THE RECENT ARTICLE WITH A PROPOSED SOLUTION TO MAUI’S HOUSING CRISIS IS REVEALED!
The WMTA urges you to join with us in our ongoing campaign to increase the housing supply on Maui and bring down the costs!
The “Tokyo Model,” referenced in the Grassroot Institute of Hawaii’s letter below is remarkable!
We have to change the way we are operating and immediately begin corrective actions for change.
The Maui County Council majority recently passed an Amendment to the West Maui Community Plan which removes the ability for residential housing to be built here on hundreds of acres of land and G.
Ignored legal warnings of potential liability for taking that action.
When has taking away property rights resulted in more housing??
Seems obvious to most people that our governmental representatives are not moving in the right direction and certainly the needs of West Maui
Residents for more housing is being ignored as a result.
Remember, Power can be transferred by your Vote.
Please choose to support WMTA and our Political Action Committee .
Joe Pluta, President
When you’re a hammer, the saying goes, everything looks like a nail. And when you’re a fan of big government, regulation is the go-to solution to every problem.
That may be why so many of our policymakers try to address Hawaii’s housing crisis via big-government solutions — like taxes on empty homes, government-funded housing projects and regulations to limit or mandate certain kinds of development.
Extensive research, however, shows that big government is the reason for Hawaii's housing shortage to begin with. So can we please try something else?
The reality is that if we want to turn things around, we shouldn’t be trying to import policies from areas with high housing costs, like San Francisco, or countries that have vastly different social and government structures, like Singapore. Instead, we should be looking at places that have managed to keep housing affordable, like Tokyo, where housing prices have been relatively flat for two decades.
On my latest “Hawaii Together” program on the ThinkTech Hawaii network, I discussed the “Tokyo model” for housing and what it could mean for Hawaii with Edward Pinto, head of the American Enterprise Institute Housing Center. Pinto has spent decades studying housing and development, and he easily pinpointed the origin of Hawaii’s high housing prices.
According to Pinto, Hawaii, had robust housing construction up until about 1972 or 1973, but then it collapsed and it has never recovered.
Reasons for that, he said, include the state Land Use Commission, established in 1961, and Hawaii Environmental Policy Act of 1974, both of which are heavily involved in land-use management.
"It all comes down to land use and making things illegal," said Pinto. "Basically, … reasonable density — we call it light-touch density — has been made illegal [in Hawaii]. Having two units on a lot is illegal. And all of these things just drive up the land cost.”
As a result, Pinto said, Hawaii has one of the most expensive housing markets in the world, just behind San Francisco and just ahead of London.
In a guest appearance on Sen. Stanley Chang’s “Our Homes” podcast, Pinto said a growing body of research shows that “subsidized housing, inclusionary housing, rent control and land-use policies that constrain supply end up creating scarcity and raising costs. … The reason that these policies have failed is that they don’t tackle the root cause, but rather the symptom.”
Chang is a well-known advocate of the so-called Singapore model of housing, which is the basis for his ALOHA homes bill that he has introduced in the Hawaii Legislature for several years now. Pinto said that he doubts that model could be reproduced in Hawaii, for several important reasons.
“For example,” he said, “Singapore, after its independence, had really a clean slate. Singapore back in the 1960s consisted mostly of shanty towns, and the government today owns 90% of the land and it can acquire private land at low costs.
“Furthermore, Singapore also has a highly effective public leadership cadre and it really has only one form of government that is not as responsive to voters necessarily, which allows it to overcome many barriers to increasing supply.
“So the downsides for applying such a model to Hawaii,” he said, “could be that this Singapore model may not necessarily be scalable. And if you end up with a failure, it could come at a heavy cost, because you could end up with public housing, as is very common in the mainland, where you have basically increased racial and income segregation, you have also trapped many residents in housing and it has reduced social mobility."
Finally, he said, "generally, these projects, if the government gets involved, tend to be very expensive and they tend to exceed the budget.”
For Hawaii, Pinto said a better option would be the sort of “light-touch density” zoning that has helped Tokyo produce adequate affordable housing.
The secret to Tokyo’s success? Property rights.
After World War II, Pinto explained, Japan’s new constitution provided for strong property rights. By the 1980s, this included the right to develop your property as you wished, so long as it wasn’t a nuisance.
“You could build duplexes, quadruplexes, triplexes, high-rise buildings. As a result,” Pinto said, “Tokyo has built more housing in a period than the entire state of California by a multiple."
This has enabled Tokyo to meet the needs of its population, in terms of keeping housing affordable for both renters and homeowners.
Pinto said light-touch density relies partly on "by-right" zoning, which allows projects that meet all zoning requirements to proceed without going through a discretionary approval process. This, in effect, legalizes small, fast, economical, adaptable and simple additions to housing supply while still accounting for health and safety.
Pinto estimated that if Hawaii were to adopt such policies, Oahu alone could add 26,000 homes over the next 10 years.
On Chang's "Our Homes" podcast, Pinto’s colleague at the Housing Center, Tobias Peter, said it also would be helpful for Hawaii to make more land available for residential use. Specifically, as the Grassroot Institute of Hawaii has noted, with only 5% of Hawaii land available for residential construction, an increase of only 1 or 2 percentage points would translate to a 20% or 40% increase, respectively, in the land available for housing.
I realize, of course, that there is no such thing as a quick fix to Hawaii’s housing crisis. It is a problem that has been decades in the making, and it is being made worse through fashionable policies like inclusionary zoning.
I also have no doubt that the people who want to use the government to solve the problem are well-meaning. But the data is clear: If we want our children and grandchildren to be able to find affordable homes in Hawaii, we need to liberalize our state and local land-use and zoning regulations.
E hana kākou! (Let's work together!)
Keli'i Akina, Ph.D.
President / CEO
Grassroot Institute of Hawaii
WHY IS HAWAII SO EXPENSIVE?
THE WMTA AGREES WITH CONCLUSIONS CONTAINED IN THIS ENLIGHTENING RESOURCE AND SUPPORTS THE GRASSROOT INSTITUTE WITH APPRECIATION:
"Hawaii residents enjoy one of the most beautiful places on earth to live, but they pay a high price to do so. How high is the “price of paradise”?
Institute Marketing Director Josh Mason sums it up the issue succinctly in his aptly titled new article, "Why is Hawaii so expensive?"
Accompanied by a David Swann cartoon that is as relevant now as when Swann produced it four years ago, Mason's article boils it down to three main factors:
>> High taxes.
>> Land-use and zoning regulations that make housing unaffordable.
>> The Jones Act, which increases shipping costs to, from and between the islands.
"Sure, there is a price to pay for living in the most isolated islands in the world, but state, county and federal government policies increase the price even further.
"Hawaii would be better off if lawmakers would remove the barriers that prevent entrepreneurs and citizens from freely exchanging goods and services and solving the state’s problems. Then perhaps people would not be priced out of paradise."
Read the entire article, with all the facts and figures, here.
PRESS RELEASE: Community invited to town hall on affordable apartments in Lahaina
http://mauicounty.us/housing/lahainaapts/ (copied below)
For Immediate Release: February 10, 2022
Press Release by:
Tamara Paltin, Councilmember
Maui County Council
Community invited to town hall on affordable apartments in Lahaina
LĀHAINĀ, Hawai‘i—Councilmember Tamara Paltin announced today she will host an in-person community town hall on Feb. 22 at 5 p.m. at the Lahaina Civic Center Amphitheater to discuss upcoming affordable-housing opportunities in Lahaina.
Discussion will include comprehensive information regarding the application, lottery and lease process, and construction updates for Kaiāulu o Kupuohi and Kaiāulu o Kūku‘ia apartment projects developed by Ikaika Ohana. Paltin encourages West Maui residents earning 60 percent or below the area median income to learn about and apply for the projects.
“I anticipate this meeting to serve as a great resource for Lāhainā residents who would like to know how to prepare to apply for these crucial low-income housing units,” said Paltin, who is in her second term holding the council’s West Maui residency area seat. “Ikaika Ohana recognizes that many in our community are anxiously awaiting these projects and are committed to equipping our eligible residents to apply.”
Paltin said income qualifications can be reviewed at page 9 on the county’s online Income Limits and Affordable Rent Guidelines: https://tinyurl.com/LahainaApts.
The town hall will also include an update on Front Street Apartments, Paltin said.
Seating will not be provided. Participants are encouraged to bring lawn chairs or blankets, and sit in family or household groups to adhere to social distancing.
For more information, contact the Office of Councilmember Tamara Paltin at (808) 270-5504.
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