MAUI, Hawai’i (KHON2) — Bill 107 was signed into law by Mayor Michael Victorino. The Bill, which was introduced by Councilmember Gabe Johnson, intends to tackle the growing housing crisis that is pricing local residents out of homes.
“Bill 107 will put homeownership within reach for more Maui County residents,” said Mayor Victorino.
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After years of hearing from local residents that housing prices were becoming too steep to keep up with income, Councilmember Johnson worked to bring this Bill to fruition in an effort to invest in the future of residents located in Maui County.
“Maui County has been using a formula to estimate how much buyers in each income bracket can afford to pay for a home, but the formula didn’t account for costs like homeowner’s association fees, mortgage insurance, and other expenses that mortgage lenders require,” said Councilmember Johnson.
Bill 107 provides avenues for Maui residents to access FHA and USDA loan packages. In the past, loans of this nature did not account for the increased cost of living in Hawai’i, typically requiring 10-20 per cent down payments. This Bill considers the pricing differences on the island to provide lendees with loans that only require a 0 to 3 percent down payment.
“Bill 107 should encourage developers to meet with the County while still in planning stages to negotiate similar partnerships. We are serious about delivering truly affordable housing to our community. By investing in our people, Maui County is making it possible for our ‘ohana to afford homes again,” said Victorino.
According to 2022 sales price estimates, a family making $60,000 would be able to pay for a three-bedroom home at a price of $289,000. With the new sales price guidelines, the price is reduced to $157,000. These new calculations reflect a 22 per cent decrease.
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“Bill 107 requires sales prices to be calculated similar to how lenders do, making it easier for homebuyers to qualify for mortgages. It will help to shield our residents from Maui’s volatile investment market,” said Johnson.