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Home My WebLink AboutCommunication No 2022-02 -OHCD PresentationHAWAII COUNTY OFFICE OF HOUSING & COMMUNITY DEVELOPMENT (OHCD) PRESENTED TO: CDP JOINT ACTION COMMITTEE JANUARY 19, 2022 Communication Number 2022-02 Housing and 201H Presentation HAWAII COUNTY HOUSING NEEDS •In 2019, the Office of Housing & Community Development partnered with SMS to conduct a Housing Planning Study. •There is a projected need of10,796 Affordable Housing units needed from 2020-2025 for households at 140% AMI or below Figures based on 2019 SMS Housing Planning Study, found here: 2019 Hawaii Housing Planning Study - Laserfiche WebLink (hawaiicounty.gov) Communication Number 2022-02 Housing and 201H Presentation HOUSING NEEDS BASED ON INCOME Figures based on 2019 SMS Housing Planning Study, found here: 2019 Hawaii Housing Planning Study - Laserfiche WebLink (hawaiicounty.gov) •The needs in Hawaii County are significantly higher than the other neighboring islands •Households of 80% AMI and below make up almost 70% of the total housing demand (up to 140%AMI) •The estimated number of needed housing units does not include homeless households or households with special needs. Including units required to accommodate persons entering the housing market from a homeless or residential treatment facility would increase the number of needed units. Communication Number 2022-02 Housing and 201H Presentation IMPACTS OF LIMITED HOUSING OPTIONS •Safe affordable housing can improve people’s overall heath through safer environments and decreased stress, improved educational performance/outcomes for children, greater stability for household members, and a means to build wealth for homeowners •More affordable housing options can also impact the community as a whole by reducing traffic, lower health care costs, lower crime rates, and reduce spending to homeless/social services Statements based on ALICE 2020 REPORT: A Study in Financial Hardship in Hawaii | Aloha United Way (auw.org) Communication Number 2022-02 Housing and 201H Presentation WHY NOT DEVELOP AFFORDABLE HOUSING? •The bottom line is that affordable housing is not as profitable as market-rate housing or transient housing such as vacation homes or condominiums. •The OHCD works with developers by creating tools to make affordable housing projects financially feasible. •One of the most commonly used tools is the 201H application Communication Number 2022-02 Housing and 201H Presentation WHAT IS §201H-38 HRS? ·HRS §201H-38 allows for the OHCD to facilitate developer exemption requests in order to create more affordable housing projects. ·Common exemptions include permitting fees, re-zoning, planning requirements, fair share contributions, density restrictions, parking requirements, and roadway improvements. ·NOTE: Health & Safety measures may never be exempted. Communication Number 2022-02 Housing and 201H Presentation WHAT IS THE PROCEDURE FOR A “201H APPLICATION”? 1.The developer must hold a public meeting to discuss the project with the community. 2.An application is completed by the developer and submitted to the OHCD office for review. 3.The application is distributed to State and County Departments for 30-days for review and comments. 4.The application is submitted to the Planning Committee. 5.If/When approved, the Planning Committee will send the application to County Council for final approval. Communication Number 2022-02 Housing and 201H Presentation WHY WOULD A DEVELOPER WANT TO USE THE 201H APPLICATION? REZONING CAN BE COMPLETED WITHOUT TRIGGERING PLANNING REQUIREMENTS FAIR-SHARE CONTRIBUTIONS DO NOT APPLY. MULTIPLE EXEMPTIONS MAY BE REQUESTED UNDER THE SAME APPLICATION TO ACHIEVE BOTH COST SAVINGS AND SPECIAL CONDITIONS FOR A PROJECT. EXAMPLE: A DEVELOPER MAY REQUEST TO REZONE, WAIVE PERMIT FEES, AND SETBACK REQUIREMENTS. REQUESTS ARE EXPEDITED. ONCE PRESENTED FOR THE PLANNING COMMITTEE AGENDA, A 45-DAY CLOCK IS INITIATED. IF A DETERMINATION IS NOT MADE WITHIN 45-DAYS, THEN IT WILL BE DEEMED APPROVED ON THE 46TH DAY. Communication Number 2022-02 Housing and 201H Presentation WHO IS ELIGIBLE FOR EXEMPTIONS? •Private and non-profit developers may apply •The project must not contravene any health and safety standards. At a minimum, the developer must present published compliance with Chapter 343, HRS, proof of potable water, an approved wastewater disposal system, proof that the project is outside of a flood zone and proof of FUDS (Formerly Used Defense Site) clearance when applicable. •All 201H Applications trigger an affordable housing obligation. All 201H applicants are obligated to create affordable housing units that equate to 50%, plus 1 of the total amount of sale units, rentals, or lots of the entire project. Communication Number 2022-02 Housing and 201H Presentation EXAMPLES OF 201H PROJECTS There were (3) 201H projects submitted proposals in 2021 •Honua’ula Living Community (100% Affordable) •Hale Ola O Mohouli (100% Affordable) •Waikoloa Village Center (100% Affordable) Communication Number 2022-02 Housing and 201H Presentation HONUA’ULA LIVING COMMUNITY The developer requested a change of zoning and waiver for permitting fees. The application was approved by County Council in September 2021. The multi-family facility will produce (112) one-, two-, three-, and four- bedroom units for renters with a household income below 60% of the Area Median Income (AMI) CONCEPT PLAN Communication Number 2022-02 Housing and 201H Presentation HALE OLA O MOHOULI The developer has requested a change in zoning and a reduction of set-back between buildings. The project will be presented before the Planning Committee in February 2022. The “pocket neighborhood” concept will create 90 units (60 family & 30 Elderly) to renters with a household income below 60% AMI. Single Story Residential (yellow) Community Center Multi-Story Residential Emergency Dispatch Hale Ola O Mohouli Site Communication Number 2022-02 Housing and 201H Presentation WAIKOLOA VILLAGE CENTER This developer has requested exemptions which are currently being evaluated by OHCD. The 201H application was submitted in December 2021. This project uses a “self-subsidizing” concept for 200 affordable housing units by including commercial and light-industrial space. The household incomes for targeted renters are being evaluated. Communication Number 2022-02 Housing and 201H Presentation STRATEGIC ROADMAP TO INCREASE AFFORDABLE HOUSING Regulatory Reform: This includes a comprehensive review of Hawaii County’s inclusionary zoning code, Chapter 11 Hawaii County Code (HCC) in partnership with a third-party consultant. Evaluation is expected to be completed in July 2022. OHCD is in communication with the Planning Department to similarly evaluate Chapter 23 HCC (Subdivisions) and Chapter 25 HCC. (Zoning) Create a program to develop Affordable Housing on existing County and State- owned lands and acquiring new land for future projects. Building a County-owned affordable rental portfolio through acquisition of existing, or construction of, new homes for those in the lower AMI’s with a contracted Property Management company for management of the rental portfolio. Establishing a Housing Fund and seeking other sources of funding to promote affordable housing development. Communication Number 2022-02 Housing and 201H Presentation THANK YOU FOR YOUR CONTINUED SUPPORT! Contact Details for the Office of Housing & Community Development: Email: ohcddev@hawaiicounty.gov Hilo: Office of Housing & Community Development 1990 Kinoole #102 Hilo, Hawaii 96720 (808)961-8379 Kona: Office of Housing & Community Development West Hawaii Civic Center – Building B, 2nd Floor 74-5044 Ane Keohokalole Highway Kailua Kona, Hawaii 96740 (808)323-4300 Communication Number 2022-02 Housing and 201H Presentation