Communication No. 2018-03- Hawaii Island Community Development Corporation CDP Amendment Testimony

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HAWAII ISLAND COMMUNITY DEVELOPMENT CORPORATION 100 PAUAHI STREET, SUITE 2014 - HILO, HAWAII 96720 February 12, 2018 Mr. Michael Yee Planning Director 101 Pauahi Street Suite 3 Hilo, Hawaii 96720 Subject: Comments on Kona CDP After reviewing the proposed changes to the Koan CDP policies we offer the following comments in the interest of producing more affordable housing for the Kona community: Policy HSG-4.1: Public Lands Therefore, public housing projects and projects using public lands or financing shall devote a significant percentage of the residential units to meeting the needs of middle-income renters (50 to 100% of median income) and lower-income households (less than 50% of median) Comment: This policy is vague in how much is to be required but presumably it is a large percentafe that would not fit all programs. Workforce housing could be built on the large State of Hawaii holdings north of Palani Road but would be hampered by an across the board requiremnet that each project include low and very low income housing. The policy could say that a range of resident oriented housing should be included in planning the use of public lands. Policy HSG-4.3: Affordable Housing Floating Zone If 100% afforable, the project in concurrence with the Design Center may preempt the planning standards pursuant to HRS Section 46-15. Comment: If a projects meets the criteria for a Housing Floating Zone and is 100% affordable does this policy mean that it must meet the with concurrence from the Design Center to allow design requrements to be pre-empted under 46-15 HRS? I'm not sure if it is the intent to give veto power to the Design Center, that would be inappropriate. Policy HSG-5.1 Perpetually Affordable Units Public Agencies and non-profits that develop or own affordable housing units shall utlilize methods, such as leasing or controlled appreciaiton, to ensure that sales prices of these units remain perpetually affordable.