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HomeMy WebLinkAboutCOM 0438.004 2006-2008 iv,w ~ BOBJACOBSON - 333KtlaueaAvenue,SecondFloor Ben Franklin Building, lido, Hawaii 96720 Councilmember ' Mailing Address: 25 Aupuni Street, Suite 200 Chair, Environmenta[Mana ementCommittee •~'t'~` $ ~'~.o~.~'~• Phone: (808) 961-8263 Vice-Chair, Finance Committee Fax: (808) 961-8912 E-Mail: jjaco@co.hawaii.hi.us HAWAII COUNTY COUNCIL County of Hawai'a_.5 '1 f.._ June 27, 2007 rv To: Pete Hoffmann, Council Chair, - and Members of the Hawaii County Council From: Council Member Bob Jacobson ~ ; Re: Transmitting Proposed Amendment to 11 106, Draft 3, Relating to Affordable Rental Housing Classification As per the discussion at our last Council meeting on this matter, I am submitting a proposed amendment to Bill 106, Draft 3 that requires a current mazket value evaluation and assessment prior to classification. I consulted with Craig Masuda from our Corporation Counsel office as to the placement and form of this proposed amendment. Submitted here for your consideration is the following proposed amendment to Bill 106, Draft 3: 1. In Section 4, subsection (i), of the bill, a new number (2) has been added to read as follows: No affordable rental housing_classification shall be granted unless and until a Hawaii County Real Progerty Tax Assessor evaluates the proUerty and establishes its current market value. The rest of the section has been renumbered. A new draft of the bill that incorporates the proposed amendment is attached. Mahalo Comm. No. 'T 3 ~ 'Y Ref. To: Ref. Date yUN 2 2~ District 6 -Upper Puna, Ra`[t, and South Xona Hawaii County /s An Equa[ Opportunity Provider And Employer d COUNTY OF HAWAII STATE OF HAWAII ..a BILL NO. 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 HAWA[`I: SECTION 1. The Housing Element of the Hawaii County General Plan (enacted as Ordinance No. OS-25) cleazly 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: "SeMion 19-2. Defigitions. (a) Wherever used in this chapter: "Affordable rental rate" is a monthly rent not to exceed 75% of the Payment Standards as established by the Office of Housin¢ and Communiri Development as of the first of January each veaz. "Affordable rental housind' 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. "Certification of rental rate" means the sworn statement of the oazcel owner attesting under penalty of law the rental rate that the land owner will chaz¢e and maintain for all renters on that pazcel for that calendaz veaz. "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 pazcels that need not be contiguous, and/or the use of property that adheres to generally accepted standards or recognized practices within that agricultural industry. [(3~] "Commercial agricultural use dedication" means the use of land on a continuous and regulaz basis that demonstrates the owner is engaged in commercial agricultural activities from: {{A~} ~ Intensive agriculture; {()3}} Orchards; {(C}} Feed crops and fast rotation forestry; or {{13~} (4~ Pasture and slow rotation forestry. "Continuous and regulaz 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. [(3~] "County" means the County of Hawaii. "Date of classification" means Julv 1 of the tax veaz for which such classification is claimed. [(~J "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 Hawai `i or the director's authorized representative. ((Sj] "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. "Feed crops and fast rotation forestry" includes, but is not limited to, such crops as forage, seed, cane, rice, and biomass gasses. [(k9j] "Intensive agriculture" includes, but is not limited to, such crops as vegetables, ginger, taro, herbs, nurseries, foliage, cut and potted flowers, piggeries, dairy, poultry, feedlots, aquaculture, honey and honey bees. [(-I-1~] "Mazket value" is the most probable sale price of a property in terms of money in a competitive and open market assuming that the buyer and seller are acting prudently and knowledgeably, allowing sufficient time for the sale, and assuming that the transaction is not affected by undue stress. [(-t-~j] "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: f~ Intensive agriculture; Orchards; f 3,) Feed crops and fast rotation forestry; and/or {EBB} ~ Pasture and slow rotation forestry. [(-1-3)] "Orchards" includes, but is not limited to, such crops as macadamia nuts, guava, banana, papaya, avocado, gapes, passion fruit, coffee, citrus, cacao, pineapple, noni and tropical specialty fruits. [(-I4~] "Pasture and slow rotation forestry" includes, but is not limited to, pasture and longer rotation forestry. [(~3~] "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 necessazy 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 Bowing 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) [~tpre~ved-resideAtte4] Residential; (B} [ ]Affordable rental housing; (C) Apartment; (D) Hotel and resort; (E) Commercial; (F) Industrial; (G) Agricultural or native forests; (H) Conservation; and 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 pazcels which are used exclusively as the owner's principal residence shall be classified as "homeowner" without regazd 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) Rea[ property which is used for residential rental purposes, whether for short-term or long-term lease, except as exempted under section 19-71(a)[-] and affordable rental housine. (v) Real property which is used for any purpose other than the owner's principal residence. (~B The affordable rental housine class is exclusively reserved for properties which meet the eli¢ible requirements for this class and have the annual required application timely filed. Uses which shall not gualify as "affordable rental housine" include: (i? Real pronertv which is valued according to its nondedicated ~ricultural use pursuant to section 19-57. ii Real propertv which is dedicated to an agricultural use or native forest use. iii Real property which is used for commercial or income- producine purposes except uses which is legally permitted as a home occupation in accordance with the zoning 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. - ~ sere; er c a.. _e..:a.....:,.i ~.,ata:.... » ; 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 Remtal Housing classification, to read as follows: Eligibility 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 calendar year claimed and must be legally permitted by all codes. All rental units on affordable rental housing properties must be rented at the affordable rental rates. u Affordable rental housin¢ properties shall not be excluded by the owner's principal residence also beine on the property. subsection anv improvements undertaken on the propertv within the tax year shall be assessed at mazket value All parcels entering this class after January 1 2008 shall have the assessed value as of Januarv 1 of the following veaz and be subiect to the above provisions. Application for the affordable rental housing class. (1) No affordable rental housine classification shall be granted unless the claimant shall annually have filed with the department of finance, on or before December 31 preceding the tax veaz for which such classification is claimed a claim for such classification in such form as shall be prescribed the department and shall include but not be limited to rental agreements s~ned by the renter or excise tax returns. No affordable rental housine classification shall be granted unless and until a Hawaii County Real Propertv Tax Assessor evaluates the propertv and establishes its current market value. ~3~The landowner shall submit a certification of rental rates affirming that the rental rates chazged to all renters on that pazcel shall be at the affordable rental rate and that rate will be maintained for the fiscal veaz. Breach of affordable rental housin c~ lass. Rental of anv unit during the fiscal veaz at a rate higher than the affordable rental rate shall breach the classification. Anv convevance of the pazcel or portion of the pazcel subject to convevance tax under terms of chapter 247 Hawaii Revised Statues, shall breach the classification. 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 yeazs plus the current veaz 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 eP nalty 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 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: . COUNCIL BER, COUNTY OF HAWAII Hilo, Hawaii Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: