Affordable Housing: Chapter 201H Processing by County Agencies
In a prior newsletter, we described the process by which a developer of an affordable housing project under Chapter 201H of the Hawaii Revised Statutes ("Chapter 201H") applies to the Hawaii Housing Finance and Development Corporation ("HHFDC") to develop a Chapter 201H affordable housing project. Most Chapter 201H projects, however, are administered by a county housing agency. Each county's application review and approval process may differ from HHFDC's. The Developer of a proposed Chapter 201H project in Honolulu, for example, may first apply to the City & County of Honolulu, Department of Planning and Permitting ("DPP"). If DPP rejects the application and the proposed Chapter 201H project meets HHFDC's eligibility criteria, the Developer may apply to HHFDC.
Below is a summary of the differences between applying for a Chapter 201H project through HHFDC and the county housing agencies.
Affordability Requirements
HHFDC requires at least fifty percent (50%) plus one (1) of the units in the Chapter 201H project to be affordable to households with incomes at or below one hundred forty percent (140%) of the Area Median Income, as defined by the U.S. Department of Housing and Urban Development ("AMI").
- County of Hawaiʻi: At least thirty (30) dwelling units, of which at least fifty-one percent (51%) of the units must be affordable to households earning below one hundred twenty percent (120%) of the AMI, unless otherwise specified by DPP's rules.
- County of Kauaʻi: At least fifty-one percent (51%) of the units must be affordable to households with incomes at or below one hundred twenty percent (120%) of the AMI, and distributed in accordance with the Kauai County Code.
- County of Maui: Same as HHFDC's requirement.
Housing Agency Review of the Application
HHFDC's Executive Director has ninety (90) days after receipt of a complete Chapter 201H application to recommend approval or disapproval of the project to the HHFDC Board. The HHFDC Board may approve, approve with conditions, reject, defer, or re-refer the application to the Executive Director for further review and recommendation.
- County of Hawaiʻi, Office of Housing and Community Development("OHCD"): OHCD has up to ninety (90) days to review the application.
- City and County of Honolulu, DPP: DPP has ten (10) days after receipt of a Developer's 201H Determination of Eligibility Form to determine whether or not to accept the Chapter 201H project for processing. Once accepted, DPP has ninety (90) days to complete its review.
- County of Kauaʻi, Housing Agency ("Housing Agency"): The Housing Agency has at least thirty (30) days to complete its review of the application.
- County of Maui, Department of Housing and Human Concerns ("DHHC"): Same as HHFDC's process.
State and County Agency Reviews
During HHFDC's review period, HHFDC distributes the Chapter 201H plans to other state and county agencies, providing each agency up to thirty (30) days to review and comment on the plans.
- County of Hawaiʻi: Each agency has at least thirty (30) days to return comments to OHCD. The Developer has two to three weeks to respond to comments from the agencies and revise its plans accordingly.
- City & County of Honolulu: Each agency has thirty (30) days to return comments to DPP.
- County of Kauaʻi: Each agency has thirty (30) days to return comments to the Housing Agency.
- County of Maui: Same as HHFDC's review period.
County or City Council Review
HHFDC transmits the project plans and a draft resolution itemizing the proposed exemptions to the appropriate city or county council. The council has forty-five (45) days to decide whether to adopt a resolution implementing the Chapter 201H project.
- Hawaiʻi County Council:The Planning Committee may hold a meeting before the full council meeting.
- Honolulu City Council: A committee meeting may be held before the full council meeting.
- Kauaʻi County Council: A committee, such as the Housing & Intergovernmental Relations Committee, may hold a meeting before the full council meeting.
- County of Maui: The Affordable Housing Committee may hold a meeting before the full council meeting.
When considering whether to pursue a Chapter 201H project, Developers should familiarize themselves with the appropriate application review and approval process.