State and County Policies Impacting Affordable Housing in Hawaii
The three-story walk-up apartment building has provided homes for lower-income families in the working class Kalihi-Palama neighborhood for 62 years. But a sales pitch for the property offers a bigger vision.
The ad says 1202-A Pua Lane qualifies for redevelopment under Honolulu’s Bill 7, which allows developers to build bigger apartments with breaks on things like parking space requirements and utility fees if they rent at least 80% of the new units as affordable homes for at least 15 years. 1202-A Pua Lane’s ad even offers architectural schematics showing how to increase the building’s units to 30 or 60 from 15.
Another selling point: “All units are currently occupied/rented on a month-to-month basis,” the ad says. So a buyer could quickly push out the tenants and rebuild.
Challenges of Affordable Housing Policies
The policy might seem like a no-brainer for the City and County of Honolulu: to encourage replacing 15 old, market-rate units with 60 new affordable ones, given the island’s acute housing shortage.
But there’s a catch. Under Bill 7’s definition of “affordable,” a two-bedroom affordable unit could rent as high as $2,947 a month – much more than the $500 to $1,300 a month residents of 1202-A Pua Lane now pay, according to the property’s rent roll.
“What the hell? Are they ridiculous?” Leimomi Cho, a retired airline worker who said she’s lived in the building for 42 years, said when told what “affordable” means under Bill 7. “Who can afford that?”
Aleah Suapaia, a 26-year-old security guard who lives in the complex, agreed. She said the residents know the building is for sale, and she plans to move out next month. But she worries about her neighbors.
“I don’t know where everybody would go” if the building sells and is redeveloped, she said.
Impact of Affordable Housing Definitions
Honolulu’s Bill 7 has a potential unintended consequence. While it might lead to more housing being built, it also can encourage sacrificing housing that’s affordable to people like Suapaia to make way for units that are more expensive but still classified as affordable, albeit for a higher income bracket.
Understanding the Definition of Affordable Housing
The issue is that “affordable housing” is a technical term with a range of meanings. Sometimes, it truly means low-priced such as that targeted to people earning no more than 60% of the area’s median income, about $55,000 for an individual on Oahu. Under that definition an affordable studio would rent for $1,375 or less a month. But developers say that kind of housing needs federal and state subsidies to pencil out.
Under Bill 7, developers are expected to foot the whole bill, so instead of cash they get perks like exemptions from certain zoning laws. They can also charge higher rents. Bill 7 defines “affordable” as something within the budget
SDGs, Targets, and Indicators
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SDG 1: No Poverty
- Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance.
- Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure.
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SDG 11: Sustainable Cities and Communities
- Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.
- Indicator 11.1.1: Proportion of urban population living in slums, informal settlements, or inadequate housing.
- Indicator 11.1.2: Proportion of population that has convenient access to public transport, by sex, age, and persons with disabilities.
Table: SDGs, Targets, and Indicators
SDGs | Targets | Indicators | |
---|---|---|---|
SDG 1: No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance. | Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure. | |
SDG 11: Sustainable Cities and Communities | Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums. | Indicator 11.1.1: Proportion of urban population living in slums, informal settlements, or inadequate housing. | Indicator 11.1.2: Proportion of population that has convenient access to public transport, by sex, age, and persons with disabilities. |
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Source: civilbeat.org
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