HomeMy WebLinkAboutCOM 0058.000 2000-2002 IV.A.1. Approval of an Amendment to Chapter 11
Sections 11-9(c)(1) and 11-5(c)(2), to Update the
In-Lieu Fees.
This item was deferred by the Hawaii County Housing
Agency at its September 7, 2000, meeting.
On January 7, 1998, the Hawaii County Council adopted
Ordinance 98-1 which amended Chapter 11 to establish
the "affordable policy" for the County of Hawaii,
Chapter 11 Sections 11-9(c)(1) and 11-5(c)(2) state
"The in-lieu fee amount may be updated by the County
housing agency on an annual basis."
At its July 6, 2000, meeting the Hawaii County
Housing Agency (HCHA) requested that the Office of
Housing and Community Development (OHCD) recalculate
the in-lieu fee amount based on Chapter 11,
Sections 11-9(c)(1) and 11-5(c)(2) and make a
recommendation to the HCHA for an updated in-lieu fee
amount.
Chapter 11, Sections 11-4(c)(1) and 11-5(c)(2) set the
~ in-lieu amount at $4,720 per affordable unit required
~ in 1997 dollars. The in-lieu fee amount was based on
an interest rate of 6~, the Hula Mae Interest rate of
o ~ 5.98 rounded up. The OHCD contacted the Bank of
Hawaii, First Hawaiian Bank, American Savings Bank
~ ~ and Countrywide Home Loans.
As requested the OHCD is recommending that the in-lieu
fee amount be updated from $4,720 per affordable unit
required in 1997 dollars to $11,990 per affordable
unit required in 2000 dollars. (See worksheet
attached.)
This recommendation is based an interest rate of 8.08,
which, pursuant to Chapter 11 Sections 11-4(c)(1) and
11-5(c)(2), is the lowest, generally available
interest rate for a thirty-year fixed rate mortgage J(
available on September 1, 2000." Comm. No.u
FSIe No.- ffJ~_
RECOMMENDATION:
Ret. 1bt ~ ~1~ 1_'
(ke: Bill 353) That the Hawaii County get, ~ n~Oj
Housing Agency approve the
attached ordinance and
recommend its adoption by the
Hawaii County Council.
0983h~st IV.A.1. - 1
September 2000 - In-Ileu Fee Worksheets
IN LIEU FEE ASSUMPTIONS - FrMdy o14, Irwonr bawd on HUD M~d4nAi d Inoonr
-FOR SALE/SINOLE FAMILY UNRS - HCDCH EstNYYd Loin Ou~Me~tlon F~mSy ol4
- Conuumr Prln IMoc for Hondulu usW to ~sOrryh kK»~w h hou5s end bl dswlopmnd aoH
- 3bN1 1R -1,000 ~f how ua~d to esiMwb d~wlopnrM aoq for ~ hmly of 4
BUILDING TYPE AREA (tq R) BLGD. COST IMPROVED TOTAL COST
i!6 LOT COST
2 BRMBH 100 S8e,000 572,000 5140,
4 BRR BH 500 s7e,600 sn,000 s14e,
9 sR/7.5 sH 1000 Se5,o5o p7,0/0 Nsr
3 BR72 BH 1100 593,600 572,000 i1e6,
3 BRR BH 1200 1107,000 572,fXX1 1174,
INT. RATE~OYR FD(ED
80% 8 BELOW 10% d BELOW 100% i BELOW 110% i BELOW 120% i BELOW
eEVELOPMENT COST 1157,001 (167,001 p61,000 1<7//.116 7{N7
eEVELOPER INCENTIVE 55,000 56,000 SS,000 16,000 ;6,
ALDEVELOPMEMCOST 57p4,000 1184,000 5162,000 51!2,000 i1e2,
FFDRDABLE PRICE 5135,200 5147,100 5145,000 5152,700 5177,
TOTAL SUBSIDY REQUIRED 545,!00 571,D00 114,000 t0 SO
AVERAGE SUBSIDY 511,100
IHT. RATEAOYR FU(ED X6.26
50%4 BELOW 10%4 BELOW 100%d BELOW 11096 i BELOW 120%1 BELOW
pEVELOPMENTCO6T 1157,000 5167,000 5757,000 5167,000 1167,
DEVELOPER INCENTIVE 35.000 SS,000 SS,000 f3,000 55,
TOTAL DEVELOPMENT COST 5184,000 5782,000 5782,000 3162,000 3162,
AFFORDABLE PRICE 5133,700 5135,500 51M,600 5751,000 5177,
7DTALSUBSIDYREQUIRED 545,500 529,400 577,600 59,000 SO
AVERAGE SUBSIDY 611,520 514,600
INT. RATEl30YR FIXED X8.60
t0%dBELOW DO%dBELOW 100%dBELOW 110%dBELOW 120%dBELOW
eEVELOPMENT COST 5157,000 5157,000 1157,000 5737,000 1167,
DEVELOPERlNGENTIVE (5,000 55,OOD 55,ODD 56,000 i5,
TOTAL DEVELOPMENT COST 5182,000 5162,000 3787,000 5162,000 1162,
AFFORDABLE PRICE 3130,000 1196,800 f141,400 5166,300 (151,
TOTAL SUBSIDY REQUIRED !32.000 546,400 520,e00 Sg700 50
AVERAGE SUBSIDY 617,140 517,700
~ IV.A.1. - 2
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IV.A.1. - 3
• • ~~tY O! •
COUNTY OF HAW i,~' ATE OF HAWAII
• ' 1
'~%;~,•.'SfF+^';/' BILL NO.
1 ~'H~ ~
ORDINANCE NO. ~~A~
AN ORDINANCE TO AMEND CHAPTER 11 OF THE HAWAI'2 COUNTY CODE, 1983
(1995 EDITION) AS AMENDED, TO UPDATE THE IN-LIEU AMOUNT.
BE IS ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
Section 1. Findings. Pursuant to Sections 11-4 (c){1) and
11-5 (c)(2)(A) of the Hawaii County Code, the Hawaii County Housing
Agency is seeking to update the in-lieu fee amount.
Section 2. Chapter 11, Section 11-4 (c)(1), of the Hawaii County
Code 1983 (1995 Edition) is amended to read as follows:
3eotioa 11-4. Requirements for resoninge involving residential
uses.
(c) Satisfaction of these requirements will be accomplished
through the use of the following alternatives:
(1) Payment of in-lieu fees. These fees are calculated
by determining the amount of subsidy required to
provide housing units affordable to the targeted
income groups. The in-lieu fee amount, averaged for
the various groups to be served, amounts to [$4,720]
11,940 per affordable unit required in [1997] 2000
dollars. The in-lieu fee amount may be updated by
the County housing agency on an annual basis. The
in-lieu fee amount shall be calculated based on the
IV.A.1. - 4
lowest, generally available interest rate for a
thirty-year fixed mortgage on September 1 of each
year.
Section 3. Chapter 11, Section 11-5 (c)(2)(A), of the Hawaii County
Code 1983 (1995 Edition) is amended to read as follows:
Section 11-5. Requiramsats for razoniag iavolviaq reeort• aad
iaduatrial uses.
(c) Satisfaction of these requirements will be accomplished
through the use of the following alternatives:
(2) In-lieu of the provision of affordable housing unite,
the affordable housing requirement may be satisfied
in the following ways, the value of which shall be
based upon a calculation of in-lieu fees for a
particular rezoning:
(A) Payment of in-lieu fees. These fees are
calculated by determining the amount of subsidy
required to provide housing unite affordable to
the targeted income groups. The in-lieu fee
amount averaged for the various groups to be
served, amounts to [$4,720] 11 940 per
affordable unit required in [1997] 2000 dollars.
The in-lieu fee amount may be updated by the
Hawaii County Housing Agency on an annual
basis. The in-lieu fee amount shall be
calculated based on the lowest, generally
available interest rate for a thirty-year fixed
mortgage on September 1 of each year.
o9s~~
IV.A.1. - 5
Section 4. Ramaeyer format. Material to repealed is bracketed. New
material is underscored. In printing this ordinance, the brackets,
bracketed material and underscoring need not be included.
Section 5. Severability. If any provision of this ordinance, or the
application thereof to any person or circumstance, is held invalid, such
invalidity shall not affect other provisions or applications of the
ordinance which can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are
severable.
Section 6. This ordinance shall take effect upon its approval.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
Hilo, Hawaii
Date of Introduction:
Date of 1•` Reading:
Date of 2i° Reading:
Effective Date:
0959hat
IV.A.1. - 6
September 2000 - In-lieu Fee Worksheets REVISED
IN LIEU FEE ASSUMPTIONS - Femly of 4, Income Weed on HUD MedleN% of Income
- FOR SALE/SINGLE FAMILY UNITS - HCDCH Eetlmebd Lan OueliBCedon Femiy of 4
- Conusmer Piiu Index far Honolulu used to esUmete Inclsees In house end bt tlevelopment cost
- 3br/1 1/2 - 1,000 sf house used to es8mele dwebpmsM ewt for a fimiy of 4
BUILDING TYPE AREA (eq R) BLGD COST IMPROVED TOTAL COST
585 LOT COST
2 BR/7BH 800 568.000 572,000 61N.009
2 BR/18H 800 576,500 572,000 ti1M.l06
3 BR/1 5 BH 1000 585,000 572,000 514?,000
3 BR2 BN 1100 593,500 572,000
3 BR2 BN 1200 5702,000 572,000 Sf74,
INT RATFJdOYR FU(ED -
80% dBELOW 90% d BELOW 100% d BELOW 110% d BELOW 120% d BELOW
DEVELOPMENiCOST 5140,000 SiM,500 5167008 5186,600 5174,009
DEVELOPER INCENTIVE 55,000 55,000 55,000 55,000 56,000
TOTAL DEVELOPMENT COST 5145,000 5153,500 5182,000 5170,500 5179,000
AFFORDABLE PRICE 5138,200 5142,100 5118,000 5182,700 5177,600
TOTAL SUBS/DY REQUIRED 58,800 !!1,100 Jf1,000 i7,80D !1,500
AVERAGE SUBSIDY 58,700
INT RATE/30YR FIXED ~ 6.26
80% d BELOW 90% d BELOW 100% d BELOW 110% d BELOW 120% d BELOW
DEVELOPMENT COST 5740,000 ;148,500 5157,000 5785,500 5174,000
DEVELOPER INCENTIVE 55,000 55,000 55,000 55,000 55,000
TOTAL DEVELOPMENT COST 5145,000 ;153,500 5182,000 5170,500 5179,000
AFFORDABLE PRICE 5733,100 ;138,800 5144,600 5189,000 5173,400
TOTAL SUBSIDY REQUIRED 511,800 511,700 !17,500 511,500 55,800
AVERAGE SUBSIDY 512,240 512,200
INT RATEI30YR FIXED ~ 8.60
80% d BELOW 90% d BELOW 100% d BELOW 110% d BELOW 120% d BELOW
DEVELOPMENT COST S7I0,000 5748,500 5757,000 ;185,500 ;771,
DEVELOPER INCENTVE 55,000 55,000 55,000 55,000 55,000
TOTAL DEVELOPMENT COST 5145,000 3153,500 5182,000 5170,500 ;179,000
AFFORDABLE PRICE 5130,000 5136,800 5141,200 5166,300 5169,400
TOTAL SUBSIDY REQUIRED 515,000 517,900 !20,800 115,200 !9,600
AVERAGE SUBSIDY 615,700 576,700
mIu09_OOrev 3 1/70N1
%WritiN-'~ej°~°~•l°^ , :.,a~"..g+-'..~. .r`g-:,.c<u. `~aN^r'r'ri Vmzy•
1997
IN LIEU FEE ASSUMPTIONS -Family Inwme based on HUD/HFDC % of Income
FOR SALEISINGLE FAMILY UNITS -HFDC Estimated Loan Qualification
OPW INLU1297 WB2 Modified 12/04/97
Pnntout 12/04/97 09 57 25
ASSUMPTIONS
sq
580 LOT COST
2 A 900 $72,000 567,500 5188,680
3 1000 $80,000 567,500 =147,500
3 B A 1100 588,000 567,500 S1'Bf,8i00
3 B 1200 598,000 587,500 5193,600
80°i6 8 BELOW 90% 8 BELOW 100% 8 BELOW 110% 8 BELOW 120% S BELOW
D INCENT 55,000 55,000 S5 000 SS,DDO 55,000
A O ST 1136,600 144, 00 5152,500 3160,600 168,500
A A P 1 5114,000 115, 00 5121,900 5139,200 $155,500
L fD U 522,500 S28,d00 530,600 521,300 512,000
AVERAGE SUBSIDY = ;23,040 323,000
80°,6 8 BELOW 90% & BELOW 100% 8 BELOW 110°h & BELOW 120°h 8 BELOW
DEV L INCENTI $5,000 55,000 55,000 55,000 $5,000
T A M S 136,500 144, 152 00 5160,500 5168,500
A P I 5119,800 5121,8 $128,100 5146,300 5164,500
TO S !DY U D 518,700 522,800 524,400 514,200 54,000
AVERAGE SUBSIDY = 516,440 316,400
80% 8 BELOW 90% 8 BELOW 100% 8 BELOW 110% 8 BELOW 120% & BELOW
D L IN 55,000 55,000 55,000 55,000 55,000
O AL O M ST 5136,500 144,600 2152,600 5160,500 5168,500
AF P 1 $132,900 5134,900 5142,100 5162,300 5182,500
70 S 1DYR ED 53,600 59,800 510,400 SO SO
AVERAGE SUBSIDY = ~4,7Z0 34,700
• Chapter 11
HOUSIIVG~
Article 1. Affordable Housing
Section 11-1 1Ytle.
Section 11-2 Objectlva.
Section 11-3 Detinitlom.
Section 11~ Regaiesnenfa for rezoNngs involving residentlal uses.
Section 115 Requiresoents for rezonlnts Involving resort sad indusdial uses.
Section 11-6 Waiver of additlod requirements.
Section 11-7 Section 201E projccts.
Section 11-5 Effect on eadstlng requirements.
• Edllor'~ NOtt: Forcer Uuptc 11, HaumQ rr; rt~pealed by ONwna 96162, sxaon 2i
•
•
11-1 (Hnrrl Caory 61.99)
HOUSIIdG § 11-5
(2) In lieu of the provision of affordable housing amts, the affordable housing requirement may be
• satisfied in the following ways, the value of which shall be based upon a calculation of in-lieu fees
for a particular rezoning:
(A) Payment of in-lieu fees These fees are calculated by determining the amount of subsidy
required to provide housing amts affordable to our target groups. The in-lieu fee amount,
averaged for the venous target groups to be served, amounts to four thousand seven hundred
twenty dollars per affordable unit regwrcd m 1997 dollars The in-lieu fee amount may be
updated by the County housing agency on an annual basis. The in-lieu fee amount shall be
calculated based on the lowest, generally available interest rate for athirty-year fixed
mortgage on September 1 of each year.
(B) Provision of developable land. The amount of land required will be determined by an
assessment of value (by appraisal) of that contribution measured against the projected in-lieu
fee value that would otherwise have been required.
(C) Provision of mfrestructure/seivices. Contnbutions of infrastructure and semces may be
accepted to satisfy affordable housing regmrements The mfrastrocture or sernces provided
must be directly related to the provisions for affordable housing units. The value of the
contribution will be measured against the in-lieu fee amount that would otherwise have been
regwted as the basis for allocating credit
(D) Any other means which are approved by the County housing agency.
(d) An implementation plan to satisfy affordable housing requirements shall be approved pnor to or m
conjunction with the development of new resort or industrial facilities which will generate employment
'Ilse County housing agency shall determine the implementation period based upon the specific
circumstances of each case and prevalent economic and regional housing conditions.
(1998, Ord. No. 98-1, sec. 2.)
• Section 11-6. Waiver of edditlonal requirements.
Additional affordable housing requrements for rezoning of off-site property for the development of
affordable units in satisfaction of existing affordable housing requirements shall be waived, provided that the
parcel is utilized exclusively for the provision of affordable units Additional market rate units produced on
such parcel will be assessed based on the provisions outlined in Section 11~(a) above.
(1998, Ord. No 98-1, sec. 2.)
Section 11-7. Section 201E projects.
The County's exemption authonty, as contained in HRS 201E, may be utilized to expedite change of
zone requests, subdivision applications, and plan review as well as the consideration of reduced development
standards
(1998, Ord No 98-1, sec 2.)
Section Il-8. Effect on existing requirements.
This policy supersedes all previous affordable housing requirements. Any affordable housing condition
or portion thereof in a prior rezoning ordinance which has not been fully satisfied as of the effective date of
this policy may be re-assessed, to the extent it has not been fully satisfied, pursuant to this policy upon the
initiation of the person or entity which rs legally required to satisfy such condition. However, in no event shall
the County of Hawaii reimburse or be obligated to reimburse any person or entity for the partial or full
satisfaction of an affordable housing condition m any ordinance which became effective prior to the effective
date of this policy.
(1998, Ord No. 98-1, sec. 2 )
•
11-5 tiw.~~ sir si-ssi
§ 11-4 HAWAII COUNTY CODE
(1) Payment of in-lieu fees. These fees are calculated by deurmintng the amount of subsidy required •
to provide housing units affordable to the targeted income groups. The in-lieu fee amount, averaged
for the various target groups to be served, amounts to 54,720 per affordable unit requited m 1997
dollars The in-lieu fee amount may be updated by the County housing agency on an annual bests
The m-lieu fee amount shall be calculated based on the lowest, generally available interest rau for
a thirty-year fixed mortgage on Sepumber 1 of each year.
(2) Provision of affordable housing units on property other than the land which has been the subject
of the rezoning
(3) Provision of developable land. The amount of land requited will be determined by an assessment
of value (by appraisal) of that conrnbutron measured against the projected in-heu fee value that
would otherwise have bean required.
(4) Provision of infrasttvcturr/services. Contnbuoons of infrastructure and services may be accepted
to suiefy affordable housing requirements The infraswctirre or serncea provided must be directly
related to the provisions for affordable housing units The value of the wntributron will be
rrieasitred against the in-heu fee amount that would otherwise have been required as the bests for
allocating Credit
(5) Any other means which are approved by the County housing agency.
(d) An implementation plan to satisfy affordable housing requirements shall be approved prior to the
issuance of any building permit for the market project upon which the requirements were imposed The
County housing agency shell deurmine the implementatron penod based upon the specific circumstances
of each case
(1998, Ord. No. 98-1, sec 2.)
Section 11.5. Requirements for rczodnga involving resort and indualrlol trace.
(a) Requests for rezonings involving resort uses generating more than one hundred employees will be •
assessed based on en analysis of full-time or full-tithe equivalent jobs generated, the resultant number
of households to be supported by those jobs, and the projected number of those qualified households
which are described below. The employee-related affordable housing condition shall be satisfied as
follows.
(1) The provision of twenty-five affordable housing units for every one hundred resort employees
generated as a result of the rezoning stoutly. The affordable housing units shall be affordable to
those qualified households seining between fifty percent and one hundred forty percent of the
median tncome of a family of four,
(2) In the alumative, the rezoning approval-holder or its designee may submit a housing needs
assessment to the County houstng agency as a bests for a deurmination of the applicable employee
housing requirement for a specific development and a plan for implementation, meeting with the
approval of the County housing agency
(3) The number of affordable housing units shall not exceed the maximum of one employee unit for
every two howl units built as provided in the County of Hawaii General Plan.
(b) Requests for rezoning which proposes the establishment of industrial uses generettng morn than one
hundred employees will be assessed based on an analysis of lobs generated, the resultant number of
households to be supported by those~obs, the projected number of qualified households which may be
entitled to housing assistance, and other factors as may be identified The rezoning approval-holder or
its designee shall submit a housing needs assessment to the County housing agency as a beats for a
deurminatron of the applicable employee-related affordable houstng requirement and plan for
implementation meeting with the approval of the County housing agency
(c) Satisfaction of these requirements will be accomplished through the use of the following alurnatrves:
(1) Provision of affordable housing units within or without the land which has been the subject of the •
rezoning