A bill adding eligible programs for county housing funds was passed on final reading Wednesday by the County Council, but a companion measure proposing a charter amendment to lock in funding was shot down by a council majority.
Bill 152, approved on a 7-2 vote, expands the list of programs using money from the county housing program revolving fund from two to nine. Currently, the money can be used for planning design and development of affordable housing units by the county or nonprofit development partners and to exercise any buyback options in conveyance documents.
The measure adds to that the acquisition of land or existing structures for use as affordable housing, rehabilitation of existing structure currently being used for affordable housing, infrastructure for development of affordable housing, subsidies, grants and loans to support households with upfront costs for rental units or mortgage financing and rental or mortgage assistance to prevent homelessness or foreclosure and purchasing deed restrictions on private properties limiting resales to qualified low income and moderate income households.
The council’s commitment to subsidize affordable housing was expanded on the bill’s first reading to include moderate-income families making up to 120% of the average median income, meaning a family of three earning up to $92,520 annually could qualify for a two-bedroom home costing up to $539,000.
Kohala Councilman Tim Richards and Puna Councilwoman Ashley Kierkiewicz voted against the measure, saying they supported the intention, but feared it would tie the housing administrator’s hands on how to spend the money.
“This is where the unintended consequences could happen,” said Housing Administrator Susan Kunz. “The broadness the funds can be used for, for housing development, has allowed us to do a lot of work. Why are we changing?”
North Kona Councilman Holeka Inaba, who along with Hamakua Councilwoman Heather Kimball sponsored the two measures, disagreed with that analysis.
“It’s actually broadening the uses of the fund,” Inaba said. “We could go in circles (but) if you look at the bill, it gives more options.”
The pair was less successful with the second bill, Bill 153. That measure proposed a ballot question to change the county charter to dedicate 1% of property tax revenues annually to housing programs. Under current taxes, that would put about $4 million annually into the housing fund.
“What I really like about a charter amendment, is it presents an opportunity to send it out to the general public and get broader input.” Kimball said.
Council members killed the plan on a 4-5 vote, after a lengthy closed-door session the evening before with Corporation Counsel Elizabeth Strance. Strance pointed to caselaw that she thought could put the bill on shaky legal ground.
Voting in favor were Inaba, Kimball, Puna Councilman Matt Kanealii-Kleinfelder and Kona Councilwoman Rebecca Villegas. Joining Richards and Kierkiewicz in voting no were Hilo Councilman Aaron Chung, Hilo Councilwoman Sue Lee Loy and council Chairwoman Maile David, representing South Kona and Ka′u.
“I have concerns it is an unconstitutional attempt to place proposed legislation before the public as a charter amendment rather than an ordinance,” Strance said, a statement that could possibly put other charter amendments into question.
Charter amendments have already claimed 3.25% of property tax revenues for special purposes: 2% to purchase open space land, .25% to hire nonprofits to maintain them and 1% for a disaster and emergency fund.
Kierkiewicz has sponsored a measure that would create an ordinance rather than a charter amendment to earmark a minimum of $5 million annually for housing programs. That measure, Bill 160, cleared the Finance Committee Tuesday and will come before the council in coming weeks.
“We have the wherewithal as legislators to introduce ordinances to direct funding,” she said. “They elected all of us to solve for it.”