HB2568

Report Title:

Ohana housing units; State incentives for counties

Description:

Provides $5,000,000 over five years in low-interest construction loans administered by the counties and funds administrative costs for the counties to facilitate the permitting process to legalize ohana housing units for lower-income rental housing.

HOUSE OF REPRESENTATIVES	H.B. NO.	2568
TWENTY-THIRD LEGISLATURE, 2006
STATE OF HAWAII

A BILL FOR AN ACT

relating to affordable housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Hawaii faces a critical lack of affordable housing for its people. As property values skyrocket and the available housing inventory continues to decline, ordinary working families are hard-pressed, and far too often unable, to afford rapidly rising rents.

The purpose of this Act is to alleviate the housing squeeze for Hawaii's workers by meeting up to thirty per cent of the expected rental needs of the state's population that earns up to eighty per cent of the median family income as determined by the United States Department of Housing and Urban Development by:

(1) Providing $1,000,000 in low-interest construction loans administered by the counties; and

(2) Funding administrative costs for the counties to facilitate the permitting process,

for ohana housing units for fiscal year 2006-2007.

Estimates suggest that:

(1) With respect to the city and county of Honolulu:

(A) Fifteen thousand, five hundred ninety housing units are needed over five years for households earning up to eighty per cent of the area's median family income; and

(B) The goal of up to thirty per cent in ohana housing units would be four thousand, six hundred seventy-seven units;

(2) With respect to the county of Hawaii:

(A) Two thousand, two hundred forty housing units are needed over five years for households earning up to eighty per cent of the area's median family income; and

(B) The goal of up to thirty per cent in ohana housing units would be six hundred seventy-two units;

(3) With respect to the county of Maui:

(A) Two thousand, seven hundred housing units are needed over five years for households earning up to eighty per cent of the area's median family income; and

(B) The goal of up to thirty per cent in ohana housing units would be eight hundred ten units;

(4) With respect to the county of Kauai:

(A) One thousand, three hundred twenty housing units are needed over five years for households earning up to eighty per cent of the area's median family income; and

(B) The goal of up to thirty per cent in ohana housing units would be three hundred ninety-six units;

and

(5) With respect to the state as a whole:

(A) Twenty-one thousand, eight hundred ninety housing units are needed over five years for households earning up to eighty per cent of the median family income as determined by the United States Department of Housing and Urban Development; and

(B) The goal of up to thirty per cent in ohana housing units would be six thousand, five hundred sixty-seven units.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 for low-interest construction loans to be administered by the counties; provided that:

(1) The loans be used only for the construction or rehabilitation of housing units under section 46-4(c), Hawaii Revised Statutes; and

(2) The counties adopt eligibility rules for the low-interest construction loans, which shall include a restriction that the housing unit under section 46-4(c), Hawaii Revised Statutes, must be rented for at least five years to households earning eighty percent or less of the median family income as determined by the United States Department of Housing and Urban Development.

The sum appropriated shall be expended by the Hawaii housing finance and development administration and distributed to the counties on a first-come, first-served basis for the purposes of this section.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $635,000 or so much thereof as may be necessary for fiscal year 2006-2007 to fund administrative costs for the counties solely to facilitate the permitting process for housing units under section 46-4(c), Hawaii Revised Statutes; provided that the housing units under section 46-4(c), Hawaii Revised Statutes, are reserved as rental housing for at least five years for households earning eighty percent of less of the median family income as determined by the United States Department of Housing and Urban Development.

SECTION 4. This Act shall take effect on July 1, 2006.

INTRODUCED BY:	_____________________________