Practical goals for cash-poor city

In a follow-up to his election campaign pitch to incentivize private landowners to build affordable units, Blangiardi is touting Bill 1, a pilot program of grants for developers who build rental units targeted at residents making less than the area median income.

This measure comes on the heels of a city ordinance enacted last year that offers developers other carrots—ranging from relaxed density, height and setback rules to no parking requirement, and a 10-year waiver on property taxes—in exchange for capping rents at government-set affordable rates for 15 years.

Supporters of Bill 1 maintain that due to pandemic-related economic uncertainty, the addition of grants of up to $10,000 per unit is needed to accelerate construction. In this case, the city’s initial allocation would make but a tiny dent in the vast inventory shortage, covering fewer than three dozen units.

In written testimony on Bill 1, the nonprofit Hawaiʻi Budget & Policy Center persuasively asserted that housing initiatives that receive taxpayer subsidies should limit rent prices to below-market rates for the location. Further, affordability should be preserved for the long-term—in perpetuity, preferably.