Water utility offers breaks for affordable housing builders

The Honolulu Board of Water Supply has agreed to offer those who build affordable housing units on Oahu a break on BWS charges in an effort to spur construction.

The subsidy, which took effect Sunday, essentially waives the water system facilities charges and new meter costs for affordable homebuilders through a subsidy at the time a building permit application is submitted to the Department of Planning and Permitting for approval, BWS said in a release.

The board estimates that the typical single-family dwelling with a new three-quarter inch meter pays approximately $1,800 in meter and installation charges and $3,700 in water system facilities charges.

On Jan. 31, the Honolulu City Council passed Bill 59 (2017), an “incentives” bill championed by Mayor Kirk Caldwell that provides housing developers and builders a series of property tax exemptions and various fee waivers from the city for committing to building housing aimed at lower-income families and individuals. Among the largest of the breaks was the waiver of a sewage hookup fee. Caldwell signed the bill in February.

BWS is semi-autonomous so it’s the board, rather than Caldwell, that can offer breaks on water-system charges.

Board Chairman Brian Andaya said the agency wanted to support Caldwell’s affordable housing initiatives. “We believe we have a robust and fair subsidy program in place that will be part of the overall incentives package the city can offer to developer,” he said.

Caldwell, in the same press release, said “this incentive is another tool we can use to help our most vulnerable citizens get off the street and into a permanent home.”

The BWS subsidy is available only to the first 500 qualifying units each year through June 30, 2023, although that cap could be raised by the BWS manager and chief engineer.

Waiver of the water system facilities charge applies only to fixture units associated with the certified dwelling units, BWS said. The amount of the meter waiver is calculated as a percentage of the number of certified dwelling units to the total number of dwellings in a project.

For more information, call 748-5000.