Bill Text: HI HR18 | 2022 | Regular Session | Introduced

---

Bill Title: Requesting The Department Of Business, Economic Development, And Tourism To Submit A Report To The Legislature On The Barriers To Creating Affordable Housing In The State.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2022-03-04 - Referred to HSG, FIN, referral sheet 21 [HR18 Detail]

Download: Hawaii-2022-HR18-Introduced.html

---

HOUSE OF REPRESENTATIVES	H.R. NO.	18
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

HOUSE RESOLUTION

 

 

Requesting the department of business, economic development, and tourism to SUBMIT A REPORT TO THE LEGISLATURE ON the BARRIERS TO CREATING AFFORDABLE HOUSING IN THE STATE.

 

 

 

     WHEREAS, there is a severe shortage of affordable housing in the State which hampers the ability of residents to afford such housing on prevailing wages; and

 

     WHEREAS, according to the National Low Income Housing Coalition's Out of Reach 2021 report, a minimum wage employee must work one hundred fourteen hours per week to afford a modest one-bedroom rental home at fair market rent in the State; and

 

     WHEREAS, the United States Department of Housing and Urban Development considers "affordable housing" to be housing for which the occupant is paying no more than thirty percent of income for gross housing costs, including utilities; and

 

     WHEREAS, gross income in relation to housing affordability is generally expressed as a percentage of the area median income; and

 

WHEREAS, the area median income is defined as the midpoint of a region's income distribution, where half of the families earn more than the median and half earn less than the median; and

 

     WHEREAS, housing affordability in the State is most often expressed as the housing price-to-income ratio where the price of an "affordable" home is expressed on a scale where one hundred forty percent of the area median income or lower is considered a "below market" rate; and

 

     WHEREAS, the existing formula used to set the sales price of "affordable" for-sale homes are outdated and do not take into consideration other factors such as the high cost of living and high market prices of housing in the State; and

 

     WHEREAS, the housing price guidelines set by the United States Department of Housing and Urban Development are not applicable to developments that do not use federal subsidies; and

 

     WHEREAS, the outdated "affordable" sales price formulas are based heavily on mortgage interest rates and, given the current low-interest rate environment, may not be affordable to local area residents or may exceed market prices; and

 

WHEREAS, for example, a two-bedroom home in the City and County of Honolulu with a sale price of over one million dollars could potentially qualify as "affordable" under existing guidelines; and

 

     WHEREAS, if the State and counties want to provide housing that residents can afford on typical wages earned in the State, the definition of "affordable" sales prices must more accurately reflect what households in Hawaii can realistically afford, taking into consideration homeowners association fees, insurance, utilities, transportation, cost of living, access to low interest rates, and other factors; and

 

     WHEREAS, the COVID-19 pandemic jeopardized the financial security of thousands of working families who required rental and housing relief to sustain their access to shelter; and

 

     WHEREAS, according to the Hawai‘i Budget & Policy Center, the provision of affordable homes and rental units requires the State to treat housing as a basic necessity and human right, rather than primarily as a means for investment and wealth-building; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, that the Department of Business, Economic Development, and Tourism is requested to submit a report to the Legislature on the barriers to creating affordable housing in the State; and

 

BE IT FURTHER RESOLVED that in the preparation of the report, the Department of Business, Economic Development, and Tourism is requested to consult with other government agencies and advocacy organizations, including the Hawaii Housing Finance and Development Corporation, Hawai‘i Appleseed Center for Law & Economic Justice, and Hawai‘i Alliance for Community Based Economic Development; and

 

     BE IT FURTHER RESOLVED that the report is requested to include information about methodologies for determining what qualifies as "affordable" in Hawaii in comparison to other states and municipalities with similar high costs of living; and

 

     BE IT FURTHER RESOLVED the Department of Business, Economic Development, and Tourism is requested to submit the report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2023; and

 

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Business, Economic Development, and Tourism; Executive Director of the Hawaii Housing Finance and Development Corporation; Executive Director of Hawai‘i Appleseed Center for Law & Economic Justice; and Executive Director of the Hawai‘i Alliance for Community Based Economic Development.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

DBEDT; Affordable Housing Barriers; Report