(a) 
Production Methods. The County, through its Kaua'i County Housing Agency, may produce workforce housing units by:
(1) 
Develop Housing Units. Develop workforce housing units either alone or in partnership with other governmental agencies and with for-profit and non-profit organizations,
(2) 
Housing Project Sponsor or Lender. Sponsor the development or provide interim or permanent mortgage financing of workforce housing units, and
(3) 
Regulate Compliance. Regulate compliance from developments subject to this Chapter to satisfy workforce housing requirements.
(b) 
Production Types. The County may produce single-family detached, single-family attached, or multifamily workforce housing units as:
(1) 
Fee Simple Housing Sales. Sell workforce housing units to eligible residents at affordable prices, provided affordability is preserved through the County's restriction on sale or transfer, debt, and use; or
(2) 
Limited Appreciation Leasehold Sales. Provide homeownership opportunities through the sale of limited appreciation leasehold estates with a term of 99 years; with the sales price to the lessee equal to the appraised market value of the property's building improvements; with appreciation limited to 1/2 of the difference between the original sales price to the lessee and the appraised market value of the building improvements at the time of sale back to the County; or
(3) 
Limited Equity Cooperative Housing. Assist with the development of limited equity cooperative housing projects, where the project limits equity ownership, limits equity appreciation, and maintains the affordability of its housing units, while providing some benefits to homeownership; or
(4) 
Rental Housing. Provide rental workforce housing units with emphasis on lower income affordability.
(c) 
Real Estate Purchase. The County may purchase real estate for the following purposes:
(1) 
Market Real Estate. Purchase unimproved land or existing dwelling units in the open market with documentation to the seller that the proposed purchase is not the action of eminent domain. Unimproved land may be developed immediately as workforce housing or held for future workforce housing development;
(2) 
For-Sale Workforce Housing. Purchase any amount of workforce housing units in a project before, during, or at the end of the restricted marketing period at the same price as offered to income-qualified buyers and re-sell the housing units to income-qualified buyers as limited appreciation leasehold estates or rent to eligible tenants; or
(3) 
Buybacks. Purchase any housing unit subject to the County's buyback rights pursuant to the restrictions on sale or transfer, debt, and use, and re-sell the housing units as limited appreciation leasehold estates.
(d) 
Mortgage Lending. The County may provide low-cost mortgage loans with its federal resources to assist low-income individuals purchase a housing unit, rehabilitate an existing housing unit, or provide long term financing for limited equity housing cooperatives and rental projects.
(e) 
Property Management. The County may provide property management services for projects that it owns or controls, directly or indirectly through contract, for limited equity housing cooperatives and rental projects.
(f) 
Home-Buyer Education and Counseling. The County may provide homeownership education and counseling, directly or indirectly through contract, to Kaua'i residents who wish to become home owners.
(g) 
Home-Buyer List. The County may maintain a list of residents who wish to purchase a home on Kaua'i to keep them informed of upcoming projects and establish a preference for purchase.
(Ord. No. 860, November 20, 2007)
The County shall establish a Kaua'i community housing land trust that shall manage rental units and limited equity housing cooperatives, administer limited appreciation leasehold estate sales, and develop new rental, cooperative, and leasehold housing units. The community housing land trust shall be responsible to maintain the housing units under its control perpetually affordable for residents of Kaua'i. The fee simple title of County owned or required units that become part of the community housing land trust shall remain with the County with a lease in favor of the community housing land trust. Management of the community housing land trust shall be provided by the County government or a Hawai'i nonprofit corporation. Ownership or management of the community housing land trust shall not be transferred to a foundation or trust.
(a) 
Purchase. The community housing land trust may purchase any land or dwelling units to become part of the community housing land trust.
(b) 
Rental Units. Existing County-owned rental projects may become part of the community housing land trust. Additional rental projects may become part of the community housing land trust through donation or purchase.
(c) 
Limited Equity Cooperative Housing. Any cooperative housing project that limits equity accumulation and maintains the affordability of its housing units may become part of the community housing land trust.
(d) 
Limited Appreciation Leasehold Estate Sales. Homeownership opportunities shall be provided by the community housing land trust through the sale of limited appreciation leasehold estates.
(e) 
Administration.
(1) 
Housing Agency. The initial administration of the community housing land trust shall be performed by the Housing Agency.
(2) 
County Board. On or before the community housing land trust is responsible for 250 rental units and/or 50 cooperative and leasehold sales, the administration of the community housing land trust shall become the responsibility of a seven member Board of Directors composed of the following:
(A) 
Administrative head of the Housing Agency;
(B) 
County Planning Director or Deputy Planning Director;
(C) 
An appointed department head selected by the Mayor;
(D) 
A lending institution official selected by the Mayor;
(E) 
A real estate broker or escrow officer selected by the Mayor;
(F) 
A representative of a homeownership education organization or a representative of a nonprofit housing developer selected by the Mayor; and
(G) 
A community housing land trust resident selected by the Mayor. A community housing land trust resident shall be a renter, shareholder, or lessee residing in any community housing land trust rental project, limited equity cooperative, or leasehold estate.
(3) 
Nonprofit or Semi-Autonomous Organization. On or before the community housing land trust is responsible for 500 rental units and/or 100 cooperative and leasehold sales, and at such time that the community housing land trust becomes financially sustainable, a Kaua'i community housing land trust nonprofit corporation may be created or the County may establish the semi-autonomous community housing land trust as the organization to administer and manage the community housing land trust.
(Ord. No. 860, November 20, 2007)
The County shall create and the Housing Agency shall administer the following fund accounts:
(a) 
Development Funds.
(1) 
Unrestricted Account. There shall be an account for the purpose of providing equity for the development of workforce housing that is unrestricted as to geographical location or low income qualification.
(2) 
Geographical Restricted Accounts. There shall be a separate account for each geographical area where in-lieu fees have been collected for the purpose of providing equity for the development of workforce housing.
(b) 
Buyback and Leasehold Accounts. There shall be an account for the purpose of providing the funds:
(1) 
For the County to exercise its repurchase option pursuant to the restriction on sale or transfer, debt, and use (buyback), where funds will revolve or partially revolve.
(2) 
For the County to purchase buyback or workforce units that are then resold as leasehold estates for less than the cost to the County.
(c) 
HUD and Program Income Funds. The County shall have accounts to provide equity for rental projects, low cost mortgage loans, and project development interim construction loans from its annual funding from the Community Planning and Development Division of the United States Department of Housing and Urban Development and program income funds administered by the County.
(Ord. No. 860, November 20, 2007)