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then for rental units I believe you can get extra, going down to 60 percent of the median. But the
<br />median income now for a family of four is 55,000. So the target, the upper end of the group
<br />would be a family earning 77,000. The lower end would be a family earning 44,000. Then the
<br />for sale price and the for rent prices are also established in the ordinance. They vary. The for
<br />sale price, there’s a HUD guideline for how much a family, say, at the top end earning 77,000 a
<br />year can afford to pay in a mortgage. So that varies with the interest rates. You know, you have
<br />a lower interest rate, you can afford a more expensive unit. With a, you know, if you want
<br />ballpark numbers, with a 6 percent interest rate roughly you could, the family could pay roughly
<br />four times, could afford a unit costing roughly four times their annual income. So a family of
<br />four earning 77,000, roughly 300, 310 would be the top end for a for sale unit. Okay?
<br />Now getting back to the credits, if you make a unit at a, that’s for sale at 140 percent of the
<br />median, you only get half a credit. Okay? If you make it 120 percent of the median you get a
<br />full credit. So, and 120 percent of median family is 66,000 a year.
<br />Now this is a for rent project and there’s HUD guidelines for rentals that are adjusted to the local
<br />conditions by the Office of Housing and Community Development. So there will be a guideline
<br />as to the rental that’s affordable at 80 percent of median. And there’s a table on that. I don’t
<br />have, I don’t think we made that part of this. But there is a table as to what would be the income,
<br />I mean, the monthly rental limits with and without utilities for units in order to earn the, to be
<br />considered affordable and earn the credits.
<br />GRAHAM: Thank you, Mr. Yuen. Commissioner Alameda?
<br />ALAMEDA: That’s great. Thank you very much.
<br />GRAHAM: Chris, also, the understanding is that these affordable housing
<br />credits are sort of like a negotiable quantity. So the developer in this case, in addition to
<br />collecting rent or whatever he does, he also has a revenue source from being able to sell these
<br />credits to other developers in the region. Is that correct?
<br />YUEN: If they do more affordable housing than they’re required, then they
<br />can sell the excess credits to another developer within a 15-mile radius of their project, 15-miles
<br />measured on a straight line from their project. So if you have another developer out there who
<br />may have an affordable housing requirement that doesn’t want to do it within their own project,
<br />they can make a deal with this project, for example, and take some of their credits if they, you
<br />know, if this project as is planned earns extra credits.And this is, in effect, a subsidy to the
<br />affordable project that is doing, you know, more than it is required to do. So this was, there were
<br />some excess credits sold in relation to the Seascape project, which this developer did earlier.
<br />GRAHAM: Thank you. Anything further from the Commissioners? All right,
<br />the applicant could come forward at this time. And I don’t have any testifiers signed up yet, so if
<br />anyone wants to testify on this project please fill out the slip and leave it at the desk. Do you all
<br />swear or affirm to tell the truth on this matter before the Hawaii County Planning Commission?
<br />REPRESENTATIVES: I do.
<br />EXHIBIT C
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