PD RECOMMENDATION REPORT (PL-REZ-2022-000033)

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standard drainage and land alteration conditions of approval have also been added. Affordable housing conditions of the LUC D&O and change of zone ordinances require the applicant to offer 10% of the lots or houses and lots to be developed on the subject properties for sale at affordable rates to low-to-moderate income residents of the State of Hawai`i as required by State or County housing agencies. To satisfy this requirement, GAMLON Corporation purchased a 12-acre parcel makai of Queen Ka`ahumanu Highway in the vicinity of the project site,which they agreed to convey to the County or their designated affordable housing developer to construct housing thereon. The LUC determined that this would satisfy the on-site requirement in the D&O. As the parcel contains the confluence of the H61ualoa and Horseshoe Bend drainageways, the applicant was required to address drainage issues on the property which included the preparation of an EA and issuance of a FONSI, a Special Management Area (SMA) Use Permit to do flood improvements within the SMA, and an application for a Conditional Letter of Map Revision (CLOMR)to the FEMA,to allow the flood-zone designated portion of the 12 acres to be channelized and developed. Despite the preceding work, the County subsequently decided that this proposed 12-acre affordable housing site was not suitable to meet their goals for affordable housing,prompting the applicant to offer an alternative to satisfy the affordable housing obligations through the acquisition of 67 affordable housing credits via land exchange for land associated with the creation of a new 100-unit affordable rental project above Lowe's Home Improvement on land that the applicant will donate to a qualified affordable housing developer. This was memorialized via a new affordable housing agreement between the applicant and OHCD, executed on January 10, 2022. Despite this agreement, the applicant has yet to acquire the 67 housing credits at the date of this writing. The Planning Department is also concerned that securing housing credits in lieu of offering built units on-site at affordable rates does not meet the requirements of the LUC D&O,thus a condition of approval will require the applicant to comply with the affordable housing requirements of the LUC D&O. Finally, OHCD submitted a letter requesting that a condition be added to require compliance with Hawaii County Code Chapter 11 —Housing,which is consistent with our practice of updating conditions on rezone amendments to standard conditions that 8