CONTENTS EXECUTIVE SUMMARY ........................................................................................................... 1 INTRODUCTION ....................................................................................................................... 3 GOAL..................................................................................................................................... 3 BACKGROUND ..................................................................................................................... 3 METHOD ............................................................................................................................... 3 INVENTORY OF GOVERNMENT-OWNED PARCELS ............................................................. 4 PARCELS .............................................................................................................................. 4 SCORING SYSTEM............................................................................................................... 4 FUNDAMENTAL CHARACTERISTICS.............................................................................. 4 DEVELOPMENT CHARACTERISTICS..................................................................................... 6 AFFORDABLE HOUSING NEED.............................................................................................. 8 CURRENT INVENTORY OF AFFORDABLE UNITS.............................................................. 8 AFFORDABLE HOUSING UNITS NEEDED .......................................................................... 8 TYPES OF UNITS NEEDED.................................................................................................. 9 DEVELOPMENT PROCESS ....................................................................................................10 RECOMMENDATIONS.............................................................................................................11 APPENDICES...........................................................................................................................12 APPENDIX A – PARCEL INVENTORY AND EVALUATION ...................................................13 FUNDAMENTAL CHARACTERISTICS.............................................................................14 APPENDIX B – PARCEL SCORING SYSTEM ITERATIONS ..................................................30 PHASE I EVALUATION ........................................................................................................31 PHASE II EVALUATION .......................................................................................................37 PHASE III EVALUATION ......................................................................................................42 PROPERTY CATEGORIES ..................................................................................................46 PENDING PROJECTS......................................................................................................46 PARTNERSHIP PROJECTS.............................................................................................46 REDEVELOPMENT AND INFILL PROJECTS ..................................................................47 PROACTIVE REZONING AND INFRASTRUCTURE........................................................48 UNDERUTILIZED PROPERTIES......................................................................................48 APPENDIX C – EVALUATING HIGH POTENTIAL PARCELS FOR DEVELOPMENT OF AFFORDABLE HOUSING........................................................................................................62 ANALYSIS ............................................................................................................................64 FINAL HIGH PRIORITY LOCATIONS...............................................................................64 ADDITIONAL LOCATIONS EVALUATED .........................................................................83 SUMMARY..........................................................................................................................109 APPENDIX D – DEVELOPMENT CHARACTERISTICS ........................................................111 DEVELOPMENT TIMING AND COSTS ..............................................................................112 UNIVERSITY DORMS PROPERTY – TMK # 2-3-8-007-117 ..........................................115 KĪHEI SOCCER FIELD PROPERTY – TMK # 2-2-2-030-121.......................................... 116 Affordable Housing Implementation Plan Final Report Page i © SMS August, 2018 KĪHEI FIRE STATION PROPERTY – TMK # 2-2-1-008-046, # 2-2-1-008-113, # 2-3-9-038- 026..................................................................................................................................117 KEHALANI MAUKA PROPERTY – TMK # 2-3-5-001-077...............................................118 WAIALE ROAD PROPERTY – TMK # 2-3-8-007-092 .....................................................119 WAILUKU BEACHFRONT PROPERTY – TMK # 2-3-3-001-001 ....................................119 FUNDING ALTERNATIVES ................................................................................................120 AFFORDABLE HOUSING FUND....................................................................................120 ADDITIONAL FUNDING SOURCES ...............................................................................120 FUNDING OPTIONS FOR INFRASTRUCTURE .............................................................121 FUNDING EXAMPLE ......................................................................................................122 INCENTIVES ......................................................................................................................122 STATE OF HAWAI‘I ........................................................................................................123 HONOLULU CITY & COUNTY (ORDINANCE 18-1) .......................................................124 KAUA‘I COUNTY.............................................................................................................125 HAWAI‘I COUNTY:..........................................................................................................125 RECOMMENDATIONS ...................................................................................................126 BARRIERS AND IMPEDIMENTS TO AFFORDABLE HOUSING DEVELOPMENT ............127 IMPROVING OFF-SITE INFRASTRUCTURE .................................................................127 REZONING AND APPROVAL PROCESS.......................................................................127 ENTITLEMENTS.............................................................................................................127 APPENDIX E – AFFORDABLE HOUSING INVENTORY AND NEED ...................................136 CURRENT INVENTORY.....................................................................................................137 FORECAST ........................................................................................................................138 TYPES OF AFFORDABLE UNITS NEEDED ......................................................................140 APPENDIX F – IMPLEMENTATION STEPS OUTLINE..........................................................142 IMPLEMENTATION STEPS OUTLINE ...............................................................................143 PARCEL EVALUATION DECISION MATRIX......................................................................147 FUNDING DECISION MATRIX ...........................................................................................148 PERMIT PROCESS MATRIX..............................................................................................149 APPENDIX G – EXAMPLE OF KAUA‘I RFP FOR AFFORDABLE HOUSING DEVELOPER153 WAGE CERTIFICATE...............................................................................................................40 APPENDIX H - REFERENCES.............................................................................................154 Affordable Housing Implementation Plan Final Report Page ii © SMS August, 2018 LIST OF FIGURES Figure A-1. County-Owned Residential Parcels, West and Central Maui, 2018.................15 Figure A-2. County-Owned Residential Parcels, Island of Molokai, 2018 ..........................16 Figure A-3. County-Owned Residential Parcels, Island of Lanai, 2018 ..............................17 Figure A-4. State-Owned Residential Parcels, Island of Maui, 2018...................................18 Figure A-4a. State-Owned Residential Parcels, Lahaina, Island of Maui, 2018..................19 .................................................................................................................................................19 Figure A-4b. State-Owned Residential Parcels, Wailuku-Kahului, Island of Maui, 2018 ...20 .................................................................................................................................................20 Figure A-4c. State-Owned Residential Parcels, Kīhei, Island of Maui, 2018 ......................21 .................................................................................................................................................21 Figure A-4d. State-Owned Residential Parcels, East Maui, Island of Maui, 2018 ..............22 .................................................................................................................................................22