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B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br />In June 2022, the County of Hawaii passed Ordinance 22-77, which appropriates at least $5,000,000 per <br />year for the OHCD to facilitate projects that support affordable housing production. This represents an <br />investment towards housing production appropriated directly from County funding. Prior to this direct <br />allocation, housing in the County relied solely on funding from the Federal and State governments, as well as <br />private grants and donations. The OHCD finds that appropriating the AHP funds reflects the County's <br />proactive approach to promoting Affordable Housing Production. <br />Following the passage of Ordinance 22-77, the OHCD conducted extensive research on affordable housing <br />programs and collaborated with other Counties to explore similar programs, leading to the process of <br />developing Administrative Rules and the establishment of an online application system for the Program. <br />The OHCD held two (2) public meetings on March 17, 2023, and March 20, 2023, to receive testimony <br />regarding the community's needs for affordable housing. <br />The Administrative Rules for the AHP Program, which outline the framework for its administration, were <br />formally approved by the Mayor and became effective on April 9, 2023. <br />On May 1, 2023, the OHCD issued a Request for Proposals (RFP) for a combined funding allocation of <br />$17,324,559.46 from two fiscal years, $9,000,000 from FY2022-23 and $9,000,000 from FY2023-24 in AHP <br />Program funds, with a deadline set for July 31, 2023. The intent was to solicit qualified proposals to assist <br />the County with carrying out the affordable housing goals and priorities set by the OHCD for.this round of <br />funding. <br />The project proposals were reviewed in accordance with the AHP Program Administrative Rules §3-4 Grant <br />Selection Process. The process involved utilizing a weighted scoring system and assessing how projects <br />aligned with the goals and priorities for this funding round. <br />Following the Mayor's final approval of the recommended projects, the OHCD awarded funds to the <br />applicants. <br />SIGNED: DATE: <br />Department Head <br />