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To: Hawaii County Council: Testimony for 4/18/07 Hearing Fr: Margaret Wille Re: Bill # 156: Affordable Housing Requirements for Industrial Enterprises Date: April 15, 2007 Testimony on behalf of: I am submitting this testimony on behalf of myself as a concerned citizen and not as the representative of any other party. Also, I am on the steering committee for the South Kohala Development Community Plan, however these views are my own and do not represent those of the South Kohala Steering Committee. GENERAL POSITION: SUPPORT --with some suggested changes to simplify and improve the drafting, and to provide for a fairer application of these requirements. I support the Council's efforts to impose an affordable housing requirement on industrial developments. This legislation is important given the crisis in affordable housing that has resulted in large part from the impact of industrial developments that are located in areas where there is inadequate affordable housing. My Comments/Suggestions for changes are as follows: 1.Re "Home improvement center" exemption: sec 11-4(a): Delete the words: "except for home improvement centers" Rationale: Why should there be an exemption for "home improvement centers"? There is no meaningful justification for this exception. It is simply a favor to one segment of industrial developers, and unfair to all others. The County needs to establish level playing fields, and not grant exceptions to certain industrial developers. 2 Re' allowing an exemption to previously approved industrial developments where there is a specific agreement for affordable housing. Sec 4-11(d): This provision, relating to previously agreed upon terms for affordable housing requirements should be tightened. For example: from current draft. which states: "...or to which the County has agreed previously as to the specific means of satisfying the requirements." to this proposed redraft: "...or to which the County has agreed previously as to the specific means of satisfying the requirements and the development is in, and remains in, full compliance with the written terms of the agreed upon means of satisfying the affordable housing requirements. Otherwise the requirements of this article apply. In the event that the agreed upon means of satisfying these affordable housing requirements do not specify a timetable for completion of the specific requirements then a period of 5 years from the date of the written agreement shall be assumed to be the period within which there must be full compliance with the previously agreed upon affordable housing requirements Rationale: This exception should not provide an unfair loophole for an industrial rezoning that is not in full compliance with the agreed upon means of satisfying the housing requirements. On the other hand it is not fair to subject a developer who is in compliance with an agreed upon affordable housing plan, to now be subject to some other standard. 3 Re' Basing the amount of affordable housing credits required on the equivalent of a certain number of employees on a full-time iob equivalent basis Section 11-5(A) (B) and (C): I suggest that instead base this calculation on the number of employees as well as on the number of persons paid on a contractual basis for work performed primarily on site, and without regard to whether those employees or contracted persons are full time or part-time. Rationale: The determination of affordable housing requirements should be based simply on the