2020-2024 Consolidated Plan - Laserfiche WebLink

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The analysis employs the assumption that needed units are distributed according to the effective and qualified demand estimates from the survey. Effective demand means that only Hawai'i residents who are planning to move to a unit in the State of Hawaii in the next five years were included in the analysis. The analysis did include people who are currently doubled-up for economic reasons. The estimates are based on qualified demand in the sense that their housing choices have been adjusted to reflect their current economic situations. If a survey respondent expressed a desire to move from a rented unit to an owned unit but did not have the financial resources to support that move, we added that case to the list of rental units needed rather than the ownership unit needed. Needed units are concentrated in market levels below 80 percent of AMI. This finding suggests that the market is more effective in producing high-end units than low-end units. Inefficiencies are exacerbated in periods of rapid market expansion when fewer low-end units are built. More middle-market and low- end units are built during periods of market adjustment. Needed units are also concentrated in the rental market rather than the ownership market. Again, the current housing market produces units for sale more efficiently than units for rent. The detail produced in this analysis will be useful in a variety of housing planning efforts in the next five years. It is relevant, reliable, and utilitarian. One conclusion of the 2419 modeling exercise supports major conclusions of every housing study and blue-ribbon housing task force conducted in Hawaii for the last twenty years-what we need is more affordable rental housing. Finally, we need to explain how each of four housing types --market level units,affordable units, special needs housing, and units for those impacted by homelessness--are treated in the Hawaii Housing Model. Market Level Units: Units needed for households with income above 80 percent of AMI are referred to in the housing model as"market level" housing units. It is assumed that most of those will be produced by the private sector. The model does not assume that market level housing units will be produced on schedule as they are needed. Hawaii's housing market is marked by high prices and restricted supply. By any methods of reckoning, there will be a need for units at nearly every market level for a long time to come. Affordable Units: Rental housing units intended for households with income below 80 percent of AMI have, for the most part, been assisted by the public sector. Failure to produce enough units for low-and moderate-income households will cause pent-up demand in these market segments. Consolidated Plan HAWAII COUNTY 22 QMB Control No.2506-0117(exp.06/30/2018)