2011 Housing Planning Study - County of Hawaii

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HOUSING ISSUES In 2011, several issues were of interest to HHPS research has shown 27, for instance, that one of users in both the government and private the chief problems with the lease concept in sectors. These issues included the production of Hawaii is the inability to pass leased property on affordable housing units, generating units for to one's heirs. Sustainable leases can be written which affordability is sustainable, housing needs to allow such transfers. of special needs groups, homelessness, and the relationship between housing and transportation Any sustainable property agreement also entails needs as they may affect housing development other limitations on ownership and resale. The over the next decade. property must be owner occupied, must be sold back to the community, and there is usually a ceiling on the resale price. Other aspects of the SUSTAINABLE AFFORDABILITY lease agreement usually offset these features. The sustainable lease has been of interest to The 2011 Housing Demand Survey includes a Hawaii housing planners as a feasible method set of items to support the investigation of of producing affordable housing units that remain sustainable lease as an affordable housing affordable over time. The sustainable lease development tool. The objective was to test the concept is broadly defined in the industry and acceptability of the sustainable lease concept may take different forms. At base, a sustainable among potential homebuyers. lease is a leasehold arrangement that sustains a property in an affordable price range. Details of Statewide, 41 percent of prospective buyers the arrangement are generally developed to were willing to consider a sustainable lease if no favor lessees who need affordable housing to a fee simple homes were affordable. When survey greater extent than might be available in respondents were asked about the appeal of a conventional lease agreements. renewable lease with terms between 60 and 99 years, a greater percentage were willing to Sustainable leases are of interest in Hawaii for considering buying a leasehold property (52%). several reasons. First, it is an arrangement that The ability to pass the property on to one's heirs, allows government to maintain housing who would then receive a 60 to 99 year lease, developments as affordable over long periods of would prompt 62 percent of buyers to consider a time. The alternative might be to develop lease. properties for sale at affordable prices, but once they are sold the next buyer pays a market price. Overall, survey results for the sustainable lease Second, sustainable leases on government land questions changed very little between 2006 and can be written to reduce development costs and 2011. In 2011, people who planned to purchase greatly enhance the availability of the property to their next home were somewhat less willing than buyers below the level of current market 2006 respondents to consider a sustainable housing. Ground leases can be reduced or even lease. They were also less likely to be swayed eliminated, down payments can be reduced or once they understand the nature and terms of even fully absorbed in the sale, and lease prices the sustainable lease options. can be maintained over the course of the lease period. Third, sustainable lease agreements can be written to include features that increase the acceptability of leases in general, and controlled property agreements of a specific nature. Past 27 Housing Policy Study, 2006. Hawari Housing Planning Study,2011 Page 31 0 SMS, Inc. November,2011