• Regarding Workforce Housing Bill No. 2202 • There’s more to be done about depleted uranium Regarding Workforce Housing Bill No. 2202 I thought I’d give my thoughts on the pending “workforce” housing bill. Nice touch on the name, by
• Regarding Workforce Housing Bill No. 2202
• There’s more to be done about depleted uranium
Regarding Workforce Housing Bill No. 2202
I thought I’d give my thoughts on the pending “workforce” housing bill. Nice touch on the name, by the way. I applaud what the bill seeks to do and I believe the general concept of the bill is solid as it is probably the only way affordable housing will get built. Our state/county governments and non-profits just don’t have the money to do it. Private developers seem to be the only source of providing a significant amount of affordable housing to make a dent on the need.
That said, I think the numbers in the bill need adjusting. The concept of having developers make a portion of their project affordable is not new. Most folks may be too young to remember when O‘ahu tried it decades ago. They used a market/affordable ratio of 60/40. That’s 60 percent market to 40 percent affordable. The law was passed and it immediately halted all new projects. Check it out with the old timers on O‘ahu. Why? The affordable portion was too high.
One has to remember that a developer is an investor. He’s not going to invest in something if the return is not enough to cover his costs plus a sufficient profit to warrant the risks such as market timing, rising construction costs, approval delays, competition, etc. It takes years to bring a project to market and a lot can happen in that time. Hurricane anyone? Look at our own backyard example of leverage and market mistiming … Grove Farm. They ended up selling the ranch. Development is not the “slam dunk” money-maker many people seem to think it is.
A simple 60/40 ratio did not make it on O‘ahu. But if I understand it correctly, Bill 2202 is even more stringent than that. It has the developer, who probably bought the land at a high market price, GIVE 10 percent of it away to the county. Then the developer has to build 30 percent of the units as affordable. Little if any profit there. But if that weren’t enough to kill it, the bill calls for the affordable units to be mixed up with the market units all in a happy balanced neighborhood — an admirable thought. Well, one must understand that people with money, i.e. your market housing buyers, won’t pay $1 million-plus dollars to live next to an affordable unit. No one is forcing the market buyer to buy something that’s not appealing. It just won’t happen. What the bill in effect does is reduce the value (price) of the market units significantly. That may sound OK, but then there’s not enough “fat” (profit) in the market units to pay for the affordable units, plus the 10 percent land giveaway.
It’s the market units that pay for the affordable units plus provide the developer with enough return (profit) to warrant the development risks. So, Bill 2202 is going to effectively halt new development applications. What that will do is put additional upward price pressure on existing housing units (high demand with low supply) and further exacerbate Kaua‘i’s housing crisis.
There’s an old saying that goes something like, “Those who ignore history are doomed to repeat it.” Council members, please do some research and study the O‘ahu model. I believe O‘ahu has since implemented an 80/20 ratio. Maui has just implemented a 60/40 bill but it doesn’t have a 10 percent land giveaway or the mixing of affordable and market units. The problem with this type of legislation is that the projects already approved will continue to go forward without change. It’s the new projects that will get hit with this so the bill’s effect of halting new development won’t be felt in the market for some years yet. It takes that long to bring a project to market. Unfortunately, it’s the type of legislation that makes politicians look like they’re doing something and puts off the negative ramifications to a much later date. The proposed solution sounds good, but in reality as written it is not viable and will do more long term damage than good to Kaua‘i’s housing crisis.
Here’s what I recommend. Mirror O‘ahu’s newly implemented ratio of 80/20. Or maybe even 70/30 if you want to be aggressive at first. If you still want the 10 percent land giveaway, keep the ratio at 80/20. But do not force the mixing of market and affordable units. That was a nice sounding idea, but not practical in the market place. Market buyers just aren’t that altruistic and you will never make them that way.
P. Keat
Makaweli
There’s more to be done about depleted uranium
Citizens concerned about the military toxin DU (depleted uranium) enjoyed a recent victory for their efforts, and the army has stepped up to the plate and is planning to test the soil and air around Pohakuloa, Makua, and at Schofield Barracks. We are ecstatic that there has been forward movement on this issue.
Dr. Lorrin Pang, a well-respected scientist and DU expert, who is acting in a private capacity and not as an employee of the state Department of Health in Maui, where he works, has offered to help. Dr. Pang has offered to accompany the army scientist to take the readings in order to ensure transparency. This security measure will help guarantee that the readings will be done under the oversight of a scientist whom the community knows and trusts and whose expertise has also been recognized at the state and federal level.
So far, our governor has not agreed that there is need for Mr. Pang to oversee the testing, but we are confident that we can win her over.
The next time you enjoy the beach or hike a trail, take a moment to reflect on the beauty of Hawai‘i’s natural environment. Hawai‘i has nurtured us with her temperate climate, splendid flora and fauna, gentle winds and waters. We are blessed to live in such a beautiful state, and we must do our part to protect it.
The concerned citizens who love the ‘aina have latched onto this issue in the way that a junk yard dog won’t let go of a burglar’s pantleg. Unless Dr. Pang is allowed to act as oversight monitor during the testing, the question of whether the results have been influenced by political agendas, given the fact that the military has not been straightforward about having used DU in the first place, will remain.
As such, I am certain that the ‘aina-loving citizens of Hawai‘i will continue to consider the issue unresolved and will use their creativity and perseverance until satisfaction has been reached. The protection of our precious islands and the health of her inhabitants are at stake.
I’d like to urge all concerned citizens to kindly contact the governor by phone, 808-586-0034; fax, 808-586-0006; e-mail: governor.lingle@hawaii.gov; or, The Honorable Linda Lingle
Governor, State of Hawai‘i
Executive Chambers
State Capitol
Honolulu, Hawai‘i
96813
Krisztina Samu
Part time resident of both Hawai‘i and Kaua‘i
