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Heather Kimball, Council Chair <br /> and Members of the County Council <br /> County of Hawai`i <br /> March 15, 2024 <br /> Page 2 <br /> square foot (RS-15), Single Family Residential-10,000 square foot (RS-10), Single <br /> Family Residential-7,500 square foot(RS-7.5) and Open zoning districts. <br /> The non-performance on timed conditions is the result of conditions that <br /> could not have been foreseen or are beyond the control of the applicants, successors, <br /> or assigns, and that are not the result of their fault or negligence. Between 2006 and <br /> 2010, the applicant successfully developed Phases 1 and 2 of the `Kumakua Self Help <br /> Housing' project. These phases consisted of developing 44 self-help house lots and <br /> homes on approximately 15 acres of land directly mauka of the subject properties. <br /> According to the applicant, the HICDC mutual self-help housing program is <br /> financed through the USDA Rural Development 502 Direct Loan program. These loans <br /> are affordable for, and only available to households at 80 percent of the median income <br /> or below. Following the close of the loan the families work in groups of 10 to 11 to <br /> perform 65% of the labor involved in constructing the homes. The homes are built <br /> together, all families work on all the homes and no one moves in until all of the homes <br /> are complete. HICDC assists the families in qualifying for the loan, secures the permits <br /> and subcontractors, and has an on-site construction supervisor to guide the construction <br /> process. This process has been used to complete more than 300 homes on the Big Island, <br /> including 44 in the first 2 phases of this project. <br /> In 2010, the applicant successfully rezoned the subject properties to develop <br /> Phase 3 of the project consisting of an additional 32, minimum 10,000-square-foot house <br /> lots, one 8.12-acre bulk lot, a road lot, and related infrastructure. However, the applicant <br /> became concerned about the economic outlook of North Kohala residents given the <br /> impacts of the 2008-2009 great recession and had significant difficulty recruiting <br /> applicants who were interested in self-help housing in North Kohala and who met the <br /> income and credit requirements to qualify for the required mortgage. This made the <br /> applicant reticent to borrow the $4 million in funds to construct Phase 3 of the project. <br /> However, given the passage of time and the post-pandemic economic recovery, those <br /> concerns have receded, and the applicant has the financing lined up to proceed with the <br /> subdivision, as is evidenced by the fact that the applicant has already prepared and <br /> submitted a subdivision application in 2023, but was informed that the time to secure <br /> Final Subdivision Approval had expired. <br /> Moreover, since the rezoning was approved in 2010, the applicant, which is a <br /> non-profit, affordable housing development organization, has successfully developed <br /> several self-help housing projects (88 units) and senior rental housing projects (202 units <br /> island wide), with an additional 100-unit family rental project under construction to be <br /> complete in October 2024. <br />