RES 173 Draft 01 1996-1998 - Laserfiche WebLink

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" -- . ., . . COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 173 SL RESOLUTION APPROVING THE ALI'I KAI APARTMENT COMPLEX RENOVATIONS AS A GOVERNMENT-ASSISTED PROJECT PURSUANT TO HAWAI'I REVISED STATUTES CHAPTER 201E AUTHORIZING THE COUNTY OF HAWAI'I TO EXEMPT GENERAL EXCISE TAX AND REAL PROPERTY TAXES. WHEREAS, the Office of Housing and Community Development (hereinafter "OHCD") has issued exemptions from State General Excis~ Taxes for affordable housing projects developed and/or renovated pursuant to Chapters 201E-205 and 46-15 of the Hawai'i Revised Statutes; and WHEREAS, the OHCD has supported and requested exemptions from County Real Property Taxes for affordable housing projects developed and/or renovated pursuant to Section 19-87 of the Hawai'i County Code; and WHEREAS, the OHCD has reviewed the proposed project and has determined that it would be in the interest of the residents of the County of Hawai'i to maintain the afforqable housing stock; and WHEREAS, the Hawai'i Community Reinvestment Corporation (HCRC) is a duly formed non-p~ofit organization, pursuant to 501(c) (3) of the Internal Revenue Code, created to provide low cost loans for affordable rental projects; and WHEREAS, the HCRC loan program can be considered a "government assistance" program, for the purposes of Real Property Tax and General Excise Tax exemptions, according to opinions from the Attorney General and Corporation Counsel; and WHEREAS, the County will enter into an agreement with the developer, Day-Lum, Inc., to restrict the maximum income of tenants to less than 80 percent (80%) of the median income of residents of Hawai'i County; and WHEREAS, the agreement with the developer, Day-Lum, Inc., will also restrict the maximum rent charged to less than 30 percent (30%) of 80 percent (80%) of the median; and WHEREAS, the OHCD recommends that the General Excise Tax exemptions and Real Property Tax exemptions be limited to the time period covered by the agreement, and that the exemptions run concurrent with the mortgage and loan documents in effect with HCRC and the restriction of the rent amount charged.