10/19/07 Weekly Report: County of Hawai`i’s Affordable Rental Housing Program

The County of Hawaii has initiated a new program called the Affordable Rental Housing Program. This program provides a property tax incentive to owners who rent their units at or below the affordable rental rate.

To qualify for benefits under this program for the tax year that begins on July 1, 2008, an application must be filed with the Real Property Tax Division no later than December 31, 2007. A signed rental agreement (must be 6 months or longer) or other proof of rental charges must be submitted with the application.

For 2008, the Affordable Rental Housing Rates are as follows:

Studio	One Bedroom	Two Bedrooms	Three Bedrooms	Four Bedrooms	Five Or More Bedrooms
$555	$642	$748	$1,016	$1,113	$1,280

Below are rental rate exceptions for the following Zip Codes: 96719, 96725, 96738, 96739, 96740, 96743, 96745, and 96755:

Studio	One Bedroom	Two Bedrooms	Three Bedrooms	Four Bedrooms	Five Or More Bedrooms
$611	$732	$822	$1,160	$1,272	$1,462

Please submit your completed application form with supporting documentation to:

Real Property Tax Division at 101 Pauahi Street, Suite 4, Hilo, HI 96720 at 961-8201 or fax: 961-8415. Or to Real Property Tax Division at 75-5706 Kuakini Hwy, Suite 112, Kailua-Kona, HI 96740 at 327-3540 or fax: 327-3578.

Application forms and informational material are available at the Real Property Tax Division offices in Hilo and Kona, or at website www.hawaiipropertytax.com.

REMEMBER: To participate in this program for the 2008 tax year, you must file your application on or before December 31, 2007.

Qualifications:

Residential rent at or below the designated rates for the entire calendar year.

General information/requirements to participate:

An application, RP Form 19-53(h) must be filed annually to the Real Property Tax Division no later than December 31 preceding the tax year for which the classification is claimed.
A separate application for each unit must be filed and all units must meet the affordable rental housing rate requirements.
The owner shall submit proof of the monthly rent with a document such as the rental agreement signed by the renter.
All owners or representative with an authorized document such as a power of attorney must sign the application.

What are the benefits for participating in this program?

The property will be classified in the homeowner land classification if it meets the provisions of this land category including being the owner’s principal residence and the rental unit(s) meet the affordable rental housing rate requirements.
- The year after being classified in the homeowner class category, the assessed value will not increase by more than 3% if the owner continues to own and occupy the property as the principal residence and reapplies to remain in this program.
The property will be classified in the affordable rental housing classification if the rental or all rentals meet the qualifications of this program.
- The year after being classified as affordable rental housing, the assessed value will not increase by more than 3% if the owner continues to own the property and reapplies to remain in the program.
- While not guaranteed, it is anticipated that the tax rate for this land classification will be less than the next higher classification.

Breach Conditions:

The rental of any unit during the calendar year exceeds the affordable rental rate.
The ownership of the parcel changes and the transfer is subject to the conveyance tax under the terms of Chapter 247, Hawai‘i Revised Statutes.

Retroactive taxes

Breach of the classification shall cancel the tax assessment retroactive to the date of the classification, but not for more than two years plus the current year.
When a breach occurs, the retroactive taxes will be the difference between the amount of taxes paid and taxes that would have been due from the assessment in the higher classification in addition to a ten percent penalty.

For further information on the Affordable Rental Housing Program, please call the Real Property Tax Division at 961-8201.

Location of Project	Council District	Work being done
Puako Transfer Station	9	Install access ramps, work completed 9/26/07
Kea`au Transfer Station	5	Construct Reuse Area award bid 10/9/07
Volcano Transfer Station	6	Install access ramps 10/12/07

CURRENTLY OPEN	DAYS/HOURS OF OPERATION	OPERATOR

Hawi Transfer Station**	Saturday only: 8 am-4:30 pm.	ARC of Hilo
(Open Saturday only)	(closed for lunch 1:00-1:30)
Hilo, 1260 Kilauea Ave.	Tues-Sat 9am-5pm(Closed 12:30pm-1:30 pm)	Reynolds Recycling
Hilo, 30 Maka’ala Street	Mon thru Fri: 8:00am-5:00pm	Atlas Recycling
(Old industrial area)	Sat & Sun: 8:00am-3:00pm

Hilo Transfer Station**	Daily 8:00am-4:30pm	ARC of Hilo

Honoka`a Transfer Station (Weekends only)	Sat & Sun 8:00am-4:30	ARC of Hilo
Kailua-Kona, Pawai Place	Mon thru Fri: 7:00am-4:00pm	Atlas Recycling
(Old industrial area)	Sat 8:00am-3:00pm
	Sun Closed

Kea’au Transfer Station**	M, W, F: 8:00am-4:30pm	ARC of Hilo
(Closed Tues & Thurs)	Sat & Sun 8:00am-4:30pm

Kealakehe Transfer Station**	M, W, F: 8:00am-4:30pm	ARC of Hilo
(Closed Tues & Thurs)	Sat & Sun 8:00am-4:30pm

Keauhou Transfer Station**	Sat & Sun 8:00am-4:30pm	ARC of Hilo
(Weekends only)

Pahoa Transfer Station**	Sat & Sun 8:00am-4:30pm	ARC of Hilo
(Weekends only)

Puako Transfer Station**	Sunday only 8:00am-4:30pm	ARC of Hilo
(Open Sunday only)	(closed for lunch 1:00-1:30)

Waimea Transfer Station**	M, W, F: 8:00am-4:30pm	ARC of Hilo
(Closed Tues & Thurs)	Sat & Sun 8:00am-4:30pm

Waiohinu Transfer Station**	Sat & Sun 8:00am-4:30pm	ARC of Hilo
(Weekends only)

Studio

One Bedroom

Two Bedrooms

Studio

One Bedroom