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.
AH-14(7)
The proposed changes to Maui County Code chapter 3.35 are consistent with the recommendations in the Maui County Comprehensive Affordable Housing Plan.
Our team highly encourages the committee to pass this bill as it would allow for funding from the Affordable Housing Fund to support direct subsidies to local homebuyers.
In addition, our organization recommends the committee and council consider additional changes to Maui County Code chapter 3.35 and 3.34 that would expand eligible uses of funds and codify recommendations included in the Maui County Comprehensive Affordable Housing Plan.
These recommended changes include the following:
Recommended Changes to 3.34
Expand eligible uses of funds to include:
▪ First-time homebuyer gap financing, deferred payment mortgages
▪ Rental housing gap financing
▪ ʻOhana and ADU development, individual septic and wastewater systems, and long-term financing
▪ Rehabilitation of existing structures
▪ Provision of housing counseling services and the development of a pre-qualified list of eligible buyers and renters
Additional recommended changes include:
▪ Secure loans from the fund with a deferred payment mortgage in the highest position
achievable
▪ Generally, funds provided will not include interest. If interest is charged, the rate will
not exceed two percent per annum for homeownership properties and three percent
per annum for rental properties. All payments will be deferred until sale or refinance
▪ Limit borrower default actions to forfeiting land or property to the county or full
repayment of the principal balance without interest
Recommended Changes to 3.35
▪ Generally, funds provided will not include interest. If interest is charged, the rate will
not exceed two percent per annum for homeownership properties and three percent
per annum for rental properties. All payments will be deferred until sale or refinance
▪ If the fund is used to pay for community serving infrastructure, the department shall
establish a fair reimbursement for the market rate units benefitted by the infrastructure.
Market rate units will reimburse the fund at building permit. Reimbursements will be
permanently set aside in the affordable housing fund.
▪ Limit borrower default actions to forfeiting land or property to the county or full
repayment of the principal balance without interest
▪ The Department of Housing and Human Concerns will be responsible for managing a
community oversight board responsible for developing an affordable housing fund
annual plan. The committee shall consist of nine members with one-third private sector
representatives, one-third community members, and one-third public representatives
including the chair of the council’s affordable housing committee. Committee members
will serve five-year terms and be responsible for reviewing, scoring, and recommending
grant and loan applications made to the fund. The department shall coordinate and
conduct at least monthly committee meetings. The department shall propose an
affordable housing fund annual plan based on committee member recommendations.
▪ Report annually to the council on targets and metrics for the Affordable Housing Plan.
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.
AH-14(7)
The proposed changes to Maui County Code chapter 3.35 are consistent with the recommendations in the Maui County Comprehensive Affordable Housing Plan.
Our team highly encourages the committee to pass this bill as it would allow for funding from the Affordable Housing Fund to support direct subsidies to local homebuyers.
In addition, our organization recommends the committee and council consider additional changes to Maui County Code chapter 3.35 and 3.34 that would expand eligible uses of funds and codify recommendations included in the Maui County Comprehensive Affordable Housing Plan.
These recommended changes include the following:
Recommended Changes to 3.34
Expand eligible uses of funds to include:
▪ First-time homebuyer gap financing, deferred payment mortgages
▪ Rental housing gap financing
▪ ʻOhana and ADU development, individual septic and wastewater systems, and long-term financing
▪ Rehabilitation of existing structures
▪ Provision of housing counseling services and the development of a pre-qualified list of eligible buyers and renters
Additional recommended changes include:
▪ Secure loans from the fund with a deferred payment mortgage in the highest position
achievable
▪ Generally, funds provided will not include interest. If interest is charged, the rate will
not exceed two percent per annum for homeownership properties and three percent
per annum for rental properties. All payments will be deferred until sale or refinance
▪ Limit borrower default actions to forfeiting land or property to the county or full
repayment of the principal balance without interest
Recommended Changes to 3.35
▪ Generally, funds provided will not include interest. If interest is charged, the rate will
not exceed two percent per annum for homeownership properties and three percent
per annum for rental properties. All payments will be deferred until sale or refinance
▪ If the fund is used to pay for community serving infrastructure, the department shall
establish a fair reimbursement for the market rate units benefitted by the infrastructure.
Market rate units will reimburse the fund at building permit. Reimbursements will be
permanently set aside in the affordable housing fund.
▪ Limit borrower default actions to forfeiting land or property to the county or full
repayment of the principal balance without interest
▪ The Department of Housing and Human Concerns will be responsible for managing a
community oversight board responsible for developing an affordable housing fund
annual plan. The committee shall consist of nine members with one-third private sector
representatives, one-third community members, and one-third public representatives
including the chair of the council’s affordable housing committee. Committee members
will serve five-year terms and be responsible for reviewing, scoring, and recommending
grant and loan applications made to the fund. The department shall coordinate and
conduct at least monthly committee meetings. The department shall propose an
affordable housing fund annual plan based on committee member recommendations.
▪ Report annually to the council on targets and metrics for the Affordable Housing Plan.
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