HomeMy WebLinkAboutBIL 106 Draft 03 2006-2008 v or pk
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COUNTY OF HAWAII STATE OF HAWAII
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BILL NO. Io6
DRAFT 3
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 ofHawai`i 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 Hawai` i 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. Definitions.
(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
ofStandards
as established by the Office of
Housingand
CommunitCommunity Development
as of the first
ofas
of the first of
Janua~year.
"Affordable rental housing" 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 pazcel owner
attesting under~enalty of law the rental rate that the land owner will charee and
maintain for all renters on that pazcel for that calendar yeaz.
"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 standazds or recognized practices
within that agricultural industry.
[(3~] "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:
f4A~} u Intensive agriculture;
{(1~} ~ Orchards;
~ Feed crops and fast rotation forestry; or
{(B)] Pasture and slow rotation forestry.
[(4~] "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.
[(3~] "County" means the County ofHawai`i.
"Date of classification" means July 1 of the tax year for which such
classification is claimed.
[(6)] "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~] "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.
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[(9)] "Feed crops and fast rotation forestr}~' includes, but is not limited to,
such crops as forage, seed, cane, rice, and biomass grasses.
[(I-9)] "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.
[(~ij] "Market 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.
"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;
{(I8}] Orchards;
{(E}} Feed crops and fast rotation forestry; and/or
{{B}} Pasture and slow rotation forestry.
[(-I-3~] "Orchards" 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.
[(I4~] "Pasture and slow rotation forestry" includes, but is not limited to,
pasture and longer rotation forestry.
"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) [I~'~_,.._,.,, - ~:a°~'~°'] Residential;
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(B) [ ]Affordable rental housing;
(C) Apartment;
(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 lease, except as
exempted under section 19-71(a)[-] and affordable rental
housins•
(v) Real property which is used for any purpose other than the
owner's principal residence.
(B) The affordable rental housing class is exclusively reserved for
properties which meet the eli ibgt le requirements for this class and
have the annual required application timely filed. Uses which shall
not qualify as "affordable rental housing" include:
(i~ Real property which is valued according to its nondedicated
~ricultural use pursuant to section 19-57.
ii Real property which is dedicated to an agricultural use or
native forest use.
iii Real pro~ertv which is used for commercial or income-
~roducing_purposes, except uses which is legally permitted
as a home occupation in accordance with the zonin cg ode.
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(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.
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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:
~ Eligibility for affordable rental housing class.
Real property occupied as affordable rental housing must be rented at a
rate not to exceed the affordable rental rate for the entire calendaz year
claimed and must be lesally permitted by all codes.
All rental units on affordable rental housing_properties must be rented at
the affordable rental rates.
Affordable rental housing properties shall not be excluded by the owner's
principal residence also bein og n the property.
For properties in the affordable rental housing class as of January 1, 2008,
the assessed value of the~roperty shall not increase more than three
percent per tax year until the parcel is sold or any portion thereof sold by
wav of conveyance which is subject to conveyance tax under terms of
chapter 247, Hawaii Revised Statutes, at which time the property will be
assessed at mazket value. In addition to the three percent limit of this
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subsection, any improvements undertaken on the property 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 above provisions.
Application for the affordable rental housin cg lass.
No affordable rental housin¢ classification shall be granted unless the
claimant shall annually have filed with the department of finance on or
before December 31 preceding the tax~ear 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
si¢ned by the renter or excise tax returns.
The landowner shall submit a certification of rental rates affirmin¢ 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 calendar year.
Breach of affordable rental housin cg lass.
Rental of any unit during the calendar yeaz at a rate higher than the
affordable rental rate shall breach the classification.
Any conveyance of the parcel or portion of the pazcel subject to
conveyance tax under terms of chapter 247, Hawaii Revised Statutes,
shall breach the classification.
Uaon 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
ep naltk„
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
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end, the provisions of this ordinance are declared to be severable.
SECTION 7. This ordinance shall take effect upon its approval.
INTRODUCED BY:
c-(~°
COUNCIL MEMB COUNTY OF AI`I
Hilo, Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE: Comm. °,.~.5
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