Residential workforce housing requirements for developers

A. Developers shall be required to provide a number of residential workforce housing units equivalent to at least twenty-five percent, rounding up to the nearest whole number, of the total number of market rate lots, lodging units, time share units, or dwelling units, excluding farm labor dwellings or a second farm dwelling, as defined in section 19.04.040 of this code, created. If a developer satisfies the requirements of this chapter through subsection (B)(3) and the units shall remain available only to income-qualified groups in perpetuity, the developer shall provide at least twenty percent, rounding up to the nearest whole number, of the total number of market rate lots, lodging units, time share units, or dwelling units, excluding farm labor dwellings or a second farm dwelling, as defined in section 19.04.040 of this code, created. B. Prior to final subdivision approval or issuance of a building permit for a development subject to this chapter, the department shall require the developer to enter into a residential workforce housing agreement. The agreement shall set forth the method by which the developer satisfies the requirements of this chapter. The requirements may be satisfied by one or a combination of the following, which shall be determined by the director and stated in the agreement: 1. Offer for sale, single-family dwelling units, two-family dwelling units, or multi-family dwelling units as residential workforce housing within the community plan area. 2. Offer for rent, multi-family dwelling units as residential workforce housing units within the community plan area. 3. In lieu of directly selling or renting units pursuant to subsections (B)(1) or (B)(2) the developer may convey such units to a qualified housing provider subject to department approval pursuant to section 2.96.150 . 4. In lieu of providing residential workforce housing units, the residential workforce housing requirement may be satisfied by payment of a fee, by providing improved land, or by providing unimproved land in accordance with the following: a. The in-lieu fee per residential workforce housing unit required by this chapter shall be equal to the difference in unit costs for a three bedroom, single-family dwelling unit, at one hundred percent and a three bedroom, single-family dwelling unit at one hundred sixty percent of median income, for a family of four, pursuant to HUD affordable sales price guidelines, or as adjusted by the department for Hāna, Lāna‘i, and Molokai. b. Any dedication of improved or unimproved land in-lieu of residential workforce housing units shall be subject to the approval of the director and the council by resolution. 5. Application of residential workforce housing credits issued pursuant to this code. C. Income group distribution. 1. Unless an exemption is granted by the director, the percentage of ownership units within each income group must be as follows: a. Thirty percent of the ownership units for "below-moderate income" residents, which are those households whose gross annual family income is more than 80 percent, but not more than 100 percent of the area median income as established by HUD, or as adjusted by the department, for Hāna, Lāna‘i, and Molokai. b. Fifty percent of the ownership units for "moderate income" residents, which are those households whose gross annual family income is more than 100 percent, but not more than 120 percent of the area median income as established by HUD, or as adjusted by the department, for Hāna, Lāna‘i, and Molokai. c. Twenty percent of the ownership units for "above-moderate income" residents, which are those households whose gross annual family income is more than 120 percent, but not more than 140 percent of the area median income as established by HUD, or as adjusted by the department, for Hāna, Lāna‘i, and Molokai. 2. Unless an exemption is granted by the director, the percentage of rental units within each income group must be as follows: a. One-third of the rental units for "very low income" and "low income" residents, which collectively are those households whose gross annual family income is 80 percent or less of the area median income as established by HUD, or as adjusted by the department, for Hāna, Lāna‘i, and Molokai. b. One-third of the rental units for "below-moderate income" residents, which are those households whose gross annual family income is more than 80 percent, but not more than 100 percent of the area median income as established by HUD, or as adjusted by the department, for Hāna, Lāna‘i, and Molokai. c. One-third of the rental units for "moderate income" residents, which are those households whose gross annual family income is more than 100 percent, but not more than 120 percent of the area median income as established by HUD, or as adjusted by the department, for Hāna, Lāna‘i, and Molokai. ( Ord. No. 5875 , § 2, 2025; Ord. No. 4338 , § 1, 2016; Ord. No. 4177, § 6, 2014; Ord. No. 3719, § 2, 2010; Ord. 3438 § 1, 2007: Ord. 3418 § 1 (part), 2006)