Maui County Council members passed on second and final reading Friday a bill to refund $234,050 to Kamalani Ventures LLC for overpayments related to a 2015 workforce housing agreement. Action on the measure had been postponed from a regular Council meeting on April 2.

The refund stemmed from 55 “undelivered” housing credits to the developer. Kamalani Ventures was required to build 115 affordable units but built 170 instead, 55 more than required. The developer was supposed to get one transferable credit for every housing unit over 115.

The extra units could not be sold to income-qualified buyers, so the units were sold at market rate. When the units were sold at market rate, the developer was required to pay the county 50% of the difference between the market and affordable rates, and the developer paid $676,000. But the developer was still expecting to get the 55 transferable housing credits.

The situation led to a disagreement over what was required by the law at the time. Eventually, it was decided to refund the developer money paid for the 55 extra units. That amount came to $234,050.

In other action, council members approved on second and final reading Bill 74, which increases funding for the March Kona Low storm response from $12 million to $32 million. The approval of more money will allow the county to manage additional damage incurred when back to back storms wreaked havoc with flooding and other damage.

A portion of the funding can be used to help residents with storm recovery as well.

The Council referred to the Water Authority, Social Services and Parks Committee, chaired by Council Member Shane Sinenci, a bill to require the Department of Housing to use a portion of the Affordable Housing Fund specifically for residents without shelter.

Introduced by Sinenci, Bill 77 would mandate that the housing director ensure the fund provides “suitable living environments” for those who lack a fixed nighttime residence during each fiscal year. The measure officially swaps the term “homeless” for “houseless” within the Maui County Code.

The Affordable Housing Fund is already used for residents ranging from “very low” to “gap” income levels. Under the new proposal, the county would explicitly target residents with no income by setting aside money for their housing needs.

The proposed ordinance would also require the county to track its progress. The Housing Department would be required to prepare an annual plan and report:

• The number of suitable living environments created for houseless residents.
• The number of houseless individuals served by the fund’s appropriations.
• An explanation of how fund appropriations will eventually result in housing.

Current law allows the fund to be used for land acquisition, planning and the rehabilitation of existing structures. If passed, the bill would ensure these tools are used to expand the supply of both rental and owner-occupied housing specifically for those currently on the street.