HomeMy WebLinkAboutCOM 0438.001 2006-2008 c;
~w ~k 333 Kilauea Avenue, Second Floor
BOB JACOBSON
Councilmember Ben Franktin Building, Hilo, Hawaii 96720
Chair, Environmental Management Committee Mailing Address: 25 Aupuni Street, Suite 200
•'.;•a.N;w Phone: (808) 961-8263
~c~Chair, Finance Committee Fax: (808) 961-8912
E-Mail: jjaco@co.hawaii.hi.us
HAWAII COUNTY COUNCIL
County ofHawai'i
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May 29, 2007 ti >
~
To. Finance Chair Dom Yagong and Members ca
I am submitting these two amendments to Bi1110b-07 to accomplish what seemed to be the expressed goals
outlined in Comm 438 by Mr. Takaba. I feel that granting this classification to absentee landlortis9vi11'ritit
provide the rental relief that is needed while still protecting income to the County from recital investors. The
relief I envisioned would be that more homeowners or those with "ohana dwellings" would enrol~'in this
program rather than giving across the board tax breaks to large corporations, developers or absentee landlords
that may live elsewhere.
My amendments are in red. Remaining sections of (h) must also be renumbered. J
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:
(h) Eligibility for affordable rental housing class. I
(1) Real prp~erty 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 legally permitted by all codes.
Ll Landowner/~policant must be a resident on the same TMK that is ~
granted the Affordable Rental Houina classification during al( periods
that this classification applies to this property.
New ~3) and renumber remainingsections of (h)
All rental units on affordable rental housingproperties must be rented at
the affordable rental rates.
Ll Affordable rental housing nrooerties shall not be excluded by the
owner's princiQal residence also being on the property
X41 For properties in the affordable rental housingslass as of January 1
2008 the assessed value of the property shall not increase more than
three percent per taxyeaz until the parcel is sold or antipQrtion thereof
sold by way of conveyance which is subjeot to conveyance tax under
terms of chanter 247. Hawaii Revised Statutes, at which time the
prgp_etty will be assessed at market value In addition to the three
percent limit of this subsection an~mnrovements undertaken on the
property within the tax year shall be assessed at market value Ali
pazcels enteringthis class after January I. 2008. shall have the assessed
value as of January 1 of the followinn veaz and be subject to the above
provisions
(i) Application for the affordable rental housing class Comm. Na 8'
Ref. Ttx
District 6 Upper Puna, Ka `G, and South Kona ROf. Date N1Q 3 1
Nawai `i County Is An Equa! Opportunity Provider And Employee
(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 precedine the tax~ear for which such
classification is claimed a claim for such classification in such form as
shall b~prescribed by the dgpartment and shall include but not be
limited to rental agreements signed by the renter or excise tax returns
(2) The landowner shall submit a certification of occypancy by the
r landowner and of rental rates affirming that the rental rates charged to
all renters on th~tpazcel shall be at the affordable rental rate and that
rate will be maimained for the fiscal yeaz
(i) Breach of affordable rental housingclass
(1) Rental of any unit during the fiscal year at a rate higher than the
affordable rental rate shall breach the classification
(2) My conveyance of the pazcel or portion of the parcel subject to
convekance tax under terms of chapter 247 Hawaii Revised Statues
shall breach the classification
(3) UQon breach of the classification. the tax assessment shall be cancelled
reyoactive to the date of the classification. but for not more than a
pgriod of two years ylus the current year and all difference in the
amount of taxes that were ~d and those that would have been due
from the accrccment in the higher classification shall be payable with a
ten percent penalty.
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