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Wednesday, August 29, 2018
DoE to Impose Multi-Million Dollar Housing Tax Kalihi to Ala Moana Starting October 1
By News Release @ 1:11 AM :: 7450 Views :: Education K-12, Development, Taxes


News Release from Hawaii DoE, Aug 28, 2018

HONOLULU – Beginning Oct. 1, 2018, homebuilders and residential developers in the urban corridor from Kalihi to Ala Moana will be subject to a school impact fee when applying for building permits for new residential construction.

Approved last summer by the Hawaii State Board of Education, the Kalihi-to-Ala Moana School Impact Fee District is defined as those areas served by the following elementary schools: Fern, Kalihi Kai, Kalihi Waena, Linapuni and Puuhale in the Farrington Complex; and Kaahumanu, Kaiulani, Kauluwela, Likelike and Royal in the McKinley Complex.

In coordination with the City and County of Honolulu, building permit applicants will be notified by letter to submit payment to the Hawaii State Department of Education (HIDOE) prior to issuance of a building permit. The fee amount is $3,864 per unit.

Developers of residential projects of 50 units or more are required to meet with the Department to determine if fees will take the form of land for future school sites, cash, or a combination of both. Developers must meet with HIDOE before projects are subdivided or receive change in zoning approval.

The Hawaii Legislature established school impact fees by statute in 2007, providing HIDOE with a means to raise funds to help build or expand schools in areas impacted by high population growth.

“The estimated 39,000 additional dwelling units for this stretch of urban Honolulu, if built, will have a significant impact on the public school system,” said Assistant Superintendent Dann Carlson. “School impact fees would help to offset the cost of accommodating additional students, but the fees are only assessed if and when that development occurs.”

To date, HIDOE has collected a combined $4.7 million in school impact fees in Leeward Oahu, West Maui and Central Maui. Fees collected within a designated school impact fee district can only be spent on schools in that district.

Commercial projects, industrial projects, senior housing, replacement homes, or projects to enlarge existing homes are exempt from the fees as they are not expected to impact school enrollment.

For more information, please contact the HIDOE Facilities Development Branch at (808) 784-5080, Monday through Friday from 7:45 a.m. to 4:30 p.m.




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