Robert Schaberg: Want more workforce housing on Maui? Start by fixing the code.
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It seems almost every politician who is seeking your vote in November has adopted the same mantra: "Too many of our residents are fleeing to the mainland because they cannot afford to live here anymore. We need more affordable workforce housing units to provide our residents with an opportunity and reason to continue living on Maui."
The 2024 Hawaii Housing Planning Study found Maui County will need approximately 9,742 new affordable workforce housing units by 2025. Unfortunately, the current group of politicians have failed to meet this goal. While a number of Maui County ordinances have been enacted specifically to promote the development of affordable workforce housing, they are not accomplishing their purpose, and changes need to be made.
The primary legislation governing the development of affordable workforce housing in Maui County is the Maui Residential Workforce Housing Policy, enacted in 2006. Prior to final subdivision approval or issuance of a building permit for a development, the Planning Department requires the developer to enter into a residential workforce housing agreement. The agreement must set forth the method by which the developer intends to satisfy the requirements intended to create new workforce housing.
Developments of 10 or more units must set aside at least 25% of those units for local residents. Reserved units target buyers and renters earning 50% to 140% of the Area Median Income. To ensure long-term affordability, the ordinance mandates deed restrictions limiting resale prices and requires developers to select applicants from official county workforce housing waitlists.
The original ordinance set the limit at 50%, but that was reduced to 25% in 2014.
Developers can satisfy the requirement by selling or renting workforce units, conveying units to a qualified housing provider, paying an in-lieu fee, dedicating land or using workforce housing credits.
The in-lieu fee is paid into Maui County's Affordable Housing Fund, which "serves as the primary public fund for planning, land acquisition, infrastructure assessment, and construction of affordable and workforce housing projects."
The in-lieu fee is just one of several sources of money deposited into the fund for the development of affordable housing. The approval of these developments must be accomplished by a resolution of the County Council before any funds can be allocated to a particular development.
While Maui County requires a developer to sell or rent the 25% housing units that are located "within the community plan area," the code doesn't specify what percentage of the required housing units, if any, must be located within the community plan area. As written, the developer has the choice of opting out of these two methods and choosing to construct NO units within the community plan area.
As such, the force and effect of the county's workforce housing requirements are rendered ineffective by these terms and conditions. As a practical matter, more often than not, developers opt to pay a fee to satisfy their workforce housing requirements.
And so all it takes is the payment of a per unit fee to quickly and efficiently satisfy Maui County's requirements and persuade the Maui Police Department, the Planning Commission and the County Council to approve their Special Management Area Permits, entitlements and building permits.
To the developers, this fee is just another cost of doing business that can be passed on to their target purchasers -- nonresident owners intending to offer these units as short-term rentals.
The county's workforce housing requirements are certainly well intended. However, as a practical matter, it seems that they have been ineffective.
The Maui County Council could enact amendments to fix the problem.
The county should set its workforce housing percentage back to 50% -- the same as it was when it was enacted in 2006. This would double the amount of in-lieu fees developers must deposit into the Affordable Housing Fund, and significantly increase the amount of money available for the construction of new affordable housing units.
The county should also amend the code to mandate that 100% of the required housing units are located within the community plan area. Furthermore, no workforce housing credits should be used to satisfy this obligation.
The county should also increase the calculation formula for the in-lieu fee amount, and in connection with the "improved or unimproved land" requirement, mandate that the dedication and approval of that land must occur before any construction on the developer's project may commence.
We need County Council members who are dedicated to actively utilizing the Affordable Housing Fund for the approval, funding and construction of more affordable housing units.
The Fiscal Year 2026 AHF Annual Plan allocated over $42 million for 12 affordable housing projects. The County Council appropriated $47 million for the construction of six housing projects that contained approximately 353 affordable rental units. The FY 2027 AHF Annual Plan is allocating over $75 million for approximately 676 affordable housing units.
This effort by the County Council is commendable. But still inadequate.
The Housing Study predicted that we would need 9,742 units by 2025. We know that 2026 gave us 353 new units. Even if we get the full 676 units proposed for 2027, which is unlikely, that is a total of 1,029, significantly less than 9,742.
The County Council needs to change the ordinance and appropriate more AHF money for the construction of more affordable workforce housing units.
Robert Schaberg is a board member for the Kihei Community Association, a nonprofit organization that focuses on growth, sustainability, infrastructure and quality of life issues in South Maui. For more about KCA, visit gokihei.org.