IPFNA_Ord Issues Memo_Mar_06 - Laserfiche WebLink

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Infrastructure and Public Facility Needs Assessment St udy – Ordinance Issues Memorandum, March 1, 2006, page 3 II. DETAILED DISCUSSION A. TYPES OF FEES The proposed impact fees would replace the current fair share assessments for roads, parks, fire, police and solid waste facilities. An additional fee is proposed for w service is available. B. TREATMENT OF EXISTING LOTS The most critical issue is how to tr eat existing lots of record. In most jurisdictions that have adopted impact fees, how to treat existing lots is a minor i ssue. Generally, the supply of such lots is limited, and if they are grandfathered or otherwise exempted from impact fees the overall effect on impact fee revenues is short-lived and relatively minor. However , this is not the case in HawaiÓi County. A recent analysis indicates that there are about 64,000 undeve loped residential lots in the county. This exceeds the total number of housing units on the island at the time of the 2000 census (62,674). Of the roughly 2,000 permits of single-family detached units issued by the County annually, it has been estimated that about one-third of these new homes are being built on lots that The perception exists that many of these lots are owned by local residents who intend to build a h for themselves in these older subdivisions. While this is undoubtedly true to some extent, it is far from the typical case. An analysis of property tax reco rds indicates that only about 14 percent of existing vacant residential lots are owned solely by Big Island residents, and two-thirds are under the exc ownership of non-Big Island residents (see Table 1) . The remaining 17 percen t are owned by multiple owners with some Big Island resident participation, but it is likely that most of these lots are being held as an investment, rather than as a future home si te. The investment motive probably holds for a good number of the Big Island owners as well. So the number owned by build a home on them is probably considerably less than 9,000 lots. To put that number in perspective, it represents less than five years of single-family building permit activity in HawaiÓi County at current development rates. Table 1 OWNERSHIP OF VACANT RESIDENTIAL LOTS Ownership# of LotsPercent Big Island-Single Owner9,12314.20% Big Island-Multiple Owners1750.30% Mixed Big Island/Oth er Owners10,74716.70% No Big Island Owners44,17568.80% Total Vacant Residential Lots64,220100.00% Source: HawaiÓi County Real Property Tax Administrator, January 7, 2006 (data base excludes lots that are (1 ) over 20 acres, (2) already improved with $10,000 or more worth of yard or outbuilding improvements, or (3) commercial, industrial or resort hotel tax classifications or zo roadway, governmental and utility parcels. 13276 research blvd , ste 208 austin tx 78750 phone 512 258 7347 fax 512 258 9994 email clancy@duncanplan.com # # # #