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The Honolulu Advertiser
Posted on: Monday, March 2, 2009

Partnership could boost affordable housing goals

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The train is coming to Honolulu and, with any luck, the project stands to bring along with it some desperately needed affordable housing.

"Transit oriented development" — mixed-use buildings near rail stops that can provide room for affordable units — has always been touted by city officials as a valuable side benefit of the 20-mile fixed-rail transit project, set for groundbreaking this year.

But the latest twist is the pledge of help coming from the state Capitol, too. City-state cooperation on this, Honolulu's biggest public-works effort to date, is certainly a welcome sight.

Senate Bill 442 would authorize the Hawai'i Housing Finance and Development Corporation to be that state partner on the TOD part of the plan. The bill would enable the agency to issue grants; developers can spend that money hiring contractors to handle reviews for certification and permits needed to build housing at transit stops.

The city's own staff can be overwhelmed by such work, which adds to the delay in permitting, so allowing third-party contractors to handle some of that should speed things along and cut costs.

It's unclear whether any money would be available yet to commit to this program, but SB 442 at least puts the mechanism in place for the new development incentives.

In a year besieged with fiscal woes, realizing the desired boost in affordable housing will be tough. But here are a few examples of the bills that did make it into the hopper:

  • Senate Bill 1118 would shorten the period over which low-income housing tax credits can be claimed from 10 years to five years. This is aimed at making the credits a stronger lure for investors in a down market. But the bill also has caps on the tax credit; senators should consider whether that would deter investors they hope to attract.

  • Senate Bill 1277 proposes various incentives for the development of affordable housing. This bill should move along for further discussion of its relative strengths and weaknesses. Parts of it — including a low-income housing tax credit that avoids the problem in SB 1118 — enjoy broad support.

  • Senate Bill 1160 would enable the Hawai'i Public Housing Authority to charge an assessment to public housing units to help cover the expenses of maintaining common areas. The bill may need to be revised to fit within federal rent ceilings.

    Housing Hawai'i's people affordably, always a challenge, has become even harder with more families under economic pressure. But now is the time when state leaders have to search for creative solutions, which will demand unprecedented cooperation among government agencies and any new partners they can find.