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.
"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).
"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.
"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 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)