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Council passes first reading on affordable-rental tax change amid east–west equity concerns
Summary
On first reading the council approved Bill 39 (draft 2) to change the affordable rental housing property tax eligibility to an AMI‑based standard (proposed 80% AMI) and add Section 8 landlords; members debated potential uneven impacts across ZIP codes, revenue risks and how to balance West Hawaii participation with East Hawaii market effects.
The Hawaii County Council passed Bill 39 draft 2 on first reading May 7, moving the countyaffordable rental housing real property tax classification away from the existing payment-standard mechanism toward HUD area‑median‑income (AMI) thresholds (the bill would tie eligibility to AMI levels such as an 80% AMI standard) and explicitly incorporate Section 8 landlords into the program.
Supporters said the move would simplify administration and make the program more usable for landlords in higher‑cost parts of the island, potentially boosting participation in West Hawaii where rental participation and Section…
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