The purpose of this chapter is to enhance the public welfare by ensuring that the housing needs of the County are addressed. The council finds that there is a critical shortage of affordable housing, making home acquisition by the majority of County resident workers extremely difficult, and creating a shortage of affordable rental units. The resident workforce is leaving the County in search of affordable housing, and new employees are being deterred by the high cost of living. To maintain a sufficient resident workforce in all fields of employment, and to ensure the public safety and general welfare of the residents of the County, resident workforce housing needs must be addressed. It is the intent of this chapter to encourage the provision and maintenance of residential workforce housing units, for both purchase and rental, to meet the needs of income-qualified households for the workforce, students, and special housing target groups. (Ord. 3418 § 1 (part), 2006)

Whenever used in this chapter, unless a different meaning clearly appears from the context:

“Community land trust” means a nonprofit organization that acquires land that:

1. Is held in perpetuity;

2. Is primarily for conveyance under a long-term ground lease for the creation of dwelling units that shall be sold or rented to applicants within the income-qualified groups established by this chapter; and

3. Retains an option to purchase any dwelling unit at a price determined by formula that is designed to ensure that the dwelling unit remains affordable in perpetuity.

“Council” means the Maui County council.

“Density bonus” means a density increase over the otherwise allowed residential density under the applicable zoning and land use designation, without the need for further council approval, subject to enabling legislation.

“Department” means the department of housing and human concerns.

“Director” means the director of housing and human concerns, County of Maui.

“Disabled” means a person who is determined, by a medical doctor, to have a physical, mental, or emotional impairment that:

1. Is expected to be of long-continued and indefinite duration;

2. Substantially impedes his or her ability to live independently; and

3. Is of such a nature that the ability to live independently could be improved by more suitable housing conditions.

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

“Elderly” means a person who has attained the age of sixty-two years.

“Employed” means working for compensation in the County for any number of hours.

“Homeless” means:

1. An individual or family who lacks a fixed, regular, and adequate nighttime residence; or

2. An individual or family who has a primary nighttime residence that is:

a. A supervised shelter designed to provide temporary living accommodations; or

b. A place not designed for or ordinarily used as sleeping accommodations for human beings.

“HUD” means the United States Department of Housing and Urban Development.

“Improved land” means land that has necessary infrastructural improvements to support a public use project or a use density of at least a single-family or a two-family residential building per acre, in conformity with state and County zoning laws and building permit requirements.

“Lot” means any improved or unimproved land that has been subdivided.

“Median family income” means the middle income in a series of incomes ranked from smallest to largest as determined by HUD for the County, or as adjusted by the department, for Hana, Lanai, and Molokai.

“Prevailing interest rate” means the average interest rate of two mortgage lenders in the County, acceptable to the director, for a thirty year fixed loan with no discount points.

“Qualified housing provider” means a community land trust, nonprofit agency, or other private or public organization, agency, or entity authorized and designated by the department in accordance with section 2.96.150 to own, develop, construct, administer, operate or otherwise provide residential workforce housing required under this chapter.

“Resident” means a person who meets one of the following criteria:

1. Currently employed in the County;

2. Retired from employment in the County, having worked in the County immediately prior to retirement;

3. A full-time student residing in the County;

4. A disabled person residing in the County who was employed in the County prior to becoming disabled;

5. The parent or guardian of a disabled person residing in the County;

6. A spouse or dependent of any such employee, retired person, student, or disabled person residing in the County; or

7. In the event of the death of the employee, retired person, student, or disabled person, the spouse or dependent of any such person residing in the County.

“Residential workforce housing unit” means a unit or lot to be sold or rented to residents within one of the following income groups as established by the department:

1. “Very low income,” which are those households whose gross annual family income is fifty per cent or less of the area median income as established by HUD, or as adjusted by the department, for Hana, Lanai, and Molokai;

2. “Low income,” which are those households whose gross annual family income is more than fifty per cent, but not more than eighty per cent of the area median income as established by HUD, or as adjusted by the department, for Hana, Lanai, and Molokai;

3. “Below-moderate income,” which are those households whose gross annual family income is more than eighty per cent, but not more than one hundred per cent of the area median income as established by HUD, or as adjusted by the department, for Hana, Lanai, and Molokai;

4. “Moderate income,” which are those households whose gross annual family income is more than one hundred per cent, but not more than one hundred twenty per cent of the area median income as established by HUD, or as adjusted by the department, for Hana, Lanai, and Molokai;

5. “Above-moderate income,” which are those households whose gross annual family income is more than one hundred twenty per cent, but not more than one hundred forty per cent of the area median income as established by HUD, or as adjusted by the department, for Hana, Lanai, and Molokai; and

6. “Gap income,” which are those households whose gross annual family income is more than one hundred forty per cent, but not more than one hundred sixty per cent of the area median income as established by HUD, or as adjusted by the department, for Hana, Lanai, and Molokai.

“Special housing target group” means a group of residents that can be demographically defined as having a special or unique housing need, including but not limited to, the elderly, homeless, and disabled.

“Unimproved land” means land not classified as “improved land.”

“Wait list area” means Hana, Lanai, Maui (excluding Hana), or Molokai. (Ord. 3512 § 1, 2007; Ord. 3418 § 1 (part), 2006)

A. Any development, including the subdivision of land and/or the construction of single-family dwelling units, two-family dwelling units, multifamily dwelling units, or hotels, as defined in section 19.04.040 of this code, whether constructed at one time or over several years, shall be subject to this chapter upon final subdivision or building permit approval, whichever is applicable and occurs first, if it will result in the creation of the following:

1. Five or more dwelling units, excluding farm labor dwellings or a second farm dwelling, as defined in section 19.04.040 of this code; provided that, such farm labor dwelling or farm dwelling is in full compliance with chapter 205, Hawaii Revised Statutes, and is not part of a condominium property regime, as set forth in chapter 514A, Hawaii Revised Statutes;

2. Five or more new lots;

3. A combination of dwelling units and new lots totaling five or more;

4. Three or more lodging, dwelling, or time share units in a hotel;

5. A conversion of one or more hotel units to dwelling units or time share units; or

6. Any hotel redevelopment or renovation project that increases the number of lodging or dwelling units in a hotel.

B. Exemptions. This chapter shall not apply to any development that falls into one or more of the following categories:

1. A development subject to an affordable housing requirement, evidenced by an executed affordable housing agreement with the County, currently in effect and approved prior to the effective date of this chapter;

2. A development subject to a change in zoning condition that requires affordable or residential workforce housing, unless the condition expressly allows for the application of the affordable housing or residential workforce housing policy set forth herein;

3. A subdivision granted preliminary subdivision approval prior to the effective date of this chapter;

4. A building permit application submitted prior to the effective date of this chapter;

5. A family subdivision, for immediate family members, as described in sections 18.20.280.B.1 and B.2 of this code; or

6. A development by a government entity; a project pursuant to section 201H-H, Hawaii Revised Statutes; a community land trust; or an affordable housing project with more than the residential workforce housing units, in-lieu fees, or in-lieu land required by section 2.96.040 of this chapter, as approved by the director.

C. Adjustment.

1. A developer of any development subject to this chapter may appeal to the council for a reduction, adjustment, or waiver of the requirements based upon the absence of any reasonable relationship or nexus between the impact of the development and the number of residential workforce housing units or in-lieu fees/land required.

2. Any such appeal shall be made in writing and filed with the County clerk prior to final subdivision approval or issuance of a building permit for the development, whichever is applicable. Any such appeal shall administratively stay the processing of the development’s subdivision or building permit, whichever is applicable, until a decision on the appeal is rendered. The appeal shall set forth in detail the factual and legal basis for the claim of reduction, adjustment, or waiver, and the developer shall bear the burden of presenting substantial evidence to support the appeal, including comparable and relevant technical information.

3. The council, or if the appeal is assigned to a council committee, the council committee, shall convene a meeting within forty-five days of the County clerk’s receipt of the appeal, to consider the appeal. The council shall approve or disapprove the appeal by resolution within forty-five days from the date the developer has concluded its presentation of evidence supporting the appeal in a council or committee meeting.

4. If the council or a council committee has not convened a meeting within forty-five days of the County clerk’s receipt of the appeal, or if the council does not approve or disapprove the appeal by resolution within forty-five days from the date the developer has concluded its presentation of evidence at the council or council committee meeting, the appeal, as submitted by the developer, shall be deemed approved by the council.

5. If a reduction, adjustment, or waiver is granted by the council, any subsequent substantive change or modification in use within the development, as determined by the director, shall invalidate the reduction, adjustment, or waiver previously granted. (Ord. 3546 § 1, 2008; Ord. 3418 § 1 (part), 2006)

A. Prior to final subdivision approval or issuance of a building permit for a development subject to this chapter, the department shall require the developer to enter into a residential workforce housing agreement that requires the following:

1. When more than fifty per cent of the dwelling units and/or new lots in the development are offered for sale for less than $600,000, forty per cent of the total number of units and/or lots shall be sold or rented to residents within the income-qualified groups established by this ordinance;

2. When fifty per cent or more of the dwelling units and/or new lots in the development are offered for sale for $600,000 or more, fifty per cent of the total number of units and/or lots shall be sold or rented to residents within the income-qualified groups established by this ordinance; or

3. When three or more new lodging, dwelling, or time share units in a hotel are created, when there is a conversion of one or more hotel units to dwelling units or time share units, when any hotel redevelopment or renovation project increases the number of lodging or dwelling units in the hotel, or when five or more new dwelling units for rental purposes are created, then forty per cent of the total number of new, additional and/or converted units shall be sold or rented to residents within the income-qualified groups established by this ordinance.

B. The requirement may be satisfied by one or a combination of the following, which shall be determined by the director and stated in the residential workforce housing agreement:

1. Offer for sale, single-family dwelling units, two-family dwelling units, or multi-family dwelling units as residential workforce housing within the community plan area;

2. Offer for rent, multi-family dwelling units within the community plan area. A developer may partner with a nonprofit organization or community land trust on a specific affordable project to either construct new multi-family dwelling units or renovate existing nonhabitable multi-family dwelling units, paying an amount that represents the difference in unit costs for a family of four at one hundred per cent and one hundred forty per cent of median income pursuant to HUD affordable sales price guidelines as adjusted by the department by wait list area. The developer’s requirement shall be deemed satisfied upon receipt of payment. Moneys shall be deposited into the affordable housing fund;

3. In lieu of directly selling or renting units pursuant to subsection B.1 or B.2, the developer may convey such units to a qualified housing provider subject to department approval pursuant to section 2.96.150; or

4. In lieu of providing residential workforce housing units, the residential workforce housing requirement may be satisfied by payment of a fee, by providing improved land, or by providing unimproved land. Any fee must be approved by council resolution. Any donation of land must be approved by the council pursuant to section 3.44.015 of this code.

a. The in-lieu fee per unit for sale/ownership units shall be equal to thirty per cent of the average projected sales price of the market rate dwelling units and/or new lots in the development. The in-lieu fee per unit for hotel, time share, converted or rental units shall be an amount that represents the difference in unit costs for a family of four at one hundred per cent and one hundred sixty per cent of median income pursuant to HUD affordable sales price guidelines, or as adjusted by the department, for Hana, Lanai, and Molokai. The in-lieu fee shall be designated in the residential workforce housing agreement, and be secured by a lien on the units if not paid before the units are constructed or converted. The in-lieu fee shall accrue to the affordable housing fund, which shall be established in the County budget for the purpose of enhancing and supporting housing needs and programs of income-qualified households and special housing target groups; and

b. The value of the improved land shall not be less than the in-lieu fee that would otherwise have been required under this chapter. The value of the unimproved land shall be at least equal to twice the value of the improved land. The in-lieu land shall be used to address the housing needs of income-qualified households and special housing target groups. Such land shall have a minimum lot size of six thousand square feet or the minimum lot size allowed by the applicable zoning, whichever is greater. Such land must be acceptable to the department and may be used by the County or others approved by the County to develop residential workforce housing, resource centers for the homeless, day care centers for seniors, or other public use projects that address the housing needs of income-qualified households and special housing target groups. (Ord. 3438 § 1, 2007: Ord. 3418 § 1 (part), 2006)

A. Credits may be given under the following circumstances:

1. One residential workforce housing credit shall be given for every single-family dwelling unit, two-family dwelling unit, or multifamily dwelling unit constructed in excess of the residential workforce housing required by section 2.96.040 of this chapter; and

2. One residential workforce housing credit shall be given for every ten market rate units that contain a deed restriction requiring an owner to occupy the unit for a minimum of three years, and share with the County fifty per cent of any profits realized from a sale of that unit within the three-year owner-occupancy period.

B. The credit must be used in the same community plan area in which the unit was constructed.

C. The credit must be applied toward the same type of unit constructed.

D. The credit must be used for the same income group in which the credit was earned, when the credit is earned by constructing more residential workforce housing units than required.

E. The credit must be used for the “gap income” group when the credit is earned by creating a deed restriction.

F. The credit may be used for a future development, but may not be used for an affordable housing or residential workforce housing unit owed at the time the credit is given. (Ord. 3418 § 1 (part), 2006)

A. Ownership units shall be subject to this chapter for twenty-five years from the initial sale of the unit.

B. Unless an exemption is granted by the director, the percentage of ownership units within each income group shall be as follows:

1. Thirty per cent of the ownership units shall be for “below-moderate income” residents;

2. Thirty per cent of the ownership units shall be for “moderate income” residents;

3. Twenty per cent of the ownership units shall be for “above-moderate income” residents; and

4. Twenty per cent of the ownership units shall be for “gap income” residents.

C. Timing of Completion.

1. Residential workforce housing units shall be made, available for occupancy either before or concurrently with market rate units at the same ratio required of the development; and

2. Certificates of occupancy shall not be issued and/or final inspections shall not be passed for the market rate units unless certificates of occupancy are issued and/or final inspections are passed for the residential workforce housing units concurrently or sooner.

D. Deed Restrictions.

1. The unit must be owner-occupied;

2. The unit must remain affordable for twenty-five years from the initial sale, with the owner notifying the department upon a decision to sell; and

3. Under special circumstances an owner of a residential workforce housing unit may appeal to the department for a waiver of the owner-occupancy deed restriction; these circumstances would include, but are not limited to, assignment to active duty military or short-term contracts for off-island employment.

E. Sales Price--Single-Family Dwelling Units. The sales price of a new single-family dwelling unit shall be set by the department, at the time the developer is ready to market the unit, using the following guidelines:

1. A down payment of five per cent shall be assumed;

2. The prevailing interest rate shall be used;

3. The price of a one-bedroom unit shall be based upon seventy per cent of the median income of the wait list area, adjusted to the respective target income group;

4. The price of a two-bedroom unit shall be based upon eighty-five per cent of the median income of the wait list area, adjusted to the respective target income group;

5. The price of a three-bedroom unit shall be based upon one hundred per cent of the median income of the wait list area, adjusted to the respective target income group;

6. The price of a four-bedroom unit shall be based upon one hundred fifteen per cent of the median income of the wait list area, adjusted to the respective target income group; and

7. Applicants in each income group shall be assumed to pay no more than thirty per cent of the gross annual income of the highest percentage in the applicant’s group.

F. Sales Price--Two-Family or Multifamily Dwelling Units. The sales price of a new two-family or multifamily dwelling unit shall be ninety per cent of the price of a single-family dwelling unit, as established in subsection E of this section.

G. Resale Price. The maximum resale price shall be established by the department using the following guidelines:

1. An appraisal of the property shall be required before occupancy;

2. A second appraisal shall be required upon a decision to sell the unit; and

3. Twenty-five per cent of the difference between the two appraisals shall be added to the owner’s purchase price.

H. Foreclosures.

1. The County shall have the first option to purchase the unit; and

2. If the County does not exercise its right to purchase, the units may be offered at an affordable price, set by the director, with the same deed restrictions. (Ord. 3418 § 1 (part), 2006)

A. Rental units shall be subject to this chapter for the life of the unit, as determined by a building inspector with the development services administration of the department of public works and environmental management.

B. Unless an exemption is granted by the director, the percentage of rental units within each income group shall be as follows:

1. One-third of the rental units shall be for “very low income” and “low income” residents;

2. One-third of the rental units shall be for “below-moderate income” residents; and

3. One-third of the rental units shall be for “moderate income” residents.

C. Timing of Completion.

1. Except when the developer is partnering with a nonprofit organization or community land trust as allowed in section 2.96.040.B.2 of this chapter, residential workforce housing units shall be made available for occupancy either prior to or concurrently with market rate units at the same ratio required of the development. Certificates of occupancy shall not be issued and/or final inspections shall not be passed for the market rate units unless certificates of occupancy are issued and/or final inspections are passed for the residential workforce housing units concurrently or sooner; and

2. When the developer is partnering with a nonprofit organization or community land trust, the payment to the nonprofit organization or community land trust must be made prior to final subdivision approval or issuance of a building permit for the market rate units. The residential workforce housing units must be constructed within three years of the date the certificates of occupancy are issued and/or the final inspections are passed for the market rate units.

D. Vacancies. Any rental unit vacancy must be filled by an applicant in the appropriate income group to better maintain an equal distribution of rentals across the “very low income” and “low income,” “below-moderate income,” and “moderate income” groups.

E. Deed Restrictions.

1. The rental unit must remain affordable for the life of the unit;

2. The owner must notify the department upon a decision to sell the rental development; and

3. Any new owner must comply with the deed restrictions.

F. Rental Rates. The monthly rental rates shall be set by the department based on HUD income limits.

G. Foreclosures.

1. The County will have the first option to purchase the rental development; and

2. If the County does not exercise its right to purchase, the rental development may be sold with the same deed restrictions. (Ord. 3418 § 1 (part), 2006)

A. Before final subdivision approval or issuance of a building permit, the developer shall enter into a residential workforce housing agreement that sets forth the detailed terms and conditions of compliance with the residential workforce housing policy, including but not limited to:

1. Sales or rental periods for the residential workforce housing units, which specify procedures for the release of units from the residential workforce housing requirements should units not be sold or rented following the expiration of the sales or rental periods;

2. Identification of the number, type, and location of units;

3. Designation of units for specific income and/or special housing target groups;

4. Marketing process for the residential workforce housing units;

5. Eligibility of income-qualified households;

6. Provision for residential workforce housing credits, as applicable;

7. Payment of in-lieu fees or provision of in-lieu land; and

8. Resale restrictions, which may include buy-back provisions, shared equity, and encumbrances.

B. The residential workforce housing agreement shall be recorded with the bureau of conveyances of the State of Hawaii or the land court of the State as the case may be, so that the terms and conditions of the agreement run with the land and bind and constitute notice to all subsequent grantees, assignees, mortgagees, lienors, and any other persons who claim an interest in such property. The agreement shall be enforceable by the County by appropriate action at law or suit in equity, against the developer, its successors, and assignees. (Ord. 3418 § 1 (part), 2006)

A. Wait List Procedure.

1. The developer, its partner, or its management company shall establish wait lists of interested applicants by development;

2. Prior to initiating the wait list, the developer, its partner, or its management company shall publish in at least five issues of a newspaper of general circulation within the County, a public notice that shall contain all information that is relevant to the establishment of the wait list. The public shall also be informed in a like manner, of any decision that would substantially affect the maintenance and use of the wait list; and

3. Selection for purchase shall be made by a lottery administered by the developer, its partner, or its management company and overseen by the department, subject to the applicant meeting the eligibility criteria established in subsection B of this section.

B. Eligibility Criteria. In order to be eligible for a residential workforce housing unit, an applicant must meet the following criteria:

1. Be a citizen of the United States or a permanent resident alien who is a 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 one hundred sixty per cent of the County’s area median income as established by HUD, or as adjusted by the department, for Hana, Lanai, and Molokai. Initial determination for compliance with the maximum gross annual family income provision shall be made by the developer, its partner, or its management company for the initial sale of residential workforce housing units, on the basis of the information provided on the ownership application. The ownership application will be completed when a specific unit is being considered. Final determination for compliance with the maximum gross annual family income provision shall be made by the prospective lender at the time the applicant’s income verification data is received;

4. Have assets that do not exceed one hundred sixty per cent of the County’s area median income as established by HUD, or as adjusted by the department, for Hana, Lanai, and Molokai. 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. For a period of three years before the submittal of the ownership application, have not had an interest of fifty per cent or more in real property in fee or leasehold in the United States, where the unit or land is deemed suitable for dwelling purposes, unless the applicant is selling an affordable unit and purchasing a different affordable unit that is more appropriate for the applicant’s family size; and

6. Pre-qualify for a loan with the applicant’s choice of lender.

C. Notification of Change. Each applicant shall be responsible for notifying the developer, its partner, or its management company in writing of any changes in mailing address, telephone number, fax number, and/or e-mail address. If an applicant fails to properly notify the developer, its partner, or its management company of such changes and the developer, its partner, or its management company is unable to contact the applicant, the developer, its partner, or its management company shall remove the applicant’s name from the wait list.

D. Selection Priority.

1. Residents on the wait list shall receive first priority for the available units. Nonresidents on the wait list may purchase a residential workforce housing unit once the wait list has been exhausted of all residents;

2. The developer, its partner, or its management company may do a mass mailing of housing applications to applicants on the wait list;

3. The residential workforce housing units must be offered to residents in the order in which their names were drawn in the lottery, provided that there is a unit available in the income group for which they qualify. Nonresidents will be offered residential workforce housing units in the order in which their names were drawn in the lottery; and

4. In the event that units are not sold within the first ninety days after they are offered for sale, and the developer has made a good faith effort, as determined by the director, to contact and qualify applicants on the wait list, the sale of remaining units shall be conducted as follows:

a. For the next ninety-day period, units shall be offered for sale to the next-higher income preference group, at the original sales price. For example, units targeted for families earning up to one hundred twenty per cent of the median income may be sold to families earning up to one hundred forty per cent of the median income. All other eligibility criteria shall apply;

b. Units shall be offered to the next higher income group every ninety days until the units are sold or there are no more income groups available;

c. Units shall then be offered to nonresidents on the wait list in the order in which their names were drawn in the lottery, for the next ninety-day period, provided that the applicant’s income is within the residential workforce housing income groups; and

d. Any units that remain unsold may be offered at market rate without deed restrictions. Upon the sale of the unit, the County shall receive fifty per cent of the difference between the original sales price of the unit and the actual market rate sales price, for deposit into the affordable housing fund. In this event, the developer shall still be deemed to have satisfied the requirement for producing a residential workforce housing unit.

5. The developer shall submit copies of the following information to the department to verify the sale of residential workforce housing units to eligible buyers:

a. Applicant’s completed ownership application;

b. Executed sales contract;

c. Pre-qualification notice from lender;

d. All signed federal and state tax returns used to determine eligibility, or any other documents used to determine eligibility by the lender; and

e. Escrow company’s settlement statement.

6. An owner of a residential workforce housing unit that is being resold must sell the unit to an income-qualified household and notify the department of the sale. The department shall verify the sales price. (Ord. 3418 § 1 (part), 2006)

A. Wait List Procedure.

1. The developer, its partner, or its management company shall establish wait lists of interested applicants by rental development;

2. Prior to initiating the wait list, the developer, its partner, or its management company shall initiate the wait list process by publishing in at least five issues of a newspaper of general circulation within the County, a public notice that shall contain all information that is relevant to the establishment of the wait list. The public shall also be informed in a like manner, of any decision that would substantially affect the maintenance and use of the wait list; and

3. Selection for rental units shall be made by a lottery administered by the developer, its partner, or its management company and overseen by the department, subject to the applicant meeting the eligibility criteria established in subsection B of this section.

B. Eligibility Criteria. The eligibility criteria for rentals shall be established on a project-by-project basis by the director in the following manner:

1. If the project is receiving federal and/or state assistance, the applicable federal and/or state eligibility criteria shall apply; and

2. If the project is not receiving federal and/or state assistance, all eligibility criteria in section 2.96.090.B of this chapter shall apply, except for section 2.96.090.B.6 of this chapter.

C. Notification of Change. Each applicant shall be responsible for notifying the developer, its partner, or its management company in writing of any changes in mailing address, telephone number, fax number, and/or e-mail address. If an applicant fails to properly notify the developer, its partner, or its management company of such changes and the developer, its partner, or its management company is unable to contact the applicant, the applicant’s name shall be removed from the applicable wait list.

D. Selection Priority.

1. Residents on the wait list shall receive first priority for the available units. Nonresidents on the wait list may rent a residential workforce housing unit once the wait list has been exhausted of all residents.

2. The developer, its partner, or its management company may do a mass mailing of housing applications to applicants on the wait list.

3. The residential workforce housing units shall be offered to residents in the order in which their names were drawn in the lottery, provided that there is a unit available in the income group for which they qualify. Nonresidents will then be offered residential workforce housing units in the order in which their names were drawn in the lottery, provided that there is a unit available in the income group for which they qualify.

4. The developer, its partner, or its management company shall submit copies of the following information to the department to verify the rental of residential workforce housing units to eligible renters:

a. Applicant’s completed final rental application;

b. Executed rental lease; and

c. All signed federal and state tax returns used to determine eligibility, or any other documents used to determine eligibility by the developer, its partner, or its management company.

5. The developer, its partner, or its management company shall maintain a wait list for the development after all of the units are rented, which shall be used to fill any vacancy.

6. Any rental unit vacancy shall be filled by an applicant in the same income group as the original tenant to maintain an equal distribution of rentals across the “very low income” and “low income,” “below-moderate income,” and “moderate income” groups.

7. An owner of a residential workforce housing rental development intending to sell the development shall notify the department in writing prior to the closing of the sale, and shall provide documentation to the department that the prospective new owner acknowledges and is aware of the terms, conditions, and restrictions encumbering the development as set forth in section 2.96.070. (Ord. 3546 § 2, 2008; Ord. 3418 § 1 (part), 2006)

A. The council shall review this chapter every two years.

B. The director shall provide an annual report to the council on the status of the housing policy that shall include the following:

1. The number of units built for sale and rent, categorized by number of bedrooms, income group, and sales price if for sale;

2. The number of purchasers who resold units, categorized by number of bedrooms, income group, and sales price; and

3. The number of developers, their partner(s), or their management companies maintaining a wait list, and the number of applicants on each wait list.

C. For rental developments, the developer, its partner, or its management company shall submit an annual report of rental units to the department that includes the following:

1. The tenant’s move-in date; and

2. The income group of the tenant or family.

(Ord. 3418 § 1 (part), 2006)

The director shall adopt administrative rules to implement this chapter, pursuant to chapter 91, Hawaii Revised Statutes, within one hundred eighty days after the effective date of the ordinance codified in this chapter. (Ord. 3418 § 1 (part), 2006)

The annual tax assessed value, as determined by the County, will take into account the limited resale value of the residential workforce housing property. (Ord. 3418 § 1 (part), 2006)

A. For developments subject to this chapter, and under the jurisdiction of the development services administration of the department of public works and environmental management, decisions on permits will be made by all departments within sixty days of the date the permit application is deemed complete by the development services administration. Decisions on permits that require review by any outside agency will be made within thirty days of receipt by the development services administration of the last approval from an outside agency; provided, that decisions on applications that require special management area permit review, or environmental review pursuant to chapter 343, Hawaii Revised Statutes, shall be issued within ninety days of completion of the applicable review.

B. For developments subject to this chapter, and if applicable, the council will schedule the initial meeting for such application within six months of the referral to the appropriate committee. The council will vote to approve or deny the application within one year of the referral to committee.

C. Developments that include on-site residential workforce housing units may be entitled to a density bonus, subject to enactment of enabling legislation. (Ord. 3418 § 1 (part), 2006)

Where the department determines that such an agreement will further the purposes of this chapter, the department shall enter into an agreement, on a project-by-project basis, with a qualified housing provider. Such an agreement may provide, without limitation, that the qualified housing provider shall:

A. Receive, own, manage, rent, operate and sell residential workforce housing units provided by developers pursuant to section 2.96.040 of this chapter;

B. Enter into agreements with developers pursuant to section 2.96.040.B.2 of this chapter, subject to the department’s approval, pursuant to which residential workforce housing units are developed, constructed, renovated, or otherwise made available to satisfy the purposes of this chapter;

C. Receive land and in-lieu fees provided by developers pursuant to section 2.96.040.B.4 of this chapter;

D. Receive disbursements from the affordable housing fund and other funds provided for the purposes of this chapter; and/or

E. Administer the selection processes under sections 2.96.090 and 2.96.100 of this chapter, subject to the department’s oversight.

1. Where a qualified housing provider receives, owns, develops, rents, operates or sells residential workforce housing units, such units shall be rented or sold to applicants qualified under this chapter, as set forth in the qualified housing provider’s agreement with the department;

2. Selection of purchasers or renters for a qualified housing provider’s units shall be made in accordance with sections 2.96.090 and 2.96.100 of this chapter or with other selection processes permitted under the qualified housing provider’s agreement with the department;

3. All qualified housing provider rentals or sales shall be on terms, conditions and restrictions set forth in the agreement, which shall be at least as restrictive as the terms, conditions and restrictions applicable to developer rentals or sales under this chapter, and may be more restrictive; and

4. All qualified housing provider agreements shall require detailed reports to the department, on no less than an annual basis, of the qualified housing provider’s implementation of, and compliance with, the agreement. This report shall include an annual financial audit. (Ord. 3418 § 1 (part), 2006)