HomeMy WebLinkAboutBIL 025 Draft 02 2004-2006 COUNTY OF HAWAII STATE OF HAWAII
BILL NO. 25
(Draft 2)
ORDINANCE N0.
"==--n=~~] AN ORDINANCE [~9] AMENDING CHAPTER 11 OF THE HAWAII
COUNTY CODE 1983 (1995 EDITION) , TO REVISE THE [F~$Pd4'£~"r~~TA~r]
AFFORDABLE HOUSING POLICY FOR THE COUNTY OF HAWAII
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
Section 1. Findings and Purpose. Pursuant to Section 2-66
of the Hawaii County Code, the Hawaii County Housin 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 of socio-economic housing mix
throughout different parts of the County, improving and
monitoring the quality and affordability of the existing housing
stock, an 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 a diversity of
socio-economic housing mix; [Thc Count••
r
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50'l2dmko-ramseyered 1 01/18/05, 4:09 Pid
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2. Developments [?~.,._n-?_=*_='_c:] 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 . (fie ~'ease-~en~a~e~~e~'~vx^zr~zes a:xv~
:vre2: iix~,.co--or
es~ee~a~~-€er lera arzd mede~a-€^ ~ ^
4 T^..^s-t~ga~e-deve~eg, and-g~eme~e ^E
p`^gv
S~r~-s~l.a-~~] E [e]ncourage and support
[eke] 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.
SECTION 2. Chapter 11, of the Hawaii County Code 1983
(1995 Edition) is hereby amended [by ~otub'~^'^~~^
entitled "F~9H6zPT8," and a new -a-rte..., _ ~,,^v^.... ^^~i~€~
",A~'~F~B~§$~a=r:~^"~~~] to read as follows
"CHAPTER 11
HOUSING
Article 1. Affordable Housing
Section 11-1. Title. This article shall be referred to as
50'/2dmko-ramseye red 2 01/18/05, 4:09 PM
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 may be
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;[-]
6. Require residential developers to include affordable
housing in their projects or contribute to affordable
housing offsite.
Section 11-3. Definitions.
The following words and phrases, unless the context
otherwise requires, are defined as follows:
(1) "Affordable housing" means dwelling units which
may be 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;
5092dmko-ramseyered 3 01/18/05, 4v09 PM
(2) "Affordable housing income guidelines" means those
household income levels which shall be [e~ead--xg
ef---F~•,'.~-as] published annually by the Office
of Housing and Community Development and as
described further herein;
(3) "Fifteen mile radius" means the distance from the
site in question as measured in road miles usin
the most direct route; F' a~
bleed; state sanetiened~dep*t~en, €este=
ga~e~age~ua~a~sh€~g, er maw€age, eeeapy~nQ
a°°°?1-~ ` ~d Fv~'tese Leta' hettsehe' d ' neeme~s
.".f f."..r d.".bl houvi ~i-ogrmir. ]
(4) "Qualified households" mean an individual or two
or more related by blood, state-sanctioned
adoption, foster parentage, guardianshi 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 housin
program ["F~i~e~ R€€e=dadl^
~A€€e~dab}e -ttetts~ng r~n~t , , :
n....,._____~
ea~n~ng ~'ie-i~A~e than~4B4~e€ the med~an~nee~e~~
50~2dmko-ramaeyered 4 O1/18 /O5, 4:09 PM
f.-. l ..f f.. til-..-, 1~.. ti.. .-.F it.-,..
(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;
(6) "Eligible buyer" means a person who meets
eligibility requirements, including income
limitations, as established by rule.
Section 11-4.
n^-~~'^-~~-1 ] Affordable Housing Requirements.
.i.__^t~ f i._..i.......
(a) [Re ::'.:ic'~ ~r..~..^^ t'.:c ~ctwhl~c:::;~..~
e€~es~dent~a~~tses, i~elg-s3~1~
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(3~~t~n~ts er~ess ne re~urr-e~~
~~~~0 e~me~e ttn~ts 'Fen=p2re^^~
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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;
50~2dmko-ramseyered 5 01/18/05, 4:09 PM
(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•
(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 satisfyin
the requirements.
(b) Requirements for Residential Uses. [~_F'^F.^..'.._ ^F
mot.,-.,.,-, y...,_..: : i i h~~ars~mnl irhr~rl th _i. emu,
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(1) Four or fewer residential units or lots: no
requirement;
(2) Five or more residential units or lots: the
applicant must earn affordable housing credits
equal to [3$] 20 percent of the number of units or
lots (rounded to the nearest .5);
(3) Time share units shall be considered as
residential units.
(c) Requirement for Resort and Hotel Uses. Resort and
hotel uses generating more than 100 employees on a
full-time equivalent basis must earn one affordable
housing credit for every four full-time equivalent jobs
created. : lieu ..F fL... ..F -FF..,.-.]-. 1.1
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5072 dmko-ramseyered 6 01/18/05, 4:09 PM
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~egx~~exae~-Fna~~-fie .,wt~:.€~e: t::r~::y~ t~` F ~w
~°11° a}€erna€~ves, €he ~ra't~e e€ rah}ems " '~e-
aiu o~cz uYvrr
see}€~e res~den€~a~~eve}e~men€~nva}v}ng €he ra~~
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ax+sa~-ave~age~~e~ €he
he serve, amettn~s ~e $4,'~2~~ar€ar~~}e~ri~
~egt~~re~~n }997 ~e}}ars.
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annttarhas=s. '£he~~~zets €ee amet~a€
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50,2dmko-ramseyered 7 O1/18/O5, 4:09 PM
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~l.a ..4 l.~ a:.n.-..-.41., r~~ ..4 ~a 4.-. 4L.~
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(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 100 employees on a full-time equivalent basis
must earn one affordable housing credit for every four
full-time equivalent jobs created. [gin iMplc::c=4.~~-
^l nn t_. n_ antiafv nffnrri:-~h7_-r_~~'~_.=.•~^?_^_^ --~-^ll
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5072dmko-ramaeyered 8 O1/18/O5, 9:09 PM
Section 11-5. Satisfaction of Affordable Housing
Requirements. [
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(a) The developer may satisfy the affordable housin
requirements by doing any of the following:
(1) Construct affordable for-sale units on site;
(2) Construct affordable finished lots on site, but
only if the entire project consists of finished
lots;
(3) Construct affordable for-sale units off site, but
within a 15-mile radius of the project site;
(4) Construct affordable rental units on site, or off
site, 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;
(8) With the approval of the administrator, construct
housing on site or off site, that addresses a
critical regional housing need, at least
equivalent to satisfying the requirements of any
5072dmko-ramseyered 9 O1/18/O5, 4:09 PM
sub-sections (1)-(4) above, provided that the
project must be located within the allowable areas
for in-lieu fees under Sec. i1-12;
(9) Obtain excess credits from another develo er
pursuant to Sec. 11-15.
rri~r~th~n inn 1 -~1~ ~
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het~sehe~ds vuh>-eh-a~e dese>~bed belew~r
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5092dmko-ramseyered 10 O1/18/O5, 4:09 PM
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(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. F~r
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assessed weed en an a~a1~Fe~s e€ ,
~st~l~..~~ r .m~..._ ..F w....senal~s to be ~ ~~..r...,a w..
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s,e ..~,-.a ..,L.,. ,-.F ..l f...d h,-. ,-.i....l w..
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€ae~e a as maybe ~derit~€~ed~he v
''e~de e~ 'te des~grtee ''"••"'-'g
F l... n.... ~,F.. LT.-... T.~ L... F....,
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(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:
50'J2dmko-ramseyered 11 O1/18/O5, 4r09 PM
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;
(9) Sale of finished lot affordable for qualified
households earning no more than 80% of the median:
10 credit per lot. [c+..~-.. F-...F .+F ~-L...
F l l 1... ..l ~ .~.4..-..] t L.........~L. F l..-.
cau vu7a uv~
F F l-... F l l 1 ~
5072 dmko-ramseyered 12 01/18/05, 4:09 PiQ
(mil F~ev~s~en e€ a€€e~~a~~e hettsi~-its~~~a-a--a~
w~€he~€ €he ~an~ whte€t-kas ..F
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5072dmko-ramseyered 13 01/18/05, 4:09 PM
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a "t b: dam"' ..`i 1 .....a 1.
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p~e~a~sie~s €e~a€~e~deb~-e ~etss~ng tt~~i~s. 'F}~e
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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'c of: the actual sales price of the unit minus the
affordable price for households earning 120's 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
50'/2dmko-ramseyered 14 O1/18/O5, 9:09 PM
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
[3-0~] 20~ of: the median sales price for a single-
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 [3-6~:] 20~ of: the median sales price for a single-
family home in the tax map zone containing the project
in the_~revious calendar year, minus the affordable
price for households earning 120% of the median.
_ 1 _r..._"-
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..-...,...-.l ,.f:l ......1 ....1.. F...., ~-L ..........1 ..F
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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
5072 dmko-ramseyered 15 O1/18 /O5, 4:09 PM
the Housing and Community Development Corporation of
Hawaii guidelines, and the most current annual avera e
interest rate for a thirty-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 1008 of the median
income in the County of Hawaii, less the cost to build
a single family home of 1,100 square feet in the
general area, as estimated by OHCD. In 2005, the
affordable sales price for a finished lot shall be
~ n ~ n n... ~ ;
95, 000. [6ee~ze~-eels-the Cettnt~+~-s--c~~~r
att~l3e~i~~~as eenta~ned~n ~-~}18 281£, ffta•~~}}wed-~
ex~.ed~te ehange e-€-s~~~~~s~s, sa'~P}s3mr
ap~g~}eat}ens, arid~~art ret~iew-as~:eT~-ash
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
50 ~2dmko-ramseyered 16 O1/18 /O5, 4:09 PE7
that may be 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 housin
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 to create lots
less than the minimum lot sizes required in those
districts. [£€€eet en ~'~is€€~g F~eQa>zeme~t€s~~s-
v 4 : 4 y, v... 1. F ..L.:.. L. 1-..-.
p:i..i...i ~.i._i._._.i iii
this~ene~ma~beTe assessed, 4L, r. ._4~v,4 i~=~~
na~been~x3~F-sad # s € i ed ,
4 : , 4 : F 4l-... ..4 : 4.. ..L.: L. l l l .
Y____ Y______ ______1 __~~__1
regr~ired to sates€~stteh eend=t=en. -He..~.•~y :
1. l l 41-..-. n.-., 4.. ..F y-...-.: ...L.. 1...
i-.l : l..] ...L.......... F.-.... 4L...
___j r__. _ ______1
~T?~'~}a} 6~' €k3~}-^_~`i-f~~rytinn of ~~n ~-~ffnrd~~hlr-~':_~__=^~
~__1 t.~.~..,~
to the e€€eez#ve .l~s
Section 11-9. Sale of Lots and Units.
(a) Before obtaining final subdivision approval or plan
5072dmko-ramseyered 17 O1/18/O5, 4:09 PM
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 housin
requirements, the applicant shall enter into an
agreement with the County that the affordable housin
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
5072 dmko-ramseyered 18 01/18/05, 4:09 PM
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 durin 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
5092dmko-ramseye red 19 O1/18 /O5, 4:09 PM
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 twenty years after initial
occupancy.
Section 11-12. Use of In-Lieu Fees.
The in-lieu fee shall be used to support affordable housin
located no more than 25 miles, as measured on a strai ht line
from the project that generated the in-lieu fee 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.
50 ~2dmko-ramseye red 20 01/18/05, 4:09 PM
Such rules may include, but not be limited to, buy-back shared
appreciation, and other restrictions. The administer may be
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 housin units
in excess of any requirements imposed under this
chapter or any other requirement may earn "excess
credits" which they may transfer to other develo ers.
(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 A ency or
other public entity subsidizing the project share
equitably in the proceeds from the transfer of the
50~2dmko-ramseyered 21 O1/18/O5, 4:09 PM
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 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 exem tions
under H.R.S. Sec. 201G-118, or federal or state tax
credits for the construction of rental housin .
Section 11-16. Section 201G Projects.
The County's exemption authority, as contained in H.R.S.
201G, may be 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
5072dmko-ramseyered 22 O1/18 /O5, 4:09 PM
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 Hawaii 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. Reports 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."
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.
50~2dmko-ramseyered 23 01/18/05, 4:09 PM
SECTION 5. This ordinance shall take effect upon its
approval.
INTRODUCED BY:
C
COUNCIL M BAR, COUN~Y~ AI'I
Hilo, Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
r~• Comm. 72.2
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