IPFNA_Policy Analysis Memo_Jan_06

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FAIR SHARE ASSESSMENTS Since the early 1990s, the County of HawaiÔi (Ñthe CountyÒ) has imposed Ñfair share assessmentsÒ on applicants for new residential (including agricultural lots zoned one acre or less in size) and hotel zoning. The fees, which are imposed as a c ondition of zoning approval, are collected prior to securing fin subdivision approval for newly created lots or prior to obtaining final plan approval for multi-family or hotel development. The fees, which are adj usted annually for inflation based on the Honolulu Consumer Price Index (CPI), curre ntly (as of November 2005) total approximately $9,991.20 per dwelling unit; $6,411.25 for multi-family; and $10,994. 22 for resort, per rental unit. The assessments are collected for roads, parks, fire, police and solid waste fac The fair share assessments are compared with Calif ornia and national average impact fees in Table 4. HawaiÔi CountyÔs assessments for ro ads and parks are significantly higher than the national average although they are right in line with average fees charged in California. The total fair share assessment in HawaiÔi County is on par with wh at the average jurisdiction in Calif ornia charges in impact fees for the same facilities. Table 4 FAIR SHARE ASSESSMENTS PER SINGLE-FAMILY UNIT FacilityHawaiÔi Co.CA Avg.NatÔl Avg. Roads$4,281 $3,922$2,037 Parks$4,818 $4,856$1,810 Fire$459 $584$329 Police$232 $843$302 Solid Waste$201 na$179 Total$9,991 $10,205$4,657 Source: HawaiÔi County fair share assessmen ts; California and national average fees from Duncan Associates survey, January 4, 2006 The CountyÔs fair share assessments have never been adopted as a pass a general authorization in 1992 for the coll ection of such fees as a condition of development approval in 1992 (Hawaii County Code §2-162). Th e fees are based on an impact fee study that was 5 prepared by a consultant in 1990, but was neve r formally approved or adopted by the County. The fees calculated in that report are adjusted annually based on the cha Index. Many of the zoning ordinances passed by the HawaiÔi County Council in recent years contain a provision requiring that in the event an impact fee or dinance is adopted, it will give credit for the fair share assessments. A typical provision reads as follows: ÑShould the Council adopt a Unified Impact Fees Ordinance setting forth criteria for imposit ion of exactions or assessment of impact fees, conditions included herein shall be credited towards the require 6 Ordinance.Ò 5 Ann Usagawa, Development Impact Fee Pricing Technical Report , August 1990 6 Ordinance No. 05-74, adopted on May 18, 2005 H Ô C \I N A ÐP A M January 5, 2006 , Page 10 AWAI I OUNTY NFRASTRUCTURE EEDS SSESSMENT OLICY NALYSIS EMORANDUM