Why would a developer build affordable housing?

Why would a developer build affordable housing?







Incentives 

Under this five-year pilot project, property owners who build new affordable rental housing projects are eligible to receive: 

• 10-year waiver on property taxes 

• 90-day permitting process that dramatically speeds up development (normally, permitting can take years) 

• Waiver on many permitting fees, including plan review and park dedication fees 

• Waiver on car and bike parking requirements, leaving more property available for development 

• Waiver on elevator requirements 

• Waiver on wastewater facility fees and hook-ups 

• Greater density opportunities (the ability to exceed normal height restrictions or lot line restrictions, for example) 

Combined, these incentives present property owners a unique opportunity to create a residential development more quickly and more cost effectively than ever before. 


For a full list of incentives, visit 

honolulu.gov/housing/affordable-housing.html. 

----

Aloha Friends and Neighbors, 

The above was pulled from Bank Of America's E-Book for how to use Bill 7 (for developers). 

ADDITIONAL incentives include, but are not limited to: 

  • Wastewater system facility charges are waived for Bill 7 projects. 


  • Subdivision requirements under ROH Chapter 22 do not apply to Bill 7 projects.


  • That portion of real property used for affordable rental housing units and construction work under Bill 7 are exempt from real property tax for a ten-year period. 


  • Bill 1 / Ordinance 21-12 provides grants to incentivize the construction of Bill 7 projects.  Developers may receive up to $9,000 or $15,000 per unit, depending on the AMI.

330 kuulei is going to be a 40 unit building - what's 40k x 9000? 40k x 15000?


If this fixes houselessness and affordability in hawaii, I'm all for it.... But I doubt it. I think we should be looking at taxing non-hawaiian resident real estate investors, moratorium or tax on airbnb, non-residents with multiple empty vacation homes, residency requirements for purchasing (if you want to purchase, you must live in the home for 51% of the year, realistic property value appraisals, etc .

I think these would move the needle. 

In medicine we talk about treating the root of the problem. 

What's the root of the lack of affordable housing? 

Overseas real estate investors?
Over extraction of wealth from the housing market?
Real property evaluations that are inflated? 
Livable wages not matching up with living expenses?
Lack of tax credits for Hawaii residents?
Too many tax breaks, credits and incentives for folks who don't live here to purchase and drive up prices?

There's a lot more to the discussion of affordability than just building "affordable housing" which I put in quotes, because its more of a tax designation than a descriptor imho. Affordable housing (houses that are affordable) and "affordable housing" projects defined by bill 7, are different things, and need clarification. 


Anyway, not to ramble on, I hope that helps. 

Humbly, 

David Santander

--------------

How to Get Involved: 

Let them know if you are for or against Bill 7 and the 330 Kuulei project being built beyond and above the town’s 40 foot height limit laws! [whatever you do, please be kind]



1). Contact The Department Of Planning And Permitting 


Dawn Takeuchi Apuna - Director

Jiro Sumada - Deputy Director

Department of Planning and Permits

dpp@honolulu.gov

“For complaints and investigations, call” (808) 768-8116


*** These folks are the ones who can allow or stop this project! ***


Here’s the link to their directory: https://www.honolulu.gov/dpp/organization-contacts.html


2). Contact Kailua town Board Members and let them know how you feel: 

levani.knb@gmail.com, wellerge@manaikaika.com, ctomasa@gmail.com, code900@aol.com, billhicksknb@gmail.com, donnawong967@gmail.com, jade.lau.808@outlook.com, treckers001@hawaii.rr.com, kelliann.hawaii@gmail.com, josiahakau@mac.com, cmiyashiro.knb@gmail.com. 


3). Contact your Media outlets and let them know how you feel. 

Civil Beat: news@civilbeat.org

My kailua: mykailua808@gmail.com 

Ian Lind - journalist https://www.ilind.net/2023/06/02/kahala-at-dawn/





Location: Kailua, HI, USA

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