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HomeMy WebLinkAboutCOM 0126.003 1996-1998 `OJMYY OF M~~1 J. CURTIS TYLER, lll ~y6iN: Tel: (SOS) 961-8273 Councilmember Pax: (SOS) 969-3291 .;'FoX'~~~ RECD I`J~D '97 FEB 5 PEl 4 0`f COUNTY COUNCIL County of Hawa' ~ COUNT'! ULERK Hawaii County BuiNTY OF HAWAII 25 Aupuni Street Hilo, Hawaii 96720 DATE: February 5, 1997 TO: JAMES ARAKAKI, COUNCIL CHAIR HAWAII COUNTY COUNCIL FROM: J. CURTIS TYLER, COUNCILMEMBER HAWAII COUNTY COUNCIL RE: Communication from Roy Mushrush, dated February 5, 1997 relating "Affordable Housing" Please number the attached communication from Roy Mushrush February 5, 1997 regarding comments on "Affordable Housing". I am also requesting that this communication be considered for discussion on the Council Agenda February 7, 1997. Thank you. :ls rsa ~ ate ~ Presented. C04nt j I iL E. Tc: Fxf. l~ate_._~EB 0 7_1997,_, 77-6399 Nalani St., Suite 1-A Kailua-Kona, Hawari 96740 Kona Telephone: (808) 326-5654 Fax (SOS) 326-5697 FEB-05-'97 10:58 T-MUSHRUSH 8083256430 11066-01 RECL~~,~~ February 5, 1997 '97 FEB 5 P.~l 11 47 Mr. Curtis Tyl,r COUNT`' CLERr' Hawaii County Council COUNTY OF HAW,gp 25 Aupuni St. Hilo, HI 96720 Dear Curtis: At Che present times "affordable housing" is merely a pair of buzz words, meaningless in real terms of what is affordably to low income families. Personally, I do not believe that any developer will ever offer truly affordable housing. Given that as a premise, a few years ago I presented a plan which could, in fact, provide truly affordable housing. I would like to re-present that plan herewith: Step 1. To begin, the plan calls for the State to allocate a parcel of land, say 20 acres, at a value representing raw agricul- tural land - perhaps- $5,000 per acre. Step 2. The County and State jointly provide roads and other in- frastructure e.g. water distribution, electricity distribution, etc. at cost. Step 3. Subdivide the tract into ~ acre parcels and sell those at cost. Cost equals the total land value plus total added infra- structure divided by the number of parcels in the tract. No profit is to be added. SCeF 4. Using a consultant, canvass the best manufacturers who produce 'packaged prefabricated homes" for prices on a quantity of 2, 3, and 4 bedroom homes with adequate bath and kitchen facilities. Step 5. Offer to low income applicants land plus a housing pack- age to Eit their needs, including the option of assembling the pack- aged house themselves or hiring non union labor to do the assembly. Step 6. Include in the deed a provision limiting Che escalation of value of the Land to be no more than the annual rate of inflation, and limit the value of the house thereon to the annual inflation rate increase minus depreciation. This step will prevent realtor specula- tion and owner profiteering. Step 7. Offer financing up to 90% of the net cast, at 5% per annum interest rate, with the mortgage held by the lender. idhen I submitted this plan previously to Mayor Akana, I received no acknowledgement of any kind. I realize this plan has unconventional features in it, but obviously conventional approaches are unworkable, because over 50% of the housing cost is land, priced high by the de- veloper to give him his profit. I urge your consideration of this plan and perhaps establishing a citizens committee to work out the details. B s~t Regar Roy Mushrush Fax: 325-6430