(a) Every
applicant for a planned development containing multi-family dwelling units on a
development lot of at least 20,000 square feet shall provide at least twenty
per cent of the total number of dwelling units in the development for sale or
rental to qualified persons as determined by the authority.
(b) Such units, hereinafter referred to as
reserved housing units, shall be sold or rented to persons qualifying under the
terms and conditions set forth under subchapter 7 of this chapter. The
applicant shall execute agreements as are appropriate to complement this
requirement, and such agreements shall be binding upon the applicant and his
successors in interest, and shall run with the land. The agreement shall
provide that the applicant must provide certification to the authority as to
the compliance of the requirements herein.
(c) If the authority so determines, it may
require that, instead of providing reserved housing units within the
development in the foregoing manner, the applicant may meet the requirement of
subsection (a) above by the following alternatives:
(1) By providing such reserved housing units
elsewhere within the mauka area;
(2) By setting aside such reserved housing
units for sale to the authority, at cost, as reserved housing units, under
terms and conditions established by the authority; or
(3) By making cash payments in lieu of
providing such reserved housing units. The amount of cash shall be calculated
as a percentage of gross revenue and shall vary depending upon the amount of
reserved housing provided and the affordability of the nonreserved units in the
development. As set forth in Schedule A and as depicted in Exhibit 7-I, dated
July, 1995, the percentage of gross revenue shall proportionally increase from
a minimum of zero per cent when the average price of nonreserved units is
affordable to households with adjusted incomes up to one hundred forty per cent
of median income, to a maximum of four per cent when no reserved housing is
provided and the average price of nonreserved units is affordable to households
with adjusted incomes at or exceeding one hundred eighty per cent of median
income.
SCHEDULE A
|
Amount of reserved housing units provided
|
Amount of cash required (Minimum - Maximum)
|
|
20 per cent or more
|
no cash is required
|
|
18 per cent
|
0% - 0.40% of Gross Revenues
|
|
16 per cent
|
0% - 0.80% of Gross Revenues
|
|
14 per cent
|
0% - 1.20% of Gross Revenues
|
|
12 per cent 10 per cent
|
0% - 1.60% of Gross Revenues 0% - 2.00% of Gross
Revenues
|
|
8 per cent
|
0% - 2.40% of Gross Revenues
|
|
6 per cent
|
0% - 2.80% of Gross Revenues
|
|
4 per cent
|
0% - 3.20% of Gross Revenues
|
|
2 per cent
|
0% - 3.60% of Gross Revenues
|
|
0 per cent
|
0% - 4.0% of Gross Revenues
|
EXHIBIT 7-I
As used in this section, "gross revenue" means gross
receipts from the sale of space for nonreserved residential uses and its
required parking. In the case of rental space, the capitalized value of net
operating rent shall be the measure of gross receipts.
The average price of units shall be determined by dividing
gross revenue by the total number of nonreserved units in the
development.
The cash in lieu fee, calculated separately for each unit
type, shall be derived as follows:
(A)
Determine the average price.
(B)
Convert average price to a percentage of the median income for standard
household sizes established in section
15-22-185 utilizing the affordability
criteria set forth in section
15-22-185.1.
(C) If the average price, expressed as a
percentage of median income, is one hundred forty per cent or less of median
income, no cash in lieu fee shall be required. If the average price is more
than one hundred forty per cent but less than one hundred eighty per cent of
median income, the following formula shall be applied:
Fee = (A-140%) x 0.1 x [1-(B/20%)] x C, where
A = average price, expressed as a percentage of median
income
B = number of reserved housing units provided divided by
total number of units
C = gross revenue
If the average price is one hundred eighty per cent or
more of median income, the following formula shall be applied:
Fee = 4.0% x [1-(B/20%)] x C, where
B = number of reserved housing units provided divided by
total number of units
C = gross revenue
The cash payment in lieu of providing reserved housing
shall be determined by the authority based on the estimated average price of
the development at the time the planned development permit is issued and
adjusted based on the actual average price of the development. The amount of
cash shall be payable prior to the issuance of the initial certificate of
occupancy and secured by the applicant with a financial guaranty bond from a
surety company authorized to do business in Hawaii, an acceptable construction
set-aside letter, or other acceptable means prior to the issuance of the
initial building permit.
The applicant shall execute such agreements as are
necessary to implement any alternative requirement, and such agreements shall
be binding upon the applicant and his successors in interest, and shall run
with the land.
(d) No building permit shall be issued for
any planned development until the authority has certified that the development
complies with the requirements of this section. The authority may require
guarantees, may enter into recorded agreements with developers and with
purchasers and tenants of the reserved housing units, and may take other
appropriate steps necessary to assure that these housing units are provided and
that they are continuously occupied by qualified persons. When this has been
assured to the satisfaction of the authority and it has determined that the
proposed development meets the requirements and standards of this section, it
shall certify the application approved as to the housing requirements of this
section.
(e) Fees collected from
cash payments in lieu of providing reserved housing units and other payments
made with respect to reserved housing units shall be placed in a revolving
fund, the proceeds of which shall be utilized for the purchase, creation,
expansion, or improvement of reserved housing within the district.
Notes
Haw. Code R. §
15-22-115
[Eff 9/8/86, comp
1/28/88, am and comp 2/24/90, am 9/15/90, am 8/4/95, am 1/13/00] (Auth: HRS
§§
206E-4,
206E-5,
206E-7)
(Imp: HRS §§
206E-4,
206E-5,
206E-7)
15-22-115
is based substantially upon § 15-17-95. [Eff 2/27/82; am 4/6/85; R
9/8/86]
