HomeMy WebLinkAboutCOM 0281.054 2020-2022 P/C/qo1unGl
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DAVID Y.IGE � (1���. t • WILLIAM J.AILA,JR CO1• LTO
GOVERNOR (141--,4A-4CHAIRMAN
STATE OF HAWAII y , i HAWAIIAN HOMES COMMISSION
JOSH GREEN `•••••„•••.;�•� TYLER I.GOMES
LT.GOVERNOR —`'=I'I'='$'• DEPUTY TO THE CHAIRMAN
STATE OF HAWAII
STATE OF HAWAII
DEPARTMENT OF HAWAIIAN HOME LANDS
P.O.BOX 1879 °'"' ^"f
HONOLULU,HAWAII 96805
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August 03, 2021
Aloha Council Chair David and Members of the County Council, •
The Department of Hawaian Home Lands appreciates the-opportunity to present testimony on
Bill 44: Chapter 5B-Residential Building Codes.
The efforts by Prince Jonah Kuhio Kalaniana`ole to gain approval by the United States Congress for the
Hawaiian Homes Commission Act, 1920,as Amended, established broad responsibilities to support
native Hawaiian beneficiaries and to return native Hawaiians to the land. The Department of Hawaiian
Home Lands (DHHL)has the kuleana to fulfill Prince Kuhio's vision and mission on behalf of native
Hawaiian beneficiaries.
Article XII, Section 1 of the State Constitution states "The legislature shall make sufficient sums available
for the following purposes: (1) development of home, agriculture, farm and ranch lots; (2) home,
agriculture, aquaculture, farm, and ranch loans; (3)rehabilitation projects to include, but not limited to,
educational, economic, political, social and cultural processes by which the general welfare and
conditions of native Hawaiians are thereby improved; (4) the administration and operating budget of the
Department of Hawaiian Home Lands.
County of Hawaii's Bill 44; Chapter 5B-Residential Building Codes with the inclusion of"Factory-built
and Modular Construction"verbiage will assist the DHHL to fulfill Purposes 1, 2, and 3 of Article XII,
Section 1 of the State Constitution.
As the Department is responsible for the delivery of residential lots to native Hawaiians, the department
continuously seeks home product options in order to meet the housing demands and the affordability gaps
for our beneficiaries. DHHL's current home product line includes turnkey homes, residential vacant lots
for package homes and owner-builder construction, Pre-Owned homes, and Rent-with-Option-to-
Purchase rental units.
The addition of Factory-Built Homes/Modular Construction to the DHHL's residential vacant lot home
product will fill a gap for beneficiaries who cannot qualify for other home products due to the high cost of
turnkey homes, stringent financial criteria of construction loans, and ineligibility to meet U.S. Department
of Housing and Urban Development(HUD) Area Median Income for rental units.
Unfortunately, if beneficiaries are unable to obtain one of these home products and associated financing,
they are deferred from a lot offering and will continue to be on the DHHL residential waitlist until another
offering is available in the future.
Comm. No. 01 •54
Ref. To: PI Mimi
Ref. Date AUG ® 4 2021
As of June 30, 2021, there are 23,451 applicants on the DHHL Statewide residential waitlist of which
there are 5,963 on the Hawai`i Island residential waitlist. Adding more home products will assist the
department to move beneficiaries through the Lot Awards pipeline from waitlist to homeownership.
On Hawai`i Island, DHHL recently offered residential vacant lots in the Discovery Harbour subdivision
in Ka`u. For years, DHHL tried to find ways to deliver homes to this rural community but a labor
shortage and increased labor costs which increased the overall construction costs for that rural area
prevented the department from offering lots in Ka`u.
Factory-Built/Modular Construction homes can fill the gap in DHHL's home product line especially for
rural areas like Ka`u. The factory-built process will provide our beneficiaries a home within
approximately three(3) to six(6) months and at affordable price points.
Exhibit A (attached) is a sampling of the DHHL's home product line with a description of home sizes,
income qualifications, and construction time. These options help the department to deliver home products
that are conducive to a beneficiary's personal preferences and/or to align with their financial
qualifications. Adding the Factory-Built/Modular Construction product fills the affordability gap
between the current home product lineup.
The Department plays an integral role in the construction industry by providing land, financing,
infrastructure construction, and a large beneficiary customer base. Construction industry partners include
large developers, smaller contractor companies, subcontractors,package home builders, non-profit
organizations, etc., throughout the State of Hawai`i.
DHHL touches all aspects of the construction process and serves as an economic engine to support both
union and non-union employers and jobs for their members and/or employees. The Department supports
all our partners in the delivery of homes for the DHHL beneficiaries in our mission to return native
Hawaiians to the land.
It is for all the reasons stated above that the Department of Hawaiian Home Lands supports
Bill 44 with the inclusion of the"Factory-Built Homes Modular Construction"verbiage.
Respectfully,
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William J. Alla, Jr.
Chairman -
Hawaiian Homes Commission
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DEPARTMENT OF HAWAIIAN HOME LANDS
Exhibit A
DHHL Home Product Line
HOME PURCHASE TIME TO MARKET
HOME PRODUCT HOME SIZE INCOME QUALIFICATION
OR RENTAL COSTS (estimate)
Rent with Option to Purchase Monthly rental: Must meet 9 to 12 months
(Based on HUD County Area Median Income) $340 to $1936 per month 2bd/2 bath to 4bd/2 bath 30%, 40%, 60%
(Based on La'i Opua RWOP-2021) Area Median Income
Vacant Lot-Factory-Built Homes Low $100,000 &higher 3 to 6 months
Studio/bath to 2bd/1 bath
Modular Construction (Based on construction loan amount)
Vacant Lot—Package Home Kit Low, mid, high Tiny home to large home $100,000 &higher 2 year minimum
(Based on construction loan amount)
Vacant Lot—Owner Builder Low, mid, high $100,000 &higher 2 year minimum
Tiny home to large home
(Based on construction loan amount)
Turnkey High 2bd/1 bath to 5bd/3 bath $300,000 &higher 6-8 months
Information as of August 3, 2021
Subject to change