Where is Maui's Affordable Housing?

On an island with the distinction of having close to the highest housing costs in the U.S., island homeowners and renters are increasingly concerned about the meaning of 'affordability' and 'availability.'

The Maui Weekly
May 15, 2008
by Sarah Ruppenthal

In Lahaina, a family struggles to pay for groceries so they can afford the monthly mortgage payment. In Wailuku, a young couple works long hours to save for a down payment on a new home-a down payment that will far exceed their combined annual income.

From long-term homeowners to first-time buyers, Maui's housing situation is a serious concern for thousands of residents. The "housing crisis" on Maui has been attributed to several factors, including desirability of location, global and domestic economic cycles, federal housing policies and population shifts. In less than three years, residents have witnessed the average price of a single-family home climb from $375,000 to $665,000-prompting many to abandon dreams of owning a home, and others to leave Maui in search of a cheaper slice of the housing pie.

According to the 2006 SMS Research Hawai'i Housing Policy Study, the "housing crisis" plaguing Hawai'i is a serious problem with no "quick-fix." In the study, Maui was given the dubious distinction of having the highest housing costs (both rent and mortgage) in the state-and most of the nation. In addition, the study concluded nearly half of Maui households spend more than 30 percent in monthly income on housing and predicted, "housing prices are very unaffordable right now for households at all income levels and it may be many years before housing is affordable again."

But before giving up on owning a home on the Valley Isle, keep in mind that there are forces at work that may very well hand you the keys to a new home. The Hawai'i Public Housing Authority (HPHA), formerly the Housing and Community Development Corporation of Hawai'i, oversees affordable housing and rentals throughout the islands and ensures the fair delivery of housing services to all Hawai'i residents. In addition, a battalion of affordable housing task forces, nonprofit and for-profit organizations, county officials and local developers are committed to solving Maui's housing crisis by providing affordable housing alternatives to eligible individuals and households. Yet, some may ask, what is affordable housing? Is it really "affordable?"And more importantly, where is the affordable housing on Maui?

According to the County of Maui Website, "affordable housing" is defined as "long-term residential developments to be sold or rented for a 10-year period within the price range [determined] for persons or families whose incomes are identified as 140 percent or less of the area median income for the county as determined by the U.S. Department of Housing and Urban Development (HUD)." In 2007, the HUD median income for Maui County was $69,900, with income schedules set to establish sales preference according to family size and proportionately based to very low income limits.

According to the Maui County Department of Housing and Human Concerns, individuals or households are considered "very low income" if they earn 50 percent or less of the area average income; "lower income" if they earn more than 50 percent, but not more than 80 percent, of the median income; "moderate income" if they earn more than 80 percent, but not more than 120 percent, of the median income; and "above-moderate income" if they earn more than 120 percent, but not more than 140 percent, of the area median income. To meet the requirements of an affordable housing project, developers must ensure that 10 percent of residential units are marketed to "lower income" and "very low income" homebuyers and 20 percent marketed to "moderate income" and "above-moderate income" buyers.

In response to the critical shortage of affordable housing, the County of Maui established the Residential Workforce Housing Ordinance in December 2006, "to enhance the public welfare by ensuring that the housing needs of the County are addressed." The ordinance applied inclusionary zoning to developments with any combination of five or more lots or residential units, requiring developers to designate a certain percentage as affordable, based on the number of market-rate units that are listed for sale at a certain price. Under this agreement, developers receive residential workforce housing credits and bonuses for any additional affordable units beyond the scope of the policy.

According to the SMS Housing Study, by 2011, Maui County will need 4,224 housing units to meet HUD's income projections. Looking to the future, the Maui Island Draft Plan recommends an action plan for a comprehensive affordability strategy to meet the needs of low, moderate and "gap" group incomes.

So, where are the affordable homes? A complete inventory was unavailable for this report. Partial listings may be obtained from HUD or the Hawai'i Public Housing Authority. While the county Planning Department has a listing of proposed development projects, it is difficult to obtain a total inventory of affordable housing units and locations. Handfuls of projects have sprung up across the island, but residents often encounter difficulty finding them-adding to concerns about unfair sales practices. To date, several projects are pending in Wailea, Makena and Ma'alaea, but most affordable units are concentrated in Makawao, Lahaina and Wailuku, including the Lokahi Kuhua subdivision and Villages of Leiali'i in Lahaina, Waiehu Kou IV in Wailuku, and the Waiohuli Hikina subdivision in Kula.

Yet the question remains: where is all of Maui's affordable housing? Although organizations such as the Department of Hawaiian Homelands, Habitat for Humanity, Na Hale O Maui Land Trust, Lokahi Pacific, Maui Economic Opportunity and others assist in the search for affordable homes, a comprehensive listing of affordable units, easily accessible by Maui's residents, would help bring them one step closer to home.

For more information, visit the Hawai'i Public Housing Authority Website at www.hcdch.state.hi.us or the County of Maui Department of Housing and Human Concerns Housing Division Website at www.co.maui.hi.us/departments/Housing/housing.htm.