Loading...
HomeMy WebLinkAboutCOM 0040.002 2010-2012Pete Hoffmann Vice Chair /Councilman District 9 - North and South Kohala HAWAII COUNTY COUNCIL TO: FROM: Date: Subject: Hawai `i County Building 25 Aupuni Street Hilo, Hawai `i 96720 Dominic Yagong, Chair and Members of the Hawaii County Council ( �w fete Hoffmann, Vice Chair February 22, 2011 Proposed Amendments to Bill No. 304; Relating to Impact Fees County of Hawai `i Phone No. Hilo: (808) 961 -8027 Phone No. Waimea: (808) 887 -2043 Fax No.: (808) 887 -2072 E -Mail: poffmann@co.hawaii.hims Holomua Center 64 -1067 Mamalahoa Highway, Suite C -5 Waimea, Hawa4 X6743 _x ..3 Please find below proposed amendments to Bill No. 304. The amendments are illustrated via Ramseyer format; material to be deleted is bracketed and stricken through, material to be added is underscored. The proposed amendments correct formatting errors respective to lettering, and cross references thereto, of the proposed Section 36 -10. No other substantive amendments are proposed herein. The proposed amendments to Bill No. 304 are as follows: Amending Section 36 -10, Affordable Housing, to read: "Section 36 -10. Affordable Housing. (a) For the purposes of this section: "OHCD" means the office of housing and community development or its designated agents and contractors. (b) Designated affordable housing units. (1) The County shall fund the impact fee for new affordable housing units that are restricted for sale or rent to qualified households and eligible buyers. It is the intent of this subsection that the funding of the impact fee by the County shall apply to new units that are recognized by OHCD as satisfying affordable housing requirements pursuant to chapter 11 of this Code, or which earn excess credits pursuant to section 11 -5. (2) To qualify the units for County funding, OHCD shall certify that the units qualify as affordable housing under chapter 11, and that OHCD will monitor compliance Comm. No. T Ref. To: _ G Ref. Date MAR 1 2 011 February 22, 2011 Page 2 of 3 with price and eligibility restrictions, and restrictions on the subsequent transfer of the units, consistent with the requirements of chapter 11. If certification occurs after the issuance of the building permit and payment of the impact fee by the developer, the County shall reimburse the impact fee to the developer. (3) If the unit is released from affordability restrictions on price or buyer eligibility prior to the initial sale of the unit, the developer shall reimburse the affordable housing trust fund for the amount of the impact fee funded by the County. If a rental unit is released from limitations on lease rent prior to the expiration of the term initially agreed upon by OHCD, the owner shall reimburse the affordable housing trust fund for the amount of the impact fee funded by the County. [(b)](c) Eligible buyers of other units. (1) A buyer who purchases a new dwelling unit for which an impact fee had previously been paid, which is not covered under subsection [(a)-,] Q21 shall be eligible for a zero - interest loan from the affordable housing trust fund in an amount equal to the impact fee, provided that: (A) The buyer has been qualified by OHCD as an eligible buyer under the applicable affordable housing guidelines; (B) The dwelling unit is sold at a price which is affordable for families earning no more than one hundred forty percent of the median income for a family of four on the island of Hawaii, as determined by OHCD; and (C) The buyer has never previously received a loan under this subsection or under subsection [(c}:] (d).. (2) The loan shall be provided at the closing of the sale of the unit and shall reduce the amount of the principal mortgage. The loan shall be a recorded lien on the property but shall be subordinated to the principal mortgage. (3) For the purposes of this subsection, the unit does not have to meet the standards of section 11 -5(b), provided it has completed final building inspection as a dwelling unit. (4) The loan shall be repaid to the affordable housing trust fund upon any subsequent transfer of title, provided that repayment shall be deferred if the subsequent transfer complies with the provisions of paragraphs [ r�.'i� ] c 1 A through [(b)( c 1 C . [(c)](d) Owner- builders. (1) A person who builds a home on a parcel owned by that person for their personal residence shall be eligible for a zero - interest loan from the affordable housing trust fund to pay for the impact fee, provided that: (A) The person would, except for the ownership of the parcel, qualify as an eligible buyer; (B) The tax - assessed value of the land does not exceed $100,000; February 22, 2011 Page 3 of 3 (C) The home's gross floor area does not exceed one thousand four hundred square feet in size, excluding carport or garage; and (D) The person has not previously received a loan under this subsection or subsection [(h)-.] (2) The loan shall be a recorded lien against the property but shall be subordinated to any mortgage on the property. (3) The loan shall be repaid to the affordable housing trust fund upon any subsequent transfer of title, provided that repayment shall be deferred if the subsequent transfer complies with the provisions of paragraphs [(b)(1)(A)] c 1 A through [(b)( c( )(1)(C). [(4)](e)The office of housing and community development shall verify eligibility of buyers and renters, sales prices, and other restrictions, in a manner consistent with chapter 11. Calculations of income eligibility shall include the income of all persons to be included on the title of the property, and if a buyer is married, shall include the income of the spouse. [(e)] f) An affordable housing trust fund shall be created to provide funding for the payments and loans referred to herein. The affordable housing trust fund shall not be funded by impact fee receipts. Any reimbursements shall be re- deposited to the affordable housing trust fund." In an effort to conserve resources, no draft copy of Bill No. 304, Draft 2, is attached. Thank you. PH /dh att