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HomeMy WebLinkAboutREP FC 111 05/31/2007 2006-2008 REPORT OF THE COMMITTEE ON FINANCE DATE: May 31, 2007 RE: Comm. No. 438Bi11 No. 106 PLACE: Council Chambers 333 Kilauea Avenue Hilo, Hawaii TIME: 10:00 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Bill No. 106, reports as follows: Bill No. 106, transmitted by Director of Finance William Takaba, via Communication No. 438, dated May 9, 2007, amends Chapter 19, Hawaii County Code 1983 (1995 Edition), Article 1 (Administration), Section 19-2, and Article 7 (Tax Maps; Valuations), Section 19-53, as amended, relating to affordable rental housing. The purpose of this measure is to increase the availability of affordable rentals on the Big Island by offering tax incentive t owners of properties rented at "affordable rates." The following are highlights of the proposal: (1) Affordable Rental Rate, defined as a monthly rent not to exceed 75% of the Payment Standards as established by the Office of Housing and Community Development, (2) Property Classification: anew class of property called "affordable rental housing" will be established, with the qualification requirement being that all rental units on the property must be rented at the affordable rental rates, (3) Benefits: recommends properties in the affordable rental housing class receive a tax rate similaz to the homeowners class. States that this proposal takes a giant step in getting property owners to lower their rents to more affordable levels on the Big Island. Council Member Bob Jacobson submitted a communication for amendments to Bill No. 106, but failed to garner a majority vote. Housekeeping amendments to Bill No. 106 was brought forth by Ms. Leslie Chow, of the Legislative Reseazch Branch. Your Committee on Finance is in accord with the purpose and intent of Bill No. 106 as amended to Draft 2, and recommends it pass first reading. la AYES NOES A&E EX Respectfully submitted, FORD X HIGA x CO ITTEE ON FINANCE HOFFMANN X H{EDA X JACOBSON X W~.~---~ NAEOLE x DOMINIC YAGON , PILAGO x FC REPO N 111 YAGONG X YOSHIMOTO x ADOPTED: JUN 2 O 2OOI