HomeMy WebLinkAboutBIL 106 Draft 01 2006-2008 ~SY 0/
~IL~^
COUNTY OF HAWAII STATE OF HAWAII
~,tt O~~M'Y`'
BILL NO. io6
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 1 (ADMINISTRATION),
SECTION 19-2, AND ARTICLE 7 (TAX MAPS; VALUATIONS), SECTION 19-53, OF THE
HAWAII COUNTY CODE 1983 (2005 EDITION}, AS AMENDED, RELATING TO
AFFORDABLE RENTAL HOUSING CLASSIFICATION.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The Housing Element of the Hawaii County General Plan (enacted as
Ordinance No. OS-25) clearly states that a policy of the County of Hawaii shall be to "increase
rental opportunities and choices in terms of quality, cost, amenity, style and size of housing,
especially for low and moderate income households." Hawaii County has made it a priority to
expand the inventory of affordable housing, including affordable rental units in the County. An
expansion of the class of properties to include affordable rental housing in accordance with the
County of Hawaii Affordable Housing guidelines will provide a financial incentive to rental
owners to rent at affordable rates. This will help to increase the inventory of affordable rental
units available in the County.
SECTION 2. Chapter 19, article 1, section 19-2, Hawaii County Code 1983 (2005
edition), relating to the homeowner class, is amended to read as follows:
Section 19-2. Detnitions.
(a) Wherever used in this chapter:
(1) "Affordable rental rate" is a monthly rent not to exceed
75% of the Payment Standards as established by the
Office of Housing and Community Development as of the
first of January each year.
(2) "Affordable rental housine" means a residential unit where
the rental cost does not exceed the affordable rental rate.
"Agriculture use value" means the productivity value
for assessment purposes determined for lands being put to
any agricultural use.
(4) "Certification of rental rate" means the sworn statement
of the parcel owner attesting under penalty of law that the
rental rate that the land owner will chaz¢e and maintain
for all renters on that pazcel for that fiscal year.
[(~j](5~ "Commercial agricultural activities" shall mean the
use of property to generate income, monetary gain or
economic benefit in the form of money or money's worth
of a minimum $2,000 annual gross income per farm
operation, which may include multiple parcels that need
not be contiguous, and/or the use of property that adheres
to generally accepted standards or recognized practices
within that agricultural industry.
"Commercial agricultural use dedication" means the
use of land on a continuous and regular basis that
demonstrates the owner is engaged in commercial
agricultural activities from:
(A) Intensive agriculture;
(B) Orchards;
(C) Feed crops and fast rotation forestry; or
(D) Pasture and slow rotation forestry.
[(4~](7~ "Continuous and regular basis" shall be evidenced by
the recurring planting, cultivation and harvesting of crops
or ongoing animal husbandry or aquaculture activities that
adhere to generally accepted standards or recognized
practices within that agricultural industry.
[(3j](~ "County" means the County of Hawaii.
(9) "Date of classification" means July 1 of the tax year for
which such classification is claimed.
"Dedicated lands" are lands which are restricted in
their use for specified periods of time by covenants
executed between the landowners and the director of
finance as provided by this chapter.
"Director" means the director of finance of the
County of Hawaii or the director's authorized
representative.
[(8}](12 "Farm dwelling" means asingle-family dwelling
located on and used in direct connection with a farm, or
where the agricultural activity provides income to the
occupant(s) of the dwelling. A farm dwelling includes
employee housing for that farm.
[(9j]~ "Feed crops and fast rotation forestry" includes, but
is not limited to, such crops as forage, seed, cane, rice,
and biomass grasses.
[(~9j]~ "Intensive agriculture" includes, but is not limited
to, such crops as vegetables, ginger, taro, herbs, nurseries,
foliage, cut and potted flowers, piggeries, dairy, poultry,
2
feedlots, aquaculture, honey and honey bees.
[(-1-I)] 15 "Mazket value" is the most probable sale price of a
property in terms of money in a competitive and open
mazket assuming that the buyer and seller aze acting
prudently and knowledgeably, allowing sufficient time for
the sale, and assuming that the transaction is not affected
by undue stress.
"Nondedicated agricultural use assessment" means
the present use of agricultural or residential and
agricultural zoned land on a continuous and regular basis
that demonstrates the owner is engaged in agricultural
activities from:
(A) Intensive agriculture;
(B) Orchards;
(C) Feed crops and fast rotation forestry; and/or
(D) Pasture and slow rotation forestry.
[(~j](~ "Orchazds" includes, but is not limited to, such
crops as macadamia nuts, guava, banana, papaya,
avocado, grapes, passion fruit, coffee, citrus, cacao,
pineapple, noni and tropical specialty fruits.
[(14)](18) "Pasture and slow rotation forestry" includes, but is
not limited to, pasture and longer rotation forestry.
[(~3j](19) "Property" or "real property" means and includes
all land and appurtenances thereof and the buildings,
structures, fences, and improvements erected on or
affixed to the same, and any fixture which is erected on or
affixed to such land, buildings, structures, fences, and
improvements, including all machinery and other
mechanical or other allied equipment and the foundations
thereof, whose use thereof is necessary to the utility of
such land, buildings, structures, fences, and
improvements, or whose removal therefrom cannot be
accomplished without substantial damage to such land,
buildings, structures, fences, and improvements,
excluding, however, any growing crops.
SECTION 3. Chapter 19, article 7, section 19-53(e), Hawaii County Code 1983 (2005
edition), relating to classification of land is amended to read as follows:
(e) Classification of land:
(1) Except as otherwise provided in subsection (e)(2) of this
section, land shall be classified, upon consideration of its
highest and best use, into the following general classes:
(A) [~-r]Residential;
(B) [ ]Affordable rental housing;
(C) Apartment;
3
(D) Hotel and resort;
(E) Commercial;
(F) Industrial;
(G) Agricultural or native forests;
(H) Conservation; and
(I) Homeowner.
(2) In assigning land to one of the general classes the director
of finance shall give major consideration to the districting
established by the land use commission pursuant to chapter
205, Hawaii Revised Statutes, the districting established
by the County in its general plan and zoning ordinance, use
classifications established in the general plan of the State,
and such other factors which influence highest and best
use, except that parcels which are used exclusively as the
owner's principal residence shall be classified as
"homeowner" without regard to the highest and best use,
provided that the director has granted to the owner a home
exemption in accordance with sections 19-71 to 19-72.
(A) The homeowner class is exclusively reserved for
properties which are used as the owner's principal
residence. Uses which shall not qualify as
"homeowner" include:
(i) Real property which is valued according to its
nondedicated agricultural use pursuant to
subsection 19-57.
(ii) Real property which is dedicated to an
agricultural use or native forest use.
(iii) Real property which is used for commercial or
income-producing purposes, except as exempted
under section 19-71 (a) or (b).
(iv) Real property which is used for residential rental
purposes, whether for short-term or long-term
]ease, except as exempted under section 19-
71(a)[:] and affordable rental housing.
(v) Real property which is used for any purpose
other than the owner's principal residence.
(Rl The affordable rental housing class is exclusively
reserved for properties which meet the eligible
requirements for this class and have the annual
required application is timely filed. Uses which shall
not qualify as "affordable rental housing" include:
(i) Real property which is valued according to its
nondedicated agricultural use pursuant to section
19-57.
(iil Real property which is dedicated to an
agricultural use or native forest use.
(iii) Real property which is used for commercial or
4
income-producing purposes except uses which
is legally permitted as a home occupation in
accordance with the Zonin¢ Code.
(3) Whenever there is an overlap or contradiction in districting
or use classification between the County and the State,
zoned districts by the County shall take precedence.
f/A\ '~7 _ '.]n« 'nl» nl.nll .«n Lw.7 . 1.' 1. 1 'F. n.7
L estderittal b~~the a «n.r«,n«. ,.F r.«n«nn ..Yn«
- 'a r' F ' 1,' 1, nr n«,1 l.n..t n «.7
a
i-' t- F IFII rh ..F nr lnn~r .,F rhn C 11 ,...,:«n
Y
I..r F ..lo
[j
n~ .
/n~TLand~ehieli--is in estual single-_====y
_ «b
• •YY
1 1 F «.:1, n:,7n«r:nl 4...:1,7:«n «
J n
Lasr~
o<4T :An«h:nV' nl.nll a..n_~il :.ln«r: nl nln
/ Y n
L[~
-[]pR'IVpVV11G1~
SECTION 4. Chapter 19, article 7, section 19-53, Hawaii County Code 1983 (2005
edition), is amended by adding subsections (h), (i), and (j), relating to Affordable Rental Housing
classification, to read as follows:
Eli i>~
bility for affordable rental housine class.
(1~ Real property occupied as affordable rental housing must
be rented at a rate not to exceed the affordable rental rate
for the entire fiscal year claimed and must be leeally
permitted by all codes.
(21 All rental units on affordable rental housing properties
must be rented at the affordable rental rates.
(3) Affordable rental housing properties shall not be excluded
by the owner's principal residence also beine on the
property.
(4) For properties in the affordable rental housing class as of
January 1 2008 the assessed value of the property shall
not increase more than three percent per tax year until the
5
parcel is sold or anv portion thereof sold by way of
convevance which is subject to convevance tax under terms
of chapter 247 Hawaii Revised Statutes at which time the
propertv will be assessed at market value. In addition to
the three percent limit of this subsection, anv
improvements undertaken on the propertv within the tax
year shall be assessed at market value. All parcels entering
this class after January 1 2008 shall have the assessed
value as of January 1 of the following year and be subject
to the aboveprovisions.
(i) Application for the affordable rental housing class.
~,1) No affordable rental housing classification shall be granted
unless the claimant shall annually have filed with the
department of finance on or before December 31
preceding the tax year for which such classification is
claimed a claim for such classification in such form as
shall be prescribed by the department and shall include but
not be limited to rental a reements signed by the renter or
excise tax returns.
(2) The landowner shall submit a certification of rental rates
affirming that the rental rates charged to all renters on that
parcel shall be at the affordable rental rate and that rate will
be maintained for the fiscal year.
(i) Breach of affordable rental housing class.
(1) Rental of any unit during the fiscal year at a rate higher
than the affordable rental rate shall breach the
classification.
(2) Any conveyance of the parcel or portion of the parcel
subject to convevance tax under terms of chapter 247,
Hawaii Revised Statues, shall breach the classification.
(3) Upon breach of the classification the tax assessment shall
be cancelled retroactive to the date of the classification, but
for not more than a period of two years plus the current
year and all difference in the amount of taxes that were
paid and those that would have been due from the
assessment in the higher classification shall be payable
with a ten percent penalty.
SECTION 5. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed material, and underscoring need
not be included.
SECTION 6. If any provision of this ordinance, or the application thereof to any person
or circumstance is held invalid, such invalidity shall not affect other provisions or applications of
6
the 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 7. This ordinance shall take effect upon its approval.
INTRODUCED BY:
Vbw--~,
COUNCIL MEMB , CO OF HAWAII
Hilo, Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENC?`: Comm. 438
7