Committee forwards HICDC 43-lot affordable subdivision to council; members press for stronger long-term affordability

The Committee on Legislative Approvals and Acquisitions voted to forward two related measures to the full council that would change land-use designations and zoning to allow a 43-lot affordable subdivision in Waimea (South Kohala) proposed by the Hawaii Island Community Development Corporation (HICDC).

The package sent to council includes a State Land Use District boundary amendment (Bill 17) changing the subject 14.321-acre parcel from agricultural to urban, and a change-of-zone request (Bill 18) to reclassify the same land from Agricultural 1 acre to Single Family Residential 10,000 square feet. The proposal also sought a planned-unit development permit that would exempt certain subdivision standards under Hawaii County Code chapter 3-23.

HICDC executive director Keith Kato said the land was donated by Lynn and Mark Benioff and that the organization intends to develop 43 lots for 100% affordable single-family homes through its self-help and turnkey programs. Kato said the applicant plans to prioritize self-help homes for low- and moderate-income households and that turnkey homes would be offered for households unable to provide required build labor; the applicant estimated the initial phase cost at about $20,000,000 and anticipates completing subdivision work within five years if entitlements are approved.

Planning staff told the committee the property is currently designated agricultural in the State land-use map and rural in the county general plan. The director recommended forwarding favorable recommendations with conditions; the Leeward Planning Commission also voted to forward favorable recommendations with conditions.

Committee members focused on terms that would preserve affordability over time. Council member Villegas expressed concern that short affordability periods can lead to neighborhoods reverting to market rates; she asked whether alternatives such as capped resale formulas, CPI-based escalation limits or resale to workforce buyers could be pursued. Kato said HICDC typically uses a 15-year affordability window for some projects but was open to further discussions with council staff about longer or alternative affordability mechanisms. Council member Inaba offered to work with the applicant and the committee chair on draft language before the council hearing.

Council member Eustace and others raised technical questions about infrastructure: Kato said HICDC currently holds 58 water covenants for the site and that wastewater service will require onsite system work; the applicant noted that the property has some archaeological sensitivity and that a burial was identified in a distant portion of the larger parcel and has been set aside for preservation per State Historic Preservation Office guidance.

Motions to forward Bill 17 and Bill 18 to council with favorable recommendations carried; the clerk recorded seven ayes on each measure with two council members excused. Committee members asked that affordability protections be developed and presented as amendments ahead of the full-council first reading.