AFFORDABLE HOUSING SPAWNED EMERGENCY PROCLAMATION BY JOSH GREEN.

TO FAST TRACK CONSTRUCTION OF THOUSAND OF AFFORDABLE HOMES.

BACKLASH OVER THE SUSPENSION OF MULTIPLE LAWS PROMPTED REVISIONS WITH THE SAME GOAL.

HOW WILL THIS WORK?

WILL THE ORDER LEAD TO MORE HOMES FOR HAWAII'S PEOPLE?

AFFORDABLE HOUSING, AT WHAT COST?

JOIN THE DISCUSSION.

KAKOU: HAWAII’S TOWN HALL STARTS NOW.

ALOHA AND WELCOME TO KAKOU: HAWAII’S TOWN HALL, LIVE FROM THE HARRY AND JEANETTE WEINBERG MULTI‑MEDIA STUDIO.

I’M YUNJI DE NIES.

WE LOVE HAWAII…BUT LIVING HERE COMES AT A HIGH COST, SPECIFICALLY: HOUSING.

THE MEDIAN PRICE OF A SINGLE FAMILY HOME ON OAHU IS MORE THAN $1 MILLION, THE PRICES VARY ON THE NEIGHBOR ISLANDS, BUT ARE IN SIMILAR TERRITORY.

WE HAVE THE FOURTH HIGHEST PER CAPITA RATE OF HOMELESSNESS IN THE COUNTRY.

WE’RE LOSING POPULATION, YEAR AFTER YEAR, ACCORDING TO THE U.S. CENSUS, LAST YEAR AN AVERAGE OF 20 PEOPLE LEFT HAWAII EVERY DAY.

THAT MEANS FEWER NURSES, DOCTORS, TEACHERS, AND POLICE OFFICERS.

AND FEWER NATIVE HAWAIIANS.

RECENT CENSUS DATA ALSO REVEALS THAT THE MAJORITY OF NATIVE HAWAIIANS LIVE OUTSIDE OF OUR ISLAND HOME.

THE COST OF HOUSING ISN’T THE ONLY REASON FOR THESE ISSUES, BUT IT DOES PLAY A SIGNIFICANT ROLE.

SO MUCH SO, THE GOVERNOR ISSUED AN EMERGENCY PROCLAMATION TO FAST TRACK TENS OF THOUSANDS OF NEW UNITS, HE SAYS, BY BYPASSING ROADBLOCKS THAT HOLD UP CONSTRUCTION AND ADD COSTS.

CRITICS SUED THE GOVERNOR, SAYING HE WENT TOO FAR, SACRIFICING KEY ENVIRONMENTAL PROVISIONS, AND THE SUNSHINE LAW, DESIGNED TO KEEP GOVERNMENT OPERATIONS TRANSPARENT.

AFTER CONTENTIOUS EXCHANGES IN PERSON AND ONLINE, HIS CHIEF HOUSING OFFICER, NANI MEDERIOS RESIGNED, CITING DEATH THREATS TO HER AND HER FAMILY.

JUST TWO DAYS AGO, THE GOVERNOR AMENDED HIS PROCLAMATION FOR A SECOND TIME, TO QUELL SOME OF THE CRITICISM.

HE’S ALSO DESIGNATED A SMALL COMMITTEE TO LEAD THE WAY, UNTIL A NEW HOUSING OFFICER IS NAMED.

SO WHAT DOES THIS NEW PROCLAMATION DO, AND WILL IT LEAD TO THE TENS OF THOUSANDS OF NEW HOMES THE GOVERNOR SAYS WE DESPERATELY NEED?

KAKOU MEANS ALL OF US, AS IN WE ARE ALL IN THIS TOGETHER.

AND WHO CAN AFFORD TO LIVE HERE, REALLY DOES AFFECT US ALL.

WE WANT TO HEAR FROM YOU IN OUR DISCUSSION.

YOU CAN EMAIL OR CALL IN YOUR QUESTIONS.

WE’RE ALSO STREAMING LIVE AT PBSHAWAII.ORG AND ON THE PBS HAWAII FACEBOOK AND YOUTUBE PAGES.

IN OUR TOWN HALL, WE HAVE GOVERNMENT LEADERS, REAL ESTATE DEVELOPERS, HOUSING, ENVIRONMENTAL, AND CULTURAL ADVOCATES, AND A POLITICAL ANALYST.

NOW LET’S BEGIN.

THIS IS AN ISSUE DECADES IN THANK YOU FOR BEING HERE TONIGHT.

STARTED WITH YOU.

EXECUTIVE DIRECTOR OF THE HAWAII PUBLIC HOUSING AUTHORITY.

AND ON THAT LEADERSHIP COMMITTEE.

>> WE MENTIONED FOR THE BUILD BEYOND BARRIERS WORKING GROUP, I KNOW IT'S A BIG PROCLAMATION.

SIMPLEST TERMS, WHAT DOES THE GOVERNOR'S PLAN DO?

>> THANK YOU I THINK YOU SUMMED UP THE ISSUES THAT WE ARE RUNNING AS WE SIT IN HERE BY TOMORROW.

20 OTHER PEOPLE WILL LEAVE THE STATE.

CAN'T AFFORD IT.

BIG PROBLEM.

WHY THIS EMERGENCY PROCLAMATION CAME ABOUT.

FIRST ONE AND AMEND ONE.

AS YOU KNOW, LAST PROCLAMATION AFFORDABLE HOUSING PROCLAMATION RESTORED 343.

WHICH EIS STUDIES.

6E.

AS WELL AS SUNSHINE LAW.

AND OTHER.

>> THIS IMPROVEMENT CALL IT THAT.

>> LAST ONE THAT WAS SIGNED, COUPLE DAYS AGO, IT CONTINUES ON THAT PATH.

RESTORES ALL OF THOSE 343, 6 E. IT DOES KEEP CERTAIN ADVANTAGES SUCH AS EXEMPTION FROM G.E.T.

TAX.

THE EXEMPTION FROM SCHOOL IMPACT FEES.

AS WELL ASCERTAIN EXEMPTIONS UNDER CHAPTER 43, CHAPTER 46 THE COUNTY.

ALSO DIFFERENCE ON THIS ONE FOR THE 201H PROCESS, ONLY APPLY TO STATE PROJECTS THAT HAVE BEEN APPROVED BY HHFDC.

DBB GROUP, WILL CONTINUE TO LOOK AT ANY APPLICATIONS THAT'S COME IN.

GROUP OF ABOUT 2 DOZEN FOLKS.

APPLICATIONS COME IN.

AND THOSE GET PROCESSED IN THE SUNSHINE MEETING WHERE THE PUBLIC HAVE THE RIGHT TO WEIGH IN AND SPEAK THEIR MIND.

AND IT GOES INTO A VOTE.

THREE OF US HHFDC OR PSD AND MY AGENCY WILL BE ABLE TO SEPARATE THEIR EFFORTS FOR THE FORESEEABLE FUTURE MIGHT WANT TO TURN NOW TO GIVE SON COMMUNITY AFFORDABLE HOUSING ADVOCATE, I KNOW YOU STUDIED THIS ISSUE.

HAWAII FACED IT LONGER WHAT DO YOU THINK IS THE DIFFERENT ABOUT THE GOVERNOR'S STRATEGY NOW VERSUS PAST ADMINISTRATIONS.

>> APPLAUD GOVERNOR NAMING IT AS EMERGENCY.

WE NEED TO DO SOMETHING ABOUT THIS.

STEP ONE NAME THE PROBLEM.

BE REALISTIC ABOUT IT.

I DON'T THINK WE'RE GOING TO BE ABLE TO EXEMPT OUR WAY TO AFFORDABLE HOUSING.

IF I PUT UP, ABLE TO CREATE A HOUSE IN ONE WEEK, I SELL IT FOR MARKET PRICE AT $600,000, THAT'S A $4,000 MONTH MORTGAGE.

THAT IS A AFFORDABLE TO 5% OF HAWAII'S POPULATION.

REALITY IS WE HAVE TO FACE IS THAT PRIVATE MARKET HOUSING IS NOT AFFORDABLE AT LOCAL WAGES.

IT'S JUST NOT.

WHAT WE ACTUALLY NEED IS WE HAVE TO PUT MONEY INTO OUR AFFORDABLE HOUSING PLAN.

WE'RE NOT GOING TO SHORE COURT WAY TO‑MAGICALLY CREATING TENS OF THOUSANDS OF PRICE RESTRICTED HOMES.

THAT IS JUST THE REALITY OF OUR SITUATION.

>>Yunji: LET'S TALK TO SOME WILL BE CREATING HOUSING FOR OUR COMMUNITY.

THREE DEVELOPERS ON OUR PANEL TONIGHT.

I WANT TO START STANFORD CARR.

HELPED TO BUILD TEN OF THOUSANDS HOMES INCLUDING MANY IN THE AFFORDABLE HOUSING CATEGORY OVER MANY DECADES.

DO YOU THINK THAT PROCLAMATION WILL DO WHAT IS INTEND.

>> I HOPE SO.

BOLD DECISION AND BOLD MOVE.

AT THAT OTHER PRIOR GOVERNOR EVER MADE.

DECISION TO GO FORWARD.

>> HOWEVER, WE'VE HAD PREVIOUS ADMINISTRATIONS THAT REALLY ALFORDED FOR HOUSING.

STARTING WITH THE WAIHEE ADMINISTRATION.

WHEN HHFDC CREATED MASTER PLANNED COMMUNITIES VILLAGES OF KAPOLEI, VILLAGES WAIPUA.

BIG ISLAND.

AND LAHAINA MAUI.

ONGOING EFFORTS.

TERRITORIAL LEGISLATURE OF 1935 RECOGNIZED BACK THEN THAT THE COST OF HOUSING, HIGH COST OF HOUSING WAS ATTRIBUTABLE TO GOVERNMENT REGULATION OVER REGULATION.

WHAT'S TRANSPIRED OVER THE LAST 88 YEARS, IS ADDITIONAL REGULATORY CONSTRAINTS.

THAT HAVE JUST COMPOUNDED TO THE POINT WHERE WHY WE HAVE SUCH A CRITICAL POINT RIGHT NOW.

WHERE MEDIUM HOME PRICE IS OUT OF REACH PEOPLE LEAVING STATE.

IT'S A SUPPLY PROBLEM.

WE FADE TO PEEL BACK THE ONION OF REGULATIONS BOTH FROM A STATE AND COUNTY LEVEL, MANY OTHER FACETS CONTRIBUTE TO THE COST OF HOUSING.

>>Yunji: FORMALLY TWO DECADES IT SOLE INTENT OF BUILDING AFFORDABLE HOUSING.

BUILDING ON WHAT STANFORD IS SAYING DOES THIS TAKE AWAY ENOUGH OF THOSE BARRIERS TO ACTUALLY DO THE KIND OF BUILDING THAT THE GOVERNOR WANTS?

>> NO.

YOU KNOW, I'M WITH STANFORD.

WE DO THIS, BEEN DOING THIS FOR, I MET STANFORD 3 YEARS AGO.

HE HAD BEEN IN THE BUSINESS ALREADY AND I FOLLOWED MY FATHER INTO THIS BUSINESS.

AND HE GOT INTO THE BUSINESS BECAUSE HE SAW HIS FRIENDS AND FAMILY, FRIENDS' CHILDREN HAVING TO MOVE AWAY.

THIS ISN'T A MID 70'S.

SO IT'S BEEN GOING ON FOR A LONG TIME.

AND HAVING TRIED TO DO THE DEVELOPMENT, AND STUFF, THE BIGGEST BARRIERS TO AFFORDABLE HOUSING ARE THE REGULATORY BARRIERS.

AND I STOPPED, FIRST TIME I'VE DONE THIS A LONG TIME.

I HAVE GAVE UP.

I USED PAST PRESIDENT OF BUILDING INDUSTRY ASSOCIATION.

USED TO ADVOCATE FOR PRO DEVELOPMENT THINGS.

AND IT JUST SO DIFFICULT.

AND WE I SAT ON COMMITTEES REMOVING BARRIERS TO AFFORDABLE HOUSING OR HOUSING BECAUSE YOU NEED SUPPLY FROM THE WHOLE MARKETPLACE TO INCREASE THE SUPPLY.

AND THE POLITICIANS TELL THEM, YEAR AFTER YEAR AFTER YEAR, WHAT THEY NEED TO DO.

BUT THERE'S NO POLITICAL WILL DO IT.

I GET IT.

THERE'S A LOT OF DIFFERENT REASONS, ADVERSARIAL SIDES GOOD REASONS WHY YOU NEED TO THESE RULES AND REGULATIONS.

OVERALL, IT CAUSES COST OF HOUSING TO BE HUGE.

REGULATORY BARRIERS.

UNTIL WE'RE WILLING TO REMOVE THAT, CASE IN POINT, LAND USE COMMISSION.

STATE LAND USE COMMISSION.

WHY DOES IT EXIST?

IT'S A 95% DUPLICATION OF COUNTY ZONING.

AND YET IT WILL DELAY A PROJECT YEARS.

OUR ABILITY TO DELIVER AND COST ASSOCIATED WITH THAT IS HUGE.

DRIVERS UP COST OF HOUSING.

NO PURPOSE EXCEPT THAT STATE HAS CONTROL AND POWER FROM IT.

SO IF YOU TELL STATE SENATOR, FOR EXAMPLE, HEY, REMOVE GET RID OF THE STATE LAND USE COMMISSION.

LET THE COUNTIES DO THE ZONING, MY ANSWER, HAH, THAT WILL NEVER HAPPEN.

SENATOR CHANG TOLD ME, THAT WILL NEVER HAPPEN.

>>Yunji: GET TO SENATOR CHANG IN MOMENT.

KRISTINE CAMP PRESIDENT AND CEO OF AVALON GROUP.

MIX OF MARKET RATE AND AFFORDABLE UNITS.

CONVERTING DAVIS PACIFIC OFFICE BUILDING BISHOP STREET TO MIXED USE DEVELOPMENT WITH RETAIL WORKFORCE AND MARKET RATE RESIDENTIAL UNITS.

DO YOU SHARE THE SAME SORT OF SCEPTICISM THAT I'M HEARING TONIGHT FROM CRAIG ABOUT LACK OF, NOT MOVING ENOUGH REGULATIONS IN THIS MEASURE?

>> I DO.

FIRST OF ALL, GOVERNOR EMERGENCY PROCLAMATION, I APPLAUD IT.

BECAUSE IT MAY NOT WORK FOR EVERYTHING, BUT IT'S CERTAINLY WILL BE ANOTHER TOOL IN THE BUCKET.

I CAN TELL YOU THAT OUR CITIZENS NEED THOSE TOOLS IN THE BUCKET.

THIS IS AN EMERGENCY.

HAVE TO CALL IT THAT.

WE HAVE PEOPLE LEAVING EVERY DAY.

MY OWN FAMILY LEAVES.

SO GOAL WAS TO DELIVER HOUSING.

LOW INCOME PAST CREDIT PROJECTS GAINING BUILD.

TAX CREDIT PROJECTS.

>> MAYBE THEY NEED EXPEDITED REVIEW TO MAKE SURE GO GETS DELIVERED TO THOSE IN NEED.

I FOCUS ON WHAT?

THE MIDDLE.

FOR THE RESIDENTS, WOULD ACTUALLY WORK THEY WENT TO COLLEGE, CAME BACK, AND THEN THEY NOW HAVE A PROFESSIONAL JOB BUT ALL OF A SUDDEN, PRICED OUT BECAUSE THEY CAN'T BUY INCOME RESTRICTED UNIT BECAUSE THEY MAKE A LITTLE BIT TOO MUCH.

AND YET THEY CAN'T BUY HIGH END LUXURY UNITS WHICH IS NEEDED BECAUSE THEY'RE SUBSIDIZING ALL THE AFFORDABLE UNITS.

THEY'RE STUCK.

WHAT HAPPENS TO THE REST OF US?

EDUCATING OUR KIDS AND YET, THEY CAN'T COME BACK HOME BECAUSE THEY CAN'T AFFORD THEIR HOME.

SO I WOULD LIKE TO SEE, BUILDING FOR THE MIDDLE.

WHEN I LOOK AT BUILDING FOR THE MIDDLE BUILDING IN HAWAII KAI.

I PRICED OUT HOW MUCH IT COSTS US TO GO THROUGH THE PERMITTING PROCESS.

AND IN THE COST OF INTEREST, AND PROPERTY TAXES, AND INSURANCE, WEIGHTING IT OUT.

WHAT IT COSTS.

$118,000.

A UNIT.

I CAN SURPRISED THOSE UNITS $118,000 A UNIT PLUS PROFIT MARGIN.

ACTUALLY COULD HAVE BEEN A BIGGER IMPACT.

BUT IT HAPPENS EVERY DAY WE BUILD HOUSING.

BECAUSE SOMEHOW, PEOPLE WHO BUILD HOUSING, HOUSING PROVIDERS, HOUSING BUILDERS BECOME DEMONS IN INDUSTRY.

GREEDY DEVELOPERS.

THEY'RE MAKING TOO MUCH PROFIT.

SHOULDN'T BE MAKING PROFIT.

YOU CAN'T BE BUILDING INFRASTRUCTURE SO THEY CAN MAKE PROFIT.

YOU SHOULD BE BUILDING INFRASTRUCTURE SO THAT YOUR PEOPLE CAN HAVE HOMES.

TO TAP INTO WATER.

BUT SOMEHOW, PEOPLE HAVE PUT DEVELOPERS ALL OF THE REQUIREMENTS, ON THE DEVELOPER.

SO NOT ONLY THE WEIGHT OUT PERIOD, OF THOSE THAT COST, THERE IS THE COST OF WELL, LET THE DEVELOPER PAY FOR THE WATER INFRASTRUCTURE FOR EXAMPLE.

FOR REGION.

LET THE DEVELOPER PAY FOR THE LEFT TURN LANE AND RIGHT TURN LANE.

>> BY THE WAY, SCHOOLS?

WE'RE GOING TO NEED TO PAY WHAT IS THAT, 38, $3,900 FOR EVERY UNIT THAT WE DELIVER.

THEY THINK IT'S THE DEVELOPER THAT IS PAYING FOR IT.

BUT NO.

IT'S ACTUALLY THE RESIDENTS WOULD BUY HOMES THAT WE'RE BUILDING FOR, THEY'RE PAYING FOR THAT.

WHEN I THINK ABOUT DAVID FOSTER HE'S PACIFIC TEN ENTER D DECREASE DAVIES PACIFIC CENTER.

SOME ONE WE ROOM STUDIOS AND SOME TWO BEDROOM UNE.

HOPEFULLY STARTER HOME PROFESSIONALS COME BACK TO HAWAII.

EDUCATE THEM.

INVEST THIS THEM.

HAVE HOPES PRICED FOR THEN.

HAVE HOMES PRICED FOR THEM OF LIVING IN DOWNTOWN.

>> DON'T HAVE KIDS.

MAYBE INFANT.

SCHOOL IMPACT FEE.

PROFIT MARGINS.

>>Yunji: STATE SENATOR STANLEY CHANG.

WE DON'T HAVE TO TALK ABOUT THE LAND USE.

YOU'VE BEEN ADVOCATING FOR AFFORDABLE HOUSING FOR A NUMBER OF YEARS.

SENATE HOUSING COMMITTEE.

WHAT ARE YOUR THOUGHTS WHETHER GOVERNOR'S PLAN GOES FAR ENOUGH.

GET RID OF THE SOME OF THE RED TAPE WE HEARD DEVELOPERS?

>> LIKE THE OTHER PRESENTERS HAVE ALREADY MENTIONED, I WANT TO APPLAUD GOVERNOR MAKING BOLD STEP, NEVER TAKEN IN HISTORY OF HAWAII OR PROBABLY ANY OTHER STATE.

SHOWED GOVERNOR WAS REALLY SERIOUS ABOUT TACKLING HOUSING AND AS A TOP PRIORITY.

AND WAS THE CASE DURING HIS ELECTION CAMPAIGN.

RED ABOUT THE MEDIA AND DEBATES.

THERE WERE UNDERSTANDABLY A LOT OF CONCERNS WITH THE LEVEL OF THE DEREGULATION THAT HAPPENED.

BECAUSE THE REALITY IS EVERYONE ONE OF THESE LAWS THAT WE HAVE, WAS FOUGHT FOR HARD BY A LOT OF PEOPLE.

COMING TO THE LEGISLATURE.

SAYING WE DO NEED TO SLOW DOWN THE GROWTH OF HAWAII WE CAN'T JUST HAVE A CONCRETE JUNGLE.

CAN'T JUST PAVE OVERALL THE AGRICULTURAL LAND.

ALL OF THESE MANY OF THESE BATTLES HAPPENED BEFORE I WAS BORN.

SO I UNDERSTAND THAT A SUDDEN STEP LIKE THAT, IS NOT NECESSARILY GOING TO UNWIND DECADES OF COMPROMISE AND WORK AND ADVOCACY.

NOW THAT THE PROCLAMATION HAS BEEN AMENDED, I THINK IT'S STILL USEFUL.

IT'S STILL CUTTING THE SCHOOL IMPACT FEE FOR ONE IS $3,900.

OFF THE COST OF EVERY UNIT THAT IS SOLD HERE IN HAWAII.

BUT I DO THINK WE NEED TO GO FURTHER.

SYSTEM WE HAVE TODAY IS WORST OF BOTH WORLDS PUBLIC AND PRIVATE HOUSING SYSTEMS.

THE PUBLIC HOUSING CAME INTO VOGUE IN THE POST‑WAR ERA HERE IF THIS COUNTRY, ONE OF THE FUNDAMENTAL REASONS IT WAS NOT ABLE TO EXPAND WAS BECAUSE IT WAS VERY EXPENSIVE TO BUILD.

AND SHIFT TO PRIVATE HOUSING SEEMED TO SOLVE THE PROBLEM FOR A WHILE.

NOW WE'RE INCENTIVIZING, DISINCENTIVIZING, COMMANDEERING PRIVATE SECTOR TO PROVIDE ALL SERVICES AND NECESSITIES LIKE AFFORDABLE HOUSING LIKE LOW COST HOUSING, LIKE LEFT TURN LANES AND RIGHT TURN LANES, THAT ONCE THE PUBLIC SECTOR TOOK CARE.

HE WE HAVE THE WORST OF BOTH WORLD SITUATION HERE.

AND WHAT I THINK WE NEED TO BE DOING GOING FORWARD IS TO HAVE A BEST OF BOTH WORLD SITUATION.

>> WHERE WE ARE ABLE TO PRODUCE HOUSING FINANCIALLY SUSTAINABLE TO THE STATE, AND TO THE TAXPAYORS OF THE STATE.

WHILE ADOPTING FEATURES.

PRIVATE SECTOR.

INCOME BLIND HOUSING.

HOUSING ATTRACTIVE.

DOESN'T HAVE TO COME JUST IN AT THE VERY LOWEST BID POSSIBLE.

TO PROVIDE THAT QUALITY OF LIFE.

AND EVEN TO REALIZE PROFIT AND NEST EGG AS HOMEOWNERS SAVE FOR KIDS EDUCATIONAL REQUIREMENT.

ONE REASON WHY I AM OPTIMISTIC FRIENDS HAWAII PUBLIC HOUSING AUTHORITY DELIVERING TEN THOUSAND NEW UNITS.

>> PROBABLY MOST ANY PUBLIC HOUSING HOUSING COUNTRY IN THE ENTIRE COUNTRY HAS TO TEMPTED TO BUILD IN DECADE NOT GENERATIONS USING SOME OF THESE BEST OF BOTH WORLD PRINCIPLES.

TO TRY TO GET US TO A NEW MODEL OF MORE SUSTAINABLE HOUSING.

>>Yunji: THIS PROCLAMATION DOES INVOLVE ADJUSTMENTS FOR COUNTIES.

DIRECTOR OF KAUAI COUNTY HOUSING AGENCY.

WHAT IS YOUR VIEW OF THIS PLAN AND HOW IT WILL IMPACT THIS COUNTIES IN A GOOD OR BAD WAY?

>> THANK YOU.

SPEAK JUST FOREST COUNTY OF KAUAI, WE'VE FLY UNDER THE RADAR AND DEVELOPED WHAT WE THINK IS A SUCCESSFUL HOUSING MODEL ON KAUAI MANY WAYS BEST OF BOTH WORLD.

HOUSING AGENCY IS THE LARGEST HOUSING DEVELOPER ON KAUAI.

AFFORDABLE HOUSING.

BUILDING SOME OF THE GAP HOUSING THAT KRISTINE WAS TALKING ABOUT.

FOR OUR SPECIFIC PROJECTS WHILE APPLAUD THE GOVERNOR'S EFFORT, AND NAMING THE PROBLEM, LIKE KENA WAS TALKING ABOUT, DON'T THINK IT WILL HAVE A DRAMATIC EFFECT ON THE SPEED THAT THE COUNTIES PROJECTS CAN MOVE FORWARD AT, OR MAKE A SIGNIFICANT IMPACT TO WHAT WE SPECIFICALLY ARE DOING.

I TOO THINK IT WILL HELP SOME OF WAKIN'S PROJECTS ON KAUAI.

FAIRLY DRAMATIC WAYS.

WE HAVE HAWAII PUBLIC AUTHORITY PROJECTS IN DRAMATIC NEED OF REHABILITATION AND RENOVATIONS.

I THINK IT WILL BE GREAT FOR THOSE PROJECTS.

SPECIFICALLY FOR COUNTIES WORK, I DON'T THINK WE'LL BE ABLE TO RELY ON IT FOR MUCH.

>>Yunji: LET'S BRING IN WAYNE TANAKA NOW.

EXECUTIVE DIRECTOR OF THE SIERRA CLUB OF HAWAII.

YOUR GROUP IS ONE OF SEVERAL SUED GOVERNOR WHEN THE INITIAL PROCLAMATION CAME THROUGH.

BECAUSE OF SOME ENVIRONMENTAL LAWS THAT WERE TAKEN AWAY.

YOU'VE WITHDRAWN THAT LAWSUIT.

DOES THAT MEAN YOU'RE SATISFIED WITH THE CHANGES MADE.

>> SO I THINK TO ANSWER THAT QUESTION, FIRST, WE HAVE TO LOOK AT WHERE WE CAME FROM.

ORIGINAL HOUSING PROCLAMATION, COUPLE OF 300‑POUND GORILLAS IN THE ROOM.

HOUSING IS EMERGENCY.

FOR MANY PEOPLE.

IT'S AN EMERGENCY.

FOR SOME PEOPLE IT ISN'T.

SO FOR FOLKS WOULD MAKE 6 FIGURE INCOMES FIRST TWO NUMBERS ARE 14, 15 OR HIGHER FOR FOLKS OWN MULTIPLE PROPERTIES, AN DECIDE THEY WANT TO MOVE TO HAWAII.

LIVE FOR FIVE YEARS, SELL THE HOUSE THEY BOUGHT FOR A TIDY PROFIT.

NOT AS MUCH OF AN EMERGENCY.

FIRST POINT, ORIGINAL HOUSING PROCLAMATION HAD MORE AFFORDABILITY REQUIREMENTS.

AND IN FACT, EXISTING LAWS ALLOWED FOR STREAMLINING AND SHORTCUTS FOR PROJECTS THAT ARE AFFORDABLE.

BUT THAT WASN'T THE FOCUS OF THE FIRST PROCLAMATION.

>> AND THE SECOND, GORILLA IN THE ROOM, THERE'S NOTHING REALLY THAT PREVENT UNITS BUILD UNDER THE PROCLAMATION FROM BEING SOLD TO FOLKS WHO AREN'T EVEN HERE NOW.

NOT PART OF THE CURRENT DEMAND.

AND PROCLAMATION, ALL IT SAYS IS THAT FOR SEEING MUCH SHALL OFFERED TO HAWAII RESIDENTS.

DOESN'T HAVE TO BE SELL.

OFFERED ONLY TO HAWAII RESIDENTS.

I THINK EVEN BIGGER ISSUE IS THERE'S NO MEANINGFUL DEFINITION OF HAWAII RESIDENTS.

IF YOU LOOK AT HOW THE STATE INTERPRETED IT, THAT DEFINITION, AT THAT TERM, MEANS ANYONE WHO COMES HERE AND DECIDE THESE WANT TO LIVE HERE.

SO WHEN YOU TALK ABOUT AFFORDABLE HOUSING, WHAT COST, QUESTION FIRST PROCLAMATION WAS, HOUSING FOR ANYONE AT WHAT COST.

COST WE SAW FUNDAMENTALLY TRANSGRESSIONAL CONSTITUTIONAL POWER.

>> CHECKS AND BALANCES ESTABLISHED LEGISLATURE MIX OF LAWS GOVERNOR, EXECUTIVE BRANCH OF APPLIES LAWS, MAKES THOSE LAWS ARE CONSTITUTION AND CONSISTENTLY ENFORCED.

UNDONE BY PROCLAMATION LONGSTANDING LAWS, SUSPEND LAWS, REPLACE THEM.

EVEN TAKE AWAY MECHANISMS THAT PEOPLE WOULD BE USED BY THE JUDICIARY TO UPHOLD PEOPLE'S RIGHTS.

THAT WAS A VERY FUNDAMENTAL PROBLEM.

HARM WE SAW BECAUSE OF LAND USE COMMISSION SUSPENSION, IMPACTS TO FOOD SECURITY, IMPACTS TO PUBLIC RESOURCES CULTURAL PRACTICES EVEN TO THINGS LIKE JOB CREATION AND PRODUCTION OF HOUSING FOR ALL INCOME LEVELS.

ALSO SELL THE LOSS OF ENVIRONMENT REVIEW AND ROBUST PUBLIC INPUT PROCESS THAT ENSURES THAT UNINTENDED CONSEQUENCES CAN BE ACCOUNTED OR AVOIDED.

SAW THE REMOVAL OF PUBLIC RIGHT TO KNOW WHAT THE SUSPENSION OF SUNSHINE LAW.

GOVERNOR RECOGNIZED WE DON'T NEED TO SHORT CIRCUIT PUBLIC INTEREST PROTECTIONS IN HIS SEPTEMBER AND MOST RECENT PROCLAMATION.

QUESTIONS OF CONSTITUTIONALITY AND WHAT IS DEFINED AS AFFORDABLE.

ALL OF THAT TO SAY I THINK WE'RE GLAD THAT WE'RE NO LONGER HAVING TO WORRY ABOUT THESE THREATS.

WE HAVE WITHDRAWN OUR LITIGATION.

WITHOUT PREJUDICE.

WHICH MEANS IF.

>>Yunji: COULD COME UP AGAIN.

>> WE CAN COME BACK TO COURT.

>>Yunji: PRESIDENT OF MALAMA KAKANILUI.

NONPROFIT SEEKS PROTECT DEVELOPMENT PROTECTS NATIVE HAWAIIAN IWI KUPUNA SITES.

>> MAKES CHANGES THAT WAYNE JUST LAID OUT FOR US.

IN THIS LATEST PROCLAMATION.

DO YOU HAVE CONCERNS ABOUT THE PROCLAMATION IN ITS CURRENT FORM?

>> ABSOLUTELY.

I WANTED TO CORRECT YOU.

OUR ORGANIZATION DOES NOT ADVOCATE FOR NATIVE HAWAIIANS.

PER SE.

BUT FOR KANAKA MAOLI.

BECAUSE NATIVE HAWAIIANS IS A TERM CREATED BY THE STATE OF HAWAII.

AND KANAKA MAOLI IS THE TERM THAT USED FOR ORIGINAL PEOPLE IN OUR KANAWAI UPON WHICH HRS, STATUTES ARE BUILT IN THE STATE.

SO JUST TO CORRECT YOU ON THAT.

IT'S A VERY IMPORTANT POINT.

WE ARE NOT ADVOCATING FOR SOMETHING THAT REALLY PART OF THE STATE.

WE ADVOCATE FOR SOMETHING THAT IS PART OF OTHER PEOPLE IN THE WORLD CALL NATURAL LAWS AND THESE WOULD BE LAWS OF HUMANITY.

ABSOLUTELY WE ARE STILL GREAT RISK.

IT WAS VERY EASY FOR THE GOVERNOR TO SAY, THAT WE IN THE 6E LAWS, BURIAL LAWS, ENVIRONMENTAL LAWS, WOULD BE DETERRING DEVELOPMENT BUT AT THE SAME TIME, THE LAWS AND AS THEY STAND, DO NOT PROTECT IWI KUPUNA, BURIALS, ANCESTRAL BURIALS.

DOES NOT PROTECT OUR SACRED SITES.

IT DOES NOT GIVE US THE ABILITY TO PRACTICE OUR OWN CULTURE.

NO.

IT IS REGULATED BY THIS STATE AND WHEN THE LAND IS SPOKEN FOR, BY FOREIGN ENTITIES, WOULD HAVE ACTUALLY COME AND TAKEN OUR LAND, OUR LAWS DON'T COUNT ANY MORE.

AND IT IS NOT ENOUGH FOR WHAT I SEE HERE, IN LISTENING TO ALL OF THESE PEOPLE, ARE THESE VERY WONDERFUL PEOPLE WOULD ARE TRYING TO DO WHAT THEY THINK IS A SOLUTION TO A HOUSING CRISIS, I THINK WHAT IS MISSING IS GOING ALL THE WAY BACK TO THE POINT WHERE THE VALUE OF THE PEOPLE, THE VALUES OF THE PEOPLE WHO LIVE HERE, KANAKA MAOLI, WERE WHAT WAS IN PLACE HERE.

WE HAD NO HOMELESSNESS.

WE TOOK CARE OF EVERYBODY.

AND THAT WAS THE WAY THAT OUR PEOPLE LIVED.

>> AND JUST THINK, IF THAT WAS THE WAY WE LIVED NOW.

WE'RE NOT LOOKING AT THE MARGINS.

NOT LOOK AT THE PERSON WITH $200,000 GETS A HOUSE.

BENEFIT TO ALL PEOPLE AND THAT ALL PEOPLE ARE TAKING CARE OF.

BECAUSE THOSE ALL PEOPLE ARE USUALLY HAWAIIAN PEOPLE WOULD ARE HOMELESS AND WILL NOT MAKE $100,000 A YEAR YET, OUR LANDS HAVE BEEN COOPTED BY 1893, UNITED STATES IN THE VERY FIRST CAPITALISTIC VENTURE TO TAKE OVER COUNTRY BELONGING TO ANOTHER PEOPLE.

SO WE LOOK AT THESE FEDERAL REGULATIONS, THAT SAY, WE MUST BE COLOR BLIND AND GIVE EVERYBODY A CHANCE, TO HAVE THESE HOUSES, I DON'T THINK THAT THAT ADDRESSES THE PROBLEM OF THE STOLEN LANDS FOR PEOPLE WOULD WILL NEVER BE ABLE TO COMPETE WITH ALL OF THE OTHER PEOPLE.

SO I THINK THE VALUES OF THE AINA, AND WHAT DO THESE PROJECTS GIVE TO THE AINA, I MEAN, IN OUR WAY OF THINKING, EVERYTHING YOU DO CONTRIBUTE TO THE AINA.

AND MAKES IT BETTER.

TO THESE PROJECTS CONTRIBUTE TO THE AINA?

AND MAKE IT BETTER?

I REALLY WONDER.

THANK YOU.

>>Yunji: THANK YOU.

I WANT TO BRING IN COLIN MOORE.

POLITICAL ANALYST AND PROFESSOR.

GOVERNOR TOOK AN INTERESTING ROUTE GETTING HERE.

HEARD ABOUT POLITICAL WILL TONIGHT.

BUT GOING THROUGH EMERGENCY PROCLAMATION AS OPPOSED TO PUSHING FORWARD LEGISLATION, WHAT DO YOU THINK ABOUT THE MECHANISMS, HIS APPROACH TO THIS, AND IF HE WILL HAVE THE BACKING OF THE LEGISLATURE TO ACTUALLY SEE THIS THROUGH?

>> GOOD QUESTION.

CERTAINLY TOOK PRETTY BIG POLITICAL RISK MAKING SUCH A BOLD MOVE.

WE'VE SEEN THESE EMERGENCY PROCLAMATIONS BEGIN TO MOVE AWAY FROM WHAT THEY WERE ADDITIONALLY DESIGNED TO MANAGE.

BIG NATURAL DISASTERS.

DAVID IGE AROUND HOMELESSNESS.

GREEN AROUND HOUSING.

I THINK HE PRETTY SENSIBLE ROLLING BACK THIS PART OF IT.

PEOPLE ALWAYS SAY, EVERYONE SAYS, MOST IMPORTANT ISSUE IN HAWAII IS AFFORDABLE HOUSING.

EVERY POLL WE'VEN TAKEN THAT COMES UP NUMBER ONE ISSUE.

YOU MIGHT ASK YOURSELF, IN A DEMOCRACY, WHY IS IT SO DIFFICULT?

TO MAKE PROGRESS IN ON THIS.

PARTLY BECAUSE PEOPLE ALSO APPRECIATE THE REGULATIONS.

NOT EVERYONE WANTS MULTIFAMILY HOUSING BUILT IN THEIR NEIGHBORHOOD.

PEOPLE APPRECIATE THE VETO POINTS.

VETO PEOPLE BELIEVE IN THE REGULATION.

>> WHEN YOU BEGIN TO ASK THOSE QUESTIONS, YOU GET PEOPLE AGAIN TO QUESTION.

WAIT A SECOND.

WHAT ARE WE LOSING?

EMERGENCY PROCLAMATION?

HOLD ON, I WANT AN OPPORTUNITY TO COMMENT.

WANT A COMMENT TO WEIGH IN ON DEVELOPMENT HAPPEN IN MY NEIGHBORHOOD.

PEOPLE WANT AFFORDABLE HOUSING.

>> PEOPLE THINK IT'S GOOD GOVERNOR DOING THIS.

>> GOOD BREAKING DOWN SOME OF THESE REGULATORY BARRIERS.

>> TO BUILD MORE AFFORDABLE HOUSING.

GET DOWN TO THE ACTUAL HOUSING PROJECTS, GET DOWN TO WHAT MIGHT BE LOST ON YOUR ENVIRONMENTAL REVIEW, OTHER THINGS, IT BECOMES MORE POLITICALLY DIFFICULT.

WHY THE GOVERNOR SAID HE HIMSELF WANTED TO MAKE A LOT OF PROGRESS FAST.

I THINK POLITICALLY, THAT SORT OF NECESSARY.

IF CAN HE SHOW HE IS REALLY IS BUILDING MORE AFFORDABLE HOUSING, THAT REALLY IS BEGINNING TO MOVE NEEDLE, MORE PEOPLE ABLE TO STAY IN HAWAII.

PRICE OF HOUSING IS GOING DOWN MORE AFFORDABLE OPTIONS WOULD GENERATE POLITICAL WILL TO MAINTAIN THIS.

>> TAKE A LONG TIME TO BUILD HOUSING IN HAWAII.

SO THEN I THINK UNDERSTANDABLY HAS TO ROLL THIS BACK.

SLIGHTLY BECAUSE EDWARDS GETTING A LOT OF POLITICAL PUSH BACK.

LEGISLATURE WILL FACE THE SAME THING.

I THINK THAT IS ONE OF THE REASONS I APPROACHED EMERGENCY PROCLAMATION.

BECAUSE I THINK A LOT OF LEGISLATORS ARE TRYING TO THEIR BEST TO BUILD AFFORDABLE HOUSING.

WHEN THEY PASS BILLS, LIKE THEY WERE SAYING REASON WE HAVE A AT LOT OF THESE LAWS LOBBY FOR THESE LAWS.

COMES TO TIME CHANGE THEM.

A HOMEOWNERS TALKING ABOUT BUILDING AM MULTIFAMILY.

HEAR FROM CONSTITUENTS.

BE VOCAL.

GIVES THEM PAUSE.

WAIT A SECOND.

I'M NOT SURE REALLY WANT TO RISK MY POLITICAL FUTURE ON ROLLING BACK SOME OF THESE REGULATORY RULES A LOT OF PEOPLE DO SUPPORT.

STILL.

>>Yunji: GETTING SOME OF THOSE KIND OF CALLS IN OUR COMMENTS TONIGHT.

>> HAVE A LOT OF QUESTIONS.

FOR OUR DEVELOPERS.

BRING YOU FIRST ONE.

SPECIAL EXACTLY TO AREA TALKING ABOUT.

THIS IDEA BOOGEYMAN DEVELOPER.

CALLER SAYING SO MANY REGULATIONS, BUILDING ARE SO OPPRESSIVE HOW MUCH SO MANY MONSTER HOUSES AND RICHIE RICH HIGHRISES BEING BUILT PERCEPTION THAT THE ONLY HOUSING THAT IS GOING UP IS FOR THE PEOPLE WHO MAKE MILLIONS AND MILLIONS OF DOLLARS.

>> I WHAT WANT TO ADVOCATE, ROOM FOR HOUSING AT ALL LEVELS OF WE CAN'T BE BUILDING ALL FOR TAX CREDIT AFFORDABLE HOUSING.

LOW INCOME HOUSING.

THAT WE TALK ABOUT, WHICH REQUIRES SUBSIDIES.

WE NEED TO BUILD THEM.

IF YOU ASK HAWAII, KAUAI HAS SLEW OF THOSE PROJECTS THAT ARE GETTING BUILT.

BUT NOT EVERYBODY IN YOUR COMMUNITY CAN QUALIFY.

>> FOR THAT KIND OF AFFORDABLE HOUSING.

>> I CAN'T SPEAK FOR MONSTER HOUSING.

IT HAPPENS.

>> BECAUSE PEOPLE CAN'T AFFORD TO LIVE IN, CAN'T AFFORD APARTMENTS IN A SINGLE FAMILY AREA.

MONSTER HOUSES, BASICALLY A REPLACEMENT FOR APARTMENTS.

THOSE REALLY SHOULD BE DESIGNATED MORE APARTMENTS BUILT SO THAT WE DON'T MONSTER HOUSING.

>> HIGH‑END HOMES GETTING BUILT, HIGHRISES, PRIMARILY KAKAAKO AREAS LIKE THAT, BUILT BECAUSE THAT'S HOW MUCH IT COSTS.

LAND IS VERY, VERY EXPENSIVE.

AND THEY HAVE, BEING EXACTED, REQUIREMENTS, PARK DEDICATION, SETBACKS.

POLITICIANS FEEL THEY'VE BEEN ADVOCATING FOR THE LOCAL PEOPLE.

WHAT ENDS UP HAPPENING MAKES HOMES VERY, VERY EXPENSIVE LUXURY HOUSING GOING ON.

YOU NEED TO SHOW THAT KIND OF INCOME.

TO BE ABLE TO BORROW MONEY TO BUILD AFFORDABLE HOUSING THAT YOU'RE MANDATED TO BUILD.

IF YOU DIDN'T HAVE THESE REQUIREMENTS DIDN'T HAVE TO BUILD REGIONAL INFRASTRUCTURE, BUILD A PARK FOR ENTIRE AREA, ALL IN THE BACK OF HOMEOWNERS, NEW HOME BUYERS, THERE WOULD BE MORE MIDDLE INCOME HOUSING.

>> THAT COULD GET BUILT.

BUT BECAUSE OF THESE BURDENS, BURDENS ARE JUST IT'S JUST $5,000 PER UNIT.

IT'S $5,000 UNIT THAT HAS TO BE INVESTED BEFORE YOU SEE THE FIRST DOLLAR.

WHEN YOU DO HIGHRISES, TALKING ABOUT, SKY ALA MOANA $500 MILLION IN COSTS.

THAT HAS TO BE SPENT BEFORE THE ONE DOLLAR COMES BACK.

SO IT'S A HIGHER RISK.

THAT WAS 7 YEAR PROJECT IN THE MAKING.

SO JUST THINK ABOUT THE 7 YEARS OF CARRIED INTEREST.

AND JUST IF YOU KNOW WHAT INTEREST DOES, COMPOUNDING, OF IT, PLUS REQUIRE PROFIT MARGIN THAT IS NEEDED FOR PEOPLE TO INVEST, THAT MAKES SIGNIFICANT COST INCREASE TO THOSE PROJECTS.

THEREFORE, WHAT YOU SEE IS MAJOR LUXURY HOUSING, MAYBE WHAT YOU'RE NOT SEEING IS THE MARKET HOUSING OR THE AFFORDABLE HOUSING THEY'RE BUILDING.

SO MY FEELING IS THAT'S TOO BAD, LUXURY HOUSING ARE COMING UP FIRST WE HAD LESS REGULATION LESS REQUIREMENTS HOMEOWNERS TO THE CARRY BURDEN.

EVERY HOME HOMEOWNER HAS TO CARRY THE BURDEN.

>>Yunji: GOVERNOR DOES HAVE PROVISION HAS TO BE AFFORDABLE.

SHOWS A LITTLE BIT OF THIS.

FAIRLY COMPLICATED EQUATION DEPEND WHERE YOU LIVE.

DEFINED AFFORDABLE.

140%.

AMI IS 131,000 FOR A FAMILY OF FOUR IF THEY MADE $104,000.

>> QUALIFY TO RENT AT AROUND $3,200 A MONTH.

AGAIN, JUST ONE EXAMPLE.

THESE NUMBERS VARY COUNTY BY COUNTY.

YOU'VE DONE A LOT OF WORK WORKING WITH AMI.

AND FIGURING OUT WHAT IS AFFORDABLE AND WHAT IS NOT.

WHICH LOOK AT THAT EQUATION, THAT HARDLY SEEMS AFFORDABLE TO ME.

>> WELL, AREA MEDIAN INCOME OAHU FAMILY OF FOUR IS $131,000.

SO AT 100% AMI.

RENTS AT $3,200, A MONTH, LET ME POINT SOMETHING OUT THAT WAS TRANSPIRED IN THE LAST YEAR.

>> WITH INTEREST RATES A YEAR AGO NEAR 4% SOMEONE MAKING $131,000 A YEAR.

>> AT THE AMI, MEDIAN INCOME COULD AFFORD TO PURCHASE A HOME AROUND $600,000.

MORTGAGE RATES ARE 7.5 CLIMB TO GO 8, THEY CAN NOW BORROW OR PURCHASE A HOME FOR AROUND $460,000.

THEY'VE LOST OVER 200 PLUS THOUSAND IN BORROWING CAPACITY.

DUE TO MORTGAGE RATES TODAY.

SO THAT COMPOUNDS PROBLEM WE'RE DEALING WITH.

>> SECONDLY IF WE HAVE BEEN INCREASING OVERNIGHT DISCOUNT RATE.

MEANS TO CURB INFLATION.

BUT WE'RE INCURRING EXPERIENCING THAT INFLATION ON COSTS OF MATERIALS.

THE FURTHER EXACERBATED IN HAWAII.

MOST ISOLATED ISLANDS IN THE WORLD.

OF COURSE REUTILIZED TO BUILD WE MUST IMPORT.

SOMETIMES CERTAIN CASES, COST OF THE FREIGHT IS MORE THAN THE ACTUAL PRODUCT ITSELF.

SO THIS MAKES IT VERY DIFFICULT TO BUILD IN HAWAII.

WHY RENTAL COMMUNITIES WE BUILD, UTILIZE THE FEDERAL LOW INCOME HOUSING TAX CREDIT PROGRAM UNDERSTOOD TO TAKE ADVANTAGE OF THAT 40% FEDERAL SUBSIDIES.

SO THAT WE CAN BUILD WORKFORCE HOUSING FOR LOW MODERATE, MODERATE INCOME HOUSEHOLDS.

>>Yunji: I WANT TO BRING CRAIG INTO THIS.

THERE'S A BUNCH OF COMMENTS HERE.

JOHN SAYING THERE'S NO SUCH THING AS AFFORDABLE HOUSING.

ANY MORE.

IT WAS MADE UP TERM BY THE GOVERNMENT.

OTHER CALLER FROM KA'U SAYING.

NO AFFORDABLE HOUSING.

THIS IS MISNOMER.

GIVEN THE CHALLENGES OF LENDING, STANFORD IS TALKING ABOUT IS THE ONLY THING THEN LEFT DO TO BUILD SUBSIDIZED RENTAL PROPERTIES BECAUSE WHO CAN REALLY BUY AT 8%?

>> THEY'RE RIGHT.

NOT WRONG.

GOVERNMENT DID, AND FOR GOOD REASONS, HAVE TO PUT DEFINITIONS ON WHAT IS AFFORDABLE HOUSING.

SO IT'S GENERALLY THEY DO STUDIES WHAT IS THE AREA MEDIAN INCOME.

SAY AFFORDABLE IS THINK IT'S DEPARTMENT OF HOUSING URBAN DEVELOPMENT, AFFORDABLE IS WHAT YOU'RE SPENDING 33% OF YOUR INCOME TOWARD HOUSING.

HAWAII, I THINK THAT NUMBER IS CLOSER TO 50%.

WHAT ACTUALLY HAPPENS.

DIFFERENT DISCUSSION BETWEEN PURCHASING AFFORDABLE HOUSING, PURCHASING YOUR HOUSING VERSUS RENTING.

>> MY COMPANY FOCUSES GOVERNMENT ASSISTANT REGULAR RENTALS THE DON'T JUST DO THE PROPERTY MANAGEMENT.

SO DAILY BASIS, I GET TO INTERACT WITH OUR TENANTS, WHO LIVE IN THE PROPERTIES AND DEAL WITH THEM BEING ABLE TO PAY OR OR NOT PAY AFFORDABLE RENTS.

WE FIND THAT WITHOUT GOVERNMENT RENTAL ASSISTANCE, EVEN IF IT'S AFFORDABLE RENTAL, TAX PROJECT FOR EXAMPLE, I STILL NEED ASSISTANCE FROM THE COUNTIES WITH THEIR SECTION 8 WHERE THEY ONLY HAVE TO PAY 30% OF THEIR INCOME.

THEN THE GOVERNMENT PAYS THE REST OF THE RENT.

THAT IS GOING ON.

AND EVEN THOUGH MY COMPANY MAKES LIVING ON GOVERNMENT ASSISTED DEVELOPED RENTAL PROPERTIES, I BELIEVE THAT'S BIGGER SUPPLY AND DEMAND ISSUE.

I BELIEVE THAT WE CANNOT SUBSIDIZE OUR WAY OUT OF THIS PROBLEM.

WE DID SOME MATH BEFORE.

COST ABOUT HALF A MILLION DOLLARS OF TAXPAYORS SUBSIDY TO SUBSIDIZE ONE RENTAL UNIT.

IF YOU MULTIPLY TIMES 20,000 UNITS THAT I TOLD HOUSING SAYS WE'RE SHORT, I DON'T KNOW.

I CAN'T DO THAT KIND OF, 20,000 TIMES HALF A MILLION DOLLARS?

DON'T EVEN KNOW.

I THINK IT'S $100 MILLION.

$100 BILLION.

WE WENT ALL MENTAL WHEN WE TRY TO FINANCE THE RAIL SYSTEM AT $12 BILLION.

IT WAS LIKE, SO WHAT IS GOING TO HAPPEN IF WE HAVE TO SUBSIDIZE $100 BILLION AFFORDABLE HOUSING?

POLITICALLY, REALISTICALLY UNPALATABLE.

WHAT YOU NEED TO BE ABLE TO DO, THIS IS NOT WHAT I DO, BUT WE NEED TO RELEASE THE POWER OF THE WHOLE MARKET.

>> CASTLE & COOKE, HASEKO BUILDING MARKET HOUSING MAKE IT CHEAPER GET MORE, SIMPLE SUPPLY AND DEMAND MODEL.

MORE SUPPLY AT ALL LEVELS.

WILL REDUCE THE OVERALL MEDIUM INCOME COST OF HOMES.

AND THAT ASK HOW WE ATTACK THIS PROBLEM.

WE DON'T.

>> WE DON'T WANT TO REMOVE THOSE BARRIERS.

WE KEEP DRIVING UP THE COST WITH YOU'VE GO TO PAY FOR SCHOOLS.

EVEN THOUGH D.O.E.

HAS LESS STUDENTS TODAY THAN THEY DID 30, 40 YEARS AGO.

BY SOMEHOW, NEW HOME DEVELOPERS PROBLEM.

I MEAN, IT'S NOT JUST THAT.

>> IT'S ONE THING AFTER ANOTHER.

STATE HISTORIC PRESERVATION DIVISION.

YOU DO GOOD WORK.

BUT I WAS DOING AFFORDABLE ACQUISITION REHAB.

CREATE EXTRA PARKING STALL OR TWO.

HHFDA TOOK AWAY PARKING FOR MY SENIORS.

>> 4‑INCH PAVER BLOCKS IN THERE.

>> SHPD CAME BACK AND SAID, OH, EVEN THOUGH PLACE BUG DUMPING AND BUILT BEFORE 30 YEARS AGO, MIGHT SPRINKLER SYSTEM WAS DEEPER NEED SO HAVE ARCHAEOLOGIST ON SITE MONITOR WORK PUTTING PAVER BLOCKS IN 4‑INCH DEEP.

$100,000.

>> NOT GOING TO DO IT.

BUT THOSE ARE THE KINDS OF THINGS.

IT'S IMPORTANT.

>> THERE ARE LAWS IN PLACE BECAUSE DEVELOPERS HAVE DONE THINGS BADLY BEFORE.

BUT THERE'S A LOT OF THIS RULE AN REGULATIONS THAT JUST CAUSE COST OF HOUSING TO BE TOO MUCH.

>>Yunji: YOU WANT TO JUMP IN.

POKED BEAR.

APPRECIATE THAT.

BECAUSE I THINK IT IS ONE OF THE BIG I WOULD SAY, DISAGREEMENT POINTS.

IN AFFORDABLE HOUSING DISCUSSION.

WHETHER YOU CAN JUST FLOOD THE MARKET.

WITH ENOUGH HOMES THAT THEN PRICES WILL FALL.

WE JUST HAVE ENOUGH OF THEM.

BUILD 10,000 HOMES BRING DOWN PRICE.

TRIED THAT.

BUILT TALK HOMES.

>> 10,000 HOMES IN AT THE YEARS.

RENTS WENT DOWN ABOUT 3, 4%.

>> INSTEAD OF PAYING $3,000 A MONTH FOR 2 BEDROOM YOU WERE PAYING $2,900 FOR A 3 BEDROOM OR 2 BEDROOM.

ISSUE IS TO FLOOD MARKET WITH THOUSAND OF UNIT, FOR 3% DECREASE, IS THIS REALLY THE PATH FORWARD FOR AFFORDABLE HOUSING?

I WOULD ARGUE THAT'S NOT.

>> SCALABLE.

IT'S NOT FEASIBLE.

WE NEED TO BE REAL.

THAT WE LIVE IN AN ISLAND STATE.

AND THERE'S OPEN GOING TO BE SO MANY UNITS OF HOUSING.

>> IF YOU DON'T MIND ME JUMPING IN HERE.

>> THAT UP.

>> SO JUST COUPLE OF THINGS.

>> ONE, I KNOW FOR FACTS FROM PRIVATE CONVERSATIONS WITH THE GOVERNOR, DECISIONS WERE NOT MOTIVATED BY POLITICAL, NOT POLITICAL DECISION IN ALL MEETINGS.

WHAT CAN WE DO FOR THE PEOPLE OF HAWAII.

AS WE SEE, SO MANY PEOPLE LIVE LEAVING ISLAND, WHEN HE SEES AS WE SEE, NURSES, CANNOT COME TO HAWAII BECAUSE THEY CAN'T AFFORD A HOME OR POLICE OFFICERS OR TEACHERS DECISION HAS TO BE MADE.

PROCLAMATION IS NOT FOR EVERYONE.

SOME PEOPLE CAN CHOOSE TO USE IT.

SOME SOME SOME PEOPLE DON'T HAVE TO USE IT.

COUPLE FACTS.

SUBSIDIZED HOUSING, 1998, GOVERNMENT HAS PASSED FAIR LIMIT TO FEDERAL GOVERNMENT.

WHERE WHATEVER NUMBER YOU HAD 1998, THAT'S THE NUMBER OF SUBSIDIZED HOUSING YOU'RE GOING TO IT.

>> THAT'S IT.

>> PUBLIC HOUSING.

ANYTHING THAT WE DO, WE HAVE TO EITHER REPLACE ONE FOR ONE.

>> WE HAVE DECONCENTRATED POVERTY ACT.

MANY DECADES 6, 7 DECADES AGO, PUT ALL THE POOR PEOPLE IN ONE AREA.

FORMULA FAILED CONTINUE TO FAIL.

SOME OF OUR PROJECTS DEVELOPMENT THAT IS WE'RE DOING, WE TAKING THAT PROPERTY USING THE FAIR CLAUSE LIMIT, REPLACING THE DEEP SUBSIDIZED, MEANING THAT IF YOU MAKE ZERO DOLLARS, FEDERAL GOVERNMENT WILL SUBSIDIZE.

PAY 30% OF 0, WHICH IS 0.

WE HAVE ABOUT 45,000 FOLKS THAT RIGHT NOW SERVING TODAY ABOUT 45,000 PEOPLE THAT EITHER ARE WITH US ON PUBLIC HOUSING OR SECTION 8, OR OTHERS.

WE HAVE TO BE BEYOND THAT.

WE HAVE TO BUILD FOR THE TEACHERS.

HAVE BUILD FOR POLICE OFFICERS.

AND THAT IS WHY YOU SEE MIX, FOR EXAMPLE LAUNCHED 10,000 UNITS.

6 MONTHS AGO.

TO BUILD IT, WE REPLACING THE 1400 UNITS AT WHATEVER INCOME YOU HAVE, AND COMBINED ZERO DOLLARS.

RENTAL.

ALSO ADD IN ABOUT 6,000 UNE FOR THOSE 60% AMI OR LESS.

KRISTINE HAS MENTIONED, USING VARIETY OF DIFFERENT TOOLS.

TO BE ABLE TO PROVIDE HOUSING FOR BIG SPECTRUM.

ALL STILL BE UNDER THE UMBRELLA OF AFFORDABLE BUT DOES TAKE CARE OF ALL OF THE FOLKS THAT WE NEED TO.

WE STILL HAVE TO DO MARKET HOUSING AS WELL.

BECAUSE WE HAVE PEOPLE WHO CAN AFFORD TO BUY A HOME.

ONE FINAL THING ON OTHER THING THAT THE EMERGENCY PROCLAMATION IS DOING WE HAVEN'T TALKED ABOUT.

GIVING US THE ABILITY TO HIRE MORE STAFF, MORE EXPEDITIOUSLY.

OLD SYSTEM AS TAKES SIX MONTH OR MORE TO HIRE ONE PERSON.

TAKING ADVANTAGE OF THE EMERGENCY PROCLAMATION NOW AND WE ADVERTISING ON NOVEMBER 4, TO HAVE JOB FAIR WHERE WE CAN HIRE SO MANY VACANT UNITS.

>> BEEN VACANT FOR MANY MONTHS.

SOMETIMES YEARS.

TREMENDOUS AMOUNT OF BENEFIT THAT THIS PROCLAMATION BRINGS TO THE COMMUNITY AS A WHOLE.

>>Yunji: GET TO YOU.

WHILE I HAVE YOU, I ALSO WOULD LOVE IT IF YOU WOULD ANSWER THIS QUESTION.

AND MAKE YOUR POINT.

THIS BASICALLY, PERCEPTION OR TRUTH.

PEOPLE ARE SAYING THAT THESE DEVELOPERS MAKE AFFORDABLE UNITS BUT ONLY RENT THEM OUT FOR A LITTLE WHILE BEFORE UNIT PUT ON MARKET TO SELL FULL PRICE.

IS THERE A WAY TO STOP THAT.

>> NOT TOTAL THREE.

SOME PROJECTS THAT MAY CHOOSE TO THAT PATH.

WE CHOOSE TO HOLD IT AS AFFORDABLE.

CHECK THE BOX WHEN WE APPLY FOR CREDIT AND BONDS.

GAP FINANCING.

ONE BOX WE LONGEST COMMIT THE PROPERTY TO 6 1 YEARS OF AFFORDABILITY.

RECORDED LAND USE REGULATORY AGREEMENT IS RECORDED AGAINST PROPERTY.

LAND.

THESE REGULATIONS RUN WITH THE LAND, WHETHER WE SELL THE PROJECT IT SOMEONE ELSE OR CONTINUE TO HOLD IT, SO WE INTENTIONALLY ACCEPT THESE ENCUMBRANCES FOR THE AFFORDABILITY IN ORDER TO MAINTAIN THE PROPERTY AS A AFFORDABLE TO THE WORKFORCE.

SO THAT THEY CAN HAVE OPPORTUNITY TO MOVE UP THE HOUSING LADDER.

>> DON'T HAVE TO COMPETE WOULD LIKE WHAT KEMA SAID.

EARLIER.

ABOUT RENTS DROPPING MARKET RENTS DROP.

MEETING MORE THAN LIKELY THOSE ARE INVESTOR OWNED CONDOMINIUMS.

THAT ARE RENTED OUT.

AS OPPOSED TO A RENTAL COMMUNITY THAT WE HAVE AND OUR RENTS INCREASED ANNUALLY BASED ON PUBLISHED HUD RATES, BASED ON THE MEDIUM INCOME.

RESET ANNUALLY BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

I WOULD SAY SUPPLY CONSTRAINED ISSUE.

MID TO LATE 90s, OVERSUPPLY OF HOUSING.

>> WE ACTUALLY HAD A PRECIPITATED DROP IN REAL ESTATE PRICES YOU I JUST COMPLETED EXPERT WITNESS REPORT ON LITIGATION OF HOW IN 2008, AND 2011, THE MEDIAN PRICES WAIKALOA VILLAGE FOR SINGLE FAMILY HOMES DEPRECIATED OVER 34%.

THAT HAPPENS.

USUALLY TYPICALLY HAPPENS DURING ECONOMIC DOWN CYCLES.

MEDIUM HOME PRICE OAHU 1980 WHEN I MOVED HERE TO GO COLLEGE RIGHT OUT OF HIGH SCHOOL, FROM MAUI HOME PRICE $75,000.

LATER OVER A MILLION DOLLARS.

CULMINATION OF YEARS OF ADD REGULATIONS.

>> 31 YEARS AGO, I COULD GET BUILDING PERMITS WITHIN A DAY‑AND‑A‑HALF.

ON MAUI.

TODAY, OUR LATEST PROJECT ON THE BIG ISLAND, GETTING PERMITS PRINTED NOW, TAKES US 2 YEARS.

>> MAUI MORE THAN A YEAR.

>> OAHU, EXPERIENCES WHERE IT'S TAKEN 3 YEARS TO GET OUR BUILDING PERMIT.

WE HAVE A WHOLE LOT OF PREDEVELOPMENT WORK THAT IS SO MUCH GOES INTO PREPARING A PROJECT THAT WHEN WE SUBMIT FOR BUILDING PERMIT, IT'S 99% DONE.

DONE ALL THE ARCHITECTURAL ENGINEERING.

CIVIL, STRUCTURAL.

MECHANICAL.

ELECTRICAL.

PROJECT BEEN FULLY VETTED.

THERE'S MILLIONS OF DOLLARS OF PREDEVELOPMENT EXPENSES INCLUDING LAND, AS CATHY REFERRED TO, KRISTINE REFERRED TO, CARRYING COST.

INTEREST CARRYING COST, ADMINISTRATIVE COST, FOR TEN OF MILLIONS DO HAVE DOLLARS.

NOW, TAKES A YEAR TO AS LONG AS 3 YEARS TO GET A BUILDING PERMIT.

THESE ARE ALL ADDED COSTS.

IN ORDER FOR US TO SECURE CONSTRUCTION FINANCING FOR A PROJECT, FOR CONSTRUCT LOAN, THERE HAS TO BE ENOUGH PROFIT MARGINS IN THE DEAL TO BE ABLE TO MAKE SURE THE BANKS THAT WE'LL BE ABLE TO REPAY THEM BASED ON THE PROCEED OF SALE OF THESE UNITS.

>> ALL SALES DRIVEN.

SO UNLESS THE PROJECT IS FEASIBLE NEVER GETS BUILT.

SOMETIMES IT MANY CASES, PROJECTS THAT ARE TOO MANY IMPOSITIONS OR CONDITIONS ARE IMPOSED.

>> THAT THERE ARE MANY, MANY PROJECTS OR THOUSANDS OF ACRES OF LANDS THROUGHOUT OUR STATE THAT HAVE ZONING BUT ARE UNFEASIBLE TO PROCEED WITH THE DEVELOPMENT BECAUSE OF THE CONDITIONS THAT RUN WITH THE LAND.

WHEN THEY TOOK IT THROUGH THE ENTITLEMENT PROCESS.

WHETHER IT BE STATE LAND USE COMMISSION OR THE COUNTY ZONE AGO PROFESSIONAL APPROVALS.

>>Yunji: HEARING ABOUT REGULATIONS AND GOVERNOR'S PLAN DOES TRY TO GET RID OF SOME OF THOSE.

HIGH BURDEN ON DEVELOPERS.

QUESTION HERE, THAT SAYS, HOW CAN THE GOVERNMENT GUARANTEE PERMITLY AFFORDABLE HOUSING LOCAL RESIDENTS LINKED IN ABOUT LAY TO LOCAL ME IAM INCOMES ADJUSTED TO INPLACE.

HOW DO WE GUARANTEE THEY ARE AFFORDABLE.

>> THAT'S WHERE YOU NEED TO EMPLOY SOME OF THE BEST AND PUBLIC AND PRIVATE SECTORS TO BE ABLE TO GET TO THAT POINT.

A LOT OF THE PROGRAMS WE HAVE TODAY BASICALLY, GOVERNMENT OUTSOURCE NEW AFFORDABLE HOUSING PRODUCTION TO THE PRIVATE SECTOR.

YEAR 62 DOESN'T NEED TO BE AFFORDABLE.

OTHER JURISDICTIONS ORGANIZATIONS THAT OWN AFFORDABLE HOUSING WHETHER IT'S GOVERNMENT INCENTIVE OR OTHER PRIVATE SECTOR ORGANIZATIONS ARE REQUIRED TO KEEP IT AS SUCH FOREVER.

AND/OR TO USE THE PROFITS FROM THAT USING TO BUILD MORE HOUSING SO IT'S SUSTAINABLE CYCLE THAT WHERE THE FUNDS CAN BE RECYCLE OVER AND OVER AGAIN.

ANY APPRECIATION IN THE UNITS WILL GO BACK TOWARDS CREATING MORE HOUSING.

I THINK THAT'S WHERE THE WE'VE HEAR A LOT OF COMPLAINTS DEVELOPMENT COMMUNITY OVER MANY YEARS ABOUT THE LEVEL OF REGULATION IN HAWAII.

IT IS TRUE.

YOU CAN FLOOD THE MARKET TO ACHIEVE AFFORDABLE.

ONE BEST EXAMPLES IN THE UNITED STATES IS HOUSTON.

WHICH FASTEST GROWING CITY IN AMERICA.

FOR THE LAST 40 YEARS.

A LOT OF DEMAND.

BUT THERE'S NO ZONING IN HOUSTON.

ANYONE CAN BUILD ANYTHING ANYWHERE ANY TIME.

TEAR DOWN YOUR HOUSE AND BUILD A OIL REFINERY.

MEDIUM PRICE TODAY IS BELOW NATIONAL MEDIUM HOME PRICE.

PROBLEM IS THAT ALL OF THAT HOUSING WAS CREATED IN THE FORM OF SUNBURNAN SPRAWL.

TODAY AREA ABOUT THE SAME SIZE THE STATE OF MASSACHUSETTS.

NEVER NEVER HEARD ANYONE SAY WE NEED TO PAVE OVER 2,000 ACRES OF LAND A YEAR.

NEED DO IF WE WERE GOING TO BUILD AT THE DENSITY OF THE DISTRICT THAT I REPRESENT IN THE STATE SENATE.

TEN THOUSAND HOMES THAT WE NEED.

2,000 ACRES OF AGRICULTURAL CONSERVATION LAND A YEAR BEING BUILT BY DEVELOPERS WHO LEGAL RESPONSIBILITY IT IS TO MAXIMIZE THEIR PROFITS.

THAT'S THEIR STATUTORY JOB.

DON'T.

SHAREHOLDERS CAN SUE THEM.

FORCING PRIVATE SECTOR DO THINGS THAT'S NOT REALLY BEST SUITED TO DO.

>> I THINK PUBLIC SECTOR HAS ABDICATED A LOT OF RESPONSIBILITIES.

PUBLIC SECTOR NEEDS TO LEARN LESSONS OF THE PRIVATE SECTOR TO DO THINGS TO DELIVER HOUSING THAT PEOPLE WANT.

TO ENSURE THAT IT IS LOW COST.

IT'S NOT JUST BUILDING TO THE TOP.

HOWEVER SMALL PERCENTAGE OF THE MARKET.

THAT IT IS BUILDING AT A LEVEL OF DENSITY THAT IS HIGH ENOUGH THAT WE NEVER NEED TO TOUCH 1 INCH MUCH AGRICULTURAL OR CONSERVATION LAND.

IN OTHER WORDS CREATE SOMETHING LIKE PUBLIC SCHOOL FOR HOUSING.

>> I LARGE SCALE LOW COST OPTION THAT AVAILABLE TO EVERYBODY NO MATTER WHERE ON THE INCOME SPECTRUM ONE MAY BE AS LONG YOU'RE HAWAII RESIDENT, OWNER OCCUPANT, OWN NO OTHER REAL PROPERTY, THEN AS FOR THOSE LIKE PRIVATE SCHOOLS HOME SCHOOLS LET PRIVATE SECTOR INNOVATE.

CATER THAT PRIVATE EDUCATION CATERS TO.

>> I DON'T THINK COME DEEING PRIVATE SECTOR WORKED.

WE NEED MAJOR SHIFT IN THE WAY THAT THE PUBLIC SECTOR THINKS ABOUT ITS ROLE.

>>Yunji: INTERESTED TO HEAR FROM THE OTHER PUBLIC SECTOR INDIVIDUALS ON THAT.

ADAM.

WHAT ARE YOUR THOUGHTS ON THAT THIS.

>> WANT TO TAKE A MOMENT TO TOOT KAUAI'S HORN.

RESPOND TO BOTH WHAT STAN FOR WAS TALKING ABOUT PERIODS OF AFFORDABLE AND HOUSES BEING FLIPPED TO MARKET RATE.

QUESTION JUST ASKED ABOUT HOW DO WE ASSURE LONGTERM AFFORDABILITY.

KAUAI COUNTY LARGEST HOUSING DEVELOPER PERIOD ON KAUAI.

CURRENTLY LARGER AFFORDABLE HOUSING DEVELOPER.

IT'S BECAUSE TAKEN ON SOME OF OF THE ROLES.

COUNTY NOW ACQUIRING LARGE PARCELS OF LAND.

75 ACRES.

50 ACRES.

COUNTY PUTTING IN ALL OF THE TURNING LANES.

STOP LIGHTS WATER INFRASTRUCTURE.

WASTEWATER INFRASTRUCTURE.

PARTNERING WITH THE PRIVATE DEVELOPERS TO CONSTRUCT VERTICAL HOME.

COUNTY MAINTAINING OWNERSHIP OF THE LAND.

WHEN THE HOMES ARE PROVIDED PROVIDED AS LEASEHOLD PROPERTIES.

THROUGH THAT, LEASEHOLD METHOD, COUNTY BEING OWNER OF THE LAND, CAN GUARANTEE THAT THOSE PROPERTIES STAY AFFORDABLE FOREVER.

BECAUSE THE COUNTY OWNS UNDERLYING LAND.

>> WE CAN WRAP THAT INTO OUR LEGAL AGREEMENTS WITH HOME BUYERS.

WE DO THAT BOTH RENTAL PROPERTY AND FOR SALE HOMES.

>> IT'S A HALFWAY POINT.

BETWEEN WE'RE NOT JUST PROVIDING RENTAL PROPERTIES, AND WE'RE NOT PROVIDING FEE SIMPLE HOMES THAT CAN BE FLIPPED TO A MARKET RATE.

BUT THE BUYERS OF THOSE PROPERTY THAT CAN SEND THEM MAKE A LITTLE BIT OF MONEY ON THE PROCEEDS BUT BECAUSE THE COUNTY IS INVOLVED THROUGH THE ENTIRE PROCESS, PUT IN ALL THE INFRASTRUCTURE, WORK, WE CAN CONTROL SALE OF THE BALLOONING PRICE OF THE THOSE HOMES.

>>Yunji: DO YOU THINK THAT COULD BE REPLICATED IN OTHER COUNTIES?

>> OF COURSE.

>>Yunji: I WANT TO BRING YOU IN ON THIS.

I KNOW THAT YOU WANT TO RESPOND TO SOME OF WHAT YOU HEAR.

ALSO THERE'S A QUESTION HERE.

THAT IF THAT IS FOR YOU, IS THERE A WAY TO MAKE AFFORDABILITY FOR KANAKA MAOLI AND MULTIGENERATIONAL KAMA'AINA ONLY?

DO YOU THINK THERE ARE ENOUGH PROVISIONS FOR THAT KIND OF HOUSING HERE?

>> ABSOLUTELY NOT.

MANY PEOPLE, I SPOKE TO SOMEONE BEFOREHAND.

NOT SURE WHAT IT IS.

>> THEY HAD A VERY INTERESTING IDEA.

NOT EVERYBODY IS GETTING A HAWAIIAN HOME.

EVEN HAWAIIAN PEOPLE ARE NOT GETTING HAWAIIAN HOMES.

>> A LOT OF PEOPLE KANAKA MAOLI WHO ABSOLUTELY ARE NOT IN THE MARKET.

AND YES, I THINK THAT THERE SHOULD BE PROGRAMS FOR THAT SPECIFICALLY.

THERE'S A LOT OF TALK THAT GOES AROUND ABOUT THE POOR HAWAIIANS.

TERRIBLE.

HAPPENED TO YOU.

THIS WOULD BE A REALLY GREAT WAY TO TRY TO MAKE SOME OF THOSE THINGS BETTER BY MAKING PROGRAMS WHERE KANAKA MAOLI CAN ACTUALLY AFFORD TO HAVE HOMES.

AND WHAT I WANTED TO SAY IS I DON'T THINK THERE'S ENOUGH ATTENTION HERE TO THE INVESTOR MARKET DRIVING THE PRICES OF AFFORDABLE HOMES UP.

I MEAN, GOVERNMENT REGULATIONS, MAY BE.

BUT WHAT ABOUT THOSE INVESTORS THAT ARE COMING HERE AND ESPECIALLY I SEE IT IN MAUI, AND BUY HOMES DON'T LIVE HERE, MOST OF THE TIME, AND THEY SPECULATE AND DRIVE THESE PRICES UP.

WHY WOULD SOMEBODY SELL TO A REGULAR PERSON WHEN THEY COULD SELL IT TO INVESTOR SO MUCH MORE?

MAYBE THE INVESTOR KNOCKS IT DOWN, PUTS UPGRADE BIG MANSION AND RESELLS IT.

THERE IS THAT MARKET.

I SEE IT HAPPENING IN WHOLE NEIGHBORHOOD.

I WANT TO SAY, THAT PARKING LOT ONE, I JUST WANT YOU TO KNOW THAT BEING BLAMED FOR THE COST OF BUILDING BECAUSE WE WANT TO PROTECT OUR CULTURE, AND OUR IWI KUPUNA, THAT IS REALLY NOT FAIR.

YOU KNOW, THE GRAND WAILEA JUST DESECRATED IWI THAT WAS FOUND UNDERNEATH THEIR HOTEL.

WHEN THEY WERE DOING SOME WORK.

IT IS NOT TRUE THAT EVERYTHING HAS BEEN DUG UP AND WE KNOW WHERE THERE'S NOTHING THERE.

IT IS NOT TRUE.

BECAUSE IT HAPPENS ALL THE TIME.

AND IF THE COST YOU $100,000 TO BE SAFE, THEN I THINK I LIKE THE WAY YOU DID IT.

>> GOOD WORK THAT YOU DO.

BECAUSE THERE HAVE BEEN DEVELOPERS THAT DO IT THE WRONG WAY.

BUT THERE ARE PRACTICAL MATTERS.

DO WE, IF I'M DEVELOPING OVER SUGAR CANE LAND.

150 YEARS HAS BEEN PLOWED OVER, YOU WANT ME TO DO A AGRICULTURAL SURVEY ON THAT?

OR ARCHAEOLOGICAL SURVEY ON THAT?

THAT'S NOT PRACTICAL.

>> TALKED TO PEOPLE WHO WORKED IN THE FIELDS?

THEY FOUND THE IWI AND PUT THEM UNDER THE ROCKS?

BECAUSE THEY KNEW THAT THEY WOULD NOT PLOW THE ROCKS UP?

DID YOU TALK TO THEM?

>> WE'RE TALKING, THEY HAD, FARM LAND.

THAT'S BEEN RUN OVER.

>> I'M TELLING YOU.

>> SO THIS IS WHAT PEOPLE SAY.

THERE WHAT PEOPLE WHO WORKED IN THOSE FIELDS SAY.

AM THEY FOUND THE IWI.

THEY PUT THEM UNDER ROCKS TO PROTECT THEM.

SO THAT THEY WOULD NOT BE BUILDING ON IT.

>> PERFECT EXAMPLE.

OF THIS AS A PRACTICAL MATTER IS NOT A POSSIBILITY.

I RECOGNIZE THAT.

I RESPECT THAT.

THAT WE SHOULD TAKE CARE OF THE IWI.

BUT THERE ARE MANY SITUATIONS WHERE JUST IS NOT, YOU'RE IMPOSING COSTS THAT FOR NO DARN GOOD REASON.

THIS IS LAND THAT HAD BEEN DUG UP AND BUILT FOUNDATIONS HAD BEEN DUG UP WAY, WAY DEEPER THAN THAT, ON THIS FIVE STORY BUILDING THAT I OWN AND MANAGE.

AND I'M GOING GO 4 INCHES DEEP AND YOU'RE SAYING THAT THAT IS IRRESPONSIBLE.

>> LET'S GO.

>> I'M NOT PROTECTING IWI.

>> NO WAY.

>> I'M SAYING YOU ATTRIBUTING YOUR COSTS TO PROTECTING, DOING ARCHAEOLOGY.

>> NOT WHAT I'M SAYING.

SAYING IT HAS TO BE PRACTICAL.

RECOGNIZE THE NEED FOR LAW.

THE LAWS DO NOT RECOGNIZE OR MAKE ALLOWANCES FOR THE PRACTICALITY.

>> I THINK THIS IS A REALLY GREAT EXAMPLE BECAUSE WHAT REALLY NEEDS TO HAPPEN IS TO HAVE BETTER METHODS AND ON MAUI, WE'RE STARTING TO DO A LOT MORE OF GROUND PENETRATING RADAR AS A FIRST STEP.

TO SEE IF THERE'S ANYTHING THERE AND I THINK THAT I AGREE WITH YOU.

THAT PERHAPS WE DON'T NEED TO DO THAT MUCH.

>> I TOLD YOU I SAID GOOD FOR YOU.

THINGS YOU'RE DOING ON MAUI.

>>Yunji: LET'S GO SOMETHING THAT CLAIR SAID JUST A MINUTE AGO.

PLEASE GO AHEAD.

>> I WANT TO SAY THAT I DON'T THINK ANYONE DISRESPECTS NATIVE HAWAIIAN OR KANAKA MAOLI RIGHTS.

I THINK WHAT WE ARE REALLY ASKING FOR IS TO WORK WITH US SO DEVELOPERS FOR MAJOR PROJECTS, WE WANT, WE'RE WAITING SOMETIMES A YEAR JUST TO HAVE OUR REPORTS AND PROPERTIES REVIEWED.

BY AN AGENCY THAT IS OVERWHELMED.

IT WILL BE BETTER IF WE COULD JUST HAVE CULTURAL MONITORS COME TO OUR SITE, AND MONITOR US INSTEAD OF HAVING TO WAIT FOR THIS PROCESS.

>> ONE THING ABOUT COMMON SENSE, IN EXISTING AREAS, THERE'S ANOTHER THING WHY DO WE NEED TO WAIT, WE CAN HAVE RESPECT CULTURAL MONITORS THAT CAN MONITOR OUR CONSTRUCTION ACTIVITY.

WILLING TO SIGN ON THAT.

DON'T PUT US ON A WAITING LIST WHERE I CAN'T SUBMIT COMMENTS WAITING A YEAR.

HAVING TO CALL THE GOVERNOR'S OFFICE TO GET A PERMIT REVIEWED.

THAT IS WHAT HAPPENS ON A DAILY BASIS.

FOR PEOPLE LIKE US.

YOU'RE TALKING ABOUT.

>> ABSOLUTELY.

I AGREE WITH YOU.

>> STATE HISTORIC PRESERVATION DEPARTMENT BEING UNABLE TO.

>> IT IS THEIR FAULT.

NOT ABLE TO REVIEW.

WHAT THEY NEED TO DO.

>> BECOME THE ISSUE FOR AFFORDABLE HOUSING.

MARKET HOUSING.

ANYTHING.

FOR THAT MATTER.

THEN YOU LOOK AT MAUI LANI, WANT TO USE MAUI LANI.

MASTER PLANNED COMMUNITY.

BEAUTIFUL ROADWAYS THAT HAVE BEEN INVESTED.

YOU CAN DRIVE THROUGH.

YOU CAN SEE VACANT LOTS.

GRADED.

CONSTRUCTION GOING ON.

STOPS.

YOU WONDER WHAT'S GOING ON.

CALL THE DEVELOPER.

SAME HOUSE THAT IS BEEN UNDER CONSTRUCTION OR STOPPED FOR MONTHS.

FOLLOWING YEAR, FOR YEARS NOW.

I FIND BONE, DON'T KNOW WHAT TO DO ABOUT IT.

NO RESOLUTION.

MAUI CAN HAVE A THOUSAND HOMES ISSUES RELATED TO WHAT WILL THEY FIND?

IF THERE THERE CULTURAL RESPECT, CULTURAL MONITORS THAT CAN BE THERE AND TELL US HOW WE CAN RESERVED WHAT THEY NEED TO RESERVE, FOR THEIR RIGHTS STILL BUILD HOUSING ALONG THE WAY.

>> I THINK YOU'RE CONCEPT VERY GOOD.

PICK THE WRONG PLACE.

THAT IS BURIAL GROUND.

REALLY NOT A GOOD PLACE TO BE PUTTING HOUSES ON BURIAL GROUNDS.

THIS HAPPENS ALL THE TIME.

HAPPENS ALL TIME.

KNOWN BURIAL GROUNDS.

PLAN INFRASTRUCTURE.

PLAN HOUSINGS.

PLAN HOTELS.

RIGHT ON TOP OF THE BURIALS.

WE JUST GOT THE COUNTY TO BUY ALMOST 500 ACRES OF LAND IN THE SAME AREA THAT YOU'RE TALKING ABOUT.

BECAUSE IT'S BURIAL GROUNDS.

AND THEY FOUND NOTHING BUT BURIAL AFTER BURIAL I THINK THAT IS APPROPRIATE THING TO DO.

WHEN YOU KNOW, THAT THERE IS REALLY SENSITIVE AREA, IF YOU KNOW THAT THERE ARE BURIALS THERE.

>> YOU DON'T GO THERE AND BILL.

YOU'RE IDEA IS A GREAT IDEA.

BUS WE ALWAYS SAY, WHY DON'T THEY EVER ASK US?

WE COULD HELP YOU.

WE COULD HELP YOU FIND WHAT YOU NEED TO FIND.

>> WAIT A YEAR TO SAY, GO AND HIRE A CULTURAL MONITOR.

WE COULD GO STRAIGHT TO CULTURAL MONITORS ASK THEM TO HELP INTRODUCE THIS CONVERSATION ELUCIDATES REGULATION AND PEOPLE FOUGHT VERY HARD FOR THE LAWS.

WHETHER IT'S LAW THAT IS WAYNE IS TALKING ABOUT ENVIRONMENTAL OR RESTRICTIONS THAT CLAIR IS TRYING TO PROTECT.

SO HOW DO WE MOVE FORWARD?

WE HEARD TONIGHT IS FOLKS SAYING, THIS IS NOT GOING TO DO ANYTHING.

DOESN'T GO FAR ENOUGH.

AND THEN OTHER PEOPLE CONCERNED THAT IT BYPASS ALL OF THE NECESSARY REGULATIONS.

>> IT'S GOING TO BE HARD.

SOME OF MY COLLEAGUES UHERO MORE BUY RIGHT DEVELOPMENT.

DON'T HAVE AN OPPORTUNITY TO VETO EVERY INDIVIDUAL PROJECT.

>> IF YOU MEET THIS IS HE OF REGULATIONS, SET OF REGULATION YOU CAN BUILD.

OR ANOTHER THING, I WOULD LIKE TO SEE MORE MAKE IT EASIER FOR BUILD MORE ACCESSORY DWELLING UNITS.

SOMETHING THAT COULD BE RELATIVELY EASY AND INCREASE DENSITY.

AGAIN, HAVE A POLITICAL PROBLEM.

NOT EVERYONE LOSES IN OUR CURRENT HOUSING MARKET.

OWN THEIR HOUSE AND LOW DENSITY COMMUNITY, FIRST MADE A LOT OF MONEY THAT HOUSE IS APPRECIATED TREMENDOUSLY.

THEY LIKE THEIR LOW DENSITY COMMUNITY.

DON'T WANT TO SEE MULTIFAMILY UNITS.

MIGHT NEED TO BE KIND OF A MIND SET SHIFT AMONG SOME OF THOSE FOLKS LIVE IN OLDER SUBURBAN UNITED NEIGHBORHOODS WELCOME ADU, MULTIFAMILY DEVELOPMENTS.

URBAN AREA.

BEEN DEVELOPED.

TOUGH HAWAII ISN'T THE ONLY PLACE THAT HAS A TROUBLE WITH THAT.

WE SEE NORTHERN CALIFORNIA ALL OVER THE WEST COAST WEALTHY AREAS OF THE NORTHEAST.

SHIFT HAS TO HAPPEN FOLKS WANT THEIR OWN KIDS TO BE ABLE TO COME BACK AND BUY A HOUSE.

>>Yunji: GOES BACK TO WHAT THE GOVERNOR IS CALLED NIMBYISM.

I WANT TO BRING YOU IN ON THIS.

ALSO DRAWING CLAIR TALKED ABOUT.

IDEA OF THE FOREIGN INVESTOR COMING IN OR PEOPLE NOT FROM HAWAII.

THIS PERSON ASKING, HOW DO YOU DEFINE HAWAII RESIDENTS.

SOMEONE LIVED HERE FIRE L&G TIE.

GOT HERE FOR WORK?

WHAT PROVISION OR PROTECTIONS MAKE SURE PEOPLE OF THIS PLACE HAVE ACCESS TO THE HOUSING THAT YOU'RE BUILDING?

>> I THINK ATTORNEY GENERAL OFFICERS IS WORKING ON THAT.

PEOPLE THAT ARE HERE IN HAWAII, TO WORK IN HAWAII, TO LIVE IN HAWAII, TO CONTRIBUTE TO HAWAII LIVING HERE, PEOPLE COMING TO WORK HERE, TO HELP OUR STATE, THERE IS NO DOUBT THAT THERE IS A LOT OF VALIDITY INTO ALL OF THIS.

VALIDITY EMERGENCY PROCLAMATION DOES FOR EXAMPLE UNTIL THIS IS RESOLVED ALLOW SHPD TO HIRE SOME ADDITIONAL PEOPLE.

ADDITIONAL STAFF.

ONLY DO SO MUCH.

PROCLAMATION IS VERY CLEAR.

FOR PEOPLE OF HAWAII, IF YOU'RE COMING HERE FOR A CONTRACT, BE WORKING HERE FOR A YEAR TO COME, YEARS TO COME, CONTRIBUTE TO OUR COMMUNITY.

IF YOU'RE HERE IN HAWAII CHILDREN COMING BACK.

>> THIS KIND OF HOUSING WILL BE FOR THEM.

AGENCY FOR EXAMPLE, TO MITIGATE SOME OF ISSUES, AFFORDABLE THAT YOU MENTIONED, CONTRACT WE HAVE SIGNED, NOT ONLY ON LAND, FOREVER, STAYS, OWNERSHIP ASSETS.

ANYTHING 80% OR LESS AMI, OWN THE HOUSE STATE ONLY DAY ONE, CONTINUE TO MAKE SURE THAT AFFORDABILITY FOR LIFE, OTHERS AFTER 15 YEARS HAVE RIGHT OF FIRST REFUSAL.

>> TAKE OVER HOUSES.

MANY MECHANISMS OVER THERE.

WE HAVE FROM THE DEVELOP EA DEVELOPMENT COMMUNITY WILLING TO DO THAT FOR THE SAKE OF MOVING FORWARD THIS PROGRESS.

ONCE IT'S DONE CAN BE TRANSPARENT.

VERY WELL DEFINED.

>> ONLY PEOPLE ARE ABLE TO GET THESE HOUSING.

>>Yunji: FRUSTRATION HERE.

WE WANT TO GET TO KRISTINE.

LOVE FOR BOTH OF YOU.

MANY ON THIS PANEL BEEN IN HOUSING FOR A LONG TIME.

BILLIONS DOLLARS SPENT.

WHERE IS THE AFFORDABLE HOUSING?

>> IT'S SIMPLIFY JUST NOT ENOUGH.

AS WE'VE BEEN HEARING, SUBSIDIES, TO MAKE IT REALLY AFFORDABLE AND LOCAL WAGE YOU ARE TALKING 3 TO $400,000.

IF YOU THINK ABOUT THAT, LASTING OVER A PERIOD OF 30, 40 YEARS WE HAVE SOME AFFORDABLE HOUSING CO‑OP MODEL HOUSING, HERE ON OAHU, THAT GOT ONE INITIAL LOAN AT THE BEGINNING, 50 YEARS LATER, 3 BEDROOM APARTMENT IS $1,200.

SO WE DO NEED TO MAKE THESE ININVESTMENTS.

STUDIES THAT HAVE COME OUT SO FAR, WE NEED ABOUT 5,000 OF THESE AFFORDABLE PRICE RESTRICTED HOME.

FEDERAL PROGRAMS FUNDS ABOUT 800.

WHERE ARE THE OTHER 4,000 GOING TO COME FROM?

DO THE MATH.

4,000, TIMES 300,000 SUBSIDY, OKAY, 500,000.

SUBSIDIES WHERE WE'RE AT NOW.

NOW, WE'RE TALKING $2 BILLION.

OKAY.

>> WHERE IS THAT COMING FROM?

WELL, CAN PROPERTY TAXES.

>> INCREASE THE TAX RATE INVESTMENT HOME, SECOND HOME BROUGHT IT TO MAINLAND LEVELS, AVERAGE MAINLAND, 1.4%, OUR AVERAGE SOMEWHERE AROUND .9.

WE'RE NOT EVEN AT AVERAGE.

IF WE DID THAT ACROSS ALL COUNTIES WOULD GET THAT NUMBER.

I KNOW THIS BECAUSE MAUI COUNTY INCREASED THEIR THEIRS NOT EVEN TO MAINLAND STANDARD AND THEY NOW HAVE $60 MILLION A YEAR COMING INTO AFFORDABLE HOUSING FUND.

>> USE THAT PAY OFF A LOAN, BOND, AT A BILLION DOLLARS RIGHT THERE.

THIS IS A TACTIC THAT SAN FRANCISCO NEW YORK, LA, CHICAGO, CITIES ACROSS THE COUNTRY, ARE DOING THEIR OWN AFFORDABLE HOUSING FUNDS.

SEPARATE FROM THE FEDERAL GOVERNMENT.

FEDERAL GOVERNMENT PROGRAM IS GREAT.

NOT ENOUGH.

WE NEED TO BE GENERATING OUR OWN REVENUE.

THROUGH THESE SOURCES.

EITHER PROPERTY TAXES.

SALES TAX.

LOOK AT CONVEYANCE TAX.

ONE TIME TAX WHEN YOU SELL.

MADE IT ALL THE WAY THROUGH THREE COMMITTEES LAST YEAR, I HAVE WOULD PAY ONE CENT INCREASE ON SALE TAX TO KNOW WE HAVE MONEY FOR AFFORDABLE HOUSING.

>> DO YOU THINK THERE'S APPETITE TO CHANGE THE TAX STRUCTURE?

>> SIGNIFICANT AMOUNT OF COMMUNITY PUSHES BACK.

SURPLUS YEARS LAST YEAR, WHY RE TALKING ABOUT RAISING TAXES?

WE FOUND LAST YEAR, WHEN THE REVENUE IS SET ASIDE FOR DEVELOPING THINGS LIKE INFRASTRUCTURE FOR AFFORDABLE HOUSING, SUDDENLY, EVERY QUARTER, THE COUNCIL ON REVENUES COMES BACK AND REVISE FORECAST DOWNWARD.

SURPLUS WASN'T THERE.

>> IF FUNDING IS PULLED BACK.

ONE OF THE FUNDAMENTAL PROBLEMS WITH GOVERNMENT IS THIS EXACT ISSUE.

>> 2018, VOTERS WERE ASKED WOULD YOU LIKE TO INCREASE PROPERTY TAXES TO FUND EDUCATION?

I THINK ALL OF US HERE CAN AGREE URGENT PRIORITY FOR THE STATE AND WHICH THINK WE CAN ALL AGREE IS URGENTLY UNDERFUNDED VOTERS VOTED 70% NO.

EVEN AS POSITIVE AS MOTHERHOOD AND APPLE PIE KINDS OF CAUSES, EDUCATION, WE'RE NOT WILLING TO RAISE PROPERTY TAXES TO DO SO.

SO IT'S VERY TRICKY POLITICAL BALANCE AND JURISDICTIONS THAT HAVE SUCCESSFULLY SOLVED PROBABLE ARE NOT ONES WHO HAVE DONE THESE MEASURES.

WITH HEAR A LOT ABOUT PROPOSALS AN IDEAS FROM PLACES LIKE BAY AREA OF CALIFORNIA.

OR NEW YORK CITY BUT THOSE PLACES HAVE EVEN WORST HOUSING SHORTAGE AS THAN WE DO.

I'M NOT EXACTLY SURE WHY WE SHOULD BE EMULATING SITUATIONS WORSE THAN WERE.

JURISDICTIONS THOUSAND UNITS OF HOUSING ENOUGH TO MEET DEMAND, WE KNOW, BECAUSE THEY DON'T HAVE LARGE STREET HOMELESSNESS ISSUES.

>> IN AUSTRIA, SINGAPORE, HONG KONG FINLAND, DEVELOPED SELF‑FUNDING SYSTEMS THAT RECYCLE FUNDS THAT DON'T NEED BIG APPROPRIATIONS.

>>AREN'T YOU TALKING ABOUT LARGE SCALE GOVERNMENT HOUSING?

>> NOT GOVERNMENT HOUSING IN THE SENSE IT REQUIRES HUGE SUBSIDY PER UNIT CAN BE SELF‑SUSTAINING I WANTED TO GO BACK TO ONE MORE TOPIC BEFORE THIS SAY RESERVING HOUSING FOR PEOPLE WOULD LIVE HERE.

I BELIEVE THAT OUR LOCAL PEOPLE DESERVE TO BUY THEIR HOMES OR RENT THEIR HOMES.

>> BUT I ALSO BELIEVE THAT WE WON'T HAVE EVERYTHING WE NEED ON THIS ISLAND.

FOR EXAMPLE, TALK ABOUT NURSES.

DON'T HAVE ENOUGH NURSES HAVING TO HAVE ROTATING NURSES WHO COME HERE FROM OTHER MUNICIPALITIES DON'T HAVE DOCTORS DOCTORS ARE SUCH SHORTAGE SEVERAL AREAS, WE NEED SPECIALISTS.

WE DON'T HAVE FILM INDUSTRY, LIKE TO HAVE ROBUST FILM INDUSTRY, WE NEED TO BRING THESE SPECIALISTS COME TO COME HERE.

DENY THEM HOUSING?

ABSOLUTELY NOT.

THAT'S NOT THE AMERICAN WAY.

ALSO, WE'RE BUILDING A LOT OF RENTAL HOUSING.

AT AFFORDABLE RENTALS.

I'VE SEEN FIRSTHAND THAT SOME OF OUR TENANTS LIVE IN THESE RENTAL HOUSING THEY HAVE PROMOTIONS, WON'T TAKE IT.

BECAUSE THEY WANT DON'T WANT TO LOSE THEIR HOUSING.

DIVORCED OR NEED TO BE DIVORCED.

BUT DESPITE DOMESTIC VIOLENCE, LIVE IN THE SAME HOUSEHOLD.

>> BECAUSE THEY DOESN'T WANT LOSE THEIR HOUSING ONCE THEY ARE SPLIT UP DON'T QUALIFY.

HOUSEHOLD SIZE IS TOO SMALL.

UNNATURAL FOR PEOPLE TO STAY IN THE AFFORDABLE HOUSING FOREVER.

I BELIEVE AFFORDABLE HOUSING MARKET SHOULD BE THERE FOR PEOPLE TO SAVE ENOUGH MONEY NOT EVERYBODY WILL BE DOING THAT.

I BELIEVE THAT EVERYBODY SHOULD BE GIVEN OPPORTUNITY TO SAVE ENOUGH MONEY SO THEY CAN BUY THEIR OWN HOUSE.

THAT IS THE AMERICAN WAY.

WHAT I BELIEVE THAT WE SHOULD BE DOING TO ASPIRE TO ONLY ONE, SO IF YOU CAN OWN HOUSE, 30 YEARS PAY OFF THAT MORTGAGE AND HAVE NEST EGG TO HELP OUR CHILDREN GO TO COLLEGE.

BUY THEIR FIRST HOME.

LEAVE A LEGACY FOR THE CHILDREN.

SO THAT WE CAN MOVE UP GENERATION.

IMMIGRANTS MOVING HERE.

DO WE DENY THEM HOUSING?

AFFORDABLE HOUSING?

REFUGEES?

SO MANY DIFFERENT THINGS.

I DON'T THINK WE SHOULD BE PREVENTING PEOPLE WOULD NEED HOUSING TO HAVE HOUSING.

WHICH SHOULD BE DOING PROVIDING HOUSING AT ALL LEVELS.

AND THAT REQUIRES EFFORT BY US TO LOOK AT OUR PROCESSES.

>> CITY COUNCIL, EVERY ACTION THAT THEY TAKE REQUIRES 3 PUBLIC HEARING AT THE COUNCIL LEVEL.

THEN IT GOES TO THE COMMITTEES.

EVERY TIME THE COUNCIL HEARS SOMETHING, IT GOES TO THE COMMITTEE MAY HAVE ONE OR TWO OR THREE HEARINGS.

UP TO SECOND HEARING.

COMMITTEE MIGHT HAVE ANOTHER ONE.

>> OR TWO HEARING.

THIRD HEARING, MAYOR HAS TO APPROVE IT.

YOU MIGHT SAY, THAT IS THE AMERICAN WAY.

FOR PROCESS.

>> IF HOUSING GOES THROUGH THAT FOR EVERY PROJECT, SEEMS LIKE IT'S GOING FOR IT EVERY JURISDICTION IN HAWAII, THAT IS WHAT IS ADDING COSTS.

>> WHEN YOU LOOK AT INTEREST RATES NOW, BID BUILDERS USED TO BE 4% OR 3% NOW IT'S 9, 10, LUCKY TO GET 15% EQUITY OR MORE.

AT 1, 2, 3, 4, 5, 6, 7 YEARS.

OUR HOUSING IS GOING TO BE $600,000.

TO $900,000.

MAYBE IT'S A MILLION DOLLARS.

WE DON'T BUILD ANYTHING AT ALL.

IF DON'T BUILD ANYTHING AT ALL WHAT DOES THAT DO TO OUR JOBS PEOPLE DO RELY ON THAT INDUSTRY?

FOR BUILDING?

SLEW OF THINGS GOING ON.

FOR BUILDING INSTEAD TRYING TO RESTRICT.

MAY WANT TO LOOK AT OPPORTUNITIES TO INCREASE THE SUPPLY TO PEOPLE NEED TO BUY HOMES OR MOVE UP ALONG THE LADDER HAVE THOSE OPPORTUNITIES.

>>Yunji: ONE SECOND.

I WANT TO MAKE SURE WE GET TO WAYNE.

WHAT ARE YOUR CONCERNS WHEN YOU HEAR, TALKED A LOT ABOUT HAVING TO GROW HOUSING STOCK.

YOU HAVE A LOT OF ENVIRONMENTAL CONCERNS AS WELL.

>> RIGHT.

SO I FEEL LIKE SOME REALLY HARSH REALITIES.

JUST MENTIONED OF INTEREST RATES.

7%.

NO ONE GOING TO LOCALLY ABLE TO AFFORD MORTGAGE PAYMENTS ON THAT.

$4,000 A MONTH.

BEFORE MORTGAGE INSURANCE.

NOT COUNTING CLOSE COSTING AND FEES.

SO UNITS AREN'T GOING TO BE SOLD TO LOCAL PEOPLE.

REALTORS MAKE A MONEY.

DEVELOPERS.

CASH IN HAND.

>> NOT PEOPLE HERE.

SO THESE INCENTIVES.

LOWEST PROPERTY TAXES IN THE UNITED STATES.

WHAT IT DOES INCENTIVIZE OVERSEAS INVESTMENT IN HOUSING STOCK?

WE'RE DEALING WITH GLOBAL MARKET.

GLOBAL FORCES.

THIS WEEK, CONFRONT THOSE THINGS, WE CAN BUILD A WHOLE BUNCH OF SUPPLY.

GOING TO BE ALWAYS INCENTIVES NO NECESSARILY TAKEN UP BY DEVELOPERS IN THE ROOM, BUT WHOLE INDUSTRY OUT THERE THAT IS GOING TO DO WHAT THEY'RE SUPPOSE TO DO.

SENATOR CHANG SAID.

>> MAKE A PROFIT MAKE A RETURN.

THAT BEING SAID, I DO THINK THERE ARE ALSO SOLUTIONS CAN ALL KIND OF AGREE WORK ON.

THAT ALL AGREE.

ALL BE OPEN TO.

NOT GOING TO JEOPARDIZE OR QUALITY OF LIFE OR ENVIRONMENTAL INTEGRITY FOOD SECURITY.

THERE'S 30,000 UNITS THAT ARE ON THEIR SHORT‑TERM RENTALS.

3,000 UNITS HOUSING UNIT NOT BEING USED LOCAL RESIDENTS.

LAND USE COMMISSION APPROVED SOMETHING LIKE TEN OF THOUSANDS UNITS THAT HAVEN'T BEEN BUILT.

SO THERE'S THIS WAY AROUND REGULATION AND BROAD TERM, BOOGEYMAN CAUSING ALL OF THIS PAIN AND SUFFERING.

WE NEED TO GET DOWN TO THE DETAILS AND FOCUS ON THE SOLUTIONS, THAT ARE THERE, BUT THAT MY REQUIRE POLITICAL WILL AND REALLY CONFRONTING BIGGER ECONOMIC FORCES, BIGGER HARSH REALITIES THAT WE'RE DEALING WITH.

>>Yunji: GET TO YOU.

>> WANT TO, I AGREE WITH KRISTINE.

THAT WE SHOULD NOT RESTRICT OR DENY PEOPLE HOUSING.

IN FACT, REASON FOR THIS PROCLAMATION AND FOR THE HOUSING FOR THE GOVERNOR, IS TO WE CAN ATTRACT THESE PEOPLE TO COME AND LIVE HERE.

>> WE HAVE TO MAKE IT AFFORDABLE FOR THEM.

BUT EVERYONE YOU DESCRIBED, WILL BE ABLE TO GET THESE KIND OF HOUSING.

WE PREVENT HOWEVER THOSE THAT MAY BE COMING HERE FOR MONTH OR TWO OR THREE, VACATION, PUT IN X AMOUNT OF DOLLARS, AND THEN GO BACK AND SELL IT.

THAT I THINK THAT IS WHAT WE'RE TRYING TO PREVENT HERE.

STRICTLY PURPOSEFULLY, FOR THESE FOLKS THAT YOU HAVE DESCRIBED.

WE NEED THESE PEOPLE TO COME BACK.

SOME OF THEM ARE OUR CHILDREN.

SOME OF THEM ARE NOT.

WE WANT TO MAKE SURE THAT BECAUSE WE DO KNOW IF SOMEBODY IS COMING TO CONTRIBUTE TO HAWAII, NOT GOING TO BE HERE FOR 3 MONTHS OR 4 MONTHS.

GOING TO STAY IN HOTEL OR RENT.

BUT IF THEY ARE HERE TO STAY, AND DO THE COMMUNITY, HAVE TO OWN IT AND LIVE IN IT FOR A WHILE.

BEFORE THEY FLIP IT.

>>Yunji: YOU KNOW YOU'VE BEEN IN THE SPACE FOR SO LONG.

>> I'M INTERESTED TO, GOVERNOR SET OUT THIS GOAL.

SAYING THAT HE WANTS 50,000 UNITS BUILT.

HOW REALISTIC DO YOU THINK WE GET TO THAT NUMBER?

HOW FAR WILL WE GET WITH WHAT HE'S LAID OUT.

>> MY HOPE IS THROUGH THIS DISCUSSIONS, THERE'S A LOT OF DISCUSSIONS THAT ARE GOING ON THROUGH OUR COMMUNITY AND DIFFERENT ORGANIZATIONS, JUST TWO TWO WEEKS AGO, YOUNG PROFESSIONALS CHAMBER OF COMMERCIAL ACTIVITIES 8 OUT OF TEN OF THE YOUNG PROFESSIONALS CONSIDERED TO THE MAINLAND BECAUSE OF THE COST OF HOUSING.

WE'RE LOSING THE DEMOGRAPHICS OF THE AGES FROM 25 TO 50.

DEMOGRAPHICS LEAVING OUR STATE.

HOW IS THAT GOING TO ECONOMIC OUR TAX BASE IN THE FUTURE?

IMPACT OUR HEALTH CARE INDUSTRY, BECAUSE OF THE PREMIUMS FOR THE HEALTH CARE PROVIDERS.

PREMIUMS INSURANCE COMPANIES.

HOPEFUL THROUGH THE DISCUSSION AN EMERGENCY PROCLAMATION, IT PROVOKES THOUGHT WHAT CAN AND HOW CAN WE PEEL BACK THE REGULATORY ISSUES.

HOW CAN WE SIMPLIFY AND ELIMINATE REDUNDANCIES?

WE'VE TALKED A LITTLE BIT ABOUT SOME OF THE PROCESSES.

THROUGH LEGISLATION, THEY'RE ADDED MORE.

I JUST LEARNED EARLIER THIS YEAR, ON A COMMUNITY, THAT WILL BE BUILDING IN WAIKALOA 100% WORKFORCE RENTAL COMMUNITY WITHIN WAIKALOA BEACH RESORT.

RESORT COMMUNITY.

WORKFORCE HOUSING.

BECAUSE PEOPLE COMMUTE 2 HOURS EACH WAY FROM HILO TO WORK IN THE SOUTH KOHALA COAST.

IS WHY NOT BUILD SOME WORKFORCE HOUSE SO THEY DON'T HAVE TO COMMUTE.

WE FOUND THAT MANY OF THEM DO THIS BECAUSE THEY HAVE CHILD CARE, HELP AT HOME.

IN HILO.

INCORPORATED CHILD CARE EARLY LEARNING CENTER.

BEFORE SHPD WILL EVEN REVIEW OUR ARCHAEOLOGICAL INVENTORY SURVEY MUST GO TO OUT OHA, FOR REVIEW AND COMMENT AND CULTURAL RESOURCE COMMISSION.

WE JUST RECEIVED UNANIMOUS SUPPORT AND APPROVAL BY THE CRC, ADDED NINE MONTHS TO OUR PROCESS.

NEW POLICY PASSED BY THE LEGISLATURE.

>> BECOME LAW.

SO WE'LL FOLLOW THE LAW.

AND WE'LL FOLLOW PROTOCOLS.

JUST SHAME, THIS IS ANOTHER LAYER OF REGULATION AND OVERSIGHT THAT JUST ADDED NINE MONTHS TO OUR PROCESS.

>>Yunji: MINUTE LEFT.

HAVE YOU KIND OF LOOK INTO THE LEGISLATIVE SESSION.

COMING UP.

GOVERNOR'S REALLY HUNG HIS HAT ON THIS PARTICULAR PROCLAMATION.

WHERE DO WE GO FROM HERE?

>> I HAD FIRST LEGISLATURE IS GOING TO BE INTENSELY CONCERNED ABOUT IT MAUI.

SOME OF THE SOLUTIONS FOR MAUI CAN BECOME SOLUTIONS FOR THE WHOLE STATE.

THAT MIGHT BE THE REAL OPPORTUNITY.

>> ENORMOUS WORK TO BE DONE TALK ABOUT HOUSING IN MAUI.

THOSE COULD SERVE HOUSING IN THE WHOLE STATE.

NO REASON THEY JUST HAVE TO APPLY TO MAUI.

I HOPE THAT'S WHAT THE LEGISLATURE DOES.

CONCERNED ABOUT MAUI.

BUT THOSE ARE OPPORTUNITY TO PASS SOME OF THOSE NEW LAWS THAT COULD APPLY.

>>Yunji: DO YOU THINK WE GET ANYWHERE NEAR 50,000.

>> NO.

>>Yunji: OKAY.

THIS A CONVERSATION THAT HAS TO CONTINUE.

BEYOND TONIGHT.

THIS IS AN ISSUE DECADES IN THE MAKING.

WE WON’T SOLVE IT IN ONE NIGHT, BUT WE APPRECIATE ALL OF THESE STAKEHOLDERS COMING TOGETHER TO HAVE AN HONEST DISCUSSION ON HOW TO START TO ADDRESS IT.

MAHALO TO ALL OF OUR GUESTS, AND TO YOU AT HOME FOR BEING A PART OF TONIGHT’S TOWN HALL.

WE’LL BE BACK WITH ANOTHER KAKOU IN JANUARY, FOCUSING ON SOCIAL MEDIA.

APPS LIKE FACEBOOK, INSTAGRAM AND TIKTOK, CREATE BOTH COMMUNITY, AND CONTROVERSY.

EVEN IF YOU’RE NOT ENGAGING ONLINE, SOCIAL MEDIA'S INFLUENCE ON OUR POLITICS, CULTURE, AND THE WAY WE ENGAGE WITH EACH OTHER IS UNDENIABLE.

WE’LL TAKE ON SOCIAL MEDIA: THE GOOD, THE BAD AND THE UGLY.

WE HOPE YOU JOIN US THEN.

I’M YUNJI DE NIES, UNTIL NEXT