Permit extra multi-unit housing

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To: Honolulu Metropolis Council
Tommy Waters, Chair
Esther Kia‘aina, Vice Chair

From: Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii

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RE: BILL 10 (2022), CD1 — RELATING TO USE REGULATIONS

Pricey Chair and Council Members:

The Grassroot Institute wish to provide feedback on Invoice 10 (2022), CD1, which might restructure the land-use ordinances contained in Chapter 21 of the 1990 Revised Ordinances of Honolulu.

The invoice would replace the county’s land-use laws for agricultural, residential, business, nonprofit, authorities and different makes use of.

We commend the Council for its work to replace the code and decrease the price of housing, however we’re involved that some components of the invoice will undermine that aim.

Increasing multi-unit and group housing

In Sec. 21-5.50-1: “Family dwelling,” web page 26, Invoice 10 clarifies the rules for multi-unit dwellings in enterprise zones and expands the enterprise zones through which they are often constructed.

Multi-unit dwellings with one or two dwelling items could be allowed in enterprise zones so long as they’re on the second flooring and meet sure dimension specs.

The Grassroot Institute of Hawaii welcomes this proposal, since any step to permit extra housing will seemingly scale back housing prices.

The Nationwide Multifamily Housing Council has studied this subject and concluded that authorities regulation makes up greater than 40% of multifamily growth prices.^[1]

Moreover, the Brookings Establishment has written that “in locations the place land is dear, constructing a number of houses on a given lot is probably the most direct approach to scale back housing prices as a result of it spreads the price of land throughout a number of houses.”^[2]

On this entrance, Invoice 10 is a step in the proper route.

However there’s extra that may be carried out to develop multi-unit dwellings and decrease housing costs for Honolulu residents.

As amended on Aug. 25, Invoice 10 would allow multi-unit dwellings solely in B-1 and B-2 zones, however provided that these items are in so-called transit-oriented growth plan areas — in different phrases, areas close to the Honolulu rail line.

This modification must be reconsidered, because it constrains these multi-unit dwellings to a needlessly small space.

I wish to touch upon one different part of the invoice, which the Grassroot Institute of Hawaii believes is well-intentioned however misguided.

Creating government-owned housing for lecturers

In Sec. 21-5.50-3: “Accent residential,” web page 36, Invoice 10 permits the town to finance, assemble and lease housing for lecturers whose family earnings is 80% or under the realm’s median earnings. The housing could be constructed on land owned by the town and underneath lease to the state Division of Training.

Sadly, analysis has proven that such government-owned housing usually traps tenants.

“As soon as they’re segregated in low-income housing, residents are disincentivized to get forward in life or transfer to higher housing,” the Manhattan Institute’s Michael Hendrix has written.^[3]

Caught in housing they don’t personal and can’t enhance, tenants can find yourself in unacceptable dwelling circumstances.

Since lease from lower-income people usually doesn’t hold tempo with upkeep prices, governments should discover the money to pay for repairs. Once they can’t, repairs are postpone — generally with hazardous outcomes.

In 2018, the New York Metropolis Housing Authority confronted a lawsuit from residents alleging the company “failed to supply tenants with warmth and sizzling water” and didn’t “hold residents secure from lead.”^[4]

As a substitute of spending extra taxpayer cash on housing, the town ought to incentivize personal residence growth by liberalizing zoning laws and slicing allowing delays — within the latter case, maybe by decreasing the variety of permits wanted.

Usually, Invoice 10 deserves reward for enjoyable the zoning laws on multi-unit houses, however it might and will do extra.

Thanks for the chance to testify.

Sincerely,

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii

^[1] “New Analysis Exhibits Rules Account for 40.6 % of Condominium Growth Prices,” Nationwide Multifamily Housing Council, June 9, 2022.

^[2] Jenny Schuetz, “To enhance housing affordability, we’d like higher alignment of zoning, taxes, and subsidies,” Brookings Establishment, Jan. 7, 2020.

^[3] Michael Hendrix, “America’s Failed Experiment in Public Housing,” Governing, Might 10, 2021.

^[4] Ibid.

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