COM 0200.051 2006-2008 - Laserfiche WebLink

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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 imposes an affordable housing requirement in this matter, it will result in increased costs and an unjustified burden to new and existing industrial businesses in Hawaii County. We caution the Council to carefully consider how best to balance government's intervention in the market system for residential, industrial and commercial developments. History has shown that placing too many controls on the landowners and developers will result in slowing the production and lack of availability of new affordable housing units. E. Careful Analysis and Consideration of Alternatives is Required to Develop a Sustainable Affordable Housing Policy. We would recommend that the Council and County should carefully analyze all facts and data, and consider all alternatives and impacts prior to establishing and implementing an affordable housing policy. Government can, based unbiased and detailed studies which establish an essential nexus and proportionate nexus, both require units be built as a condition of the approvals and create incentives to stimulate the market for development of housing units. While county and State governments do not have an ability to influence income or interest rates, its options may include the following: • Government Approvals (District Boundary Amendments, Zoning and Permitting). With cooperation from policy makers and all administrative agencies, Government can expedite the permitting process for projects which include an affordable housing requirement, without sacrificing a thorough review to protect health and safety. Expediting the permitting process will result in more housing product on the market and lower sales prices; • Government Financing--(infrastructure, tax credits, public housing). Government can play the role of actual affordable housing developer and support capital improvement funding for infrastructure or public housing. Government can also assist in providing tax credits for affordable housing projects. • Government Incentives. Other government incentives which have been made available to developers and land owners include, density bonuses, fee exemptions, grants or loans and expedited permit processing. Homebuilders Assn of Northern California v. City of Napa, 108 Cal. Rptr. 2d 60 (Ct. App. 201).