PD Background & Recommendation Report (PL-CCI-2024-000005) Bill 123

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Development, State Department of Agriculture, Department of Research and Development. PUBLIC COMMENTS PROVIDED 14. Testimony from Kohala Coast Resort Association (Planning Department Exhibit 3 —March 26,2024 Email) PLANNING ANALYSIS OF THE IMPACTS OF BILL 123 According to the June 2023 Hawaii Housing Factbook produced by UHERO i, Hawaii has the most restrictive land use regulations in the nation and is among the most regulated states for new housing production. Regulatory barriers, high rates of poverty, affordable housing requirement constraints and low median household income all contribute to a low supply of new housing. The report goes further to state that in order to expand the supply of housing, the production of new multifamily housing is required, and the state should not limit multifamily housing to only specific land areas as it would be essentially putting a cap on the amount of housing that can be created. Bill 123, as written by the County Council, is their effort to lift housing limits within existing zoned lands that do not allow for multifamily structures, such as condominiums, but will instead enable landowners to build additional dwelling units in an effort to address long-term housing. Currently, if a landowner wishes to apply for an `ohana dwelling permit then the landowner would need to submit a completed application and($25) filing fee to the Planning Department(Department)prior to applying for a building permit. Department staff will then conduct a thorough review to verify that the request is in compliance with the County Code and meets the criteria for granting an `ohana dwelling permit. When necessary, the Department will request more specific justification for how the request meets the criteria, which can at times further delay the process, especially for those who are not familiar with the Department. Once all of the information is gathered, the Department will then send the application to various agencies for comments which takes approximately 30 days. After the agency comment period has ended, the request is deemed complete and the Planning Director then has the authority to approve or deny an `ohana dwelling application and can 'https://uhero.hawaii.edu/wp-content/uploads/2023/06/TheHawaiiHousingFactbook.pdf -6-