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HomeMy WebLinkAboutORD 2014-008 2012-2014 JNtvoF..,..'. COUNTY OF HAWAII STATE OF HAWAII • ,tE.Of•N.i1 BILL NO. 150 (Draft 2) ORDINANCE NO. ' - 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 Hawai`i County Code 1983 (2005 Edition, as amended), is amended to read as follows: "Article 13. [ .] Housing Administration. Division 1. Hawaii County Housing Agency. Section 2-66. Created; scope of authority. (a) An agency to be known as the Hawai`i County housing agency (hereinafter "housing agency") is created to provide adequate housing in the County as it deems necessary. (b) The housing agency shall consist of all of the members of the council. When the council acts as the [Hawai`i County] housing agency, its role is limited to public housing policy formulation and is not charged with the duties of administering housing programs. (c) The housing agency may apply for rental payment assistance funds from private, state, or federal sources. Section 2-67. Purpose[:] of the housing agency. The purpose of the housing agency is to make housing available in those areas of the County where the housing agency finds that adequate housing accommodations are not available. [fit addition, the agency shall carry out the purposes and powers given to the County by virtue of chapter 16, Hawai`i Revised Statutes.] Section 2-68. Powers[:] of the housing agency. The [County] housing agency shall have the following powers subject to applicable limitations of State law: [(a) Authorize and issue bonds under chapters 47 and 19, Hawai`i Revised Statutes, to provide moneys to carry out the purposes of this article including the satisfaction of any guarantees made by the County pursuant to this article;] [(b) Appropriate moneys out of the County to carry out the purposes of this article;] [(c)](1) Obtain loans, insurance and guarantees from the State or the United States, or subsidies from either[;] as applicable; and [(d) Acquire necessary land by dedication, lease, purchase, exchange, or eminent domain;] [(e) Other powers as provided by section 16 15.1, Hawai`i Revised Statutes.] (2) Enter into agreements, as applicable, 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. Division 2. Office of Housing and Community Development. Section 2-69. Housing administrator created[.]; office of housing and community development established. (a) There shall be a housing administrator who shall be appointed by the mayor and may be removed by the mayor. (b) The office of housing and community development shall consist of the housing administrator and necessary staff The housing administrator shall oversee and supervise the operations of the office of housing and community development. Section 2-70. Powers of housing administrator. In order to carry out the [powers in section 2 68;] purposes of this article, the housing administrator may: [(a)](1) Develop and construct dwelling units, alone or in partnership with developers; [(1})](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; [(1) - . . • _ .. - . .. - . '. - • under the provisions of the National Housing Act, as amended, with the approval of the County housing agency; ] [(e)](4) 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; [(#)] (5) Sell or lease completed dwelling units; [(g)](6) Assist in the leasing of private and public dwellings; [(4h)] (7) Acquire and utilize public and private lands for the purposes of this [section;] article; [OA (8) 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 ] (9) [may] Prepare documents for the housing agency to apply for and utilize private, Federal, and State rental payment assistance funds; [(k)] (10) Provide County funds for rental payment assistance for private and public dwellings; and 2 [OA (11) Adopt such rules pursuant to chapter 91, Hawai`i Revised Statutes, as are necessary to carry out the purposes of this article. Section 2-71. Duties of housing 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 [agency.] this article. It shall be the duty of the housing administrator to coordinate operations and programs of the [County housing agency] 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 County housing agency] this article shall be prepared by the housing administrator and transmitted to the council for approval. (c) The housing administrator shall provide clerical support for meetings of the housing agency. Division 3. Funds and Contracts. Section 2-72. Federal funds. If, in exercising any of its powers, the housing agency or 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 County [housing agency] 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 housing agency 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. 3 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 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 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 same as is defined under chapter 2, article 13 [, section 2 66, Hawai`i County Code 1983 (2005 Edition, as amended);] of this Code, therein referred to as the "housing agency." [(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[..-], as provided in chapter 2, article 13 of this Code." 4 SECTION 3. Chapter 11, article 1, section 11-9 of the Hawai`i 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 [Agency] housing administrator may authorize the County to purchase any unsold unit or lot at the affordable sales price." SECTION 4. Chapter 11, article 1, section 11-10 of the Hawai`i 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 housing 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,] County, or, at the election of the housing 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 Hawai`i County Code 1983 (2005 Edition, as amended), is amended to read as follows: "Section 11-11.Rental units. (a) The [Agency] housing administrator 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." 5 SECTION 6. Chapter 11, article 1, section 11-14 of the Hawai`i County Code 1983 (2005 Edition, as amended), is amended to read as follows: "Section 11-14. Resale restrictions. The [Agency] housing administrator 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 housing 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." SECTION 7. Chapter 11, article 1, section 11-19 of the Hawai`i County Code 1983 (2005 Edition, as amended), is amended to read as follows: "Section 11-19. Reports by housing administrator. The housing administrator [shall make] may provide timely periodic reports to the [Agency] 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 8. 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 9. 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. 6 SECTION 10. This ordinance shall take effect upon its approval. INTRODUCED BY: COUNCIL ME ER, COUNTY OF HAWAII Hilo , Hawai`i Date of Introduction: December 18, 2013 Date of 1st Reading: December 18, 2013 Date of 2nd Reading: January 8, 2014 Effective Date: January 27, 2014 REFERENCE Comm, 520.2 7 OFFICE OF THE COUNTY CLERK County of Hawai`i } F Hilo, Hawaii ',i � �� l ': : �7 +`t„ 12' 09 (Draft 2) Introduced By: Brenda J. Ford ROLL CALL VOTE Date Introduced: December 18, 2013 AYES NOES ABS EX First Reading: December 18, 2013 Eoff X Published: N/A Ford X Ilagan X REMARKS Kanuha X Kern X Onishi X Poindexter X Wille X Yoshimoto X Second Reading: January 8 , 2014 9 0 0 0 To Mayor: January 16, 2014 Returned: January 27, 2014 ROLL CALL VOTE Effective: January 27, 2014 AYES NOES ABS EX Published: February 4, 2014 Eoff X Ford X REMARKS: Ilagan X Kanuha X Kern X Onishi X Poindexter X Wille X Yoshimoto X 6 0 3 0 I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as indicated above. COU 'IL CHAIRPERSON c:29-441 C4_ Approved/Di pproved this day of , 20 1 if UNTY CLERK CIO s 150 (Draft 2) Bill No.: MAYOR, COUNTY OF HAWAII Reference: C-520 . 2/HSSSC-1 Ord No.: 11 8