HomeMy WebLinkAboutCOM 0589.018 2020-2022 Pl clI
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40 COMMUNITY COMMUNITY
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February 22, 2022COUNTY OF HAWAII
RECEIVED
RE: BILL 111—STRONG SUPPORT WITH RECOMMENDATIONS ate 2
3
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2119—
Aloha Councilmembers, I
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I am writing on behalf of Hawaiian Community Assets(HCA) and Hawaii Community Lending(HCL)to
submit testimony in STRONG SUPPORT WITH RECOMMENDATIONS to update the residential tax rates
on certain properties valued above $2,000,000 to fund solutions to homelessness.
HCA and HCL assist our local people access financial counseling, income supports,and career coaching
through our statewide network of Financial Opportunity Centers to increase income, build assets,and
reduce housing cost burdens. Despite our service and product offerings, affordable housing remains the
largest issue facing our families. Our collective response has to be more than preparing our local
families to rent and buy homes,we need to increase housing supply that is truly affordable at all income
levels. E
In lune 2021, HCA submitted the Maui County Cornnrehensive Affordable HousLpE Plan. The plan
identified that Hawaii has the lowest property taxes in the United States and Maui County,the lowest in
Hawaii. As a result,the plan recommended an increase in property taxes on nonowner-occupied homes
in order to fund community serving infrastructure and provide subsidies for households at or below
100%area median income. Bill 111 would position Hawaii County to implement a similar framework to
increase affordable housing supply and target affordability for low-income households.
Since the presentation of the plan,the Maui County Council passed the 'Aina Kupuna Bill to allow
descendants who have held onto their family property for the past 80 years to qualify for the
minimum property tax rate of$350 per year.Some long-time Maui landowners say massive growth in
tourism infrastructure and the increase in luxury homes have pushed property values sky high and the
bill was meant to provide an exemption to higher property taxes for those who have lineal descendance.
HCA and NCL recommend the Council consider updating the legislation to include an'Aina Kupuna
provision that would exempt households on Hawaii Island from the increased tax rates similar to what
has been accomplished in Maui County.
Mahalo for the opportunity to submit testimony in support of Bill 111 with recommendations. Please
contact us at chelsienawaiianeomrnunit .net or ieff@hawaiiancommunity.net should you have any
questions.
Sincerely
Chelsie Evans Jeff Gilbreath
Executive Director Executive Director $ ,
Hawaiian Community Assets Hawaii Community Lending comm` o.
e . To: Pla(Ahall
Ref. Date FEB 2 3 202