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Maui committee debates deed-restriction lengths, "portability" and leaseholds; March hearings set
Summary
Committee members, the housing director and two testifiers debated whether longer deed restrictions keep housing affordable or discourage builders. Council scheduled extended hearings in March and asked for expert information on market impacts, financing and program models.
The Maui County Council's Housing and Land Use Committee on Feb. 19 held an extended discussion of three measures addressing residential workforce housing deed restrictions (bills 22, 12 and 74), weighing whether longer restrictions better preserve affordability or instead deter developers.
Committee Chair Tasha Kamat consolidated the three bills into one agenda item and announced that the panel will hold hearings all day March 10, on the morning of March 13, and at the regularly scheduled March 19 meeting to gather resources and expert testimony.
Director Remy Mitchell framed the policy trade-off: "the shorter the periods, the more the county is in the cycle of having to either buy or appreciation escalation in the real estate market," he said, arguing that longer restrictions more reliably preserve long-term affordability but can create market and financing trade-offs that require careful policy design.
Why it matters
Deed restrictions and related tools (shared-appreciation formulas, leaseholds, community land trusts) are central to whether newly built housing remains affordable for subsequent local buyers or quickly filters back into the broader market. The committee sought input from housing experts, developers and finance representatives to understand market impacts, financing constraints and possible offsets to help projects pencil out.
Public testimony and developer perspective
- Leonard Nacoa, identified in the record as a resident testifier, urged the committee to favor long deed restrictions: "Longer the better," he said, singling out West Maui as an area that needs protections for local families.
- Andrew Pereira of Pacific Resource Partnership, representing union carpenters and contractors, said large homebuilders typically do not track resale outcomes after the initial sale because deed restrictions are recorded on title and thus enforced by title searches. Pereira said some builders told him lengthy restrictions can stall sales; he cited one Oahu project offering 140% AMI deed-restricted units with a five-year restriction that the developer was struggling to sell.
Committee concerns and options discussed
- Market impacts and developer incentives: Several members and the director noted that long restrictions can make projects harder for private builders to finance or pre-sell, increasing carrying costs. Committee members discussed offsets such as allowing greater density, tax incentives, or infrastructure assistance to reduce developer costs.
- Length by AMI bucket and product type: Director Mitchell said lengths could reasonably differ by AMI and product: "as you get higher up in the AMIs, you have less tolerance for encumbrances on your deed," and he suggested longer lengths for lower AMI bands. Members also debated whether to treat single-family and multifamily products differently while the committee explores portability options.
- Portability and exceptions: Members discussed a concept several called "portability" ' allowing a family's participation in an affordability program to transfer from one dwelling to another so life changes (growing family, job change) do not force families out of affordability programs. Mitchell found the idea novel and asked the committee to provide written questions and examples so the department can analyze practical contract and statutory pathways.
- Leaseholds vs. deed restrictions: Committee members and the director noted leaseholds (long-term county or DHHL-style leases) are a financing-sensitive tool; mortgages and refinancing typically require long leases (30 years or more) to be bankable.
Next steps and expert input
Chair Kamat read an initial roster of outside and cross-jurisdictional resources to invite, including housing staff from counties with different approaches, finance and lending experts, university researchers and local developers. The committee asked members to submit written questions and said staff will provide those questions to invited resources so testimony can be targeted.
Ending: The committee did not vote on the bills. It set extended hearings in March and requested written materials and expert testimony on market impacts, financing, portability models and the interaction of deed restrictions with mortgageability and resale.
