Relating To Affordable Housing.
The bill amends Section 46-15.1 of the Hawaii Revised Statutes, empowering counties with the same authorities as the Hawaii Housing Finance and Development Corporation for developing and constructing low- and moderate-income housing. It specifies that cash payments can be utilized for satisfying the reserved housing requirements, ensuring that substituted housing is of equal value and located on the same island as the project. This change is significant as it centralizes housing development processes within county jurisdictions and allows for innovative financial solutions to the affordable housing shortage.
SB2864 aims to address the pressing issue of affordable housing in Hawaii by granting counties the authority to adopt ordinances allowing developers to make cash payments as an alternative to providing the required reserved housing under their affordable housing programs. Specifically, the bill enables developers to opt for a cash payment amounting to fifteen percent of the gross revenue from the development project instead of fulfilling the housing requirements directly. This flexibility is intended to promote the construction of more housing units amidst the ongoing housing crisis while still meeting the needs of low- and moderate-income residents.
During discussions surrounding SB2864, notable contention arose regarding the potential implications of allowing developers to make cash payments instead of building designated affordable housing units. Proponents argue that this method could increase the speed and volume of housing development by removing some financial burdens on developers, thereby enhancing the overall affordable housing supply. However, critics raise concerns that this approach may lead to a decline in the quality and quantity of actually constructed affordable housing, fearing it could primarily serve the interests of developers without adequately addressing community needs.