Meeting Time: January 24, 2024 at 9:00am HST
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Agenda Item

HLU-6 BILL 12 (2023) BILL 12 (2023), AMENDING SUBSECTION 2.96.060(B), MAUI COUNTY CODE, RELATING TO RESIDENTIAL WORKFORCE HOUSING DEED RESTRICTION TIME-PERIODS (HLU-6))

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    Guest User 8 months ago

    Aloha Council Members

    Thank you for taking my testimony on this essential matter. I am opposing Bill 12 and 74 for many reasons.

    According to the US Census, we have 164,351 residents with 72,927 homes. We are severely under-developed for the population. The Realtors Association of Maui approximately 10 years ago informed the Maui County Council at the current rate of permitting and development, we would be 14k homes short for local residents by 2021 beyond. This is to the heart of the matter why we aren’t in good position at this point. Options for development and the infrastructure needed have not come into existence. Some bills like allowing additional ohanas under 7500sf lots are a step in the right direction, but we can do more.

    The biggest reasons for homeownership and the benefits of that are:
    Have shelter and a stable place to live where you know what your payment will be for the term of your loan.
    To build generational stability and quality of life (ie send your children to college, have funds for medical emergencies, downsize and use equity for retirement) All things that lessen the burden on society, create generational stability and growth.
    To build community.

    The rationale that people live in homes for 20 years in not realistic nor proven by statistics. The housing ladder needs many types of housing, and the strength of a community’s housing is determined by the different types and prices of those homes. We have traditionally had a lack of affordable rentals to allow folks to save for a down payment/closing costs, then the next condo/townhome type structures have also been in scarce supply. People traditionally start in starter homes and when their family grows, they step into mid-range homes, and perhaps up once more until retirement when they may consider downsizing.

    To penalize the folks of Maui county with a 20-year lock before they achieve the goals of homeownership is not equitable or fair. This longer restriction is going against the poorest who have the most to gain by being homeowners. Why would the council even consider doing this to the poorest AMI category? To target different AMI groups with different rules is also unfair. All subsidies go toward helping a developer build a community. At the end of the day the developer makes their profit based on the total build. At Hale Kai Ola the most needed category were starter homes of 2 bedrooms. The 3 bedroom homes the developers could build for the most part were too small for families to live in long term. To make 20 years for any category isn’t what homeownership entails. You should not be calling this homeownership but perpetual rentals so at least people will understand this is not really homeownership, it is a rental in disguise. I personally think the subsidies that can be paid back when a homeowner chooses to sell is fairer. Then the subsidy paybacks can in turn go to help buy down rates or provide down payment assistance.

    After the waitlist sales at Hale Kai Ola at least ½ of the people that came to our open houses that were desperate for homes turned us down due to the 20-year deed restriction. One woman commented that her 8 year old would be 28 by the time she could realize any real equity for all those years of upkeep on the home and making the loan payments. If the county isn’t serving ½ of the people that need or want homes, why are they making rules that are discouraging people?

    The county is turning itself into developers and lenders by having rules restricting these two trades from fulfilling our housing needs. Less restrictions, including streamlining permitting - is what's needed. Hale Kai Ola, a Maui County Streamlined 100% affordable housing project, still took over 5 years. Why can permitting problems elsewhere be solved but we can’t do it here? Why are we proposing more deed restrictions instead of getting to the heart of the matter outlined by the County’s paid-for research paper? More homes need to be built!

    Sincerely,
    Regina “Gina” Duncan

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    Guest User 8 months ago

    I do not support these two Bill’s. Why is precious, valuable time being used to further disadvantage the working class with these extreme changes? These Bill’s appear to be fear-driven on a nonexistent issue. As someone who has been stuck renting my entire adult life due to unaffordability in my own hometown, I look forward to the next opportunity for WorkForce housing but having to wait 20-years for access to my own equity on what is supposed to be my biggest asset is not realistic. Google says the average age of a First Time Homebuyer is 33, and often cases older – it’s ridiculous to image having to wait 20-years from whenever the next WorkForce Housing project presents itself and if I got my name chosen in the lottery how old I’d be just to be able to pull out equity to pay for new appliances or whatever other unexpected damages or repairs are needed in that time span.

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    Guest User 8 months ago

    WorkForce Housing is already over-regulated, let’s not add to it and spoil what was supposed to be intended for good. People are so misinformed by “WorkForce Housing” and the difficulty to even get these types of projects approved by the County is shocking since we have been in a housing affordability crisis for so long. Let’s house our local workforce community without the aggressive overreach.

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    Guest User 8 months ago

    January 24, 2024

    Tasha Kama, Chair
    and Members of the Housing and Land Use Committee
    County Council
    200 South High Street
    Wailuku, Hawaii 96793

    Dear Chair Kama and Committee Members,

    I am speaking as a private citizen today and I would like to offer comments on Item HLU 16.

    Regarding Bill 74 attached to HLU – 16, may I suggest that in lieu of restarting the deed restriction upon resale, during the restricted period, the County should exercise its option, as stated in Section 2.96.060 B 2 (c), which allows the County “to purchase the unit from the owner.”

    The Workforce Housing Ordinance authorizes the County the right of first refusal to purchase the home upon resale.

    The County needs to build its affordable housing stock and create more affordable housing, purchasing workforce housing one by one is a step in that direction.

    Consider making the purchase of the unit the law and not an option. Instead of the provision reading: “the County shall have the first option to purchase the unit from the owner,” it should read the “County shall purchase the unit from the owner.”

    By the County purchasing the home, it will remain as affordable in perpetuity because it’s in the control of the County of Maui.

    If the intent of the proposed bill is to maintain affordability, there is no better option than to place the property in the control of the county or its trusted non-profit partners.

    Sincerely,

    Gary Saldana

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    Guest User 8 months ago

    Aloha HLU Committee,

    Your constituents oppose both BILL 12 (2023) & BILL 74 (2023). The reason there isn’t more testimony is because no one is even aware of these Bill’s and more importantly how they specifically hurt our kaiāulu as future homeowners. *In this written testimony I only reference the 10-20 year because it’s the largest majority category. Please know that I understand all the tiers, read both Bill’s entirely, and have ‘Ohana in WorkForce Housing.  

    WorkForce housing has become the only (affordable) way for the majority of your constituents to even make the dream of homeownership a reality. The entire purpose of WorkForce housing is to force the “affordability” within an otherwise unaffordable marketplace to accommodate our qualified local working class. And since there’s never enough inventory to satisfy the demand, their dream only comes true if their name happens to be drawn in the lottery! 

    It’s truly confusing why this Council would believe 10-years — an entire decade — isn’t already a long enough deed restriction. WorkForce Housing is not DHHL or leasehold lands, should not be compared to or have Bills drafted as such, and opposition to these two proposed Bills has nothing to do with people potentially wanting to sell or rent out their property after X amount of years. “Flipping” WorkForce housing is NOT a thing. These two Bill’s are an unnecessary overreach that’s extremely concerning — on what is supposed to be an incentive into fee simple homeownership and helping our people get into the freedoms of homeownership.

    More importantly, for the vast majority of WorkForce housing homeowners who never even intend to sell, they still cannot touch their own home equity for those 10-years regardless if it’s for home repairs, home improvements, putting keiki through college, paying off student loans, have for an emergency  — and it’s being proposed to double this to 20-years?! That’s inexcusably cruel and unnecessary.

    It’s especially hurtful when drafted by and if-passed by Councilmembers who they themselves have the luxury of homeownership without these excessive deed restrictions. Additionally, the public is seeing you approve $50+M of their tax dollars to developers (with YukiLei being the one exception on that vote); yet this Council is going out of the way to create even more disadvantages for your own people with these two Bill’s.. It’s a slap in the face to your working class constituents who deserve the perks of homeownership, just like you.

    The question is why is this Council trying to make homeownership even more difficult for their working class constituents during an emergency housing crisis? These Bills make WorkForce housing less desirable, but maybe that was the intent?! Why though? When only our working class even qualifies for these homes.

    We see how each of you vote. Please vote these two Bill’s down today. For our everyday workforce people. The existing 10-years deed restrictions are long enough to earn access to their own equity. It’s rare if ever that a WorkForce Housing owner has to vacate prior to the current timelines and if they ever needed to there’s an existing process in place — let’s not forget the developer has that long waitlist of everyone who didn’t get their names pulled in the original lottery. 

    Mahalo for your time & serious consideration! 

    God Bless,

    Lifelong Lahaina Resident

    PS: I had every intention to testify live during this committee meeting; however I have been sick and cannot speak louder than a whisper. I really hope our HLU Chair + Councilmembers take the time to actually read this and seriously consider voting these two Bills down — they truly over regulate and directly negatively impact our very own local working class.

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    Guest User 8 months ago

    I support this bill. As a DHHL homeowner with probably the most deed restrictions. I know that I am thriving in my community. Let’s build for our Community and keep homes for the Community.