COM 0200.022 2006-2008 - Laserfiche WebLink

Home

Mtn a M1y, 40J. ~ '••Y ~ • Harry Kim Christopher J.1 ueu Mayor Director ~'+~•t•o;~N+' Brad Kurokawa, ASLA LEER®AP /fi~ix~ytt Q.t '~j~~.~ll Deputy Director PLANNING Dl4EP~As+RiTUMENT 101 Pauahi Street, Suite 3 Hilo, Hawaii 967203043 (808) 961-8288 FAX (808) 961-8742 r. r-± v -T] .:7 April 9, 2007 4.J Honorable Pete Hoffmann Chair and Presiding Officer and Members of the County Council ~ COUNTY COUNCIL 333 Kilauea Avenue, Second Floor Hilo, HI 96720 Dear Chair Hoffmann and Members of the County Council: SUBJECT: BILL 156, DRAFT 4 -AFFORDABLE HOUSING REQUIREMENTS There was a considerable discussion in the council meeting on Apri14, 2007, about how the affordable housing problem on this island differs by region, and the concept that we do not want to discourage job generation in azeas where affordable housing is currently available. It is worth mentioning that Bill 156, draft 4, and the current Chap. 11, do contain a mechanism that reduces or eliminates the affordable housing requirement for industrial uses in districts where housing is relatively affordable. This comes from the way that the "in-lieu" fee works in such situations. The in-lieu fee is one option for a developer to fulfill affordable housing requirements. For resort and industrial uses, the in-lieu fee, per required affordable housing credit, is 25% of the difference between the median sale price for single-family homes in the tax map zone containing the project, in the previous year, and the affordable price for a family earning 120% of the median. In Hawaii County, currently, the affordable price for a family earning 120% of the median is about $272,000. (This would be a family of four with a family income of about $66,000/yr.) To take one example of how the in-lieu fee for an industrial project under Bill 156, draft 4 would work, the median sales price for asingle-family home in North Kona was $645,000. So the in- lieu fee, per credit, is (.25) X ($645,000-$272,000), or $93,250. Now, under Bill 156, Draft 4, the subdivider in an industrial park that had an affordable housing requirement, if it was satisfied at the time of subdivision, would have to earn one credit for every ten employees, and would be assumed to generate ten employees per acre. This means that the subdivider would have to earn one credit per acre, and the in-lieu fee would be $93,250/acre. •Z, Z Comm. No. Ref. Tg:Prespx Ref. C}ate GPR 1 fi 2007 Hawaii County is an Equa( Opportunity Provider and Employer.