HAR §15-218-5. Definitions

As used in this chapter, the following words and terms shall have the following meanings unless the context shall indicate another or different meaning or intent: "Area median income" means the area median family income (AMI) determined by the United States, Department of Housing and Urban Development annually for the Honolulu metropolitan statistical area as adjusted for household size. "Authority" or "HCDA" means the Hawaii community development authority established by section 206E-3, Hawaii Revised Statutes. "Developer" means a private person or an entity who has legal rights to perform or cause to be performed any man-made change over, upon, under, or across improved or unimproved real property within the mauka area. "Executive director" means the executive director of the authority. "Fair market value" means the unencumbered fair market value of a property that has no state or county restrictions attached thereto, as determined by a real estate appraiser licensed or certified to practice in the State of Hawaii subject to the requirements of section 466K-4, Hawaii Revised Statutes. "Floor area ratio" or "FAR" means the ratio of floor area to land area expressed as a percent or decimal which shall be determined by dividing the total floor area on a development lot by the lot area of that development lot. "Gross revenue" means the gross receipt from sale of all residential units, associated parking, and other common area elements in a project for the purpose of calculating cash-in-lieu payment in lieu of providing for-sale reserved housing units. For rental reserved housing, the capitalized value of net 218-5 §15-218-5 §15-218-5 operating rent shall be utilized as gross revenue for the purpose of calculating cash-in-lieu payment. "Household" means: (1) Single person; (2) Two or more persons regularly living together related by blood, marriage, or by operation of law; (3) A live-in aide, who is essential to the care and well-being of a household member subject to proper documentation and credential as a qualified caregiver; or (4) No more than five unrelated persons who have lived together for at least one year, who have executed an affidavit, and who have provided proof acceptable to the authority in its sole discretion. Affidavits from family members or neighbors are not acceptable. "Household income" means the total annual income, before taxes and personal deductions, received by all members of the applicant's household, including but not limited to wages, salaries, overtime pay, commissions, fees, tips and bonuses, compensation for personal services, social security payments, retirement benefits, income derived from assets, cost of living allowance, net income from business or profession, unemployment benefits, welfare benefits, interest and dividend payments. Household income shall exclude income of a co-mortgagor who is not a household member, income from employment of minor children including foster children, and income from employment of full-time students under the age of twenty-three years. "HRS" means the Hawaii Revised Statutes. "HUD" means the United States, Department of Housing and Urban Development. "Land trust" means a recorded instrument as defined in chapter 558, HRS. "Licensed life care facilities" means licensed assisted living facilities as defined in section 321-15.1, HRS. 218-6 §15-218-5 §15-218-17 "Low-income household" means a household whose household income does not exceed eighty percent of the area median income. "Moderate-income household" means a household whose household income in greater than eighty percent but does not exceed one hundred forty percent of the area median income. "Multi-family residential development" means residential building consisting of more than one residential unit. "Reserved housing" means housing designated for residents in the low-income or moderate-income ranges who meet such eligibility requirements as the authority may adopt by rule. "Workforce housing project" means new multi-family residential development where at least seventy-five percent of the residential units are set aside for purchase or for rent by households earning no more than one hundred forty per cent of the AMI. Terms not defined in this section shall be accorded their commonly accepted meanings. [Eff 11/11/11; am and comp 7/9/2018; am and comp JUN 2 5 2021] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §§15-218-6 to 15-218-16 (Reserved) SUBCHAPTER 2 RESERVED HOUSING AND WORKFORCE HOUSING REQUIREMENTS §15-218-17 Requirement for reserved housing units. (a) Every developer applying for a development permit for approval to construct multi-family dwelling units on a lot greater than 20,000 gross square feet shall provide at least twenty percent of the total number of residential units in the development as reserved housing units. Reserved 218-7 §15-218-17 §15-218-17 housing units may be provided as for-sale units or rental units. (b) Reserved housing units shall be sold or rented to persons qualifying under the terms and conditions set forth under subchapter 3. The developer shall execute agreements with the HCDA as are appropriate to conform to this requirement, and the agreements shall be binding upon the developer and any successors in interest, and shall run with the land. The agreement shall provide that the developer must provide certification to the authority as to the compliance of the requirements herein to qualify for a certificate of occupancy for the project for which provisions of this chapter are applicable. (c) Occupants of reserved housing units shall have access to and use privileges for the same amenities as all other occupants of the development. Reserved housing units shall be distributed in the building in such a manner that they do not form an isolated section of the project. (d) If the authority so determines, it may allow the developer to meet the requirement of subsection (a) through the following alternatives instead of providing reserved housing units within the development: (1) By providing reserved housing units elsewhere within the mauka area; (2) By providing reserved housing units elsewhere within urban Honolulu. The authority may impose additional reserved housing requirements in approving transfer of reserved housing from mauka area to other locations within urban Honolulu. The additional reserved housing requirements shall be determined on a case-by-case basis by the authority at the time of approval of the development permit; or (3) By allowing a cash-in-lieu payment instead of providing reserved housing units. (e) The construction of reserved housing units shall commence prior to the issuance of the initial certificate of occupancy for the project for which 218-8 133 97 §15-218-17 §15-218-17 reserved housing is required and shall be secured by the developer with a financial guaranty bond from a surety company authorized to do business in Hawaii, an acceptable construction set-aside letter, or other financial instruments acceptable to the authority prior to the approval of the building permit for the project by the authority. In addition, the developer shall provide the authority a copy of a duly executed construction contract with a general construction contractor licensed to conduct business in the State of Hawaii for the construction of the reserved housing units. {f) The developer shall execute such agreements as are necessary to implement any alternative reserved housing requirement, and such agreements shall be binding upon the developer and any successors in interest, and shall run with the land. {g) Licensed life care facilities shall be exempt from the reserved housing requirement. In a proposed development that includes licensed life care facilities as well as residential dwelling units, the reserved housing requirements shall apply only to the residential dwelling portion of the development. {h) No construction shall commence for any development within the mauka area on a lot greater than 20,000 square feet unless the development conforms to the provisions of this chapter and the authority has certified that the development complies with the requirements of this chapter. {i) 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 ensure that the reserved housing units are provided and that they are occupied by qualified persons for the regulated term. {j) The authority may suspend the requirements for reserved housing for a limited duration or modify any provisions of this rule, if, based on market conditions and in its sole judgment, it determines that the requirements of this rule may unduly impede, preclude, or otherwise negatively impact the primary 218-9 §15-218-17 §15-218-19 objective of the authority to promote redevelopment within the Kakaako community development district. (k) When it 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, the authority shall certify the development permit application approved as to the reserved housing requirements of this chapter. [Eff 11/11/ll· aw ~n.d. ~omp 7/9/2018; am and comp JUN~~ ZU2!] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-18 Adjustments to height, density, and general development requirements for reserved housing units. (a) Except as otherwise provided, any multi- family residential development on a lot greater than 20,000 square feet that meets applicable provisions of this chapter shall be entitled to adjustments in FAR and general development requirements as follows: (1) Residential floor area for reserved housing shall be excluded from calculations of floor area ratio; and (2) Residential floor area for reserved housing shall be exempt from the provisions of Hawaii administrative rules, section 15-217- 65. (b) The authority may also consider modifying the following requirements of the mauka area rules as an incentive to providing reserved housing by an applicant: (1) Building height; (2) Street setbacks; (3) Off-street parking; and (4) Loading space. [Eff 11/11 11ll, 2• ~m2 ,e...nd comp 7/9/2018; am and comp ~UN ;) Uz1 J (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4,206E-5, 206E-7) §15-218-19 Unit type and corresponding factor. The Reserved Housing Unit Type and Corresponding 218-10 §15-218-19 §15-218-20 Factor Table below shall be utilized in determining the total number of reserved housing units required to be provided for any development. RESERVED HOUSING UNIT TYPE AND CORRESPONDING FACTOR TABLE Unit Type Factor 0 Bedroom 0.70 1 Bedroom 0.90 2 Bedrooms 1.00 3 Bedrooms 1.08 3+ Bedrooms 1.16 [Eff 11/11/11; am and comp 7/9/2018; am and comp JUN 2 5 2021 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-20 Occupancy guidelines for sale or rental of reserved housing and workforce housing units. (a) The following occupancy guidelines shall be used for sale or rental of reserved housing units during the initial application period when the number of applications exceeds the number and type of reserved housing units available: OCCUPANCY GUIDELINE Unit Preferred Minimum Type Household Household Size Size 218-11 §15-218-20 §15-218-21 Studio 1 person 1 person 1 Bedroom 2 persons 1 person 2 Bedrooms 3 persons 2 persons 3 Bedrooms 4 persons 2 persons 4 Bedrooms 5 persons 3 persons The corresponding household size may be modified by the authority if the units are unsold, unrented, or includes a live-in aide. (b) The maximum household size shall be based on permissible household size determined by the City and County of Honolulu housing code. [Eff 11/11/11; am and comp 7/9/2018; am and comp JUN 2 5 2021 ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §15-218-21 Workforce housing project(s). (a) New residential project(s) where at least seventy-five percent of the residential units are set aside for purchase or for rent by households earning no more than one hundred forty percent of the AMI shall qualify as a workforce housing project. (b) Workforce housing projects shall not be used to satisfy the reserved housing requirement(s) for any residential project(s) that are required to provide reserved housing in accordance with subchapter 2. (c) Workforce housing project(s) shall receive a floor area bonus of one hundred percent, provided that the bonus floor area shall be used towards the construction of workforce housing project(s) only. (d) Workforce housing projects shall be exempt from the provisions of Hawaii administrative rules, section 15-217-65. (e) The authority may also consider modifying off street parking and loading requirements of the mauka 218-12 §15-218-21 §15-218-30 area rules for workforce housing projects. [Eff 11/11/11; am '1,P~O~omp 7/9/2018; am and comp JUN 2 0 Z LI ] (Auth: HRS §§206E-4, 206E-5, 206E-7) (Imp: HRS §§206E-4, 206E-5, 206E-7) §§15-218-22 to 15-218-28 (Reserved) SUBCHAPTER 3 SALE AND RENTAL OF RESERVED HOUSING AND WORKFORCE HOUSING UNITS