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Home My WebLink AboutREP PC 064 04/18/2006 2004-2006 REPORT OF THE COMMITTEE ON PLANNING DATE: April 18, 2006 Re: Comm. No. 765Bi11 No. 250 PLACE: Council Chambers TIME: 1:00 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Planning, to which was referred Bill No. 250, reports as follows: Bill No. 250, transmitted via Communication No. 765 from Mayor Harry Kim, dated March 13, 2006, presents a Change of Zone request by the HAWAII ISLAND COMMUNITY DEVELOPMENT CORPORATION (HICDC), at Pahoa, North Kohala, Hawaii, TMK: 5-5- 008: portion of 046. Bill No. 250 seeks to seeks to amend Section 25-8-7 (North and South Kohala Zone Map), Article 8, Chapter 25 (Zoning Code) of the Hawaii County Code 1983 (2005 Edition), by changing the District Classification from Agricultural (A-20a) to Single-Family Residential (RS- 7.5) for 15 acres of land. The applicant is planning to develop an affordable housing project consisting of 48 self-help single-family units and 32 senior housing rental units on the 15-acre site. Communication No. 765 reports the Hawaii County Planning Commission, as required by Chapter 4, Section 6-4.3(C), Hawaii County Charter, considered the above request and accompanying Bill No. 250 on February 24, 2006. The Commission concurred with the Planning Director's favorable recommendation on this matter. The Planning Director's favorable recommendation transmitted with Communication No. 765 can be summarized as follows: 1. According to their application, HICDC is under contract to purchase the property from the Hawaii Conference Foundation. The applicant is requesting a Change of Zone for the 15 acre site from the Agricultural (A-20a) to the Single-Family Residential (RS-7.5) zoned district. 2. The subject property is located along the north side of the Hawi-Niuli`i Road, within close proximity to the town of Hawi and several other residential neighborhoods. The project site is approximately 600 feet east of the Kohala High and Elementary School complex. Access from the proposed development will be from the Hawi-Niuli`i Road, a State highway with a 22-foot pavement width within an 80-foot right-of--way. 3. The applicants are also requesting a concurrent State Land Use Boundary Amendment (Bill 249) from the Agricultural District to the Urban District. PC REPORT NO. 64 Communication 765 Bi11250 Page 2 of 3 4. The applicants are requesting the State Land Use Boundary Amendment and the Change of Zone so that they may develop affordable housing in North Kohala. HICDC has a waiting list of approximately 270 families in West Hawaii, and over 300 people attended an informational meeting about the proposed affordable housing project in November 2005. The applicant's Change of Zone application states that the homes will be marketed in the $180,000 - $200,000 price range. The 2005 median sales price for asingle-family home in North Kohala was $745,000. The Planning Department's recommendation states that there is "a severe shortage of affordable housing in North Kohala." 5. The approval of the Change of Zone request from the Agricultural (A-20a) to the Single- Family Residential (RS-7.5) zoned district would result in an appropriate land use pattern that will further benefit the public based on the following: • A State Land Use Boundary Amendment (Bill 249) is being concurrently processed with this request. • The housing element of the Hawaii State Plan supports "greater opportunities for Hawai`i's people to secure reasonably priced, safe, sanitary, livable homes," and development of residential azeas sensitive to community needs and surrounding land uses. The project is located in close proximity to Hawi town, in an azea which is adequately served by basic services such as schools, police and fire protection, transportation systems, water, and other utilities. • The action also complements the Land Use and Housing elements of the General Plan by providing additional affordable housing opportunities and by increasing the housing options for residents of North Kohala. The project site is designated for Low Density Urban development by the LUPAG map. • The proposed development is not expected to have a significant adverse impact on neighboring agriculture activities or on traditional, customary Hawaiian rights or resources. ¦ Requisite of the Planning Director's favorable recommendation for the Change of Zone request are sixteen conditions contained in Bill No. 250 that outline specific requirements for the proposed project, including fair share contributions to mitigate potential regional impacts of the development. Condition J of Bill No. 250 states that the fair share requirements listed "may be increased or reduced proportionally if the unit counts are adjusted." At the April 18, 2006 Committee on Planning meeting Mr. Keith Kato was present representing Hawaii Island Community Development Corporation (HICDC). PC REPORT NO. 64 Communication 765 Bi11250 Page 3 of 3 In response to Committee Vice Chair Pete Hoffmann's inquiry how names would be obtained and qualification criteria, Mr. Kato stated that a wait list of names of West Hawaii residents is available and, that the criteria for participation was primarily based upon the USDA rural development program. That program addresses the low median income (80% and below) and the very low (50% and below) and that other criteria would be a willingness and commitment on the part of the household to participate. Mr. Kato said recently a self help program in Hawi had a buy-back period of three years from the date of occupancy which at the time, was the standard buy-back period. With respect to buy-back option in applicant's project, Mr. Kato stated he received communication from USDA informing him that based upon a national review, no buy- back provision will be included if USDA participates. Mr. Hoffmann concluded he would like to see the USDA no buy-back provision implemented and conform the ruling with state guidelines. Mr. Hoffmann stated there is a responsibility upon the Council to make affordable housing happen and work. However, if the program allows for immediate turnaround after completion (at market value with no restrictions), changes must be made to ensure the people on the waiting list that self help affordable housing will be retained for people who really need it. In response to Council Vice Chair Virginia Isbell's inquiry whether applicant is using USDA monies or private funds to develop the project, Mr. Kato responded applicant would be able to do the project if USDA participates. However, if development is not a USDA program, Mr. Kato is not sure applicant could service the low income market and make this project happen. Council Member Bob Jacobson expressed concerns about sales, re-sales and buybacks. He stated he would not be withdrawing his support as most of these people will want to maintain and occupy their homes. However, he noted there will be people profiteering from the program and encouraged that applicant look into methods of protecting taxpayers from self help programs that allow windfalls. Mr. Jacobson concluded a substantial ruling is needed from USDA to protect the interests of the public at large. Council Chair Higa confirmed that of the 190 self help homes applicant has already completed there were one or two in the Ainakea area and one in Hawi that turned over and that values have basically kept up with appraisals. He would support the measure. Committee Vice Chair Pete Hoffmann stated the problem is not how many are going to flip but rather the concern is that these affordable homes are being built in a high range with no restrictions regarding that. Mr. Hoffmann said the project in this particular area would have been contested had it not been an affordable self help and senior housing project. He concluded that while he supports the proposal, he does want to see a report from the USDA and, before final reading, a method of retaining self help housing and windfall prevention. No public testimony was received regarding this matter. PC REPORT NO. 64 Communication 765 Bi11250 Page 4 of 3 Your Committee concurs with the Planning Commission and the Planning Director's favorable recommendation for approval of this Change of Zone request. Your Committee on Planning is in accord with the intent and purpose of Bill No. 250 and recommends it pass first reading. and Hues Noes A&e ex Respectfully submitted, ARAKAKI X HIGA g COMMITTEE O//N//~P//jjjL//ANNING HOLSCHUH J{ HOFFMANN X ~'u~' y~!/' IKEDA J{ IsRELL g K. Angel Pilago, air JACOBSON PILAGO sAFABIx g PC REPORT NO. 64 ADOPTED: MAY ~ T 1006