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

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process. This process has been used to complete more than 300 homes on the Big Island, including 44 in the first 2 phases of this project. In 2010, the applicant successfully rezoned the subject properties to develop Phase 3 of the project consisting of an additional 32, minimum 10,000-square-foot house lots, one 8.12-acre bulk lot, a road lot, and related infrastructure. However, the applicant became concerned about the economic outlook of North Kohala residents given the impacts of the 2008-2009 great recession and had significant difficulty recruiting applicants who were interested in self help housing in North Kohala and who met the income and credit requirements to qualify for the required mortgage. This made the applicant reticent to borrow the $4 million in funds to construct Phase 3 of the project. However, given the passage of time and the post-pandemic economic recovery, those concerns have receded, and the applicant has the financing lined up to proceed with the subdivision, as is evidenced by the fact that the applicant has already prepared and submitted a subdivision application in 2023, but was informed that the time to secure Final Subdivision Approval had expired. Moreover, since the rezoning was approved in 2010, the applicant, which is a non-profit, affordable housing development organization, has successfully developed several self help housing projects (88 units) and senior rental housing projects (202 units island wide), with an additional 100-unit family rental project under construction to be complete in October 2024. While the applicant is only requesting a 5-year time extension, the Planning Director recommends providing a 10-year time extension to accommodate any unanticipated complications in finalizing the proposed subdivision that may occur and to ensure that this sorely needed affordable housing is provided in North Kohala. Conditions of approval will require the applicant to develop the self help housing as represented and in conformance with an executed affordable housing agreement with the Office of Housing and Community Development. Based on the reasons provided it is determined that the applicant could not have foreseen the conditions which were beyond their control and were not the result of their fault or negligence. -2-