STAND. COM. REP. NO. 916-06

Honolulu, Hawaii

, 2006

RE: H.B. No. 3202

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 3202 entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

begs leave to report as follows:

The purpose of this bill is to promote the development of affordable housing by authorizing the counties to adopt inclusionary requirements in residential housing developments. Among other things, counties that adopt an inclusionary zoning ordinance:

(1) Are required to implement a requirement for projects where units are offered for rent that at least 15 percent of the units be affordable rental units, unless the developer can prove undue hardship, and of those affordable units:

(a) 50 percent must be affordable to households earning 50 percent or less of the adjusted median family income (MFI); and

(b) 50 percent must be affordable to households earning between 50 and 80 percent of MFI;

(2) Are required to implement an affordability requirement for projects where units are offered for sale as follows:

(a) For projects whose average sales price of a unit is affordable to households earning 80 percent or less of MFI, ten percent of the units must be affordable to households earning 50 percent or less of MFI;

(b) For projects whose average sales price of a unit is affordable to households earning 100 percent or less of MFI, 15 percent of the units must be affordable to households earning 80 percent or less of MFI;

(c) For projects whose average sales price of a unit is affordable to households earning 140 percent or less of MFI, 20 percent of the units must be affordable to households earning 100 percent or less of MFI;

(d) For projects whose average sales price of a unit is affordable to households earning above 140 percent of MFI, 20 percent of the units must be affordable to households earning 140 percent or less of MFI; and

(e) Projects that designate larger percentages of affordable units would qualify for an additional density bonus;

(3) May consider alternative equivalent proposals and requests to accept in-lieu fees instead of meeting the inclusionary requirements; and

(4) Are required to provide certain concessions and incentives and will have the flexibility to offer additional concessions or incentives if the project meets certain conditions.

Habitat for Humanity in Hawaii testified in support of this bill. A member of the Kauai County Council opposed this measure. The Land Use Research Foundation of Hawaii offered comments.

Your Committee has amended this bill by:

(1) Changing the effective date to July 1, 2020, to encourage further discussion; and

(2) Making technical, nonsbustantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3202, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 3202, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT TAKAMINE, Chair