REP LAAC 003 2025-01-21 2024-2026

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REPORT OF THE LEGISLATIVE APPROVALS AND ACQUISITIONS COMMITTEE DATE: January 21, 2025 PLACE: Council Chambers Kailua-Kona, Hawaii TIME: 3:45 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 74/Res. No. 51-25 Your Committee on Legislative Approvals and Acquisitions, to which was referred Resolution No. 51-25, reports as follows: Resolution No. 51-25, transmitted by Housing Administrator Kehaulani Costa, via Communication No. 74, dated December 23, 2024, authorizes the exemption of certain code requirements, pursuant to Section 201H-38 of the Hawaii Revised Statutes, for the Hualalai Court Affordable Housing Project in Hilo, Hawaii, covered by Tax Map Key: 2-4-028:009 (Area: 3.2920 acres). In this resolution, the applicant requests for an exemption from Single -Family Residential District 7,500 feet zoning requirements, to be replaced with Multiple -Family Residential 1,000 square feet requirements, to allow for greater density and an exemption from Sections 5-7-1 and 5-7-3 of the Hawaii County Code regarding permit plan reviews and permit fees to reduce costs for the production of 104 affordable residential rental units, to be located at 364 Hualalai Street in South Hilo. Hualalai Court Chief Executive Officer Carlos Morales and Business Manager Demarco Morales presented a PowerPoint presentation on the project. Mr. Morales explained that Hualalai Court is one of only four applicants, and the only neighbor -island project, to be awarded funding from the Hawaii Housing Finance and Development Corporation (HHFDC) Rental Housing Revolving Fund (RHRF) Tier 2 Initiative, in the sum of $25.5 million for the affordable housing project with both two and three bedroom options, all which will coincide with 60-100 percent area median income. Committee Members James Hustace, Michelle Galimba, and Jenn Kagiwada all shared same sentiments on the need for such community workforce housing projects across the island. Committee Member Dennis "Fresh" Onishi inquired further on concerns relating to prior flooding issues at the neighboring property as well as third -party property management services, maintenance expenses going forward, and the opportunity for those on fixed incomes to be able to afford to live and thrive at this housing project years after its completion. LAAC Report No. 3