad Hoc did not have time to explore how in -Lieu fees would apply to rental projects or satisfy housing obligations for industrial, commercial, or hotel/resort projects. Conveyance of Land: Conveyance of land has been used as a means to satisfy affordable housing requirements, and has enabled organizations like Hawaii Island Community Development Corporation (HICDC) to build affordable units successfully. The Ad Hoc recognizes land as a critical component to housing development and advocates for future land donations to include a clear development plan and to identify an affordable housing developer to ensure timely construction. Real Property Tax: The Ad Hoc is exploring options for real property tax reductions or temporary exemptions on projects focused on affordable housing, workforce housing,