Sunday, July 21, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, October 19, 2022
Maui Bill 107 to change affordable housing guidelines
By News Release @ 7:57 PM :: 2163 Views :: Maui County, Development, Cost of Living

Mayor Victorino signs Bill 107 to change affordable housing guidelines

News Release from Office of the Mayor, October 18, 2022

Mayor Michael Victorino has signed Bill 107 into law, enabling a change to the formula used to price affordable homes.  Councilmember Gabe Johnson introduced the bill after years of hearing community concerns that even “affordable homes” were too expensive for Maui County’s working families to become homeowners.

“Bill 107 will put homeownership within reach for more Maui County residents,” said Mayor Victorino. “We will continue to work with developers to make these home prices possible. We have examples of successful public-private partnerships that bring construction costs down through subsidies, infrastructure support, creative financing, various exemptions and bonus packages. Bill 107 should encourage developers to meet with the County while still in planning stages to negotiate similar partnerships. We are serious about delivering truly affordable housing to our community. By investing in our people, Maui County is making it possible for our ‘ohana to afford homes again.”

“Maui County has been using a formula to estimate how much buyers in each income bracket can afford to pay for a home, but the formula didn’t account for costs like homeowner’s association fees, mortgage insurance, and other expenses that mortgage lenders require,” said Councilmember Johnson.  “Bill 107 requires sales prices to be calculated similar to how lenders do, making it easier for homebuyers to qualify for mortgages. It will help to shield our residents from Maui’s volatile investment market.”

During committee hearings on Bill 107, lending experts explained that lower sales price guidelines will make it easier for homebuyers to access FHA and USDA loan packages that allow for a down payment of 0 to 3% instead of the 10 or 20% required by other mortgage products. Linda Munsell, Deputy Director of the Department of Housing and Human Concerns, estimated the new sales price calculations will reduce the cost of affordable homes by an average of 22%.

2022 sales price guidelines estimate that a family making $60,000 annually could pay $289,100 for a 3-bedroom home. The new sales price guidelines would bring the price of a 3-bedroom home closer to $157,000 for the same family. Similar reductions would occur at all qualifying income levels. New sales price guidelines will take effect when HUD announces the 2023 Area Median Income numbers in Spring of 2023.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii