Other ways to meet workforce housing requirements

A developer may request alternatives to satisfy all or a portion of the workforce housing requirements provided in Section 7A-2.1.Payment of In-Lieu Fees. Subject to Housing Agency approval, in-lieu fees may be paid for all or a portion of the required number of workforce units per the in-lieu fee schedule. In-lieu fees shall be allocated pursuant to Section 7A-2.1(a)(2).Calculation of In-Lieu Fee. The calculation of in-lieu fees paid in-lieu of the required workforce units represents the developer subsidy to subsidize housing units at prices affordable to workforce income groups and shall be assessed according to the following in-lieu fee schedule:In-Lieu Fee ScheduleIncome GroupRequirementIn-Lieu Fee*80%Unit Sales$218,240100%Unit Sales$151,280120%Unit Sales$ 83,080*Based on the Consumer Price Index for urban Honolulu effective January 2020.In-lieu fees shall be subject to annual adjustment, based on the consumer price index for Honolulu for all urban consumers.In-lieu fees paid pursuant to this Section shall be made directly to the Director of Finance and shall be deposited in the housing revolving fund established pursuant to Chapter 6, Article 9 of the Kaua'i County Code. All moneys received shall be used for planning, administering, and constructing government workforce housing projects.Dedication of Land. Subject to approval by the County Council, land in-lieu may be dedicated to the County for all or a portion of the required number of workforce units. Such land shall be transferred by fee-simple title and at no cost to the County. The value of land to be dedicated shall be equal to or greater than the comparable amount of assessed in-lieu fees. Land to be dedicated shall be suitable to satisfy workforce housing requirements, and suitability of dedicated land may include, but not be limited to, size, configuration, physical characteristics, environmental constraints, off-site infrastructure, zoning, access, location, and other relevant criteria as required by the Housing Agency.The location of off-site land dedication shall be within the same real property tax zone as a developer's project or within five miles by public road from the development project.The value of land to be dedicated shall be determined by appraisal by a real estate appraiser licensed in the State of Hawai'i and mutually agreed upon by the developer and the Housing Agency. The cost of such appraisal shall be borne by the developer. The appraisal shall be subject to approval of the Housing Agency.Rental Units. Subject to approval by the Housing Agency, and provisions of Article 2 of this Chapter, rental units may be substituted in place of for-sale units provided the rental units are made available to the same workforce housing income groups, are restricted to rents consistent with the workforce housing guidelines, and remain affordable for a minimum period of 40 years.