The Honolulu City Council is considering a charter amendment that would increase the share of property tax revenue allocated to the city’s affordable-housing fund.

Currently 0.5% of projected property tax revenue is set aside for the fund, which is supposed to support housing projects for Oahu residents earning below 60% of the annual median income, or $50,800 for individuals and $72,500 for a family of four.

The proposed charter amendment would increase the allocation of property taxes from 0.5% to 1%.

“If we can provide a little stability for our local residents, as well as kupuna … I think that does a great service,” said Councilman Brandon Elefante, who introduced the resolution calling for the charter amendment. “We look forward to going forward, providing stable housing and taking leadership on that.”

To be put on the election ballot a charter amendment must be approved by a supermajority of at least six of nine Council members. From there the amendment must win at least 50% of the Oahu ballots cast to pass.

ALTHOUGH the proposed charter amendment falls in line with a priority of Mayor Rick Blangiardi’s administration to build more affordable housing, Department of Budget and Fiscal Services Director Andrew Kawano stopped short of supporting it because of the substantial funding already dedicated for that purpose.

He reported there is nearly $40 million in the affordable housing fund and that the city’s capital improvement plan provides an additional $170 million that could be spent over the next two years.

“We feel that we have enough moving forward,” Kawano said.

He explained he is focused on spending all of the funds currently allocated for affordable housing within the stipulated time frame, with the city preparing to roll out a request for proposals to use the $40 million.

“We’re trying to see what projects are out there that are timely and ready to go,” said interim Department of Community Services Administrator Daryl Young. “What we don’t want to do is commit the funds to projects that are going to sit for a while; that doesn’t do us any good in trying to produce units.”

Young explained that when the affordable housing fund started, it was meant to benefit only those who made under 50% of the annual median income, making it difficult to attract developers for projects. Since the City Charter was amended in 2016 to raise the ceiling to 60%, there has been more interest from the building community.

THE RESOLUTION seeking to pose the charter amendment question to Oahu voters increasing the share of property tax revenue allocated to the affordable housing fund from 0.5% to 1% passed out of the Housing and the Economy Committee in a 4-1 vote Tuesday. It will now go for third and final reading before the full Council.

Councilman Calvin Say, who chairs the Budget Committee, was the lone dissenter. Instead of using property tax revenue that would normally go toward covering items in the city’s operating budget, he asked his fellow council members to float 30-year bonds to raise the extra money projected to be generated under the proposed charter amendment.

“The concern is the fact of the matter that we should try to see what we could do to save as much cash in regards to the operating expense side of county government,” he said.

“Once we pass a county ordinance, a county charter like this, we’re tying the hands of the future Council members along with the administration … . There’s no flexibility for the Council to use that monies for operating expenses.”