REP GOEAC 115 2026-04-07 2024-2026

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REPORT OF THE COMMITTEE ON GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS DATE: April 7, 2026 PLACE: Council Chambers Hilo, Hawaii TIME: 9:00 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 793/Res. No. 498-26 Your Committee on Governmental Operations and External Affairs, to which was referred Resolution No. 498-26, reports as follows: Resolution No. 498-26, transmitted by Housing Administrator Kehaulani M. Costa, via Communication No. 793, dated March 11, 2026, authorizes the Mayor to enter into an intergovernmental agreement with the State of Hawaii, Office of Planning and Sustainable Development, to receive a grant for the 34 Rainbow Drive affordable housing proposal to be used by the Office of Housing and Community Development (OHCD). This resolution allows for the receipt of $1,000,000 in federally derived funds to be used for the planning and engineering design for roadways and utility improvements to interior areas. Office of Housing and Community Development Specialist Anne Bailey was present in Kona to answer questions. She began by providing background about the grant funds for the project at 34 Rainbow Drive and explained that these funds will be used for roadway infrastructure into the property. Committee Chair Jenn Kagiwada clarified that while there are 24 acres, not all of it is buildable. Ms. Bailey said that about seven or eight of those acres are planned for development. Committee Member Dennis "Fresh" Onishi asked if they were still working with the Governor's Homeless Task Force. Ms. Bailey said they were in conversation with them, especially now that they have these grant funds. Member Onishi asked if this project was something that would be tied into the Governor's homeless program. Ms. Bailey said that in their master plan they said there could be rental units at this site in alignment with the Kauhale Program but they would need to work with the state on details now that they will be able to create roadways into the interior of the parcel this will open up potential land for rental housing. Member Onishi asked if these were multiple projects or one big project. Ms. Bailey stated that the County hasjurisdiction over the land through an executive order. This allowed them to create the master plan and the environmental assessment. The state can now choose to enter into an agreement with the County for the creation of a Kauhale parcel. Member Onishi stated that there had been prior discussions with the state about this project and asked why there hadn't been updates with the state. Ms. Bailey said that the infrastructure had to come first and she masn't part of the discussion with the state. Member Onishi asked what the definition of affordable housing or target income level would be for these rentals. Ms. Bailey said that the intention for this project they would be coordinating GOEAC Report No. 115