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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: April 15, 2025 Re: Comm.No. 206/Bill No. 39 <br /> PLACE: Council Chambers <br /> Kailua-Kona, Hawai`i <br /> TIME: 1:00 p.m. <br /> Council Chair and Members <br /> Hawaii County Council <br /> Hilo,Hawai`i 96720 <br /> Your Committee on Finance, to which was referred Bill No. 39, reports as follows: <br /> Bill No. 39, transmitted by Committee Member Holeka Goro Inaba via Communication No. 206, <br /> dated March 27, 2025, amends Chapter 19, Article 1, Section 19-2, and Article 7, Section 19-53, of <br /> the Hawai`i County Code 1983 (2016 Edition, as amended), relating to the affordable rental <br /> housing Real Property Tax Classification. <br /> This bill repeals the definition of"affordable rental housing," amends the definition of"affordable <br /> rental rate," and amends subsection(h) Eligibility for affordable rental housing class. <br /> Committee Member Holeka Inaba provided background on the measure and proposed an amendment <br /> that would expand the scope to include certified Section 8 units, which would encourage landlords to <br /> participate in affordable housing programs. <br /> Housing Administrator Kehaulani Costa and Real Property Tax Administrator Lisa Miura spoke in <br /> support of the amendment. <br /> Committee Members Jenn Kagiwada and Michelle Galimba inquired about the Section 8 certification <br /> process and how the community may participate in the program. <br /> Bill 39 was amended with the contents of Communication 206.1, which was introduced by Mr. Inaba <br /> and approved with eight"ayes," with Committee Member Dennis "Fresh" Onishi absent. <br /> Committee Member Heather Kimball raised some concerns and asked the rationale for moving away <br /> from the payment standard to AMI (Area Median Income). Mr. Inaba explained that the intent is to go <br /> with a system that is used universally. <br /> Concerns were raised about the significant rent increase in some areas,particularly in East Hawai`i, and <br /> the potential effect on Section 8 subsidies. The committee discussed a possible phased approach and <br /> utilizing different AMI percentages in various zip codes to address equity concerns. <br /> Committee Chair Matt Kaneali`i-Kleinfelder asked Corporation Counsel to confirm if a Committee <br /> Member would need to disclose that they have a home or property that is currently participating in the <br /> affordable rental housing program, and whether it would be a conflict of interest to vote on this matter. <br /> Deputy Corporation Council Sylvia Wan confirmed that because this program is offered to everyone, it <br /> would not trigger the need to disclose nor would it be a conflict of interest to vote. <br /> FC Report No.39 <br />