Explanation of Terms
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Income and Housing Spectrum
AMI - Area Median Income
The United States Department of Housing and Urban Development (HUD) is a federal agency that manages programs and policies related to housing and fair housing. Area Median Income (AMI) is defined as the midpoint of a specific area’s income distribution and is calculated on an annual basis by the Department of Housing and Urban Development (HUD). HUD calculates AMI on the basis of household size for every metropolitan area and region in the U.S.
Based on HUD standards, The Hawai‘i Housing Finance Development Corporation (HHFDC) provides annual income and rent limit tables for each county in Hawaii, including Honolulu County. The 2024 figures can be found in the HHFDC tables here.
County of Honolulu AMI and Rents
City and County of Honolulu’s Department of Planning and Permitting provides further details on income limits and rent tables here.
Workforce Housing
According to the Urban Land Institute (ULI), Workforce Housing is defined as housing affordable to households earning between 60 and 120 percent of area median income (AMI). Workforce housing targets middle-income workers which includes professions such as police officers, firefighters, teachers, health care workers, retail clerks, and the like (Parlow, 2015). Households who need workforce housing may not always qualify for housing subsidized by the Low-Income Housing Tax Credit (LIHTC) program or the Housing Choice Vouchers program (formerly known as Section 8), which are two major programs in place for addressing affordable housing needs.
City and County of Honolulu’s Department of Planning and Permitting provides further details on income limits and rent tables here.
(DBFOM) Design-Build-Finance-Operate-Maintain
The Design-Build-Finance-Operate-Maintain (DBFOM) model is the most comprehensive P3 model as it transfers the most risks from the public sector to the private sector.
With the DBFOM approach, responsibilities for designing, building, financing, operating and maintaining are bundled together and transferred to private sector partners.
Request for Proposal Process
Follows Hawaii State Procurement Law in Hawaii Revised Statutes (HRS) 103D-303 Competitive Sealed Proposals
Affordable Housing Credits (AHC)
HRS Chapter 201H-38 is a provision administered by the Hawaii Housing Finance and Development Corporation (HHFDC). This statute provides significant regulatory relief for housing projects that meet specific affordability criteria. Under this chapter, developers can obtain exemptions from various statutes, ordinances and rules related to planning, zoning and construction standards. These exemptions can include:
Zoning Variances: Allowing for changes in maximum height, density (floor area ratio, or FAR), property-line setbacks and transitional height setbacks.
Use Flexibility: Permitting residential use in non-residential zones.
Fee Waivers: Exemptions from certain city and state fees, such as water, sewer and park dedication fees.
To qualify for these exemptions, a project must have more than 50% of its units designated as affordable, targeting households with incomes ranging from 80% to 140% of the Area Median Income (AMI), as defined by HUD. Additionally, these projects must undergo a public meeting to gather community input and, in some cases, complete an Environmental Assessment (EA) or Environmental Impact Statement (EIS).