|
equivalent to asking all taxpayers to fund the new Government Regulations: The purpose of
<br /> development. housing planning and regulation is to bring order
<br /> to the development of cities and towns, protect
<br /> By 2006, a Joint Legislative Housing and people against arbitrary development practices,
<br /> Homeless Task Force encouraged creative, and, more recently, to protect the character of
<br /> innovative, and cost-effective ways such as tax neighborhoods as they exist. Evidence suggests
<br /> increment financing or the establishment of these are still the objectives of planners and
<br /> improvement districts to finance the construction regulators. But, as the proliferation of housing
<br /> of offsite infrastructure, as well as appropriating regulations continues, some observers have
<br /> capital improvement project funds." Similar come to see housing regulations as a barrier to
<br /> provisions have been incorporated in the most production, a cause of housing supply inelasticity,
<br /> recent update of the Hawaii State Functional and a pathway to higher housing costs.
<br /> Housing Plan'$.
<br /> Hawai`i's housing markets are more regulated
<br /> Construction Costs: There are substantial than most others in the nation. Honolulu's score
<br /> differences in construction costs across the U.S. on the Wharton Residential Land Use Regulatory
<br /> and Hawai`i's construction costs are high. Index (Wharton Index21) is the highest in the
<br /> country (See Appendix Exhibit C-1), and David
<br /> Rose and La Croix (1989), however, showed that Callies (2010) has painstakingly described the
<br /> the difference in construction costs was not nearly individual housing regulations in the Aloha State.
<br /> enough to explain the difference in housing costs
<br /> across markets. Gyourko and Saiz (2006) also Government regulations and review processes
<br /> reported construction costs were not significantly are frequently identified as major impediments to
<br /> related to prices.The more significant contributors housing production, and the 2019 stakeholder
<br /> to building costs were unionization, local wages, survey shows many people still see regulations as
<br /> local topography, and the regulatory environment. a significant obstacle to housing production.
<br /> Combined with Hawai`i's highly volatile housing
<br /> market, however, construction costs can affect A statewide Affordable Housing Regulatory
<br /> individual projects. Construction costs can rise Barriers Task Force was convened in 2007 to
<br /> sharply in construction boom periods and make address regulatory barriers to affordable housing.
<br /> tight-margin projects like workforce housing units The task force noted that "in the context of
<br /> challenging to complete.19 building homes that are affordable, government
<br /> regulations often work against the goal of
<br /> The cost of construction has been impacted by delivering more affordable housing. Although
<br /> the high cost of litigation and insurance. The government policies and regulations are often
<br /> Affordable Housing Advisory Committee notes intended to control or direct growth, target
<br /> that"everyone involved from accountant to mason resources, and prioritize areas of importance, the
<br /> contractors have insurance costs that go into the unintended consequence is often that these
<br /> price of their goods and services. They include regulations add to the cost of building affordable
<br /> property, general liability, professional liability, homes.22 They identified 14 regulatory barriers,
<br /> excess liability, unemployment, health, auto, including the land use entitlement process,
<br /> workers comp, business interruption, and even inconsistent state and county reviews, impact
<br /> terrorism, to name a few."20
<br /> 17 Joint Legislative Housing and Homeless Task Force, http://www.k5thehomteam.com/story/32389776/massive
<br /> prepared by staff of the Senate Majority Office, with -aiea-workforce-housing-condo-project-on-hold.
<br /> contributions from the House Majority Staff Office, 20 Mayor's Housing Advisory Committee, City & County of
<br /> "Report of the Joint Legislative Housing and Homeless Honolulu, Final Report&Recommendations,April 2006.
<br /> Task Force Pursuant to Act 196,Session Laws of Hawai'i
<br /> 2005,"January 2006. 21 Gyourko, Saiz, and Summers, 2007. Index scores were
<br /> not calculated for other counties in Hawai'i.
<br /> s Hawai'i Housing Finance and Development Corporation. zz
<br /> 2017. The Hawaii State Plan: Housing, State of Hawaii, State of Hawai'i, Office of Governor Linda Lingle,"Report
<br /> February 21, 2017, p. 19. of the Governor's Affordable Housing Regulatory Barriers
<br /> 19 Massive 'Aiea workforce housing condo project on hold. Task Force," December 2008.
<br /> (2016), Hawai'i News Now, June 2016. Download at
<br /> Hawai'i Housing Planning Study,2019 Page 11
<br /> ©SMS December,2019
<br />
|