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Staff seeks clarity on sales-price calculation, marketing period and County buyback terms
Summary
Housing staff recommended clarifying how 'total housing costs' are calculated for workforce-sale pricing, aligning marketing-period escalation and county buyback pricing, and reconsidering post-sale affordability requirements to avoid unintended permanent subsidies.
Director Mitchell told the Board that inclusion of variable components—property taxes, homeowner’s insurance, mortgage insurance and HOA dues—in the 'total housing costs' calculation complicates establishing a stable sales price at project outset. Mitchell said those components are "moving targets" that make initial pricing imprecise and urged clearer statutory language for calculating sales prices tied to HUD AMI tiers.
Deputy Director Mataʻafa reviewed marketing-period escalation rules and recommended clarifying that units offered to the County for a 90-day period should be priced at the original workforce sales price. Staff also raised the current code provision that the County receive 50% of resale gains and asked whether the County should instead receive 100% of the difference when units are sold at market rate; Member Curtis inquired directly whether County share should be 100% instead of 50%.
