COM 0416.000 2000-2002 - Laserfiche WebLink

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The Honorable James Y. Arakaki and Members of the County Council Page 2 November 6, 2001 and the DHHL's advance of full payment of real property taxes, excluding interest and penalty, in accordance with paragraph 3, is a one-time only offer. 5. In order to alleviate or reduce further delinquencies, the County will notify DHHL on an annual basis of any delinquent property owners. 6. The County and DHHL will continue to meet on an annual basis to evaluate the extent of delinquencies by Hawaiian homestead lessees on the Island of Hawaii and take action, if necessary, to keep delinquencies from recurring. 7. The County and DHHL shall work to establish a customer trust fund by July 1, 2004 to collect real property tax payments as part of the mortgage/loan payments in order to make smaller, regular payments. Enclosed, please find a resolution to authorize the Director of Finance to compromise the penalties and interest owed by lessees of Hawaiian Home Lands Homestead whose tax delinquencies exceed $500 by December 31, 2001. Although the exact amount of the compromise will not be known until December 31, 2001, we anticipate that the penalties and interest to be compromised will be approximately $49,703 and $558,542, respectively, for a total of $608,245. The amount of delinquent taxes that we expect to receive in Apri12002 as a result of this compromise will be approximately $611,564. In 1994, the County Council Committee on Finance adopted Communication No. 449 authorizing the Director of Finance to enter into a similar compromise with the DHHL. As you are aware, we are not able to impose a tax foreclosure on lands belonging to the DHHL. Under the circumstance, we recommend that the Council approve the settlement offer. Should you have any questions, I will be happy to discuss them with you. Thank you. William T aba Director of Finance APPROVED: Harry Mayor Enclosure