COM 0200.044 2006-2008 - Laserfiche WebLink

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CounTy of Hawaii, County Council Page 4 Affordable Housing Requirements for Industrial Developments was clear to the participants in these efforts that one of the major problems is that an overall lack of housing supply resulted in a lack of affordable housing. It was also a consistent and common finding that in order to create more affordable housing opportunities, there was a need to provide more housing in all income categories. The problems of a lack of affordable housing and a lack of overall housing supply cannot be solved by burdening landowners and developers with aggressive County exactions and inclusionary zoning requirements. The ctvx 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 is generally explained as follows: Employers generally look for an educated work force and affordability in housing when locating or expanding businesses. From a public policy standpoint, if the Counties want to attract employers to provide higher paying jobs for our residences both now in the future, it is imperative that the Counties provide incentives to developers and land owners to insure an adequate supply of housing for all income levels. We need both new employment opportunities and affordable workforce housing. Rather than placing an affordable housing burden 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 could be employed in the new jobs. However, as we have seen in our State's past, overly aggressive housing exactions and inclusionary zoning result in increases in the price of new market homes because the affordable homes which are sold at abelow-market price must be subsidized by the market-priced home s developed by the same landowner or developer. Similarly, if the Council approves Bill 156, it will result in increased costs and an unjustified burden to new and existing industrial businesses on the Big Island. We caution the Council to carefully consider how best to balance government's intervention in the market system for residential, industrial and commercial developments. Placing too many controls on the landowners and developers will probably result in slowing the production and availability of new affordable housing units. Careful Analysis and Consideration of Alternatives is Required to Develop a Sustainable Affordable Housing Policy We would recommend that the Council should carefully analyze all facts and data, and consider all alternatives and impacts prior to establishing and implementing its affordable housing policy. While local government does not have an ability to influence income or interest rates, its options are usually limited to one of the following: • Government Approvals--(Zoning/Permitting.) Government can, based thorough and detailed studies which establish an essential nexus and proportionate nexus, either require units be built as a condition of the approvals or create incentives to stimulate the market for development of housing units;