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The Honorable Dr. Holeka Goro Inaba and Members of the County Council County of Hawaii September 15, 2025 Page 2 Ikaika Ohana is a nonprofit 501(c)3 organization with a mission of developing and operating affordable housing, including projects on the mainland, Oahu, Maui, three existing affordable rental projects in Hilo and one in Waikoloa. Since the last amendment to the ordinance was approved in 2021, the applicant has been successful in complying with conditions of approval and obtaining the necessary permits and approvals to begin construction of the project. The request for a 5-year time extension to complete construction of the Kaiaulu O Kapi `olani affordable housing project is, in part, due to delays caused by additional financing requirements from the State of Hawaii. The project was expected to be completed by March 2026, however, the developer faced unforeseen challenges in securing necessary funding, including State and Federal Tax Credits and Federal Tax -Exempt Bonds Financing. The project applied for additional financing from Hawaii Housing Finance and Development Corporation (HHFDC) this year for State and Federal Tax Credits in the amount of $40,721,726 and Federal Tax - Exempt Bonds Financing in the amount of $38,326,000. An award letter is expected by August 2025, which would allow the applicant to start construction no later than January 2026, with an estimated completion timeline of 18-24 months. To ensure the project's successful completion and to accommodate potential delays, the developer is conservatively requesting an extension of the construction deadline to March 2031. Upon transfer of property ownership, Ikaika Ohana is proposing to develop Kaidulu O Kapiolani, a 64-unit, 100% affordable rental housing development (63 units with income restrictions between 30% and 60% of area median income and one (1) unrestricted manager's unit). The site plan for Final Plan Approval included twenty-eight (28), two (2)-bedroom units, twenty-nine (29), three (3)-bedroom units and seven (7), four (4)-bedroom units within nine (9), two (2)-story buildings. Also included are a community center building, play area, two (2) laundry facilities, two (2) community gardens, and 117 parking stalls including five (5) handicapped stalls. According to the requirements of the State's HHFDC funding, the affordable housing units must maintain affordability metrics for a minimum of 65 years, but the applicant indicated that they intend to make the housing affordable in perpetuity. Construction of the proposed affordable housing project is anticipated to begin in the first quarter of 2026, take 18-24 months to complete and is estimated to cost approximately $79 Million. The non-performance of timed conditions is the result of conditions that could not have been foreseen or are beyond the control of the applicants, successors or assigns, and that are not the result of their fault or negligence. The applicant has substantially complied with the conditions set forth in rezoning Ordinance No. 21 17 (amending Ordinance No. 10 32) for the Kaidulu O Kapi `olani affordable housing project.