Panel: Fast-track projects should be 75% affordable
Some want to wait for housing study before big changes made
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MIKE MOLINA – Supports the change
The Maui County Council’s Affordable Housing Committee on Monday voted to recommend approval of a bill that would tighten affordable housing requirements for projects seeking fast-track approval under a state law.
The proposal would require that 201H housing projects would need to have 75 percent affordable units unless a lower percentage, which is greater than 50 percent, is approved by council.
Hawaii’s 201H law, administered by the county, is an expedited path that allows exemptions from certain rules and fees for housing developments with a minimum of 50 percent affordable units.
Although some council members and testifiers cautioned that results from a county-funded affordable housing study should be considered before taking action, the committee Monday evening voted 5-3, with one excused, to move forward with the bill.
Those who voted in favor were Keani Rawlins-Fernandez, Tamara Paltin, Gabe Johnson, Shane Sinenci and Mike Molina. Those against were Alice Lee, Kelly King and Yuki Lei Sugimura. Council member Tasha Kama was excused.
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KELLY KING – Wants to wait for survey
The bill now goes to the full council for first reading.
In urging action sooner than later, Molina, who authored the original bill that was amended in committee Monday, said that he has heard all of the concerns over the years and the need for housing is going to continue to escalate.
“I think we have to decide what our priorities are: The concerns of developers or the concerns of people who need housing,” he said. “I know it’s a fine line we have to walk, but I have to side with the people who need housing.”
He added that the fast-track process is just one option for projects, which have other avenues to gain entitlements.
King said she wanted to wait for the report. She added that putting up proposals then immediately looking for exceptions may cancel out the rule and create administrative challenges for the county’s Department of Housing and Human Concerns.
“If we are going to make these proposals and then try to figure out who can be exempted then why are we making them?” King asked.
Testimony from nearly 20 residents Monday afternoon was mixed, spanning a range of concerns on the hot-button topic of long-needed affordable housing.
A handful of industry leaders testified against the proposal, cautioning against moving too quickly.
“You’ve got a very intelligent person in Jeff Gilbreath and the folks at Hawaiian Community Assets working on a pretty comprehensive affordable housing plan that involves a lot of community input,” said Jason Economou, Realtors Association of Maui’s government affairs director. “You’ve already paid for it — wait until you can realize your investment. See what the community housing plan has to tell you and the guidance it gives before you make large changes to housing policy.”
Gilbreath leads Hawaiian Community Assets, a local nonprofit that was awarded a $130,000 contract from the county in November to engage community to develop the comprehensive affordable housing plan, according to the nonprofit’s website. It is slated for draft review in March by the council and approval in June.
Raymond Michaels, owner of Maui Plumbing, said proposals such as increasing affordability requirements won’t make it easier to get affordable housing. He said the permitting system, a “bureaucratic nightmare to navigate,” needs improvement to mitigate soft costs for developers.
“I’ve lived here my whole life and haven’t seen it this bad,” said Michaels, who is also vice chairman of the Construction Industry of Maui, a Maui Chamber of Commerce Trade Council. “We need more inventory in the market so we can drive costs down. My fear is that this will become unaffordable for developers.”
Bruce U’u, a representative of the Maui Chapter of the Hawaii Carpenters Union, discussed the challenges of trying to build his own home.
He said that cost of materials are skyrocketing. For every $1,000 in materials six months ago, the cost is now $1,600.
“If it was so profitable for develop housing, or if the guidelines that the council created were so influential and positive on developing affordable homes, we wouldn’t be in this crisis right now,” he said. “We would be celebrating an achievement that worked. I think nobody stepped up and said, ‘OK, it didn’t work.’ “
Along with other residents, Karen Comcowich of Lahaina spoke in favor of the proposal.
“The wrong kind of development does not benefit the community in the long run,” she said.
Linda Munsell, deputy director of the county’s Department of Housing and Human Concerns, said during the meeting that Mayor Michael Victorino at the start of his term has been vocal about supporting 201H projects that are at least two-thirds affordable.
Under the 201H law, nine of 13 projects that passed through the Maui County Council were 100 percent affordable.
Also, two of four 201H projects that haven’t yet been presented to council are 100 percent affordable, she added.
“We think that the numbers are suggestive that this (201H process) has been primarily used by 100 percent affordable developers,” Munsell said. “Would the 50 percent have moved up to the 75 percent? We don’t know that.”
In other matters, a bill introduced by Paltin that would amend provisions relating to income groups, along with waitlist period and selection for affordable housing, will be taken up again at 2 p.m. Feb. 10, as the meeting Monday was recessed.
* Kehaulani Cerizo can be reached at kcerizo@mauinews.com.
- MIKE MOLINA – Supports the change
- KELLY KING – Wants to wait for survey