CRAIG KOJIMA / CKOJIMA@STARBULLETIN.COM Diana Nable, who is selling this $575,000 cottage on 11th Avenue in Kaimuki, and Nolan Kido, who is looking to buy a home, compared notes yesterday.

House Republicans back
developer tax incentives

The group supports an affordable
housing measure that offers more
flexibility to Hawaii home builders

Republicans in the state House said yesterday they support a Senate-backed bill they say can help ease Hawaii's shortage of affordable housing.

Rep. Kymberly Pine (R, Ewa Beach-Iroquois Point), a member of the House's Housing Committee, said she is backing House Bill 1303 over a measure created in her own house because it provides it provides tax incentives for developers to partner with the state.

"It lessens the amount of hoops that developers have to go through and offers tax incentives that will allow them to stay in business without losing their shirts," Pine said.

Senate Bill 179, a similar affordable housing measure, would shut down the housing market because it places too many limitations on developers, she said. The bill requires developers to pay licensing and impact fees.

Pine and Reps. Corrine Ching (R, Nuuanu-Liliha), Colleen Meyer (R, Laie-Kahaluu) and Mark Moses, (R, Makakilo-Kapolei) held a press conference yesterday to promote what they say is the most viable affordable housing bill this legislative session. The press conference took place outside a 675-square-foot Kaimuki cottage -- listed for sale at $575,000 -- to help illustrate how out of reach Oahu's homes are becoming to island families, Pine said.

"The fact that so many people want to buy this tiny cottage tells you that we have a problem," Pine said. "If we don't pass something this session, I think we're going to have a real housing crisis."

After the median resale home price on Oahu shot up to a record $550,000 last month, even some Realtors say they are having a hard time finding a dream home that they can afford.

Nolan Kido, a 25-year-old Oahu Realty agent and Chaminade University professor, said after the press conference that he has experienced how hard it is to get a leg up in Oahu's housing market.

"I'm glad state lawmakers are talking about what to do," said Kido, who recently called off his search for a new home after experiencing 18 months of frustration.

Despite a healthy monthly income, Kido said he and his fiancée have been "priced out" of the market because they haven't been able to come up with an adequate down payment for anything on their wish list.

"We're just going to have to save for a while so we can come up with a larger down payment," Kido said, adding that in the meantime they have delayed getting married.

Market conditions have even made it difficult for sellers, who stand to net hefty profits, to trade up to a bigger home, said Diana Nable, a Realtor with Dower Realty Inc. who owns the Kaimuki cottage. "We'll make a big profit on this house and we've got a good income, but we're still going to have to rent for awhile because the inventory is so low and prices are so high," Nable said.

The closest available house with enough space for the couple to start their family is priced about $100,000 over budget, she said.