Aloha e Councilmembers,
I am writing on behalf of Hawaiian Community Assets (HCA) and Hawaii Community Lending (HCL) to support Bill 103 and AH-14(7) and commend this committee in starting the conversation on the need for a more streamlined approval process for housing projects.
In addition, we are providing comments below to discuss the alignment of the proposed bills with the Maui County Comprehensive Affordable Housing Plan that HCA was contracted by the Office of Council Services to complete as well as additional actions our organization recommends for alignment with the plan.
Bill 103
The proposed changes in Bill 103 are consistent with the recommendations in the Maui County Comprehensive Affordable Housing Plan.
As it relates to affordability periods, the plan recommends the following:
All units built under the (2.96 Workforce Housing) program will be required to maintain the original affordability levels for at least 10 years, and longer if the county provides fee waivers and/or Affordable Housing Fund financing in the unit.
In addition, the plan recommended the following as it relates to calculating shared appreciation. This shared appreciation model was vetted by our team of experts and the development community:
Workforce housing owners will gain no equity appreciation for the first 10 years. Starting in year 10 and increasing until year 30 borrowers will receive 2.5% of the equity appreciation on their home for each year they live in the home past 10 years. All subsidies provided by the County will be a lien on the home and must be repaid on sale. The county will have the option to provide subsidy to a new low-income buyer so the home continues to be affordable.
Mahalo for the opportunity to support and provide comments on Bill 103, AH-14(7), and as of right development. Please contact me directly at 808.587.7653 or jeff@hawaiiancommunity.net should you have any questions or need more information.
Sincerely
Jeff Gilbreath
Executive Director
Hawaii Community Lending
November 3, 2022
Aloha e Councilmembers,
I am writing on behalf of Hawaiian Community Assets (HCA) and Hawaii Community Lending (HCL) to support Bill 103 and AH-14(7) and commend this committee in starting the conversation on the need for a more streamlined approval process for housing projects.
In addition, we are providing comments below to discuss the alignment of the proposed bills with the Maui County Comprehensive Affordable Housing Plan that HCA was contracted by the Office of Council Services to complete as well as additional actions our organization recommends for alignment with the plan.
Bill 103
The proposed changes in Bill 103 are consistent with the recommendations in the Maui County Comprehensive Affordable Housing Plan.
As it relates to affordability periods, the plan recommends the following:
All units built under the (2.96 Workforce Housing) program will be required to maintain the original affordability levels for at least 10 years, and longer if the county provides fee waivers and/or Affordable Housing Fund financing in the unit.
In addition, the plan recommended the following as it relates to calculating shared appreciation. This shared appreciation model was vetted by our team of experts and the development community:
Workforce housing owners will gain no equity appreciation for the first 10 years. Starting in year 10 and increasing until year 30 borrowers will receive 2.5% of the equity appreciation on their home for each year they live in the home past 10 years. All subsidies provided by the County will be a lien on the home and must be repaid on sale. The county will have the option to provide subsidy to a new low-income buyer so the home continues to be affordable.
Mahalo for the opportunity to support and provide comments on Bill 103, AH-14(7), and as of right development. Please contact me directly at 808.587.7653 or jeff@hawaiiancommunity.net should you have any questions or need more information.
Sincerely
Jeff Gilbreath
Executive Director
Hawaii Community Lending