HomeMy WebLinkAboutBIL 025 Draft 03 2004-2006 YY OiN
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COUNTY OF HAWAII STATE OF HAWAII
BILL NO. 25
(Draft 3)
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 11 OF THE HAWAII COUNTY CODE 1983
(1995 EDITION), TO REVISE THE 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 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 ofattaining adiversity 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 a diversity 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.
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, persons
with disabilities 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; [aad]
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,[.]
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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;
(2) "Affordable housing income guidelines" means those household income
levels which shall be tend ~ lnnoi „F?"°,„°a:^~ F^..,;1, ,
~e ..1.
^F 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 using the most direct route• ' -
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(4) "Qualified households" mean an individual or two or more related by
blood, state-sanctioned adoption, foster parentage, guardianship, or
marriage~pying a dwelling unit and whose total household income is
within the affordable housine income guidelines or who would otherwise
3
qualify in a state or federal affordable housing_pro¢ram ~'"~i
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(51 "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 b
Section 11-4. [ ]Affordable
Housing Requirements.
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The affordable housing requirements shall apples
(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
4
or PD districts;
(3) All new rezonings to ML, MG, and MCX districts;
(4) All prior rezoning actions which contain affordable housinx conditions
that have not been satisfied as of the effective date of this ordinance, or to
which the County has not a rg eed previously as to the specific means of
satisfying the requirements.
(b) Requirements for Residential Uses. [e,,.:..+,.,..:,.., ,.r.wo.,e .e,,.,:..e...o.......:n
~1) Pour 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 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. ['r.,,ri;~,r+~
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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
6
district, except for home improvement centers, and any uses that are also allowed
as of right in a CG district. Individual industrial entemrises generating more than
100 employees on a full-time equivalent basis must earn one affordable housi~
credit for every four full-time equivalent jobs created ~I~~
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Section 1 1-5. Satisfaction of Affordable Housing Requirements. [~irsa„~-f~
(a) The developer may satisfy the affordable housing 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 proiect site;
{4) Construct affordable rental units on site, or off site, within a 15-mile
radius of theproject 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;
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(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;
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 sub-sections (1)-(4) above provided
that the project must be located within the allowable areas for in-lieu fees
under Sec. 11-12'
(9) Obtain excess credits from another developer pursuant to Sec 11-15
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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
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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: 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;
9
(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;
(61 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: 1.0 credit per lot. [e°':°F ^F'we°°
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Section 1 1-6. Calculation of in-lieu fee.
The in-lieu fee for a completed dwelling unit shall be 25 percent of: the actual
sales price of the unit minus the affordableprice for households earning 120% of
the median.
(b) The in-lieu fee for a t3nished lot shall be 25 percent of: the actual sales price of
the lot minus the affordable price for households earning 100% of the median.
(c) The in-lieu tee for each required affordable dwellin¢ unit for resort, hotel, and
industrial uses shall be 25 percent of: the median sales price for asingle-family
home in the tax map zone containin¢ the proiect, in the previous calendar
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 25 percent of: the median sales price for a sinele-family
home in the tax map zone containing the project in the previous calendaryear,
minus the affordable price for households earning 120% of the median.
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Section 1 I -7. Calculation of Affordable Sales Price.
12
(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 a thirtyyear conventional fixed mortgage, not seasonally adjusted for the
12 months endive 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 adiustments 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
1,100 square feet in the general area, as estimated by OHCD. In 2005, the
affordable sales price for a finished lot shall be $95,000. [eo,. ~n, c n«,.:o,.,.. Two
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Section 11-8. Density Bonus.
(aj 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 may be constructed on the site by 10%, and decreasing the
13
minimum lot size by 10%, compared to the number of units otherwise allowable
and the minimum lot size as established by the Zoning
(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 to create lots less than the minimum lot sizes required in those
districts. ~cF:~ct c.,:...:..,, o,.,...:_,..,.o.,,, TL.:,...,.7:,.., ,..o«,.oa ,.n
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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
14
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 reauirements
Before obtainin tg
final plan approval for any resort hotel or industrial protect 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 proiect.
(c) All agreements shall be recorded aeainst 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 eli ibg le 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-dampreferential marketi~
period at the affordable sales price.
Section I1-10. BuyerofPinishedLots.
The purchaser of a finished lot that is used to fulfill an affordable housine requirement,
and that is sold during the preferential marketine 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
15
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. Durinv 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 on inalpurchase 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 on final
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 ayreement with the County that the rental prices
on the units shall be controlled for no less than twenty nears 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 proiect that venerated 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. Elie
16
The administrator shall establish eli ibility 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. 'fhe administrator may be delegated the authority to select
the resale restriction applicable to a particular ~roiect.
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 ma,
"excess credits" which then may transfer to other developers.
(b) The developer shall earn the excess credits pursuant to Section 11-5(c).
jc) 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 protect that is within the distance established in Section 11-5(al(3) to
fulfill part or all of the affordable housine requirements of the other project.
(e) If the proiect 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 protect share equitably in the
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proceeds from the transfer of the excess credits. The administrator may waive
these requirements if the proiect earnine the excess credits addresses a critical
housing need and the excess credits, in addition to the direct subsidv are or were
a necessary inducement to the construction of the project or if the excess credits
are earned by anon-profit entity that will use the proceeds for the construction of
more affordable housine.
U) For the purposes of this section, a "direct financial subsidv" includes the
provision of land at below market value, or governmental construction of
infrastructure necessary for a housine 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 housinu.
Section I1-16. Section 201G Projects.
The County's exemption authority, as contained in H.R.S. 201 G, may be utilized to
expedite change of zone requests, subdivision applications, and plan review as well as the
consideration of reduced development standards.
Section I 1-17. Effect on Existinu Requirements.
fhis policy supersedes all previous affordable housing requirements and Hawaii County
Housinu Agency Resolution 65 dated Ma~2, 1990 and Ordinance 98-1. Anv 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 thispolicv unless the County
has previouslygreed as to the specific means of satisfyen¢ the requirements, in which case this
amended policy shall apply only to the extent it is not inconsistent with the anreement In no
event shall the County of Hawaii reimburse or be oblieated to reimburse any person or entity for
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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 L 1-18. 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 timerperiodic reports to the A eney 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. Material to he repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed material and underscoring need
not be included.
SECTION 4. 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 5. 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 6. This ordinance shall take effect upon its approval.
IN'1'1~OD~1C , BY ~1,
COUNCIL MEMBER NT OF HAW I'I
Hilo, Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
c,__ii~r;t: '~omrn. 72.6
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