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Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION Office of Housing & Community DEPARTMENT: Development DATE: 10/13/2020 STAFF CONTACT: Anne Bailey/Duane Hosaka PHONE: 323-4303/961-8379 A. ,REQUEST: Papaaloa Housing Inc. has requested that the Office of Housing and Community Development (OHCD) enter into a multi-year lease for 75 years with their new partnership called Papa'aloa Elderly Housing Limited Partnership at a set lease rental amount' of Ten Dollars ($10.00) per year instead of extending the original .lease for the rehabilitation and leasehold rights to the- Papa'aloa Elderly Housing Project located in Papa`aloa, District of Hamakua, Hawai'i covered by TMK: (3) 3-5-003:049 as required per Chapter 2, Article 19, Section 2-120(a)(2), Hawaii County Code. The OHCD respectfully requests that the above -referenced matter be waived from Committee to the full Council for action at the next Council meeting. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED) On April 3, 2002, the County of Hawai'i through its Office of Housing and Community Development, entered into a lease for 20 -years with Papa'aloa Housing, Inc. (PHI), a Hawaii non-profit corporation, to build and operate the Papa'aloa Elderly Housing Project which sits on which sits on 2.5 acres of land in Papa'aloa in the Hamakua district further described as TMK: (3) 3-5-003:049. Together, PHI and the OHCD acquired 10 old teachers' cottages and moved them to the site and renovated them into ten (10) one -bedroom units, with a small community center. For almost 20 years, PHI, and their management firm Big Island Housing, LLC have successfully opera -led the facility and now desires to substantially renovate the aging facility and increase its size from ten (10) one -bedroom units to twenty (20) one -bedroom units with a renovated the community center, managers unit and the close of six (6) cesspools on the property. All partners have worked together to assemble a renovation funding package -with County, State of Hawaii Low Income Housing Tax Credits (LIHTC) & private funding to complete the renovation project and add 10 additional housing units to Hawaii island's housing inventory. PHI has entered into a long- term partnership called Papa'aloa Elderly Housing Limited Partnership with NEF Assignment Corporation, an Illinois not -for profit corporation, as a limited partner, and PHI as a General Partner. The County has contributed CIP funds totaling $2,300,000.00, while PHI, has been awarded $700,000 in LIHTC, funding to complete part of the renovation with the balance of funds from NEF Assignment Corporation. SIGNED:ZW4 d DATE: Department Head