Hawaii County Council approves bill 39 to adjust affordable rental rates and standards

In a recent Hawaii County Finance Committee meeting, council members engaged in a robust discussion about proposed amendments to Bill 39, which aims to adjust rental payment standards and enhance the affordable housing program. The atmosphere was charged with concern as members weighed the implications of increasing rental rates, particularly for low-income families in East Hawaii.

Council member Ko raised alarms about the potential for rental costs to surge by nearly $400 a month for one-bedroom units under the new 75% payment standard. This prompted a detailed response from administrators, who explained that the adjustments are designed to decouple the real property tax rate from the payment standard, aligning it more closely with fair market rents set by HUD. The goal is to simplify the process for landlords and encourage participation in the Section 8 program, which has struggled to attract landlords due to low payment standards.

The conversation highlighted a significant shift in the program's structure, moving from a payment standard to an Area Median Income (AMI) approach. This change aims to create a more universally applicable system, but it raised concerns about the potential for landlords to increase rents significantly, particularly in areas where demand is high. Council members expressed fears that this could lead to families being priced out of their homes, especially on the East Side, where affordable housing is already scarce.

Council member Inaba pointed out that the current requirement for all rental units to be legally permitted has limited participation in the program. The proposed amendments would relax these restrictions, potentially expanding the pool of available rentals. However, this raised questions about the quality and safety of housing being offered.

As the discussion unfolded, members acknowledged the complexity of the housing market in Hawaii, particularly the disparity between East and West Hawaii. The committee explored the idea of implementing differential rates based on geographic areas to better reflect local market conditions. This approach aims to ensure that the program remains equitable and accessible to all residents.

The meeting concluded with a sense of cautious optimism. While the proposed changes could enhance the affordable housing landscape, council members recognized the need for careful implementation and ongoing evaluation to ensure that the program meets the needs of the community without exacerbating existing challenges. As Hawaii County navigates these critical housing issues, the outcome of Bill 39 will be closely watched by residents and stakeholders alike.