REP FC 100 2020/01/07 2018-2020 - Laserfiche WebLink

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PORT OF THE COMMITTEE ON FINANCE DATE: January 7, 2020 Re: Comm. No. 657/Res. No. 431-20 PLACE: Council Chambers Hilo, Hawaii TIME: 11:10 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 V Your Committee on Finance, to which was referred Resolution No. 431-20,reports as follows: Resolution No. 431-20, transmitted by Council Member Ashley L. Kierkiewicz, via Communication No.657 dated November 27, 2019, directs Hawaii County to strategically address is escalating housing crisis with urgency. This resolution advocates a multi-pronged approach to significantly expand affordable housing opportunities on Hawaii County, including the creation of an Affordable Housing Fund, the establishment of a"Hawai`i County Housing Coalition", and the development of a comprehensive housing plan. Council Member Ashley Kierkiewicz opened discussion stating that this resolution will give direction as to how the County can work in partnership with the community to get things done. There are a lot of studies and information out there so the County can be given directions to move forward. She commented on how many people lost their homes during the lava eruption and are still scrambling for decent housing. Affordable does not necessarily mean cheap, it is what is attainable. Ms. Kierkiewicz stated there are things that can be done in order to stand up housing quickly. The County is looking at how to set up an affordable housing fund. She stated there is interest by the community to set up such fund. Managing Director Roy Takemoto and Housing and Community Development Administrator Duane Hosaka provided a presentation on the Affordable Housing Strategic Plan to demonstrate strong support of the resolution. He stated that one caveat is that the affordable housing trust fund be able to take a fixed percentage off the top, however,there is no determination where the funds will be taken from at this time. He noted that the Maui housing trust fund is set up similar to that of our Public Access, Open Space, and Natural Resources Preservation(PONC) fund. Mr. Takemoto stated they will discuss what they have been doing and noted that on the expertise and factors in delivering affordable housing is beyond the County's control but will be in partnership with the coalition. Mr. Hosaka stated the definition of affordable housing is using no more than 30 percent of a person's income and that any more than 30 percent would cause a hardship. Mr. Takemoto explained the factors that affect housing are land costs, infrastructure, red tape of pen-nit processes, construction methods,materials and supplies, and financing which translates into rent and/or sales price. Government can assist with rent subsidies, interest rates, however, a program the County is exploring is the financial empowerment center which is a one-stop place, where people can drop in and find out what programs are available to suit their needs. Mr. Takemoto talked about the low income tax FC Report No. 100