This Chapter shall be known as the Housing Policy for the County of Kaua'i.
(Ord. No. 860, November 20, 2007)
(a) 
To establish that a portion of residential and resort developments shall provide workforce housing opportunities for Kaua'i residents that are affordable to households earning from 80% and below of the Kaua'i median household income to 120% of the Kaua'i median household income. The term "workforce housing" shall hereinafter be used collectively in place of the housing terms "low income," "affordable," and "employee" housing formerly used to describe income groups related to housing requirements and housing programs established for residential and resort developments.
(b) 
To encourage that a range and variety of workforce housing types and occupancy are made available and to establish procedures for qualified residents to benefit from the sale or rental of workforce housing.
(c) 
To preserve the affordability of workforce housing for the future.
(d) 
To provide government assistance to expedite workforce housing development through the waiver of certain County fees, through the implementation of a fast track permitting, and exercising housing powers to exempt workforce developments from development standards that do not jeopardize health or safety.
(Ord. No. 860, November 20, 2007; Ord. No. 1081, October 29, 2020)
The following definitions shall apply for the purposes of this chapter.
"Affordable housing"
means "workforce housing."
"Building green"
means the practice of designing, planning, and constructing buildings that are energy and water efficient, have natural ventilation and good indoor air quality, and use recyclable and sustainable materials.
"County"
means the County of Kaua'i, a political subdivision of the State of Hawai'i.
"County fees"
means fees payable to the County which arise out of the development and construction of the workforce housing units.
"County permits"
means all permits and approvals required and issuable by the County for the development and construction of the workforce housing units.
"CZO"
means the Comprehensive Zoning Ordinance of the County of Kaua'i as codified in Chapter 8 of the Kaua'i County Code, 1987, as amended.
"Developer"
means a land owner or authorized agent of a land owner of real property (1) that seeks any County approval for development or subdivision of real property, or (2) that has applied to the County for a State land use district boundary amendment, a zoning district boundary amendment, or an amendment to the visitor destination area, or (3) that has previously obtained from the County a State land use district boundary amendment or zoning district boundary amendment, but has not yet satisfied an existing housing condition, or the County has not yet executed a written housing agreement specifying the means to satisfy all or any portion of an existing housing condition.
Dwelling, multiple-family.
"Multiple-family dwelling" means a building or portion thereof consisting of two or more dwelling units and designed for occupancy by two or more families living independently of each other, where any one of the constructed units is structurally dependent on any other unit.
Dwelling, single-family attached.
"Single-family attached dwelling" means a building consisting of two or more dwelling units designed for occupancy by two or more families living independently of each other where each unit is structurally independent although superficially attached or close enough to appear attached.
Dwelling, single-family detached.
"Single-family detached dwelling" means a building consisting of only one dwelling unit designed for or occupied exclusively by one family.
"Dwelling unit"
means any building or any portion thereof which is designed or intended for occupancy by one family or persons living together or by a person living alone and providing complete living facilities within the unit for sleeping, recreation, eating, and sanitary facilities, including installed equipment for only one kitchen. Any building or portion thereof that contains more than one kitchen shall constitute as many dwelling units as there are kitchens.
"Fast track"
means the process adopted by the County to expedite the processing of County permits.
"Gap group"
means households earning gross household incomes from 140% to 180% of the Kaua'i median household income (KMHI).
"Government credit"
means a workforce housing credit given to a State government entity in accordance with Section 7A-9.4.
"Household"
means all persons living together in a dwelling unit, whether or not they are related by blood, marriage, or adoption.
"Housing agency"
means the Kaua'i County Housing Agency of the County of Kaua'i.
"Housing standards"
means the standards mutually agreed upon by the developer and the Housing Agency which shall guide and determine the numbers and types of workforce housing units to be developed.
"HUD"
means the United States Department of Housing and Urban Development.
"Immediate family member"
means the parents, brothers, sisters, spouses or reciprocal beneficiaries, children, parents-in-law, grandparents, grandchildren of an individual, or a member of an immediate family member through the Hawaiian "hānai" custom. Reciprocal beneficiary means a relationship of two adults who have selected a life partner in lieu of a spouse pursuant Hawai'i Revised Statutes Sections 572C-4 and 572C-5.
"Income-qualified buyer"
means a qualified buyer whose income is within the limits of the workforce housing income group that is targeted for the purchase of workforce housing units intended as affordable for that workforce housing income group.
"Income-qualified renter"
means a qualified renter whose income is within the limits of the workforce housing income group that is targeted to rent the workforce housing units intended as affordable for that workforce housing income group.
"Kaua'i median household income"
means the median household income for the County of Kaua'i as determined annually by HUD.
"Limited appreciation leasehold estate"
means a leasehold estate administered through the Housing Agency or a Kaua'i community housing land trust where the lease term is 99 years, the sales price to the lessee is the appraised value of the buildings, appreciation is limited to 50% of the difference between the appraised value of the buildings at the time of sale to the lessee and at the time of sale back to the County or a Kaua'i community housing land trust, the lessee is required to occupy the property as their primary residence, the lease may be transferred to an immediate family member with the approval of the Housing Agency, sub-leasing is prohibited, and sale of the leasehold estate shall only be to the County or its designated land trust.
"Limited equity housing cooperative"
means a cooperative owned by a non-profit corporation or non-profit housing sponsor, in which the resident-owners own the cooperative as an undivided whole, rather than as individual units, with the exclusive right to occupy a specific unit within the cooperative, and, where, in order to separate from the cooperative, the resident-owner must be bought out of their ownership in the limited equity housing cooperative by the cooperative or an approved subsequent owner pursuant to the cooperative's governing provisions.
"Market unit"
means a dwelling unit authorized to be developed by zoning designation and which is not subject to any buyer or price restrictions.
"Project"
means the lots or parcels and any development thereon, included and approved in an application by a developer for zoning or building permit, subdivision or consolidation, State land use district boundary amendment, zoning amendment, or amendment into the visitor destination area.
"Qualified buyer"
means the County or a qualified resident who:
(1) 
Has a gross income and credit history sufficient to qualify for the loan to finance the purchase; and
(2) 
Is a person:
(A) 
Who either oneself or together with spouse or household member, does not own a direct or indirect majority interest in fee simple or leasehold lands suitable for dwelling purposes, and
(B) 
Whose spouse or household member does not own a direct or indirect majority interest in fee simple or leasehold lands suitable for dwelling purposes, except when husband and wife are living apart under a decree of separation from bed and board issued by the family court pursuant to Hawai'i Revised Statutes Section 580-71.
"Qualified renter"
means a qualified resident who demonstrates an ability to pay rent and to be a responsible tenant in conformance with standards used by the Housing Agency for prospective tenants in County owned rental projects, including, but not limited to, satisfactory reference from a prospective tenant's previous landlords and a credit report reflecting responsible payment of rent or repayment of debt.
"Qualified resident"
means a person who:
(1) 
Is a citizen of the United States or a resident alien;
(2) 
Is at least 18 years of age;
(3) 
Is a full-time resident of Kaua'i County; and
(4) 
Shall physically reside in the workforce housing unit purchased or rented.
"Rental notice"
means a notice published in a newspaper of general circulation in the County of Kaua'i notifying income qualified buyers of the developer's intent to offer workforce housing units for rent.
"Rental notice date"
means the date of publication of the notice of intent to rent workforce housing units.
"Resort project"
means a project that primarily provides transient accommodation, including, but not limited to, hotel rooms, multiple-family dwellings, time share units or single-family dwellings, which may also contain tourist-oriented commercial or recreational facilities, support services or amenities, including, but not limited to, restaurants, bars, shops, spas, golf courses, or other attractions or services, that generate a need for workforce housing for employees.
"Restriction on sale or transfer, debt, and use"
means the restriction document recorded on all fee-simple housing units sales to qualified buyers that: (1) requires an owner to give the County the option to purchase the property at the original sales price, plus the cost of improvements and simple interest at the rate of 1% per year, (2) limits mortgage debt, and (3) requires owner occupancy for a term of 50 years for sales to residents where income limits are imposed on the buyer, or for a term of 10 years for sales to residents without regard to buyer's income. See restriction on sale or transfer, debt, and use under Article 7 of this Chapter.
"Sales notice"
means a notice published in a newspaper of general circulation in the County of Kaua'i notifying income-qualified buyers of the developer's intent to offer workforce housing units for sale.
"Sales notice date"
means the date of publication of the notice of intent to sell workforce housing units.
"Site construction"
means preparation work on the land of a project, or of a project area, including but not limited to clearing and grubbing, demolition, mass grading, installation of utilities, drainage improvements, roads, and subdivision improvements.
"Transient accommodation"
means a dwelling unit offered for transient or temporary occupancy of 180 days or less, for compensation of fees, including club fees, or as part of an interval ownership involving persons unrelated by blood.
"Workforce for-sale housing price limits"
means the price limits for fee simple or leasehold dwelling units established by the Housing Agency by household size and by dwelling unit size.
"Workforce housing" or "workforce unit"
or "workforce housing unit" means a lot, single-family dwelling unit, or multiple-family dwelling unit that may be rented or sold at price levels that are affordable to households that earn from 80% and below of the Kaua'i median household income to 120% of the Kaua'i median household income.
"Workforce housing income groups"
means the four income groups earning from 80% and below of the Kaua'i median household income to 120% of the Kaua'i median household income, as follows:
(1) 
"80% and below" of the Kaua'i median household income with for-sale price and rent limits at 80% of the Kaua'i median household income;
(2) 
"80% to 100%" of the Kaua'i median household income with for-sale price and rent limits at 100% of the Kaua'i median household income;
(3) 
"100% to 120%" of the Kaua'i median household income with for-sale price and rent limits at 120% of the Kaua'i median household income.
"Workforce housing income limits"
means those household income levels that shall be published annually by the Housing Agency to establish the upper limits of workforce income groups by household size and by dwelling unit size.
"Workforce housing rent limits"
means the rent price limits for workforce dwelling units established by the Housing Agency by household size and by dwelling unit size.
(Ord. No. 860, November 20, 2007; Ord. No. 1081, October 29, 2020)
The workforce housing requirements of this Chapter shall apply to the following:
(a) 
Projects authorized by ordinances enacted by the County Council pursuant to Chapters 7, 8, 10 and 11 of the Kaua'i County Code, as amended, where the resultant overall project density would allow at least 10 dwelling units, including:
(1) 
Projects requesting new zoning district boundary amendments of lands from any zoning district into residential, resort or open districts, project district, or amendment into the visitor destination area,
(2) 
Projects requesting new State land use district boundary amendments involving lands 15 acres or less in size from any State land use district, except the conservation district, to the State land use agricultural, rural, or urban districts;
(b) 
Projects with previously approved zoning district boundary amendments and previously approved State land use district boundary amendments for lands 15 acres or less in size, the ordinance for which contains affordable housing conditions that have not been satisfied as of the effective date of the ordinance codified in this Chapter, or that the developer has not yet executed a housing agreement with the County specifying the means of satisfying the housing conditions, unless the existing ordinance would require the provision of more or a better mix of workforce housing than this Chapter, as determined by the Housing Agency; and
(c) 
Projects with other approvals granted by the County administration, including:
(1) 
Subdivision or consolidation of land, zoning, and building permits for residential development in any zoning district in which the overall project density would allow more than 10 residential dwelling units, and
(2) 
Zoning or building permits for the development or redevelopment of land or buildings on a lot of record in any residential, resort, or commercial district for the construction of or conversion into more than 10 residential dwelling units or time share units, or more than 20 hotel rooms.
(Ord. No. 860, November 20, 2007; Ord. No. 1081, October 29, 2020)
(a) 
The workforce housing requirements of this Chapter shall not apply to any affordable or workforce housing development developed by or for the County, either by itself or in partnership with another housing development organization.
(b) 
Special Infill Multi-Family Workforce Housing Exemption. Projects in the following special areas may elect to adhere to modified workforce housing requirements described below:
(1) 
Projects within the following special planning areas and design districts, developed at or above the maximum density allowed, or in areas subject to form based codes developed as multi-family projects:
(A) 
Līhu'e Town Core Urban Design District as defined in Title IV, Chapter 10, Article 5A.
(B) 
Kōloa Town Walkable Mixed Use District as defined in Title IV, Chapter 10, Article 6.
(C) 
Kalāheo Town Walkable Mixed Use District as defined in Title IV, Chapter 1 0, Article 6.
(2) 
Projects outside of Visitor Destination Areas and Special Management Areas in residential or mixed use zoning districts with a density of R-10 or greater, consisting of multiple or single family attached dwellings, developed at or above the maximum density allowed.
(3) 
The Special Infill Multi-Family Workforce Housing Exemption provisions in this subsection shall expire 10 years from the date of their adoption.
(Ord. No. 1081, October 29, 2020)
(a) 
The workforce housing assessment for any project subject to this Chapter shall be resolved with the Housing Agency prior to final subdivision approval or zoning permit approval, whichever occurs first, or if neither is applicable to the project, prior to building permit application.
(b) 
The workforce housing assessment for any project subject to this Chapter shall be assessed once per project, except that an additional workforce housing assessment may be applicable to a project, after initial assessment, when increased residential or resort density is subsequently granted by the County.
(Ord. No. 860, November 20, 2007; Ord. No. 1081, October 29, 2020)
(a) 
The delivery of workforce housing units, as for sale units, for rent units, or as lots for sale shall be completed before or concurrent with the sale or rental of market units, or the sale lots.
(b) 
The dedication of land-in-lieu or the payment of an in-lieu fee to satisfy the workforce housing assessment shall be resolved with the Housing Agency prior to or at time of zoning amendment approval, zoning permit approval, final subdivision approval, or building permit application, whichever occurs first.
(Ord. No. 860, November 20, 2007; Ord. No. 1081, October 29, 2020)
(a) 
The Housing Agency shall administer this Chapter. The Housing Agency shall use a workforce housing agreement to incorporate the requirements for workforce housing pursuant to this Chapter, which shall be recorded on the deed for the project concurrent with final subdivision approval or prior to building permit approval, whichever occurs first.
(b) 
Any credits earned under this Chapter shall be applied only upon approval by the Housing Agency. Such approval shall further be incorporated into the workforce housing agreement.
(Ord. No. 860, November 20, 2007; Ord. No. 1081, October 29, 2020)