HomeMy WebLinkAboutREP FC 039 2025-04-15 2024-2026 REPORT OF THE
COMMITTEE ON FINANCE
DATE: April 15, 2025 Re: Comm.No. 206/Bill No. 39
PLACE: Council Chambers
Kailua-Kona, Hawai`i
TIME: 1:00 p.m.
Council Chair and Members
Hawaii County Council
Hilo,Hawai`i 96720
Your Committee on Finance, to which was referred Bill No. 39, reports as follows:
Bill No. 39, transmitted by Committee Member Holeka Goro Inaba via Communication No. 206,
dated March 27, 2025, amends Chapter 19, Article 1, Section 19-2, and Article 7, Section 19-53, of
the Hawai`i County Code 1983 (2016 Edition, as amended), relating to the affordable rental
housing Real Property Tax Classification.
This bill repeals the definition of"affordable rental housing," amends the definition of"affordable
rental rate," and amends subsection(h) Eligibility for affordable rental housing class.
Committee Member Holeka Inaba provided background on the measure and proposed an amendment
that would expand the scope to include certified Section 8 units, which would encourage landlords to
participate in affordable housing programs.
Housing Administrator Kehaulani Costa and Real Property Tax Administrator Lisa Miura spoke in
support of the amendment.
Committee Members Jenn Kagiwada and Michelle Galimba inquired about the Section 8 certification
process and how the community may participate in the program.
Bill 39 was amended with the contents of Communication 206.1, which was introduced by Mr. Inaba
and approved with eight"ayes," with Committee Member Dennis "Fresh" Onishi absent.
Committee Member Heather Kimball raised some concerns and asked the rationale for moving away
from the payment standard to AMI (Area Median Income). Mr. Inaba explained that the intent is to go
with a system that is used universally.
Concerns were raised about the significant rent increase in some areas,particularly in East Hawai`i, and
the potential effect on Section 8 subsidies. The committee discussed a possible phased approach and
utilizing different AMI percentages in various zip codes to address equity concerns.
Committee Chair Matt Kaneali`i-Kleinfelder asked Corporation Counsel to confirm if a Committee
Member would need to disclose that they have a home or property that is currently participating in the
affordable rental housing program, and whether it would be a conflict of interest to vote on this matter.
Deputy Corporation Council Sylvia Wan confirmed that because this program is offered to everyone, it
would not trigger the need to disclose nor would it be a conflict of interest to vote.
FC Report No.39
FC-39 Page 2 April 15,2025
Mr. Kaneali`i-Kleinfelder requested data on the geographic distribution of Section 8 vouchers and
potential impacts of the bill and Ms. Kagiwada requested the market rate comparisons for studio to
4-bedroom units across East and West Hawai`i. Ms. Costa confirmed that she will present requested
information at the next Council meeting.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 39, as amended to
Draft 2, and recommends its passage on first reading.
lkh
AYES NOES ABS EX Respectfully submitted,
GALIMBA X
HUSTACE x COMMITTEE ON FINANCE
INABA X
KAGIWADA X
KANEALI`I-KLEINFELDER X
KIERKIEWICZ x MATT KA EINFELDER,
KIMBALL x CHAIR
ONISHI X FC REPORT NO.: 39
VILLEGAS X ADOPTED: MAY. 0 7 2025