HomeMy WebLinkAboutBIL 089 Draft 01 2012-2014OFFICE INFORMATION ONLY
Meeting: Hnman Services and Social Services Committee - September 17, 2013
Action: Withdrawn by introducer (Ford)
Re: Bill 89; Comm. 310 (2012-2014 term)
COUNTY OF HAWAII
ORDINANCE NO.
STATE OF HAWAII
BILL NO. 89
AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 13 AND CHAPTER 11, ARTICLE 1
OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO
THE COUNTY HOUSING AGENCY AND THE OFFICE OF HOUSING AND COMMUNITY
DEVELOPMENT.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`L•
SECTION 1. Chapter 2, article 13, of the Hawaii County Code 1983 (2005 edition, as
amended), is amended to read as follows:
"Article 13. [ ] Office of Housing and Community Development.
Section 2-66. [Created; seope of auth ] Organization; appointment and removal.
[An n „geney to he ,,,,,...,,, as the 14aw ,; County h ;,,n y ; er-eated] There shall be an
office of housing and community development to provide adequate housing in the County as it
deems necessary. [The ageney shall ea silt of all of the members o€ - the -eounei-l. When �
eatineil alets as the Hawai'i County housing ageney, its role is limited to ptiblie hotising poliley
for-mulation and is not charged with the duties of administering housing ] The office of
housing and community development shall consist of a housing administrator and the necessary
staff. The housing administrator shall be aDDointed by the mayor, confirmed by the council, and
may be removed by the mayor
Section 2-67. Purpose.
The purpose of the [ageney] office of housing and community development is to make
housing available in those areas of the County where [the-agene ] it finds that adequate housing
accommodations are not available. [in -addition, the -ageney shall �-rr-y out the purposes and
er, to the County by virtue of',.hapter 46 14aw i'i Revised Statutes.]
Section 2-68. [Eawersj Reserved.
...1..
.fir• I•
•
- - ....!..!S.Tl�l
Section 2-69. [ ] Reserved.
[There shall be ., b ettsing .,,1,. mist, to - who shall be appointed by the mayor and may be
removed by the ,„ N,]
Section 2-70. Powers of housing administrator.
In order to carry out the [p-..-.- ^tio 2 68;] purpose of this article, the housing
administrator may:
[(a)] (1) Develop and construct dwelling units, alone or in partnership with developers;
[(b)](2) Provide assistance and aid to a public agency or person in developing and constructing
new housing and rehabilitating old housing for the elderly of low income, other persons of
low income, and persons displaced by any governmental action, by making long-term
mortgage or interim construction loans available;
[(c-)] (3) Contract with any eligible bidders to provide for construction of urgently needed housing
for persons of low income;
[(d)](4) Enter into agreements with appropriate officials of any agency or instrumentality of the
United States in order to induce such official to make, insure or guarantee mortgage loans
under the provisions of the National Housing Act, as amended, with the approval of the
[Gau ty housing o y] council;
[(e)] Make a direct loan to any qualified buyer for the down payment required by a private
lender to be made by the borrower as a condition of obtaining a loan from the private lender
in the purchase of residential property;
[(0] (6) Sell or lease completed dwelling units;
[(g)J(7) Assist in the leasing of private and public dwellings;
[(h)](8,) Acquire and utilize public and private lands for the purposes of this [see-tio article;
[(i)] (9) Provide interim construction loans to partnerships of which it is a partner and to
developers whose projects qualify for federally assisted project mortgage insurance, or other
similar programs of Federal assistance for persons of low income;
[(j-)] (10) Apply for and utilize Federal and State rental payment assistance funds;
[(k -)](I 1) Provide County funds for rental payment assistance for private and public dwellings;
and
[(I)] (L2) Adopt such rules pursuant to chapter 91, Hawaii Revised Statutes, as are necessary to
carry out the purposes of this article.
Section 2-71. Duties of housin administrator.
(a) The housing administrator shall have direct responsibility for the administration and
operation of the County housing programs and shall be under the direct supervision and
control of the mayor. The housing administrator shall have the authority and responsibility
to staff the [agency] office of housing and community development with necessary
personnel to carry out the purposes of the [agenec ] office of housing and community
development. It shall be the duty of the housing administrator to coordinate operations and
programs of the [ ] office of housing and community development
with the applicable housing plans and programs of the State and Federal governments.
(b) All programs and contracts with the Federal government to carry out the purposes of the
[r,,,u ty housing ,,gene.,] office of housing and community development shall be prepared
by the housing administrator and transmitted to the council for approval.
2
Section 2-72. Federal funds.
If, in exercising any of its powers, the [ageney] office of housing and community
development acquires funds from the Federal government, a separate account for such funds
shall be established and no commingling of such funds with other funds shall take place.
Section 2-73. Signing of contracts.
All instruments and documents relating to the housing programs of the [r,,, my housing
agexey] office of housing and community development shall be signed by the mayor as
authorized by the Charter and the council. Any and all contracts with the United States
department of housing and urban development shall be submitted to the [agency] council for its
approval and any such contract shall be executed by the mayor as authorized by the Charter and
the council.
Section 2-74. Revolving fund created.
There is established a special revolving fund entitled the County housing program revolving
fund to be maintained by the director of finance.
Section 2-75. Use of revolving fund.
The revolving fund shall be utilized to pay for items such as: (a) contractual services,
housing surveys, travel, supplies and materials, and other front-end costs related to the
development of housing, and (b) to exercise the buy-back option running in favor of the County
contained in any conveyance document and to pay the costs of maintaining, repairing, renting, or
reselling units purchased by the County pursuant thereto. Any interest earned by the fund and
any advanced costs that are recovered from housing project funds shall be returned to the
revolving fund.
Section 2-75.1. Housing special funds.
(a) There are created and established housing special funds to be known as the:
(1) Kula` imano Elderly Rental Housing Special Fund.
(2) `Ouli Ekahi Rental Housing Special Fund.
(b) All income generated from each rental housing project shall be deposited into its respective
housing special fund to be expended by the housing administrator solely for the operation,
maintenance and improvement of that particular rental housing project.
(c) The housing administrator shall be responsible for the administration of all housing special
funds in accordance with prescribed laws and procedures applicable to the expenditure of
County funds."
SECTION 2. Chapter 11, article 1, section 11-3 of the Hawaii 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:
3
(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 Hawaii 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 saffle as is defined under ehapter- 2, ai4iele 13, seetion 2 66
14aw.,:'; County ('ode 1993 (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 Hawaii County by providing decent housing, suitable living
environments and the expansion of economic opportunities[...], as provided in chapter
2, article 13 of this Code."
SECTION 3. Chapter 11, article 1, section 11-9 of the Hawaii County Code 1983 (2005
edition, as amended), is amended by amending subsection (e) to read as follows:
"(e) If the developer cannot sell the units or lots to eligible buyers during the ninety -day
preferential marketing period, 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 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 is not
under contract for sale after the two hundred ten-day period, the developer may sell the unit
or lot to any person at the affordable sales price. Notwithstanding the foregoing, at any time
after the initial ninety -day preferential marketing period, the [Agefley] council may
authorize the County to purchase any unsold unit or lot at the affordable sales price."
11
SECTION 4. Chapter 11, article 1, section 11-10 of the Hawaii County Code 1983 (2005
edition, as amended), is amended to read as follows:
"Section 11-10. Buyer of finished lots.
The purchaser of a finished lot that is used to fulfill an affordable housing requirement, and
that is sold during the preferential marketing period, shall enter into a binding contract for the
construction of a residence on the lot within two years of the date of sale, and complete
construction within three years of the date of sale, or, if the purchaser is an owner -builder, shall
commence construction within two years and complete construction within three years of the
date of sale. During this three-year period, the purchaser may sell only to eligible buyers, as
determined by the administrator, and the sales price shall not exceed the original purchase price,
plus an inflation factor based on the increase in the Consumer Price Index for Honolulu, and
reasonable compensation for improvements, if any, made by the purchaser. If the purchaser does
not meet these time limits, the purchaser shall offer to sell the lot to the [Agency,] OHCD, or, at
the election of the administrator, to eligible buyers, at a price that does not exceed the original
purchase price, plus an inflation factor based on the Consumer Price Index for Honolulu, plus
reasonable compensation for improvements, if any, made by the purchaser."
SECTION 5. Chapter 11, article 1, section 11-11 of the Hawaii County Code 1983 (2005
edition, as amended), is amended to read as follows:
"Section 11-11. Rental units.
(a) The [Ageny] OHCD shall determine the affordable rental price for units of various sizes
annually.
(b) The developer shall enter into an agreement with the County that the rental prices on the
units shall be controlled for no less than twenty years after initial occupancy."
SECTION 6. Chapter 11, article 1, section 11-14 of the Hawaii County Code 1983 (2005
edition, as amended), is amended to read as follows:
"Section 11-14. Resale restrictions.
The [Ageney] OHCD shall establish resale restrictions by rule to ensure that units created
under this policy remain affordable. Such rules may include, but not be limited to, buy-back,
shared appreciation, and other restrictions. The administrator may be delegated the authority to
select the resale restriction applicable to a particular project. Notwithstanding any provision or
rule to the contrary, for a period of ten years from the first date of sale of any affordable unit
created in satisfaction of the requirements of this Chapter, said unit may only be sold to another
eligible buyer in the same or lower median income level as the original purchaser of said unit.
Organizations classified under Section 501 (c) of the United States Internal Revenue Code and
those that utilize United States Department of Agriculture funding programs are exempt from
resale restrictions applicable to eligible buyers in the same or lower median income level."
5
SECTION 7. Chapter 11, article 1, section 11-15 of the Hawaii County Code 1983 (2005
edition, as amended), is amended by amending subsection (e) to read as follows:
"(e) If the project applying for the excess credits was developed with a direct subsidy from the
federal, state, or county governments, the administrator shall either (1) discount the excess
credits earned by the value of the subsidy, or (2) require that the [Agency] OHCD or other
public entity subsidizing the project share equitably in the proceeds from the transfer of the
excess credits. If the project was developed by a nonprofit corporation and sold to qualified
households earning not more than 80% of the median, or rented to qualified households
earning not more than 60% of the median, the discount shall not exceed 50% of the credits.
The administrator may waive these requirements if the project earning the excess credits
addresses a critical housing need and the excess credits, in addition to the direct subsidy, are
or were a necessary inducement to the construction of the project, or if the excess credits are
earned by a nonprofit entity that will use the proceeds for the construction of more
affordable housing."
SECTION 8. Chapter 11, article 1, section 11-19 of the Hawaii County Code 1983 (2005
edition, as amended), is amended to read as follows:
"Section 11-19. Reports by administrator.
The administrator shall make timely periodic reports to the [Ageney] council of all
significant actions taken under authority of this chapter, including but not limited to the approval
of excess credits, the acceptance of transferred credits, and the choice of resale restrictions."
SECTION 9. 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 10. Severability. 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.
m
SECTION 11. This ordinance shall take effect upon its approval.
, Hawai`i
Date of Introduction:
Date of 1 st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Corn". 310
INTRODUCED BY:
A470'ezor- 2c'�y
COUNCIL MEMBER, COUNTY OF HAWAII
7