Hawaii Administrative Rules › Title 15 - DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM › Hawaii Community Development Authority › Chapter 22 - MAUKA AREA RULES › Subchapter 4 - PLANNED DEVELOPMENTS › Section 15-22-115 - Requirement of providing reserved housing units

Current through June, 2024
(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.