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To: Land Use Research Foundation <br /> From: David Callies <br /> In Re: Kauai Housing Policy Ordinance Draft <br /> Date: January 3, 2007 <br /> I. INTRODUCTION <br /> You asked that I review and analyze the Kauai County draft Housing Policy Ordinance <br /> for the purpose of commenting upon its constitutionality under the U.S. Constitution's Fifrh <br /> Amendment as interpreted by the U.S. Supreme Court. The draft appears to require that <br /> residential developments of five or more dwelling units and "large" resort. commercial and <br /> industrial developments provide workforce housing at substantially below prevailing market <br /> prices equivalent to 30% of the total units constructed plus 10% of the project's land area, at the <br /> <br /> time of rezoning or, presumably, if no rezoning is necessary, at a development permitting stage. <br /> Furthermore, such workforce housing must be available within ("integrated...being mixed along <br /> side market units") a residential project area, or suffer a further financial penalty if located <br /> outside such a residential project area. Substantially identical requirements apply to resort, <br /> commercial and industrial developments of 50 or more rooms, or which are estimated to generate <br /> 100 or more new "fulltime equivalent jobs," except that affordable units may be located outside <br /> the project area "where no residential units are produced onsite" without penalty. The sole <br /> "bonus" to which a developer may be entitled is limited expedited permit processing, except for <br /> for projects with 100% workforce housing, at least 51% of which must be affordable, which <br /> projects appear to be entitled to reduced development standards. The balance of the proposed <br /> Housing Policy Ordinance -indeed, most of it - is devoted to ensuring that workforce housing <br /> Comm. No. 200- ~'V <br /> 1 Ref. To: ~ <br /> Ref. Date <br /> <br />