Maui Hawaii Residential Workforce Housing Policy
What is the Maui Residential Workforce Housing Policy?
The Maui Residential Workforce Housing Policy MCC Chapter 2.96 was adopted by Maui County in 2006 and revised several time since to address the shortage of affordable residential properties on Maui. The program is designed to provide affordable residential properties for the Maui workforce who call Maui home. The program is designed to assist both home buyers and renters with finding affordable housing on Maui. With our business being involved in real estate sales we will focus on how the Maui Residential Workforce Housing program benefits potential homeowners.
Residential Workforce Housing Unit: A unit/property or lot to be sold to to one of the following income groups.
- Very low income: Gross household income is 50% or less of the median income.
- Low income: Gross household income is between 50% and 80% of the median income.
- Below-moderate income: Gross household income between 80% & 100% of the median income.
- Moderate income: Gross household income between 100% & 120% of the median income.
- Above-moderate income: Gross household income between 120% & 140% of the median income.
*Income levels for Maui Residential Workforce Housing are established by HUD
Residential Workforce Housing Requirements: Developers are required to provide workforce housing units for new developments. At least 25% of housing units must be for workforce housing. The workforce housing units will only be available for income-qualified groups.
Prior to final subdivision approval or issuance of a building permit the developer must enter into a Residential Workforce Housing Agreement. The developer must satisfy one or more of the following requirements.
- Offer for sale residential workforce housing within the development.
- In lieu of directly selling units the developer may convey such units to a qualified housing provider subject to department approval.
- In lieu of providing residential workforce housing units the requirements may be satisfied by payment of a fee, by providing improved land, or unimproved land. Please review the Maui Residential Workforce Housing Policy for more information.
- Application or residential workforce housing credits. Please review the Maui Residential Workforce Housing Policy for more information.
Income Group Distribution
- 30% of the ownership units shall be for below-moderate income residents.
- 50% of the ownership units shall be for moderate income residents.
- 20% of the ownership units shall be for above-moderate income residents.
Deed Restrictions
- Below-moderate income housing units have a deed restriction for 10 years.
- Moderate income housing units have a deed restriction fo 8 years.
- Above-moderate income housing units have a deed restriction fo 5 years.
- Must be owner occupied.
- Owner must notify department prior to selling.
- County to have first option to purchase. County to have 90 days from written notice from seller to decide if they will purchase directly from the seller.
- Upon the sale, the deed restriction will remain in effect through the remainder of the deed restriction period based on the original sale date.
- In special circumstances the owner of a residential workforce housing unit may request a waiver of the owner occupied deed restriction.
- Owners of residential workforce housing must sell to an income qualified buyer and notify the department of the sale so that they can verify the sale price.
Resale Price
- An appraisal is required when a workforce housing unit is purchased.
- Another appraisal will be completed when the owner decides to sell.
- 25% of the difference will be added to the owner's original purchase price.
New Sale Price
- Sale prices for new workforce housing shall be set by the department based on current HUD price guidelines.
Not all developments include workforce housing. In these situations the developer has paid the County an additional fee in lieu of providing workforce housing, provided the County land in lieu of providing workforce housing, or has accumulated workforce housing credits from previous developments they can use to satisfy the requirement.
Wait List Procedure: Potential buyers should add their names to the wait list of any development they are interested in buying a home in order to have the best chance possible of being selected. The developers will create a wait list for each development. Prior to opening the wait list for potential buyers the developer must publish the wait list information in at least five issues of a newspaper in general circulation in Maui County. A lottery administered by the developer will be used to select home buyers who must be qualified for the Maui Residential Workforce Housing program.
Buyer Eligibility: In order to qualify for the Maui Residential Workforce Housing program buyers must have a gross annual family income that does not exceed 140% of the Maui County area median income as established by HUD. Assets cannot exceed 140% of the Maui County area median income as established by HUD. Buyers must also be 18 years of age or older and a US Citizen. Buyers who are a permanent resident alien and a resident of Maui County are also eligible. The buyer cannot have had 50% or more ownership in real property in the US for a period of three years prior to the ownership application unless the applicant is selling an affordable property and purchasing another affordable property more appropriate for the applicants family size. The buyer must be pre-approved for a loan with a lender of their choice. The home developer shall determine if the buyer qualifies for the Maui Residential Workforce Housing program.
Selection Priority: Residents on the wait list receive first priority. Nonresidents on the wait list are eligible to purchase a workforce housing unit once all residents on the wait list have had an opportunity. The developer must mail housing applications to applicants on the wait list. Residents and nonresidents will then be offered an opportunity to purchase workforce housing based on the order in which their names were drawn during the lottery process with residents having first choice. Availability of workforce housing units is also based on income levels.
If the developer is unable to sell a workforce housing until to the designated income group during the first 90 days they have options for selling the property. For the next 90 days the developer can market and sell the workforce housing unit to residents of the next highest income group. Units shall be offered to the next highest income group every 90 days until all resident income groups have had a chance to purchase the workforce housing unit. For the next 90 days the workforce housing unit shall be offered to nonresidents on the wait list in the order their names were drawn during the lottery process. Nonresidents have the same income requirements as residents when purchasing workforce housing.
Any workforce housing units that remain unsold can then be sold to any buyer at market rate and without deed restrictions. The developer will pay Maui County 50% of the difference between the original workforce housing sale price and the final market rate sale price. The funds will be deposited into the Affordable Housing Fund.
Resources for Maui Residential Workforce Housing Policy:
Maui County Residential Workforce Housing Policy For Home Buyers
Residential Workforce Housing Qualifications For Renters
*All information was found on the Maui County Housing Division website at https://www.mauicounty.gov/251/Housing-Division. Information is current as of this post.*