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Form *13-62 V18191 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Office of Housing & Community Dev. Date: 08123/24 STAFF CONTACT: Royce Shirorna I Susan Kunz —PHONE: (808) 961-8379 A. REQUEST; Please submit the attached bill to amend Ordinance No, 24-32, as amended, the Operating Budget for the County of Hawaii for the Fiscal Year (FY) ending June 30, 2025, to appropriate the Fund Balance. as follows, 152.360910 Fund Balance from Previous Year $ 7,400,000,00 152.461,5469,02,115 Housing Production, M.isc, Contract Svc $ 7,400,000.00 B. BACKGROUND AND JUSTIFICATION USE ADDITIONAL SHEETS AS NEEDED Funding for the Affordable Housing Production (AHP) Program is made possible through Bill 22-77, which appropriates at least $5,000,000 per year for the Office of Housing and Community Development (OHCD) to facilitate programs that support affordable housing production in the County of Hawai.'i. For FY2022-23 and FY2023-24, OHCD received a total appropriation of $18 million, including administrative costs. These funds were awarded through a request for proposals process to seven projects. However, to obligate, the AHP Program funds (funds), 0HCD must enter into grant agreements with the awardees. Due to the complexity of the development projects and the tirne required to address associated risks, such as securing necessary funds to ensure project viability and compliance with various rules and regulations, only two grant agreements were finalized and executed by the end of the FY2023-24 As a result, the remaining unobligated funds lapsed into a fund balance account, Although those funds remain designated for affordable housing initiative ' s, as outlined in Bill 22-77 Section 11 -21, which states, "Any remaining balance at the end of the fiscal year shall be. designated for this purpose," they now need to be reappropriated to fund the following agreements: • Grant Agreement, $2 million w4h Kamakoa Nui LP for the Na Hale Makoa Project. • Memorandum of Agreement (MOA).- $5A million with OHCD Community Development Division for the Kamakoa Nw Workforce Housing Mini -Loop Road/infrastructure Project, By reappropriating these funds, 1. OHCD will be able to fund the grantees as specified in the Grant. Agreement and MOA, Z OHCD will be positioned to award the current fiscal year's appropriation to projects selected in the ongoing program cycle, SIGNED, DATE: Department Head