Haw. Code R. § 15-22-115

Current through September, 2024

Section 15-22-115 - Requirement of providing reserved housing units

(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.

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]