Larry Ellison of Oracle and Kurt Matsumoto of Pulama Lāna'i are developing 150 rental homes on Lāna'i island, with 49% being market rate and 51% being affordable housing. The development will include both affordable rental homes for those earning below the area median income, as well as market rate rentals and homes available for purchase. Affordable housing continues to be an important issue in Hawaii, where housing costs are among the highest in the nation and many workers cannot afford market rate housing costs even when working full time.

1. LARRY ELLISON, Oracle and KURT MATSUMOTO, COO, Pulama Lāna'i, are developing
150 rental homes for Lanai — with 49 percent slated for market rates and the other 51 percent
scheduled for affordable rents under a state fast-track process for affordable housing. As they
continue to build stronger bonds with the Lanai Community and evolve their plans to engage and
implement sustainable commerce, energy, conservation, health care, housing, education and
hospitality initiatives we place our faith and trust that they will go beyond government-mandated
minimums, and create a template for truly affordable housing for prospective owners and renters.
“As a policy maker and community leader, you probably hear often about the high cost of
housing. Residents are feeling pressured by sky-high rents and home prices, and they want
you to do something about it.
“The impact of high housing costs goes beyond a single household's wallet to affect entire
cities, towns, and counties. High housing costs in your area could be making it hard for your
local school district to recruit teachers, or your local fire department to hire firefighters.
Increasing housing costs may even force some residents to choose between paying the rent
and paying for food or health care. But, people shouldn't have to choose between one basic
necessity and another! That's where affordable housing comes in. Affordable housing is
housing that a household can pay for, while still having money left over for other necessities
like food, transportation, and health care. That means that what's considered “affordable”
depends on a household's income. The federal government typically defines housing as
affordable when it consumes no more than 30 percent of a household's income. So, who needs
affordable housing? Everyone. From high-income earners, to hourly wage workers, to the
homeless, and everyone in between. The rent or home price that is affordable may vary from
one household to the next, but the need for housing that is affordable is shared by everyone.
“The good news is that the housing needs of many families are met adequately by the private
market. In other words, housing costs for a high-income CEO are usually not cause for too
much public concern.
“The bad news is that a large and growing share of the population cannot afford its housing
costs. Nationally, more than one in seven households are what economists call “severely cost
burdened.” This means that they pay half or more of their income on housing.
“You probably wouldn't be surprised to hear that the lowest-income households are the most
likely to find themselves in this crunch. 70 percent of the lowest-income households (those
with less than about $15,000 in annual income) are severely cost burdened. Even moderate-
income renters are struggling to pay the rent in many high-cost cities, towns, and counties.
And it's not just a renter's problem. Although more than a quarter of renters—11 million
households—have severe housing cost burdens, so do about 1 in 10 home-owners, for another
roughly 8 million households.
Source: “What is affordable housing?”
The Furman Center for Real Estate and Urban Policy, New York University School of Law
and the NYU Wagner School of Public Service. <https://www.localhousingsolutions.org/learn/what-is-
affordable-housing-and-who-needs-it/>

2. WHY IS HOUSING UNAFFORDABLE?
“Millions of people have housing costs they can't afford. As a result, they don't have enough
monthly income left over to pay for food, transportation, health care, and other essential living
expenses. They may also be one missed paycheck away from eviction or foreclosure.
“Why can't these families find a place they can afford?
“The first is that incomes for many workers are just too low compared to the cost of housing.
Some people think that full-time workers can afford housing, but that's a myth. In some
housing markets, only workers earning hourly wages of $30 or more can comfortably afford
housing. In fact, there is no metro area in which full-time workers earning the Federal
minimum wage can comfortably afford the costs of a typical 2-bedroom rental unit.
“ON AVERAGE, A WORKER NEEDS TO EARN $20.30 AN HOUR TO AFFORD A
TYPICAL 2-BEDROOM APARTMENT. In other words, someone earning the federal
minimum wage of $7.25 per hour would need to work almost three full-time jobs in order to
afford a typical two-bedroom apartment. [Emphasis Supplied]
“And the problem is getting worse, not better. Incomes for low- and moderate-income workers
have largely stagnated while housing costs have risen.”
Source: “Why is housing unaffordable?” [Extract]
The Furman Center for Real Estate and Urban Policy, New York University School of Law
and the NYU Wagner School of Public Service. <https://www.localhousingsolutions.org/learn/why-is-housing-
unaffordable/>
STATES WITH THE MOST AFFORDABLE HOUSING
Iowa
Ohio
Indiana
Pennsylvania
Nebraska
North Dakota
Oklahoma
West Virginia
Michigan
Source: “The 10 States With the Most Affordable Housing - Seven of the top states are in the
Midwest” By Casey Leins, Staff Writer, U.S. News & World Report, February14, 2020.
<https://www.usnews.com/news/best-states/slideshows/10-states-with-the-most-affordable-housing?slide=12>
THE STATES WHERE THE MINIMUM WAGE IS HIGHEST IN 2020
“Do you remember the summer of 2009? Dancing to the Black Eyed Peas' “I Gotta Feeling”
or seeing The Hangover in a theater? Summer of 2009 also was the last time the U.S.
minimum wage went up.

3. It has remained at $7.25 an hour ever since, in the longest stretch without an increase since the
federal minimum wage was introduced in the 1930s.
But many states and cities have taken it upon themselves to give low-paid workers their raises.
For example, Washington, D.C., has set its minimum wage at $14 an hour.
IN 29 STATES, WORKERS ARE PAID MINIMUMS HIGHER THAN WHAT FEDERAL
LAW REQUIRES. AFTER A ROUND OF NEW YEAR'S INCREASES IN THE MINIMUM
WAGE, HERE ARE THE 15 STATES THAT ARE ON TOP, COUNTING DOWN TO
THE ONE WITH THE HIGHEST RATE OF ALL.
15. HAWAII. HAWAII'S MINIMUM WAGE HAS HELD STEADY SINCE EARLY
2018. MINIMUM WAGE: $10.10 PER HOUR [Emphasis Supplied]
Hawaii makes this list, even though the state hasn't said “Aloha” to a minimum wage increase
in a couple of years. The rate has stood at $10.10 an hour since Jan. 2018.
WHILE THAT'S HIGHER THAN IN MOST STATES, IT DOESN'T GO FAR IN AN
ISLAND PARADISE WHERE PRICES ARE HIGHER THAN ANYWHERE ELSE IN
THE U.S., ACCORDING TO DATA FROM THE BUREAU OF ECONOMIC
ANALYSIS.
Hawaii legislators in 2020 are expected to take a fresh look at a plan to raise the minimum
wage to $15 an hour by 2024. The proposal stalled in 2019 as lawmakers disagreed over
whether there should be a lower rate for workers who get health benefits through their jobs.
Source: “The States Where the Minimum Wage Is Highest in 2020” By Doug Whiteman,
MoneyWise – Yahoo!Finance, January 1, 2020 <https://finance.yahoo.com/news/states-where-minimum-wage-
highest-144538686.html> [Extract]
___________________
FACT CHECKING AFFORDABLE HOUSING IN MAUI COUNTY
A REALITY CHECK – GETTING A GRIP – WHERE ARE WE?
MAUI COUNTY COUNCIL APPROVES 2 AFFORDABLE HOUSING PROJECTS
By Hawaii Tribune Herald. Original post by Associated Press, September 16, 2020.
<https://www.hawaiitribune-herald.com/2020/09/16/hawaii-news/maui-county-council-approves-2-affordable-housing-projects/>
WAILUKU, Maui — The Maui County Council approved two new affordable housing
projects on the southern side of the island. The council voted in favor of the Liloa Hale Senior
Rental Housing Project and the Hale Kaiola duplex project Friday.
LILOA HALE SENIOR RENTAL HOUSING PROJECT plans to construct a three-story
apartment building with 117 units. The project is expected to include 101 one-bedroom
apartments, five of which will be compliant with the Americans with Disabilities Act, or
ADA. There will also be 16 two-bedroom apartments, including one unit that is complaint
with the ADA.

4. Seniors earning 60% and below the area median income, established by Department of
Housing and Human Concerns guidelines, will be eligible to rent. For multifamily housing on
Maui, that means AN INCOME OF $58,500 AND BELOW.
THE HALE KAIOLA DUPLEX is expected to have 40 affordable units. The project will
include two- and three-bedroom apartments, ranging from 731 square feet (68 square meters)
to 1,240 square feet (115 square meters), with prices ranging from $295,000 to $650,000.
Residents earning between 80% and 140% of the area median income will be eligible to apply.
For multifamily housing, that would mean AN INCOME OF $78,000 TO $136,500.
COUNCIL MEMBER KELLY KING, who holds the council's South Maui seat, said the
projects are good examples of workforce housing gaining approval through the county, which
has faced a long housing crisis and a cost of living that’s among the highest in the nation.
“I HOPE PEOPLE WHEN THEY COME BEFORE US STOP SAYING, ‘WHEN ARE
YOU EVER GOING TO GET AFFORDABLE HOUSING DONE?’ BECAUSE WE
ARE GETTING AFFORDABLE HOUSING DONE,” King said.
___________________
“COUNCIL MEMBER TASHA KAMA, who holds the Kahului residency seat and chairs
the Affordable Housing Committee, praised the [Hokuao] project Tuesday. “I'm delighted
anytime we have the opportunity to add to our community’s inventory of affordable housing,”
she said. “Especially on our sister island of Lanai, where affordable rentals are essentially
nonexistent, access to housing is crucial for both residents and businesses. The pandemic has
ransacked our economy, and now more than ever we must look at every possible means of
keeping our people housed and employed.” [Clarification Supplied]
“The Hokuao project would have lot sizes of about 8,000 square feet. The 76 affordable
rentals would be two-bedroom units. For the market-rate rentals, 59 would be two-bedroom
units and 15 would be four-bedroom units.
Residents earning 80 percent to 140 percent of the median income based on U.S. Department
of Housing and Urban Development and county guidelines would be eligible for the
AFFORDABLE RENTALS, RANGING FROM $965 TO $1,688, A MONTH, according
to 2020 estimates in the draft environmental assessment.” [Emphasis Supplied]
Source: “Rental project proposed for Lanai -Some question the ratio of affordable to market-
rate units” By Kehaulani Cerizo, The Maui News, December 30, 2020.
<https://www.mauinews.com/news/local-news/2020/12/rental-project-proposed-for-lanai/>
___________________
COST OF LIVING IN LANAI CITY, HAWAII
58.1% HIGHER THAN THE NATIONAL AVERAGE

5. COST OF LIVING LANAI CITY, HAWAII BY EXPENSE CATEGORY
CATEGORY COMPARED TO NATIONAL AVERAGE
ENERGY + 30.9%
FOOD + 8.5%
HEALTHCARE -23.1%
HOUSING + 16.5%
TRANSPORTATION + 7.6%
Source: “Cost of Living in Lanai City, Hawaii” By Salary.Com, November 25, 2020.
<https://www.salary.com/research/cost-of-living/lanai-city-hi>
___________________
HOW MUCH DOES IT COST TO RENT AN APARTMENT IN LANAI CITY?
Bedrooms Average Rent Cheapest Rent Highest Rent
Studio Apartments - - -
1 Bedroom Apartments $1,736 $1,336 $1,870
2 Bedroom Apartments $2,022 $1,579 $2,395
Source: “Apartments in Lanai City, HI (102 Rentals)” By ApartmentHomeLiving, December
30, 2020. <https://www.apartmenthomeliving.com/lanai-city-hi>
___________________
HOUSING MARKET CONDITIONS 2020?
The hawaiian economy is strong, unemployment is low and wages have risen over 4%. that
makes for solid demand for rental units. the issue however is that RENT PRICES ARE
BEYOND THE REACH OF MOST.
IN 2020, HAWAII WILL LIKELY CONTINUE AS THE LEAST AFFORDABLE
HOUSING MARKET IN THE COUNTRY, and as you've learned condo prices in some
hawaiian counties are rocketing.
MAUI HOUSING MARKET
Maui is becoming a more attractive place to buy a home or property and that is driving the
price so high, fewer buyers can afford to purchase.
The median home selling price increased 16.8% to $852,500 for single family homes and the
price of condos rsose 3.9% to $518,520. Pending home sales in November fell 10% for Single
Family houses and 1.4% for condominiums.
Source: “Hawaii Housing Market Forecast - Real Estate” By Gord Collins, ManagerCasa
December 15, 2020. <https://managecasa.com/articles/hawaii-housing-market-forecast/>

6. HABITAT FR HUMANITY
2020 STATE OF THE NATION'S HOUSING REPORT
4 KEY TAKEAWAYS FOR 2021 [Extract]
https://www.habitat.org/costofhome/2020-state-nations-housing-report-lack-affordable-housing>
Harvard University's State of the Nation’s Housing 2020 report, sponsored by Habitat for
Humanity, arrives at an exceptional time for the U.S. The COVID-19 pandemic, outcry for
racial justice and intensified storms and wildfires have seriously tested our nation, elevating
housing insecurity, racial discrimination in housing and the critical link between health and
home to front page news. As a new Congress and administration prepare for 2021 and as
housing providers plan for the coming year, Harvard’s 2020 report provides a touchstone for
developing a shared understanding of our nation’s housing challenges and what it will take to
solve them.
1. PERSISTENT UNAFFORDABILITY
The coronavirus pandemic came as the U.S. was facing crisis-level housing affordability
issues, especially for low-income households. In 2019, 37.1 million households were “housing
cost burdened,” spending 30% or more of their income on housing. This represented 30.2% of
all households nationwide. One in 7 households — 17.6 million in total — were “severely cost
burdened,” spending half or more of their income on housing.
Renters were more cost burdened than homeowners, with 46% of renters cost burdened
compared to 21% of homeowners. Also, 24% of renters and 9% of homeowners were severely
cost burdened. In total, though, homeowners made up 40% of all households with severe
housing cost burdens, given the larger number of homeowners in the overall population.
Cost burdens were greatest among lower-income households. For households earning less than
$30,000, 81% of renters and 64% of homeowners were cost burdened. This includes 57% of
renters and 43% of homeowners with severe cost burdens. For those earning between $30,000
and $45,000, 57% of renters and 36% of homeowners were cost burdened, including 15% of
renters and 13% of homeowners with severe cost burdens.
High housing cost burdens were driven by persistently high housing costs relative to income.
In 2019, the median sales price of existing single-family homes rose faster than median
household income for an eighth straight year.
When cost burden data for 2020 is available next year, it will likely show greater
unaffordability still in the homeownership market. Despite the spike in unemployment in
2020, home prices were up 5.7% in September 2020 year over year according to the S&P
CoreLogic Case-Shiller Home Price Index. Modestly priced homes, valued at 75% of the area
median, increased even more, growing 7.5%.
More millennial households turning to homeownership, record low mortgage rates and limited
supply combined to drive up prices for those who have been able to avoid the economic
fallout of the pandemic.
Renters may not fare much better when 2020 housing cost burden data comes out. Rents
softened nationwide by 0.6% in 2020, and declines were greater in several markets. But
renters disproportionately faced job losses and cutbacks during the pandemic. And rent
declines were largely confined to luxury apartments, providing less relief for low-wage
workers more likely to lose income.

7. Heading into 2021, ongoing low rental supply and continuing barriers to homeownership will
likely restore pressure on the rental market.
___________________
THE NEW AFFORDABLE HOUSING TEMPLATE
GOING BEYOND GOVERNMENT-MANDATED MINIMUMS
DYNAMICS FOR 2021 AND BEYOND
A CREATIVE, INVOVATIVE AND EVOLVING PARTNERSHIP