Mayor Mitch Roth has exercised the first veto of his term by rejecting a bill its sponsors say expands the number of eligible programs that could be implemented with county housing funds.
Bill 152, approved May 18 on final reading on a 7-2 vote, increases the list of programs using money from the county housing program revolving fund from two to nine. Currently, the money can be used for planning, design and development of affordable housing units by the county or nonprofit development partners and to exercise any buyback options in conveyance documents.
The measure adds to that the acquisition of land or existing structures for use as affordable housing, rehabilitation of existing structure currently being used for affordable housing, infrastructure for development of affordable housing, subsidies, grants and loans to support households with upfront costs for rental units or mortgage financing and rental or mortgage assistance to prevent homelessness or foreclosure and purchasing deed restrictions on private properties limiting resales to qualified low income and moderate income households.
But Roth, in a veto message sent Monday to the County Council, says the bill doesn’t expand, but limits, options for which the money can be used. The new language, Roth said, would end up “tying our hands unnecessarily.”
“The amendment provides language changes that delineates specific activities and uses of the revolving fund which may limit the Office of Housing and Community Developments’ ability to provide much needed affordable housing,” Roth said in the veto message. “We all agree that the housing need is great. So much so that it requires an approach that incorporates all involved. We need to broaden our ability to partner and to consider all options for housing development.”
North Kona Council-man Holeka Inaba, who along with Hamakua Council-woman Heather Kimball sponsored the measure, said Thursday he was considering how to respond to the veto. The council can override the veto as long as six members vote in favor or it, one fewer than the 7-2 margin that passed it originally.
“It’s actually broadening the uses of the fund,” Inaba said during council debate. “We could go in circles (but) if you look at the bill, it gives more options.”
The issue is important because the Housing Office will soon be handling a large influx of money — an estimated $9 million annually thanks to a measure the council passed last year sponsored by Hilo Councilman Aaron Chung that earmarks a percentage of property taxes on luxury second homes for homeless projects, and an additional minimum of $5 million a year for housing projects thanks to Bill 160, sponsored by Puna Councilwoman Ashley Kierkiewicz, which cleared the council on final reading last week.
Housing Admini-strator Susan Kunz said her office will create administrative rules on how to handle the money.