HomeMy WebLinkAboutCOM 0597.004 1996-1998 CARLSl, . TH BALL WICHMAN CASE _c ICHIIC~
ATTORNEYS AT LAW C~ n~ ~
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121 WAIANUENUE AVENUE
POST OFFICE BOX 686
HILO, HAWAII 96721-0686 ,
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OUR REFERENCE NO. 034466-2
December 3, 1997
James Arakaki John Santangelo
Chairman Chairman
Hawaii County Council County Housing Agency
25 Aupuni Street 25 Aupuni Street
Hilo, Hawaii 96720 Hilo, Hawaii 96720
Re: Bi11 No. 171 to Amend the Hawaii County Code Relating to Affordable
Housing Policy for the County of Hawaii
Dear County Council Members:
On behalf of Pualani Estates, Inc., the developer of the Pualani Estates
Subdivision in Kailua-Kona, this will register Pualani's objections to the proposed Bill
No. 171 which seeks to establish by ordinance an affordable housing policy, which we
understand is materially different from the existing policy implemented by the County of
Hawaii through Resolution No. 65 adopted on May 2, 1990 by the County Council, and
implemented by the County Housing Agency and the Office of Housing and Community
Development ("OHCD") since that date.
Although the County of Hawaii may enact laws which express the Council's
current policy for the affordable housing issue, the County cannot at the same time
extinguish or devalue the legal rights and entitlements of those developers who have gone
through the County of Hawaii's affordable housing sales programs approved by the
County Housing Agency and OHCD. Whether you call the proposed bill a "taking", an
impairment of "franchise" rights or other alternate equitable claim, the bottom line is that
the developers who have fully satisfied their affordable housing requirements, and also
those who are currently holding affordable housing credits granted by the County of
Hawaii, will be prejudiced by the adoption of the proposed bill in its ((yp~~r~~es~entYfmorm.
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James Arakaki
John Santangelo
December 3, 1997
Page 2
Perhaps the clearest example of the devaluation or taking occurs in the
reduction of the in-lieu fee value for each affordable unit, which we understand is
currently approximately $18,000.00 per affordable unit, and is proposed to be reduced in
Bill No. 171 down to $4,655 per affordable unit in 1997 dollars. If adopted, the proposed
bill would devalue each affordable housing unit credit currently held by developers to
approximately only I/3 of their present value. On behalf of Pualani Estates, Inc., this will
formally request that a spread sheet or other documents be provided to us for review on
the methodology and assumptions used in arriving at the current approximate $18,000.00
value, and also for the proposed $4,655 per affordable unit calculation.
Additionally, it appeazs that the proposed bill will allow those developers
who have not timely satisfied their affordable housing requirements under their existing
rezoning ordinances to return to the County Council for a reduction of their affordable
housing requirements, even if those developers obtained their zoning approvals at the
same time as others who may have already satisfied those requirements. This provision
unfairly rewards the delay in satisfying these requirements, and places those who fulfill
their requirements in a timely fashion at a competitive disadvantage.
We hope that the Hawaii County Council will amend Bill No. 171 to
recognize the pre-existing rights of developers who aze holding affordable housing bonus
credits or have otherwise fully satisfied their affordable housing obligations and who will
be placed at a competitive disadvantage as a result of adoption of Bill No. 171 in its
present form.
Very truly yours,
CARLSMITH BALL WICHMAN
CASE & ICHIKI
Steven S.C. Li
SSL:Iny
2003481.1.034466-2
cc: Edwin Taira, OHCD (via facsimile)
Grant Johnston, Pualani Estates, Inc.
Robert D. Triantos, Esq.