COM 0200.041 2006-2008 - Laserfiche WebLink

Home

County of Hawaii, County Council Page 3 Affordable Housing Requirements for Industrial Developments was an overall lack of supply. The problem of an overall lack of supply cannot be solved by County exactions and inclusionary zoning requirements. The crux of the problem is not the new jobs that are being generated but, rather, the lack of affordable workforce housing available. These are two related, but distinct, problems which should not be linked together. The connection between housing and income should be understood by policy makers. Employers generally look for an educated work force and affordability in housing when locating or expanding businesses. From a public policy standpoint, if we want to attract employers here to provide higher paying jobs for our residences both now in the future, we need to insure an adequate supply of housing. We need both new employment opportunities and affordable workforce housing. Rather than placing the affordable housing requirement on investors who are bringing new jobs to the market, the County might consider what could or should be done to increase the supply of affordable workforce housing. Increasing the supply of housing would create housing opportunities to those who secure the new jobs. However, as we have seen in our State's past, housing exactions and inclusionary zoning does not create more affordable housing. Rather, exactions add to the cost of a new home because what is sold at abelow-market price is subsidized by a higher market price home in the same development. We caution the Council to carefully consider how best to balance government's intervention in the market system. Placing too many controls on the housing market may result in slowing the production and availability of new workforce housing units. While local government does not have an ability to influence income or interest rates, there are options; however, these options are usually limited to one of the following: i. GoUernmentApprouals--(Zoning/Permitting.) Government can either require units be built as a condition of the approvals or create incentives to stimulate the market for development of housing units; 2. Government Financing--(infrastructure, tax credits, public housing). Government plays the role of actual developer in CIP for infrastructure or public housing. Government also assists in providing tax credits for affordable housing projects. Any policy developed on affordable housing should consider all of the elements that are interconnected and that influence the housing market. Focusing on one element without considering the others, or focusing on one segment of the market, will not lead to a sustainable affordable housing policy. Furthermore, policy makers should be aware of the impact of housing exactions in a growing and stagnant economy. It wasn't too long ago when there was an oversupply of housing because of the depressed economy. There is no simple solution to the problem; however, if the goal is to have more product (housing) built, one suggestion would be to launch various initiatives to address some of the problems identified in each of the elements.