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HomeMy WebLinkAboutBIL 080 Draft 02 2010-2012COUNTY OF HAWAII STATE OF HAWAII BILL NO. so (DRAFT 2) ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 11, HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO AFFORDABLE HOUSING POLICY. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Chapter 11, article 1, section 11 -3 of the Hawai`i County Code 1983 (2005 Edition, as amended) is amended to read as follows: "Section 11 -3. Definitions. The following words and phrases, unless the context otherwise requires, are defined as follows: (1) "Affordable housing" means dwelling units which may be rented or purchased at cost levels which can be afforded by persons or families who are within the definition of "qualified households," as provided herein; (2) "Affordable housing income guidelines" means those household income levels which shall be published annually by the Office of Housing and Community Development and as described further herein; (3) "Fifteen mile radius" means the distance from the site in question as measured in a straight line from the boundary of the parcel being rezoned; (4) "Qualified households" mean an individual or two or more related by blood, state - sanctioned adoption, foster parentage, guardianship, or marriage, occupying a dwelling unit and whose total household income is within the affordable housing income guidelines or who would otherwise qualify in a state or federal affordable housing program; (5) "Affordable unit" or "affordable housing unit" means a lot or dwelling unit for sale or lease which serves as the primary residence for the respective buyer or renter and is affordable to qualified households earning no more than the percentages of the median income in the County of Hawai`i as stated in this chapter; (6) "Eligible buyer" means a person who meets eligibility requirements, including income limitations, as established by rule. (7) "Homeownership counselor" means a nonprofit or government entity that provides homeownership readiness education within the County; (8) "Agency" shall be the same as is defined under Chapter 2, Article 13, Section 2 -66, Hawai`i County Code 1983 (2005 Edition, as amended); (9) "Office of Housing and Community Development (OHCD)" means the county entity responsible for the planning, administration and operation of all of the County's housing programs with the goal of providing for the development of viable communities in Hawai`i County by providing decent housing, suitable living environments and the expansion of economic opportunities." SECTION 2. Chapter 11, article 1, section 11 -5 of the Hawai`i County Code 1983 (2005 Edition, as amended) is amended to read as follows: "Section 11 -5. Satisfaction of affordable housing requirements. (a) The developer may satisfy the affordable housing requirements by doing any of the following: (1) Construct and sell affordable for -sale units on -site; (2) Construct and sell affordable finished lots on -site, but only if the entire project consists of finished lots; (3) Construct and sell affordable for -sale units off -site, but within a fifteen -mile radius of the project site; (4) Construct and rent affordable rental units on -site, or off -site, within a fifteen -mile radius of the project site; [(5) Pay in lieu fees to the Agency; (6 )] (5) [Provide] Convey to the County or, at the County's direction to a non-profit entity, developable land [;] within a fifteen -mile radius of the project site [, with a value determined by appraisal, that shall be credited against the in lieu fee]. The value of the land to be conveyed shall be determined by appraisal and shall be not less than 100% of the sales price of the affordable homes that the developer would be required to provide if its required credits were earned by selling completed dwelling units to households with a family size of four earning 110% of median income per section 11- 7(a); [(7)] (6) [Provide] Convey to the County or, at the County's direction to a non - profit entity, infrastructure[;] within a fifteen -mile radius of the project site [, that shall be credited against the in lieu fee]. The value of the infrastructure to be conveyed shall be determined by appraisal and shall be not less than 100% of the sales price of the affordable homes that the developer would be required to provide level if its required credits were earned by selling completed dwelling units to households with a family size of four earning 110% of median income per section 11 -7(a). Any infrastructure provided must be directly related to the future provision of affordable housing; f(8) With the approval of the administrator, construct housing on site or off site, that addresses a critical regional housing need, at least equivalent to satisfying the requirements of any sub sections (1) ('I) above, provided that the project must be located within the allowable areas for in lieu fees under sec. 11 12; (9)](7) Obtain excess credits from another developer pursuant to [sec.] section 11 -15. (b) The affordable unit or finished lot shall be completed with road access, drainage, water, electricity, sewer lines, if required, and telephone, and, in the case of finished lots, shall not have unusual site conditions that make it difficult to build a home. (c) Affordable housing credits. The developer shall earn affordable housing credits as follows: (1) Sale of completed dwelling units affordable [fer] to qualified households earning 120- 140% of median: 0.5 credit per unit; (2) Sale of completed dwelling units affordable [for] to qualified households earning 100- 120% of median: 1.0 credit per unit; (3) Sale of completed dwelling units affordable [for] to qualified households earning 80- 100% of median: 1.5 credits per unit; 2 (4) Sale of completed dwelling units affordable [for] to qualified households earning less than 80% of median: 2.0 credits per unit; (5) Construction and rental of rental units affordable [fer] to qualified households earning 100 -120% of median: 0.5 credit per unit; (6) Construction and rental of rental units affordable [fer] to qualified households earning 80 -100% of median: 1.0 credit per unit; (7) Construction and rental of rental units affordable [for] to qualified households earning 60 -80% of median: 1.5 credits per unit; (8) Construction and rental of rental units affordable [for] to qualified households earning less than 60% of median: 2.0 credits per unit; (9) Sale of finished lots affordable [for] to qualified households earning no more than 100% of median: 0.5 credit per lot; (10) Sale of finished lots affordable [for] to qualified households earning no more than 80% of median: 1.0 credit per lot; (11) [Donation] Conveyance of land to a nonprofit corporation or governmental agency for construction of for -sale housing units affordable for qualified households earning no more than 80% of the median, or construction of for -rent housing units affordable for qualified households earning no more than 60% of the median, subject to the approval of the administrator of the feasibility, location, and type of project. After the approval of the administrator, the credits are earned upon the [donation] conveyance of the land: 1.0 credit per unit; (12) A developer shall ensure that each affordable housing unit for which credit was earned or awarded shall comply with resale restrictions established by section 11 -14. (d) Affordable housing percentage requirements. (1) If the developer will satisfy its affordable housing requirements by constructing completed dwelling units for sale or rental, the affordable prices at which the units are sold shall be such that: (A) A minimum of 20% of the required affordable housing credits are earned at a 1 or greater credit per unit level; (B) A minimum of 30% of the required affordable housing credits are earned at a 1.5 or greater credit per unit level; and (C) A minimum of 40% of the required affordable housing credits are earned at the 2 per unit credit level. (2) If the developer will satisfy its affordable housing requirements by offering finished lots, the lots shall be sold at a range of affordable prices, such that: (A) A minimum of 20% of the required affordable housing credits are earned at a .5 or greater per unit credit level; and (B) A minimum of 20% of the required affordable housing credits are earned at the 1.0 per unit credit level (e) The units shall be constructed so that the unit size, the number of bedrooms, and the bedroom sizes of the affordable units are respectively consistent to the unit size, the number of bedrooms, and the bedroom sizes of the market units." 3 SECTION 3. Chapter 11, article 1, section 11 -6 of the Hawai`i County Code 1983 (2005 Edition, as amended) is repealed in its entirety: [ (a) The in lieu fee for a completed dwelling unit shall be twenty five percent of: the actual sales price of the unit minus the affordable price for households earning one hundred twenty percent of the median. The in lieu fee shall be applied against all dwelling units, affordable and market. (b) The in lieu fee for a finished lot shall be twenty five percent of: the actual sales price of the lot minus the affordable price for households earning one hundred percent of the median. The in lieu fee shall be applied against all dwelling units, affordable and market. (c) The in lieu fee for each required affordable dwelling unit for resort, hotel, and industrial uses shall be twenty five percent of: the median sales price for a single family home in the tax map zone containing the project, in the previous calendar year, minus the affordable price for households earning one hundred twenty percent of the median. (d) for rent) shall be twenty five percent of: the median sales price for a single family home in the tax map zone containing the project in the previous calendar year, minus the affordable shall be applied against all dwelling units not offered for sale. "] SECTION 4. Chapter 11, article 1, section 11 -9 of the Hawai`i County Code 1983 (2005 Edition, as amended) is amended to read as follows: "Section 11 -9. Sale of lots and units. (a) Before obtaining final subdivision approval or plan approval for any for -sale residential project subject to the affordable housing requirements, the applicant shall enter into an agreement with the County that the required number of homes or lots will be sold at the required affordable sales price, or that the required number of rental units will be offered for rent at the affordable rental price, [or that the in lieu fee will be paid upon the sale of each for sale dwelling unit or lot,] or that the applicant will obtain excess credits sufficient to satisfy its requirements. (b) Before obtaining final plan approval for any resort, hotel, or industrial project, or not -for- sale residential project subject to the affordable housing requirements, the applicant shall enter into an agreement with the County that the affordable housing requirements will be met before the issuance of a certificate of occupancy for the project. (c) All agreements shall be recorded against the property[, and that the in lieu fee, if applicable, shall be a lien payable upon the closing of sale of each unit or lot or prior to the issuance of a certificate of occupancy under subsection (b)]. (d) All for -sale affordable units and lots shall be sold only to eligible buyers during a ninety -day preferential marketing period. (e) If the developer cannot sell the units or lots to eligible buyers during the ninety -day preferential marketing period, [the units shall be offered for sale to] there shall be a second ninety -day period wherein the developer shall, in consultation with one or more OHCD- approved homeownership counselors, actively market the unsold units or lots to clients of those homeownership counselors, provided those clients either are or may be qualified to 4 purchase the unsold units or lots. If a unit or lot is not under contract for sale by the end of the one hundred and eighty days, such unit or lot shall be offered for sale to persons who are otherwise eligible, but have previously owned a residence, for an additional period of thirty days. If a unit or lot [cannot be sold] is not under contract for sale after the [one hundred twenty day] two hundred ten -day period, the developer may sell the unit or lot to any person at the affordable sales price. [The Agency may also purchase the unit or lot after the ninety day preferential marketing period at the affordable sales price.] Notwithstanding the foregoing, at any time after the initial ninety -day preferential marketing period, the Agency may authorize the County to purchase any unsold unit or lot at the affordable sales price. (f) For sale units shall be sold on aper unit basis using mortgages where the term is fixed for a minimum of at least fifteen years." SECTION 5. Chapter 11, article 1, section 11 -12, of the Hawai`i County Code 1983 (2005 Edition, as amended) is repealed in its entirety: [ "Scction 1 1 1 2. Use ,.fin lieu fees project is necessary to satisfy a critical housing need. "] SECTION 6. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material, and underscoring need not be included. SECTION 7. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity does not affect other provisions or application of the ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are severable. SECTION 8. This ordinance shall take effect upon its approval. , Hawai`i Date of Introduction: Date of 1 st Reading: Date of 2nd Reading: Effective Date: ICEFERENCL: Comm. 299.2 TRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII 5