COM 0200.044 2006-2008 - Laserfiche WebLink

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County of Hawaii, County Council Page 5 Affordable Housing Requirements for Industrial Developments • Government Financing--(i~}frastructure, 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. • Government Incentives. Other government incentives which have been made available to developers and land owners include, expedited processing, fee deferrals. Loans or grants and density bonuses. Homebuilders Assn of Northern California v. City of Napa, Io8 Cal. Rptr. zd 60 (Ct. App. 2oI). Any policy developed relating to 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 both 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 affordable housing problem; however, if the goal is to have more affordable housing product built, we would recommend that the Council launch various initiatives and incentives to address some of the problems identified in each of the interconnected elements which influence the overall housing market. Conclusion LURF is opposed to the Hawaii County Council's possible reconsideration of Bill 156 for the following reasons: (i) The Council and the County of Hawaii ("County") have failed to prepare the constitutionally required thorough and detailed studies or reports to justify imposing affordable housing exactions or linkage fees; (2) It is unconstitutional for the Council to impose requirements on industrial or commercial developments to build workforce housing, unless the Council and the County can satisfy both the Essential Nexus Test and the Proportional Nexus test to justify imposing affordable housing exactions or linkage fees; and (3) The Council's proposed Bill 156 is counter intuitive and would only discourage investments in industrial park developments, and is likely to result in very little job creation and minimal affordable housing. We appreciate the opportunity to express our opposition on this matter.