Hawaii County is currently evaluating significant alterations to its affordable housing regulations, sparking discussions amongst officials, developers, and residents. This week, an invitation-only meeting was held to gather feedback on the proposed changes. These revisions could substantially impact the landscape of real estate development and investment within the county, potentially affecting the availability and affordability of housing for residents.
The central focus of the proposed changes appears to be on how to set the maximum rent levels that properties can qualify for the affordable-rental tax classification. The Hawaii County Council recently postponed a vote on a bill proposing adjustments, as concerns were raised over the feasibility of applying a countywide Area Median Income (AMI) to determine rent caps, given the diverse housing markets across the island. The current AMI model could inadvertently inflate rents in lower-cost areas or exclude existing affordable housing units from the program.
Several alternative approaches are being considered by the council. The council members discussed possibilities such as ZIP-code-based exception areas, and averaging 60% and 80% AMI to yield a 70% rate outside high-cost ZIP codes. They are also considering directing the Office of Housing and Community Development to develop a rental-rate methodology. This postponement provides an opportunity for policymakers to refine their strategies and seek additional legal counsel, ensuring the proposed changes are equitable and effective. The County is also taking actions to support affordable housing productions. Hawaii News Now reported on the County of Hawaii’s Office of Housing and Community Development seeking resident input on the island’s housing needs for the Affordable Housing Production Program.
Furthermore, the County has launched the Affordable Housing Production Program, allocating a minimum of $5 million annually to support and increase access to affordable housing. Big Island Now reports the County’s Office of Housing and Community Development issued a request for proposals for the program funding. Those funds are aimed towards the ‘Gap Group,’ or households earning between 81% and 140% of the area median income. By prioritizing the ‘Gap Group’ and sustainable homeownership opportunities, the program seeks to build community stability and wealth for local residents .This multifaceted approach to affordable housing highlights the county's commitment to addressing the housing crisis and creating more opportunities for Hawaii Island residents.
