A bill giving big breaks to owners of smaller properties who develop affordable rental units was signed by Honolulu Mayor Kirk Caldwell today.

Bill 7 gives owners of properties that are 20,0000 square feet or less a variety of incentives including greater density, taller heights, less setback, no required parking, complete waivers from building permit application and wastewater facilities charges, no park dedication fees and a 10-year tax waiver on property taxes.

Caldwell was flanked by builders and bankers and City Councilwoman Kymberly Pine at the signing.

The goal is to create projects with units that cost no more than $225 a square foot to develop, proponents said.

In exchange, the property owner would be required to charge rents on at least 80% of the units at prices deemed reasonable for those making up to 100% of median income as determined by federal housing guidelines. The dedication would be for perpetuity.

The bill sets up a five-year pilot program, but Caldwell said it could become permanent if successful.