HomeMy WebLinkAboutCOM 0072.000 2004-2006 t~ a'' •?a
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Harry Kim ' Pete S. Hoffmann
Mayor Chair
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» M~~' Donald Ikeda
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HAWAII COUNTY HOUSING AGENCY
50 Wailuku Dnve • Hilo, Hawa7i 96720-2456
V/TT (808) 961-8379 • PAX (808) 961-8685
January 10, 2005
MEMORANDUM
TO: Gary Safarik, Chairman
Hawaii County Council
i ~ ~
FROM: Pete Hoffmann, Chairman ,
~ . i -
Hawaii County Housing Agency
SUBJECT: An Ordinance Amending Chapter 11 of the Hawaii County
Code 1983 (1995 Edition), to Revise the Affordable
Housing Policy for the County of Hawaii.
The Office of Housing and Community Development (OHCD) submitted
an Ordinance Amending Chapter 11 of the Hawaii County Code 1983
(1995 Edition), to Revise the Affordable Housing Policy for the
County of Hawai i .
The Hawaii County Housing Agency reviewed, amended, and approved
the ordinance at its meeting on January 5, 2005, and voted as
follows:
AYES: J. Arakaki, S. Higa, D. Ikeda, B. Jacobson,
V. Isbell, A. Pilago, G. Safarik,
P. Hoffmann - 8
NOES: None
ABSENT AND EXCUSED: F. Holschuh - 1
Accordingly, I am requesting that this ordinance be included on
the Council agenda for action at its January 21, 2005, meeting.
Enclosure
Comm. No. ~Zr
Ref. To:
Ref. Uate
1465hmko EQUAL HOUSING OPPORTUNITY
'HAWAI'I COUNTY IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER"
FOR YOUR INFORMATION
COUIlT°I'Y O~ IOW°I : ~`''A'rE OF IIAV~AI°I
SILL NO.
ORDINANCE NO.
AN ORDINANCE AlO~IENDING CHAPTER 11 OF TFIE IIAWAI°I COUNTY CODE 1983
(1995 EDITION), TO REVISE THE AFFORDABLE HOUSING POLICY FOR TFIE
COUNTY OF FIAWAI°I.
DE IT ORDAINED BY TIIE COUNCIL OF TIIE COUNTY OF IIAWAI°I:
SECTION 1. Findings and purpose. Pursuant to Section 2-66 of the Hawaii County
Code, the Hawaii County Housing Agency is seeking to revise the affordable housing policy for
the County of Hawaii. The purpose of this ordinance is to establish by law an affordable
housing policy in furtherance of the Hawaii County general plan's goals and policies. The
general plan contains goals of attaining a diversity ofsocio-economic housing mix throughout
different parts of the County, improving and monitoring the quality and affordability of the
existing housing stock, and seeking sufficient production of new affordable rental and fee simple
housing in a variety of sizes.
This affordable housing policy is adopted in consideration of certain general plan
policies, which provide that the County shall:
1. Aid and encourage the planning and development of a wide variety of housing to
achieve adiversity ofsocio-economic housing mix;
2. Developments which create a demand for housing shall provide employee
housing based upon a ratio to be determined by an analysis of a locality's needs;
and
3. Encourage and support private sector efforts in the provision of affordable
housing.
It is the intent of the County Council that this affordable housing policy be understood
and implemented in the future to ensure fairness and flexibility to persons and entities which
must satisfy requirements established under this policy.
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SECTION 2. Chapter 11, of the Hawaii County Code 1983 (1995 Edition) is hereby
amended to read as follows:
"CHAPTER 11
HOUSING
Article 1. Affordable Housing.
Section 11-1. Title.
This article shall be referred to as the County of Hawaii affordable housing
policy.
Section 11-2. Objectives.
The objectives of this affordable housing policy are to:
(1) Implement goals and policies of the general plan;
(2) Promote and assist private development of housing for senior citizens and
qualified households;
(3) Use available governmental grants and funds in the development of
affordable housing and increase the capabilities of qualified households to
obtain affordable housing;
(4) Support innovative, lower-cost approaches which maybe used in the
development of affordable housing;
(5) Require large resort and industrial enterprises to address related affordable
housing needs as a condition of rezoning approvals, based upon current
economic and housing conditions; and
(6) Require residential developers to include affordable housing in their
projects or contribute to affordable housing offsite.
Section 11-3. l)e~nitions.
The following words and phrases, unless the context otherwise requires, are
defined as follows:
(1) "Affordable housing" means dwelling units which maybe rented or
purchased at cost levels which can be afforded by persons or families who
are within the definition of "qualified households," as provided herein;
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(2) "Affordable housing income guidelines" means those household income
levels which shall be published annually by the Office of Housing and
Community Development (OHCD) and as described further herein;
(3) "Fifteen mile radius" means the distance from the site in question as
measured in road miles using the most direct route;
(4) "Qualified households" means an individual or two or more related by
blood, state-sanctioned adoption, foster parentage, guardianship, or
marriage, occupying a dwelling unit and whose total household income is
within the affordable housing income guidelines or who would otherwise
qualify in a State or federal affordable housing program;
(5) "Affordable unit" or "affordable housing unit" means a lot or dwelling unit
for sale or lease which is affordable to qualified households earning no
more than the percentages of the median income in the County of Hawaii
as stated in this chapter; and
(6) "Eligible buyer" means a person who meets eligibility requirements,
including income limitations, as established by rule.
Section 11-4. Affordabble Housing Requirements.
(a) The affordable housing requirements shall apply to:
(1) All new rezonings that may create additional residential uses, including
rezonings to RS, RD, RM, RCX, RA and FA districts, and APD rezonings
where lot sizes are less than five acres, and CG, CV, CN and PD districts
when residential uses are established in those districts;
(2) All new rezonings to resort, including hotels established in CV, CG, CDH
or PD districts;
(3) All new rezonings to ML, MG, and MCX districts; and
(4) All prior rezoning actions which contain affordable housing conditions
that have not been satisfied as of the effective date of this ordinance, or to
which the county has not agreed previously as to the specific means of
satisfying the requirements.
(b) Requirements for Residential Uses.
(1) Four or fewer residential units or lots: no requirement;
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(2) Five or more residential units or lots: the applicant must earn affordable
housing credits equal to 30% of the number of units or lots (rounded to the
nearest .5); and
(3) Time share units shall be considered as residential units.
(c) Requirement for Resort and Hotel Uses. Resort and hotel uses generating more
than one hundred employees on a full-time equivalent basis must earn one
affordable housing credit for every four full-time equivalent jobs created.
(d) Requirements for Industrial Uses. The industrial uses that must fulfill the
affordable housing requirements are any uses allowed as of right in an ML or MG
district, except for home improvement centers and any uses that are also allowed
as of right in a CG district. Individual industrial enterprises generating more than
one hundred employees on a full-time equivalent basis must earn one affordable
housing credit for every four full-time equivalent jobs created.
Section 11-5. Satisfaction of Afforclalble Housing Requirements.
(a) The developer may satisfy the affordable housing requirements by doing any of
the following:
(1) Construct affordable for-sale units onsite;
(2) Construct affordable finished lots onsite, but only if the entire project
consists of finished lots;
(3) Construct affordable for-sale units offsite, but within a 15-mile radius of
the project site;
(4) Construct affordable rental units onsite, or offsite within a 15-mile radius
of the project site;
(5) Pay in-lieu fees to the Agency;
(6) Provide developable land, within a 15-mile radius of the project site,
with a value determined by appraisal, that shall be credited against the in-
lieu fee;
(7) Provide infrastructure, within a 15-mile radius of the project site, that
shall be credited against the in-lieu fee. Any infrastructure provided must
be directly related to the future provision of affordable housing;
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(8) With the approval of the administrator, construct housing onsite or offsite
that addresses a critical regional housing need, at least equivalent to
satisfying the requirements of any of subsections (1)-(4) above, provided
that the project must be located within the allowable areas for in-lieu fees
under Sec. 11-12; and
(9) Obtain excess credits from another developer pursuant to Sec. 11-15.
(b) The affordable unit or finished lot shall be completed with road access, drainage,
water, electricity, sewer lines, if required, and telephone, and, in the case of
finished lots, shall not have unusual site conditions that make it difficult to build a
home.
(c) Affordable Housing Credits.
The developer shall earn affordable housing credits as follows:
(1) Sale of completed dwelling units affordable for qualified households
earning 120-140% of median: 0.5 credits per unit;
(2) Sale of completed dwelling units affordable for qualified households
earning 100-120% of median: 1.0 credits per unit;
(3) Sale of completed dwelling units affordable for qualified households
earning 80-100% of median: 1.5 credits per unit;
(4) Sale of completed dwelling units affordable for qualified households
earning less than 80% of median: 2.0 credits per unit;
(5) Construction of rental units affordable for qualified households earning
80-100% of median: 1.0 credits per unit;
(6) Construction of rental units affordable for qualified households earning
60-80% of median: 1.5 credits per unit;
(7) Construction of rental units affordable for qualified households earning
less than 60% of median: 2.0 credits per unit;
(8) Sale of finished lots affordable for qualified households earning no more
than 100% of median: 0.5 credit per lot; and
(9) Sale of finished lots affordable for qualified households earning no more
than 80% of the median: 1.0 credit per lot.
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Section 11-6. Calculation of in-lieu fee.
(a) The in-lieu fee for a completed dwelling unit shall be 20% of: the actual sales
price of the unit minus the affordable price for households earning 120% of the
median.
(b) The in-lieu fee for a finished lot shall be 20% of: the actual sales price of the lot
minus the affordable price for households earning 100% of the median.
(c) The in-lieu fee for each required affordable dwelling unit for resort, hotel, and
industrial uses shall be 10% of: the median sales price for asingle-family home in
the tax map zone containing the project, in the previous calendar year minus the
affordable price for households earning 120% of the median.
(d) The in-lieu fee for each completed dwelling unit not offered for sale (such as units
offered for rent) shall be 10% of the median sales price for asingle-family home
in the tax map zone containing the project, in the previous calendar year minus
the affordable price for households earning 120% of the median.
Section 11-7. Calculation of Affordable Sales Price.
(a) The OHCD shall calculate the affordable sales price for various household sizes
annually. The affordable sales price for completed units shall be the price that is
affordable to households earning the stated percentages of the median income for
the County of Hawaii, using the Housing and Community Development
Corporation of Hawaii guidelines, and the most current annual average interest
rate for athirty-year conventional fixed mortgage, not seasonally adjusted, for the
12 months ending in the previous year, as published by the Federal Home Loan
Mortgage Corp. For 2005, the affordable sales price for a household of four
persons earning 100% of median shall be $203,400 less any adjustments due to
association fees or similar fees.
(b) The affordable sales price for finished lots shall be the affordable sales price for a
completed unit for a household of four persons, earning 100% of the median
income in the County of Hawaii, less the cost to build a single family home of
1100 square feet, in the general area, as estimated by OHCD. In 2005, the
affordable sales price for a finished lot shall be $95,000.
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Section 11-8. Density Bonus.
(a) Any project subject to an affordable housing requirement under this chapter that
fulfills its housing requirement by constructing affordable dwelling units for sale
or rent shall be entitled to a density bonus increasing the total number of
residential units that maybe constructed on the site by 10%, and decreasing the
minimum lot size by 10%, compared to the number of units otherwise allowable
and the minimum lot size as established by the Zoning Code.
(b) If a project fulfills its affordable housing requirement offsite, the density bonus
can be used on the non-affordable site, or the affordable housing site, or divided
between the two sites.
(c) The density bonus may not be used in the State Land Use Agricultural District or
Rural Districts or lands zoned for agricultural pursuits.
Section 11-9. Sale of Lots and Units.
(a) Before obtaining final subdivision approval or plan approval for any for-sale
residential project subject to the affordable housing requirements, the applicant
shall enter into an agreement with the County that the required number of homes
or lots will be sold at the required affordable sales price, or that the required
number of rental units will be offered for rent at the affordable rental price, or that
the in-lieu fee will be paid upon the sale of each for-sale dwelling unit or lot, or
that the applicant will obtain excess credits sufficient to satisfy its requirements.
(b) Before obtaining final plan approval for any resort, hotel, or industrial project, or
not-for-sale residential project subject to the affordable housing requirements, the
applicant shall enter into an agreement with the County that the affordable
housing requirements will be met before the issuance of a certificate of
occupancy for the project.
(c) All agreements shall be recorded against the property, and that the in-lieu fee, if
applicable, shall be a lien payable upon the closing of sale of each unit or lot or
prior to the issuance of a certificate of occupancy under subsection (b).
(d) All for-sale affordable units and lots shall be sold only to eligible buyers during a
90-day preferential marketing period.
(e) If the developer cannot sell the units or lots to eligible buyers during the 90-day
preferential marketing period, the units shall be offered for sale to persons who
are otherwise eligible, but have previously owned a residence, for an additional
period of 30 days. If a unit or lot cannot be sold after the 120-day period, the
developer may sell the unit or lot to any person at the affordable sales price. The
Agency may also purchase the unit or lot after the 90-day preferential
marketing period at the affordable sales price.
Section 11-10. Buyer of Finished Lots.
The purchaser of a finished lot that is used to fulfill an affordable housing
requirement, and that is sold during the preferential marketing period, shall enter into a
binding contract for the construction of a residence on the lot within two years of the date
of sale, and complete construction within three years of the date of sale, or, if the
purchaser is an owner-builder, shall commence construction within two years and
complete construction within three years of the date of sale. During this three-year
period, the purchaser may sell only to eligible buyers, as determined by the administrator,
and the sales price shall not exceed the original purchase price, plus an inflation factor
based on the increase in the Consumer Price Index for Honolulu, and reasonable
compensation for improvements, if any, made by the purchaser. If the purchaser does not
meet these time limits, the purchaser shall offer to sell the lot to the Agency or, at the
election of the administrator, to eligible buyers, at a price that does not exceed the
original purchase price, plus an inflation factor based on the Consumer Price Index for
Honolulu, plus reasonable compensation for improvements, if any, made by the
purchaser.
Section 11-11. Rental Units.
(a) The Agency shall determine the affordable rental price for units of various sizes
annually.
(b) The developer shall enter into an agreement with the County that the rental prices
on the units shall be controlled for no less than 20 years after initial occupancy.
Section 11-12. Use of In-lieu fees.
The in-lieu fee shall be used to support affordable housing located no more than
25 miles, as measured on a straight line, from the project that generated the in-lieu fee
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provided that the Agency can authorize use outside of this distance restriction if it
determines that the project is necessary to satisfy a critical housing need.
Section 11-13. Eligibility.
The administrator shall establish eligibility criteria by rule. Eligibility criteria
shall include residency requirements to the extent permitted by law. The administrator
may allow households with incomes up to 20% greater than the income on which the
maximum sales price was based to be qualified to purchase a unit.
Section 11-14. Resale restrictions.
The Agency shall establish resale restrictions by rule to ensure that units created
under this policy remain affordable. Such rules may include, but not be limited to, buy-
back, shared appreciation, and other restrictions. The administrator maybe delegated the
authority to select the resale restriction applicable to a particular project.
Section 11-15. Transfer of Excess Credits.
(a) Developers who construct new affordable housing units in excess of any
requirements imposed under this chapter or any other requirement may earn
"excess credits" which they may transfer to other developers.
(b) The developer shall earn the excess credits pursuant to Section 11-5(c).
(c) To qualify for excess credits, units must be sold or rented to qualified households.
The developer shall apply to the administrator for approval of the excess credits.
(d) After approval of the excess credits, the developer may transfer the excess credits
to any other project that is within the distance established in Section 11-5(a)(3), to
fulfill part or all of the affordable housing requirements of the other project.
(e) If the project applying for the excess credits was developed with a direct subsidy
from the federal, state, or county governments, the administrator shall either (1)
discount the excess credits earned by the value of the subsidy, or (2) require that
the Agency or other public entity subsidizing the project share equitably in the
proceeds from the transfer of the excess credits. The administrator may waive
these requirements if the project earning the excess credits addresses a critical
housing need and the excess credits, in addition to the direct subsidy, are or
were a necessary inducement to the construction of the project, or if the excess
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credits are earned by a non-profit entity that will use the proceeds for the
construction of more affordable housing.
(f) For the purposes of this section, a "direct financial subsidy" includes the
provision of land at below market value, or governmental construction of
infrastructure necessary for a housing project, but does not include density
bonuses, zoning or other permitting exemptions under H.R.S. Sec. 201G-118, or
federal or state tax credits for the construction of rental housing.
Section 11-16. Section 201G projects.
The County's exemption authority, as contained in H.R.S. 201G, maybe utilized
to expedite change of zone requests, subdivision applications, and plan review as well as
the consideration of reduced development standards.
Section 11-17. Effect on existing requirements.
This policy supersedes all previous affordable housing requirements and Hawaii
County Housing Agency Resolution 65, dated May 2, 1990, and Ordinance 98-1. Any
affordable housing condition or portion thereof in any prior rezoning ordinance which has
not been fully satisfied as of the effective date of this policy shall be reassessed pursuant
to this policy unless the county has previously agreed as to the specific means of
satisfying the requirements, in which case, this amended policy shall apply only to the
extent it is not inconsistent with the agreement. In no event shall the County of Hawai' i
reimburse or be obligated to reimburse any person or entity for the partial or full
satisfaction of an affordable housing condition in any ordinance which became effective
prior to the effective date of this policy.
Section 11-18. Adoption of rules.
The housing administrator is authorized to adopt such rules pursuant to Chapter
91, Hawaii Revised Statutes, as are necessary to carry out this ordinance.
Section 11-19. iteports by Administrator.
The administrator shall make timely periodic reports to the Agency of all
significant actions taken under authority of this chapter, including but not limited to the
approval of excess credits, the acceptance of transferred credits, and the choice of resale
restrictions."
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SECTION 3. If any provision of this ordinance or the application thereof to any person
or circumstances is held invalid, such invalidity shall not affect other provisions or
Application of this ordinance which can be given effect without the invalid provision or
application, and to this end, the provisions of this ordinance are declared to be severable.
SECTION 4. The Clerk of the County of Hawaii is directed to insert the effective date
of this ordinance in any section of the County Code which requires reference to this date.
SECTION 5. This ordinance shall take effect upon its approval.
INTRODUCED BY:
OUNCIL MEMBER, C OF HAWAII
Hawai' i
ate o tro uction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
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