This chapter shall be known as “county housing policies.” (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

The policies established in this chapter shall govern the procedures for the county relative to the selling and renting of county housing units and affordable housing and affordable housing projects. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

All information supplied by applicants shall be confidential and shall not be disclosed to any person, organization or agency unless authorized by the applicant or permitted to be disclosed by law. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

Whenever used in this chapter and in title 19 of this code, unless a different meaning clearly appears from the context:

“Affordable housing” means long-term residential developments to be sold or rented for a ten-year period within the price range established by the director for persons or families whose incomes are identified as one hundred forty percent or less of the area median income for the county as determined by the Department of Housing and Urban Development of the United States of America. The term “affordable housing” includes persons or families within the following income groups:

A. “Very low income” which are those earning fifty percent or less of the area median income;

B. “Lower income” which are those earning more than fifty percent but not more than eighty percent of the area median income;

C. “Moderate income” which are those earning more than eighty percent but not more than one hundred twenty percent of the area median income; and

D. “Above-moderate income” which are those earning more than one hundred twenty percent but not more than one hundred forty percent of the area median.

“Affordable housing project” means a long-term residential development of ten or more dwelling units in which fifty percent or more of the dwelling units of a development shall be marketed as affordable housing in accordance with the following:

1. That not less than ten percent of the dwelling units of the development shall be marketed within the price range established by the director for persons or families whose incomes are identified as eighty percent or less of the area median income for the county as determined by the Department of Housing and Urban Development of the United States of America; and

2. That not more than twenty percent of the dwelling units of the development shall be marketed within the price range established by the director for persons or families whose incomes are identified as more than one hundred twenty percent but not more than one hundred forty percent of the area median income for the county as determined by the Department of Housing and Urban Development of the United States of America.

“Applicant” means an individual, a family, or an agent who submits an application for housing or for an affordable housing project to the department.

“Application” means a written request filed by an applicant for a county housing project or for an affordable housing project pursuant to the policies prescribed herein.

“County” means the county of Maui.

“County council” means Maui County council.

“County housing project” means any housing project developed by the county pursuant to state statute, federal law or county ordinance to supply, for sale or rental, housing units or lots in the county of Maui.

“County housing unit” means any dwelling unit or lot, including but not limited to, a lot, house, apartment unit and condominium unit in a county housing project.

“Department” means the department of human concerns of the county of Maui.

“Development” means the erection of one or more buildings or structures or a subdivision of land into two or more lots.

“Director” means the director of the department of human concerns of the county of Maui.

“Division” means the housing division of the department of human concerns, county of Maui.

“Family” means two or more persons related by blood, marriage or operation of law.

“Mayor” means the mayor of the county of Maui.

“Permanent resident” means a person or family whose primary place of residence is located within the county of Maui.

“Permanent resident alien” means an individual who has been issued an Alien Registration Receipt Card by the Immigration and Naturalization Service of the United States Department of Justice.

“State” means the State of Hawaii.

(Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

The department shall administer the provisions of this chapter. Unless otherwise specified in this chapter, the director, or the director’s designee, shall administer the provisions of this chapter. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

The director, or the director’s designee, shall be responsible for sale and rental of county housing units and for administering the affordable housing requirements for the county. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

All applicants for county housing units or affordable housing projects shall provide to the county all information that is decreed to be necessary by the director. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

Information and application forms concerning the county’s home ownership projects shall be available at the Housing Division of the Department of Human Concerns, County of Maui, 200 South High Street, Wailuku, Maui, Hawaii 96793, during regular business hours. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

In order to be eligible, an applicant must meet the following criteria:

1. Be a citizen of the United States or a permanent resident alien who is a permanent resident of the county; 2. Be eighteen years of age or older;

3. Have a gross annual family income (not to include the income of minors) which does not exceed the following:

Should the interest rate for the United States Veteran’s Administration (VA’s) veteran’s housing-guaranteed and insured loans program exceed twelve and one-half percent, the department shall increase the maximum gross annual family income limit for a family of four by four percentage points for every one-half of one percent increase in the interest rate for the VA’s veterans housing-guaranteed and insured loans program. The income limits for smaller and larger families shall also be increased by the same amount. The maximum gross annual family income limits shall be adjusted semiannually on the first day of January and July of each calendar year.

Should the interest rate for the VA’s veterans housing-guaranteed and insured loans program fall below twelve and one-half percent, the maximum gross annual family income limits specified in this section shall continue to apply.

Initial determination for compliance with the maximum gross annual family income limit provision shall be made by the division on the basis of the information provided on the final homeownership application. Final determination for compliance with the maximum gross annual family income limit provision shall be made by the prospective mortgagee at the time the applicant’s income verification data is received.

4. Have assets totaling no more than the maximum gross annual income limit by applicable family size. Assets shall include all cash, securities, stocks, bonds and real property. Real property shall be valued at fair market value less liabilities on such real property;

5. Does not now nor for a period of three years prior to the submittal of the final homeownership application, have controlling interest in real property in fee or leasehold in the United States where such property is deemed suitable by the director for dwelling purposes;

6. Is able to finance the purchase of the county housing unit. (Ord. 1967 § 1 (part), 1990: Ord. 1382 § 1, 1984: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

The provisions of subsections 3 and 4 of section 2.86.320, shall be waived in the event that the applicants are current occupants of property under county control; provided, however, that such applicants were occupants of the premises prior to county acquisition of the property regardless of means of such acquisition. (Ord. 1967 § 1 (part), 1990: Ord. 1497 § 1, 1985)

A. Once an individual purchases, severally or jointly, a county housing unit, such individual shall not be eligible to purchase any other county housing unit.

B. Where the applicant is applying as a single person, the applicant shall be limited to purchasing a lot or a house and lot package where the house is no larger than a two-bedroom unit.

C. Each applicant shall be granted two chances to qualify and purchase a county housing unit in the community plan region for which the applicant applied. If an applicant is unable to qualify and purchase a housing unit after being granted two chances, the applicant’s name shall be removed from the applicable waiting list. An applicant who has had the applicant’s name removed from a waiting list may have the applicant’s name placed back on the waiting list by completing and submitting a new preliminary homeownership application. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

A. The department shall establish and maintain a separate waiting list of interested applicants for each of the following community plan regions:

1. Hana,

2. Kihei--Makena,

3. Lahaina,

4. Lanai,

5. Makawao--Pukalani--Kula

6. Molokai,

7. Paia--Haiku,

8. Wailuku--Kahului.

Prior to initiating the waiting list for each community plan region, the department shall cause to be published in at least five issues of a newspaper of general circulation within the county, a public notice which shall contain all information that is relevant to the establishment of the waiting lists. The public shall also be informed in a like manner, of any decision which would substantially affect the maintenance and use of the waiting lists.

B. Placement on the waiting list shall initially be on the basis of a drawing that shall be conducted by the division. To participate in the drawing, a person or family must submit a completed preliminary homeownership application that is received by the division within the time period specified in the public notice that is to be published in a newspaper of general circulation within the county.

Placement on the waiting list for applications that are received by the division after the deadline for participation in the drawing, shall be on the first-come first-served basis, with the date and time of receipt of the completed preliminary homeownership application by the division being used as the basis for determining such placement.

C. 1. Selection for purchase of a county housing unit shall be made in the order that the names appear on the list for the region in which the county housing is located, subject to the applicant being able to meet the eligibility criteria established in section 2.86.320.

2. The director may give preference to a person or persons and families who are displaced or are to be displaced from their homes by an action of the county, state or federal government.

D. This selection procedure shall not apply to the proposed West Maui (Hale Noho Subdivision) and the Upper Paia (Skill Village Subdivision) housing projects. The existing waiting list of interested applicants which is being maintained by the housing division for each of these projects shall be utilized to select the buyers for the units in these projects.

E. Selection for purchase of a housing unit which has been purchased by the county under its buy-back option shall be made in the order that the names appear on the waiting list of interested applicants for the project or region, whichever is applicable, which was utilized in selecting the original buyers. In addition, should the county acquire title to a housing unit in a private development by way of a buy-back option granted to the county, the purchaser for such housing unit shall be selected from the waiting list for the applicable community plan region. This procedure shall also apply to cases where the county grants a conditional waiver to its buy-back option. (Ord. 1967 § 1 (part), 1990: Ord. 1754 § 1, 1988; Ord. 1336 §§ 1 (part) and 2 (part), 1983)

Each applicant shall be responsible to notify the division in writing of any changes in mailing address and telephone number. If an applicant fails to properly notify the division of such changes, and the division is unable to contact the applicant by mail or telephone, the division shall remove the applicant’s name from the applicable waiting list(s). (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

Information and application forms concerning the county housing project rental program shall be available at the Housing Division of the Department of Human Concerns, County of Maui, 200 South High Street, Wailuku, Maui, Hawaii 96793, during regular business hours. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

The eligibility criteria for the rental program shall be established on a project-by-project basis by the director. If the project is receiving federal and/or state assistance, the applicable federal and/or state eligibility criteria shall apply. (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

A. Applicants who are deemed eligible under section 2.86.420 for the county housing project rental program shall be selected from a waiting list, which shall be established and maintained on a project-by-project basis.

Placement on the waiting list shall initially be on the basis of a drawing that shall be conducted by the division. To participate in the drawing, a person or family must submit a completed preliminary rental application that is received by the division within the time period specified in the public notice that is to be published in a newspaper of general circulation within the county.

Placement on the waiting list for applications that are received by the division after the deadline for participation in the drawing shall be on a first-come first-served basis, with the date and time of receipt of the completed preliminary rental application by the division being used as the basis for determining such placement.

B. The director may give preference to a person or persons and families displaced or to be displaced by the county, state or federal government’s action or a natural disaster, subject to their meeting the eligibility criteria for the project. For the purposes of this section, the director shall determine what constitutes a natural disaster. (Ord. 1967 § 1 (part), 1990: Ord 1754 § 2, 1988; Ord. 1336 §§ 1 (part) and 2 (part), 1983)

Each applicant shall be responsible to notify the division in writing of any changes in mailing address and telephone number. If an applicant fails is to properly notify the division of such changes, and the division is unable to contact the applicant by mail or telephone, the division shall remove the applicant’s name from the applicable waiting list(s). (Ord. 1967 § 1 (part), 1990: Ord. 1336 §§ 1 (part) and 2 (part), 1983)

The director may promulgate rules to implement this chapter; provided, that the director shall promulgate rules to implement selection procedures pursuant to section 2.86.350(B), and section 2.86.430(A). (Ord. 1967 § 1 (part), 1990: Ord. 1754 § 3, 1988: Ord. 1336 §§ 1 (part) and 2 (part), 1983)