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Purpose: <br /> <br /> To provide the non-profit Big Island Housing <br /> Foundation (BIHF) with a one-time seed money grant for <br /> the hiring of staff to oversee the properties owned by <br /> the non-profit. <br /> <br /> The Office of Housing and Community Development <br /> currently provides technical assistance and staff <br /> services, which is an ongoing subsidy cost to the <br /> <br /> OHCD. The OHCD will continue to provide assistance <br /> <br /> until the non-profit becomes totally self sufficient. <br /> The U. S. Department of Housing and Urban Development <br /> (HUD) has, in place, proposed rule changes which will <br /> allow asset management fees for non-profit <br /> organizations. <br /> HUD insured and financed properties have a regulatory <br /> agreement that requires the owner/sponsor to operate <br /> the property as affordable housing for the term of the <br /> agreement and loan. Further, HUD regulates the <br /> owner/sponsor's participation making sure that all of <br /> the dollars are well spent and that the properties <br /> continue to be an effective housing resource serving <br /> the people of the County of Hawaii. <br /> The total operation of the BIHF is a multi million <br /> dollar enterprise. The BIHF currently has a property <br /> management agent on contract to help with the day to <br /> day operation. As these properties age, the problems <br /> increase. The part-time volunteer Board of Directors <br /> is overloaded. The unpaid Board is not able to keep <br /> up with constant changes in HUD rules and regulations <br /> to supervise the property manager. In the past, some <br /> of these services were provided by OHCD staff. <br /> This one-time grant is needed to "kick-start" the non- <br /> profit. Once trained and operational, the BIHF should <br /> be able to generate enough fees for their projects to <br /> maintain operations, thus reducing the support needed <br /> from the County to a very minimal level. <br /> <br />