PD Background Report HICDC (PL-REZ-2023-054)

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Kumakua Self Help Housing Time Extension Request Ordinance 10-101 Background: Kumakua Self Help Housing The initial zoning for the Kumakua Self Help Subdivision in North Kohala was originally approved in 2006 as Ordinance 06-68. This 15 acre rezoning was the first phase of the development of a 31 acre parcel that HCIDC purchased from the Hawaii Conference of the United Church of Christ. On those 15 acres HICDC developed 44 self help homes in five phases. The fifth phase was completed in 2016. During that same period HICDC applied for rezoning of another 15 acres and that was approved by Ordinance 10-101 in 2010. This is the ordinance for which we are seeking a time extension. HICDC is starting the development of the next three phases of self help housing. A subdivision plan has been created and submitted to the Planning Department for review and approval. However, the department informed us that the time limits of Ordinance 10-101 have expired and that we would require a time extension granted by the County Council before proceeding with the subdivision. We have reviewed the remaining conditions of Ordinance 10-101 and based on what we know we believe that we can comply with those conditions. Time Extension Criteria We hereby request a five year time extension to develop the subdivision and secure final subdivision approval. We are ready to meet this time requirement as the preliminary plans for the subdivision have been designed and are being reviewed by the county. Referring to the criteria stated in Ordinance 10-101 we submit the following: 1. That the non-performance is not due to negligence by the applicant. Since the passage of Ord 10-101 HICDC has completed: 19 self help homes in North Kohala— Kumakua Phase 2A and 213 58 self help home in Puna 30 self help homes in Pepeekeo 182 senior rentals in Hilo—Mohouli 1, 2, and 3 20 senior rental units in Papaaloa Currently a 100 family rental project is under construction in North Kona to be completed in October 2024. In addition, HICDC recently assisted Hope Services in developing the Sacred Hearts senior rental project in Pahoa, and the County of Hawaii Kukui'ola project in North Kona. While this was going on we were concerned about the economic outlook for residents in North Kohala given the impacts of the 2008-2009 Great Recession. We had significant issues qualifying applicants for the last two increments and were concerned about borrowing roughly$4 million in funds to construct the subdivision and having the risk of not being able to recruit enough low income households interested in self help housing who have sufficient credit to qualify for the required mortgage. Further, we have found that the overwhelming percentage of people