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New Maui law caps rent for subsidized units to one-third of a tenant's income

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County-subsidized housing on Maui will soon follow new pricing guidelines. It's the county’s attempt to define affordable housing.

Bill 107 caps the monthly rent for those living in Maui county-subsidized units to a third of a tenant's income.

Maui Councilmember Gabe Johnson says this formula will drastically reduce rents by more than 20%.

"It answers that question we often get, 'What is affordable?' This bill answers that question by giving truly affordable housing by dropping the prices by about 22%. It's really important to our community members," he said.

The new rules will take effect next spring when the U.S. Department of Housing and Urban Development sets the 2023 area median income.

The ordinance also creates a home acquisition fund to help buyers when a developer doesn’t receive county subsidies.

Mayor Mike Victorino signed the bill into law on Tuesday.

Sabrina Bodon is a general assignment reporter at Hawaiʻi Public Radio. Contact her at sbodon@hawaiipublicradio.org or 808-792-8252.
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