Hawaiʻi's four county councils could have less oversight over new affordable housing developments.
State lawmakers are advancing a measure that would not allow county councils to impose conditions or median income restrictions stricter than the ones established by the state — if those conditions will increase the cost of the project. The measure would also not allow counties to reduce fee waivers for these projects.
The measure would cover 201-H projects, where the state grants exemptions to many planning, zoning and land use requirements. Those exemptions apply if they reserve over half the building for those making 140% of the annual median income or less.
Rep. Della Au Bellati voted yes on the measure, but with reservations.
"In my district, I have a number of residents throughout the district, different groups concerned with affordable housing that is coming up, and they often feel like they have no recourse, no way to express their community concerns,” she said.
“If the legislative body at the county level is one place that they will be able to do that, this foreclosure of that opportunity raises some serious concerns for me, simply because I am hearing more and more concerns raised by community members who want to be engaged in the system and feel like their voices are being cut out.”
Balancing community concerns with the need for workforce housing
However, Rep. Luke Evslin who chairs the Housing Committee explained that this is a way to streamline development for the needed workforce housing.
"The current process ensures that there's two layers of discretionary review, both through the [Hawaiʻi Housing Finance and Development Corporation] and at the county council level,” he said.
"The councils do still have the authority to potentially change the design of the project based on community concerns and ultimately to also reject the project. The intention here is just to reduce a duplicative discretionary review process with the intention of expediting the development of workforce housing.”
The Hawaiʻi Housing Finance and Development Corporation supported the measure in written testimony, saying increases in cost to the project can make it difficult to build.
But the Hawai‘i State Association of Counties opposes the measure. They were concerned about the lack of input from the community and said it may cause county councils to reject projects instead of modifying them.
In written testimony against the measure, Honolulu City Councilmember Esther Kiaʻāina warned that it undermines the city’s intimate knowledge of the area and would shift the balance of power to developers.
"In order for the 201-H program to be successful, HHFDC and the counties must be able to effectively exercise their respective responsibilities. HHFDC is charged with overseeing affordable housing financing and development across Hawai‘i, however, it does not have experience or expertise in implementing land use, zoning, planning, and construction standards in the various counties,” she wrote.
"This kuleana is entrusted to the counties for good reason — county planning staff have intimate knowledge of the specific circumstances and needs of an area. HHFDC cannot be expected to understand the landscape of challenges in each community.”
Rep. Tina Grandinetti used Kuilei Place, a 201-H project, which broke ground on Wednesday, as an example of the city councilʻs input in a project.
"When the county reviewed the project, they added 105 affordable housing units, lowered [annual median income] categories and extended the period in which units were offered solely to Hawaiʻi residents from 30 days to 60 days,” she said during the floor vote.
"I really understand that can result in short-term setbacks and delays, having to figure out adjustments to financing, but I do think in the end, those 105 additional affordable housing units are a net gain for our community but I understand it’s a delicate balance.”
The measure was sent back to the Senate after passing out of the House. The chamber has until Thursday to agree or disagree with the House's amendments.
