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The process of estimating needed units is crucial to housing planning because it identifies housing units <br />other than those that wifl be produced by the Iocal market under norma conditions. Not surprisingly, in <br />averyh\gb-phoedhousimgnnarkotNKeHawai^7stheournberofmeededunitsisre|ative}yh|gh—asmany <br />as3,5O0bo6,U80units per year inrecent decades. <br />Needed units are concentrated n r'narket Ievels below 180 percent of AML This finding suggests that <br />the market isrmoreefhecLmeinproducing high-end umitsthanUow+endunits. Inefficiencies are <br />exacerbated in periods of rapid market expansion when fewer low-end units are built. More middle- <br />marketand ow -end units are buit during periods of market adjustment. <br />Needed units are also concentrated in the rental market rather than the ownership market.Again, the <br />current housing market produces units for sale more efficiently than units for rent. <br />The detai produced in this analysis will be usefu in a variety of housing planning effortin the next five <br />years. It is relevant, reliable, and utilitarian. <br />One conclusion of the 2011 modeling exercise supports major conclusions of every housing study and <br />bUue-dbbonhmudng\askfmpcecnndoctedinHawailfmrthe|asttwemtyyeans—whatweneedisrnore <br />affordable rentat housing. <br />Finally, we need to explain how each of four housing types market evel units, affordable units, special <br />meedshmusing,andunitsforthoseirnpactedbvhome|esonesy—anetreatedin1heHawvaii Housing <br />Made[ <br />NA -05 P5 <br />Market Level Units: Units needed for households with incomes above 80 percent of AMl are referred <br />to in the housing model as "market level" housing units, It is assumed that most of those will be <br />produced by the private sector. The model does not assume that market levet housing units will be <br />produced an schedue as they are needed, Hawaii's housing market is marked by high prices and <br />restricted suppYy. By any method of reckoning, there will be a need for units at nearly every market <br />eve for a Iorig time to come. <br />Affordable Units: Rental housing units intended for households with incomes below 80 percent of <br />AM have, for the most part, been assisted hy the pubic sector. Faiure to produce sufficient units for <br />low- and moderate -income households will cause pent-up demand in these market segments. <br />Affordable housing includes two types of public sector -generated housing units. The first is public <br />housing, which includes units developed and maintained in perpetuity by the public sector, It is <br />"affordable" in the sense that it is available to qualified persons at below market pdces. The second is <br />government -assisted housing, which is usuafly produced iri partnership with private sector or non-profit <br />affordable housing developers <br />Consolidated Plan <br />OMB comtro mo' 2smoo1zr(e" 06/30/2018) <br />HAWAII COUNTY 21 <br />