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YUEN:If they, if they produced all of their affordable housing at the top end of <br />what qualifies for affordable housing, they would only, they would only be making 10 percent <br />more than is generally required under the affordable housing ordinance. The way the ordinance <br />works on and Ill just do it on the for sale sliding scale all right rather than talk about rentals <br />okay because I believe this is a for sale, its intended to be a for sale project. But the basic <br />requirement on the Chapter 11 affordable housing requirement now is that you earn credits equal <br />to 20 percent of your total number of units. And you can get more than one credit or less than <br />one credit depending on how, depending on your sales price. At 120 percent of median income <br />you earn 1 credit per unit. <br />GRAHAM:120? <br />YUEN:120 percent of median income all right? At a unit thats affordable and, <br />and just to give basic numbers thats in todays interest rates and with todays median income for <br />people in the County of Hawaii thats roughly a $250,000 unit. The top end affordable is 140 <br />percent of median. Thats the top end thats going to get you an affordable housing credit. <br />Again,andthatsabouta$290,000unitattodays,todaysprice,todaysinterestrates.Itsvery, <br />the sales price is very, the affordable sales price is very interest rate sensitive. That level of unit <br />gets you a half credit. Its still affordable but because its at the top end of affordable youre <br />only getting a half credit for it. So if you produce, if you do your whole project, if all your <br />affordable units are at the 140 percent of median level then you, you essentially you have a 40 <br />percent requirement. You have to produce 40 percent or your units affordable. My <br />understanding of the offer made by, or the proposal made by the applicant in this is that they said <br />that 50 percent will be affordable. So, if they did all their affordable units at the top end, they, <br />theyre doing 50 percent where the ordinance would only make you do 40 percent. So thats, so <br />youre correct in saying that thats a 10, thats 10 percent more all right? <br />ALAMEDA:Mr. Graham? <br />GRAHAM:Can I continue with other affordable housing related things? <br />ALAMEDA:Sure, very interesting. <br />GRAHAM:Sure. Good. I think it also says that credits in excess of the basic <br />requirements shall be credit to the applicant, its successors or assigns. So does that mean since I <br />believe the applicant owns adjacent parcels and all if he develops another parcel next to it in the <br />future then however much other than whats standard requirement now he doesnt have to do on <br />that one cause he can apply the credits he got on this one to that one is that correct? <br />YUEN:Yes. <br />GRAHAM:So that really whatever offer hes making beyond standard is really just a, <br />maybe a timing thing. Hes doing a little more affordable housing than required for this part of it <br />but then he can catch up and get back to normal if he develops some more houses in the future. <br />Thats the way it kind of sounds to me when I narrow that together. <br />EXHIBIT B <br />4 <br /> <br />