Incentives aim to lower
housing costs

Legislators present an omnibus
bill as they get set to adjourn

CORRECTION Wednesday, May 4, 2005 » The omnibus housing bill passed by the Legislature is Senate Bill 179, Conference Draft 1. A story on Page A1 yesterday misidentified the bill as SB 197. Also, a provision to increase the conveyance taxes transferred into the Rental Housing Trust Fund was included in a separate bill. The story erroneously stated that it was included in the omnibus bill. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

Like last year's efforts to tackle illegal drugs and education reform, lawmakers have attempted this year to address the state's need for affordable housing.

They have come up with an "omnibus" bill -- a single piece of legislation that includes multiple proposals aimed at bringing down prices in a market where the median cost of a home hovers at or above $500,000.

"Given that we have a booming, expanding housing market, we want to make sure we don't leave anyone behind and without adequate shelter," said House Majority Leader Marcus Oshiro (D, Wahiawa-Poamoho). "This is a bold step in the right direction."

But will it be an effective one?

That is something that the public will have to determine a year or so from now, according to one political observer.

"These tend to be long-term solutions," said Neal Milner, a political science professor at the University of Hawaii. "It's hard to suddenly create affordable housing in a market on the basis of an existing housing stock."

If nothing else, lawmakers have definitely brought attention to the issue this year.

"There's so much talk right now about the lack of affordable housing in Hawaii," Milner said. "It's an issue that is very visible, and the governor has worked very hard to keep it visible and the Legislature has not tried to bury it.

"It hasn't been, I think, as partisan as some of the issues have been."

The omnibus housing proposal -- which is coupled with several other measures aimed at helping the homeless and low-income residents -- is among the hundred or so bills that lawmakers will start taking up today and Thursday, the end of the 2005 regular session.

Gov. Linda Lingle identified affordable housing as one of her main issues this year, but her proposals to address the situation died in the Legislature. She has not publicly stated a position on the housing bill, saying she will carefully scrutinize all proposals once she receives them.

Star-Bulletin Legislature Database Star-Bulletin Legislature Guide (PDF, 1.9 MB) State Legislature: Bills & Hawaii Revised Statutes

"We were looking for flexibility and incentives to try and create more affordable housing," said Stephanie Aveiro, executive director of the Housing and Community Development Corporation of Hawaii, the state's public housing agency. "There are some things that we will assist, and there are some things that we'll be disappointed that they didn't approve or pass."

House Housing Chairman Michael Kahikina said he is hopeful the administration will recognize the effort that went into the housing proposal.

"All of us -- including the Senate and House, along with the administration -- participated heavily, and I think this represents a compromise of all three," said Kahikina (D, Kalealoa-Nanakuli). "I'm hoping that the administration will embrace it and realize this is a work in progress, and I encourage their participation."

Senate Bill 197, Conference Draft 1, is aimed at developing housing for low-income working families.

Among its provisions, the bill:

"I think we listened to the developers and the advocates for homeless solutions," Kahikina said.