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HomeMy WebLinkAboutMIN GOREDC 2021/05/04 2020-2022 Committee on Governmental Operations, Relations, and Economic Development Stn Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawai i May 4, 2021 CALL TO The regular meeting of the Committee on Governmental Operations, Relations, ORDER: and Economic Development was called to order at 1:00 p.m., in the Council Chambers, Kailua-Kona, by Ms. Heather L. Kimball, Chair. ROLL CALL: Present: Ms. Heather L. Kimball, Chair Ms. Ashley L. Kierkiewicz, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Maile Medeiros David, Member Mr. Holeka Goro Inaba, Member Mr. Matt Kaneali`i-Kleinfelder, Member Ms. Susan L. K. Lee Loy, Member (came in later) Mr. Herbert M. "Tim" Richards, III, Member (came in later) Ms. Rebecca Villegas, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) CHR. KIMBALL: We'll move right into Communications. Can you read into the record, Comm. 216, Mr. Clerk? COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 216: REQUESTS AN UPDATE FROM THE 2018 KILAUEA ERUPTION RECOVERY TEAM REGARDING THE LAUNCH OF THE VOLUNTARY HOUSING BUYOUT PROGRAM From Council Member Ashley L. Kierkiewicz, dated April 14, 2021. GOREDC-8 May 4,2021 Motion to Approve: Ms. Kierkiewicz moved to close file on Comm. 216. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. KIMBALL: I believe we have Director Zendo Kern from the Planning Department and Douglas Le, also from Planning. (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Good afternoon, Madam Chair and Committee Members. Zendo Kern, Planning Director here. I'm here to mainly give a lot of positive praise at the end of the presentation. I'll turn the primary subsistence presentation over to Douglas Le in Hilo. I believe he has some slides. I contemplated giving praise at the beginning, but I think after he explains it, I'll get the praise at the end. MS. KIERKIEWICZ: Chair, if I could just tee-up the conversation? CHR. KIMBALL: Of course, Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. Last Friday, April 301h, you know, our recovery team launched the Voluntary Housing Buyout Program. This is the largest Federal grant our County has every received. It's a complex process that I think the recovery team has really simplified. And in the last couple of days, I think well over 100 individuals have applied to the program. I wanted to use this opportunity to make sure folks know that the program has been activated. And if there are any questions, or current questions that have been coming in, this would be an excellent forum to bring that up at this time. And because we are under the gun to provide a substantial amendment to the current action plan with the additional $21 million coming from the Federal Government, I wanted to make sure we have the data to date to kind of support and direct the direction of that amendment. So, thank you. CHR. KIMBALL: Thank you, Council Member. MR. KERN: Madam Chair? CHR. KIMBALL: Go ahead, Mr. Kern. MR. KERN: In the spirit of teeing it up, I'll frontload it. So part of the disaster recovery was the buyout program that you're all very aware of. When I came into this position, I've had the opportunity to work with Douglas and launching the buyout program was one of the top priorities. So a date of April 30'h was set. Page 2 GOREDC-8 May 4,2021 And in the spirit of kind of the same thinking of EnerGov, like we need to get this up, let's burn the ships at the shore, let's move forward. Even though it's an aggressive timeline, we decided to keep that timeline. The work that Douglas and his team has done from that time, specifically over the last two months, has been huge. I'm talking, you know, hiring a lot of staff, putting rules, policies, procedures; getting the space; coming to the questionnaire; there's so many components to it. And the diligence and the work that they had done is amazing. And the fact that we didn't have to push. They stood it up on the 30''. They started taking applications with was absolutelyI don't know, amazing. Under a lot of stress, under a lot of pressure, but they pulled it off. So I just wanted to give that praise. Really, really proud of the whole team, and Douglas has some really great information to update the committee with. Thank you. CHR. KIMBALL: Thank you, Director. Mr. Le you want to go ahead and thanks, excuse me. Take it over? (Note: At this time, Disaster Recovery Officer Douglas Le came forward to address the members of the Committee.) MR. LE: Disaster Recovery Officer, Douglas Le. You know, really thank you, Chair, for creating this time to be able to provide an update about the broader community about where we are with the Kilauea Housing Buyout Program. You know, I think we're coming together on I think a very important day. You know,just after our three-year anniversary from the beginning of the eruption. You know, I know that folks are going through a lot right now, both kind of still grappling with their own recovery efforts, a sense of, I think, losses folks experienced and anniversaries like this do bring that up. But, I think also, for those for whom this buyout program is a solution and is part of their recovery effort, you know, I think we're very proud to be able to stand this up for folks. Really one of the more concrete recovery solutions that the County has been able to initiate with the support of our partners and also really being driven by the direct kind of discussions we've had with impacted residents from the very beginning of the eruption. You know, I know that we came here together to provide an update on the Volunteer Housing Buyout Program. To really help inform that I'd like to kind of ground the conversation by providing an update on the Kilauea Housing Recovery Survey that we launched a couple months ago. Really the data is really indicating what demand could look like. Page 3 GOREDC-8 May 4,2021 The context that folks currently are living in, in terms of the access to resources and what is still outstanding that's impeding people's ability to recover and to kind of secure permanent housing. And it's also kind of providing a lot of direction of kind of where this really unique Federal resource through the Community Development Block Grant for the actual recovery could go. So, you know,just to ground us today, I'd like to cover some of the basic findings from the survey, and then how that has informed our roll out of the buyout program and some of our next steps. (Note: At this time, Douglas Le, provided a presentation to the members of the Committee. A copy of the presentation is made a part of the record, see Comm. 216.1.) MR. LE: So I acknowledge that that's a lot of numbers, but what does it actually mean in terms of our direction forward? This survey effort was a way to really understand where people are now, right, when we launched it was nearly three years after the eruption. The data indicates that there's still very strong demand for the buyout and an indication that much of the CDBGDR (Community Development Block Grant Disaster Recovery) funds that are available to the County to support recovery from the Kilauea eruption could be allocated towards meeting demand. But we're aren't solely relying on this survey data to really manage demand and understand who we could serve through the implementation of the program. And I'll get to that point in a little bit as well. What is so really key though, and I know this has really been an issue, we've kind of sought very specific clarity from the U.S. Department of Housing and Urban Development(HUD). And it is that, you know, based on the requirements associated with our funding in the Federal Register Notice, we must allocate these funds towards meeting our unmet housing recovery needs before these funds can be allocated towards otherwise eligible activities, like general disaster recovery services, infrastructure or economic revitalization. So in the way that we must continue prioritizing these funds in housing, you know, that it's very clear that the buyout program could really allocate the majority of funds that we have available to us. You know, Council Member Kierkiewicz spoke to, not only the $83 million we have currently available to us, but also the $23.7 million that HUD has allocated to the County of Hawaii. Page 4 GOREDC-8 May 4,2021 Our next step is to do a substantial amendment to the Action Plan to be able to receive that additional $23.7 million and to program it, right, to allocate those funds towards programs or projects. At this point in time, we are looking to allocate all the funds available to us through the substantial amendment in service of the buyout program. And really the demand, based on what we know from the surveys, is indicating in that direction. However, we are also looking at real program data, right? Really who applies, how many applicants can make it through the pipeline and monitoring, and really kind of taking stock of what that budget allocation looks like relative to real-time program performance, right? How many applications are in; how many are closing; what does the remaining balance look like? So I think this survey data, which is why I wanted to begin with it, is incredibly foundational and does kind of set very clear direction on where the demand is and what is possible. But I think it's also going to be important to monitor and you know, keep the community more broadly updated about what the performance of the program is. So I wanted to kind of share that in terms of what the survey is indicating to us in some of kind of the near term steps. We anticipate working on the substantial amendment to the Action Plan for the Community Development Block Grant funds over the next month, month-and-a-half. And essentially kicking off a public comment period ahead of our deadline to submit this draft of substantial amendment to HUD for their review and approval following public engagement in the public comment period, which we anticipate in June. So the heart of the matter for today, you know, as both Director Kern and Council Member Kierkiewicz spoke to, we were very excited to be able to come together to launch this buyout program on April 30th,just last Friday. You know, the program itself has already seen pretty significant demand. We've received over 100 applications for Phase 1, which encompasses primary homes. That application period started on April 30th and will run through July 31". We've also received, I believe more than two dozen registrations for those properties that would be eligible for the future phases. Essentially second homes, which are kind of eligible for applications starting November 1st through January 30th. And then even a number of undeveloped parcels, you know, for which applications will not be accepted until May 2nd Page 5 GOREDC-8 May 4,2021 And for applicants or folks who are considering this program, you know, please know that while we are accepting applications in this prioritization, and this phasing effort, you know, if you were eligible for Phase 1 as a primary home, and you were not able to kind of make the decision or get the application together by July 31": Folks from Phase 1 will have opportunities to apply during Phase 2 and during Phase 3; and same with Phase 2 and into Phase 3. You know, we're here to try to make this very complicated process as straight forward and kind of client-centered as best we can, with the amazing staff, we've been able to identify and kind of bring on board as well as clear information and communication of what people can expect. You know, I really want to point people to our website, recovery.hawaiicounty.gov to access information, not only about the Buyout Program, but also in terms of accessing the application form and instructions form that we created to help people navigate that document. And also, some background information, like a checklist of what people could prepare and what the process actually looks like from start to finish. You know, as I mentioned before, we have been meeting a lot of people who have been dropping off their applications the last couple of days. I think people are excited about what this solution could be for them in their recovery. I will say that, at this point in the process we are requesting an application form. Folks do not need to submit their title information, their ID (identification), any of the documentation that then supports the application just yet. We really want to use the application form as a tool to understand each applicant's situation and to specifically focus on the documents that we will need to kind of get their application to complete and then to move them forward in the queue. And really, that is why I'm making sure that folks are putting their time in to assemble the documents that we need from them. And then also, we can manage those documents in a secure and safe manner. You know, emailing that type of documentation is not something that we would want. And while we have launched the program to be reliant on our website to really get a lot of information, we have also been doing active mailing. And so, for example, for individuals who participated in the survey or been in touch with us about receiving paper information, we did a mailer on Friday the 30'h of April about the information that was coming and we've sent out already I think over 100 application forms for individuals who requested a paper application. So again, I think it's the same mindset of making this program as bearer-free as possible in terms of participation while also kind of thorough and accountable in terms of the expenditure of Federal Grant funds to deliver on this program. Page 6 GOREDC-8 May 4,2021 And really with the opportunity to stand up a program team. You know, our new Program Manager Julie Leialoha is here with me in the room. We have seven other staff on board and a couple other joining in June. You know, I think folks are really coming together to serve in this role because they have a passion for serving the community and supporting families that have—are still in recovery, right, and how this can be a solution for them. If you need assistance, if anyone in our community wants to know more about the program, has questions, you know, they can call us at 961-8996. We have an email address that our whole team is receiving for questions, for application submissions. And we've also opened up a Program Office here in Hilo across the street from the County building at 100 Pauahi Street, Suite No. 200, right above the American Savings Bank. And we are working on setting up a service location, you know, by appointment only, both in Pahoa, to actually be accessible to families. You know, many of whom we know stayed in Puna after they were displaced from their properties. And so I really appreciate the opportunity to kind of, not only to kind of update to this body, but to also share information for people to connect to this program. And you know, if you need assistance or you need questions answered, our staff is here to help. I think, as Director Kern mentioned, this program has been the priority for our team for the last several months, to be able to deliver an effective program and start serving folks. But in addition to acknowledging our staff team that's come together, I really want to acknowledge different arms of the Planning Department, DPW (Department of Public Works), DIT (Department of Information Technology), and every single division of Finance who's also contributed to the effort to make this possible. So, I'll pause there. Thank you. CHR. KIMBALL: Thank you so much, Mr. Le, for that very comprehensive overview. I will turn the floor back to you, Ms. Kierkiewicz, since you've kicked this off. MS. KIERKIEWICZ: Thank you, Chair. Mahalo, Douglas for that really comprehensive overview. And really,job well done. You know, we've stayed in touch throughout your duration in this capacity, and I know that you worked incredibly hard, especially over the last few months to pull together a really excellent team. I really appreciated the opportunity to connect with these folks and to know that they have experience in this arena or are connected to Puna. I just feel that they're going to be really able to connect with our community in a very empathetic and compassionate way. So really well done. Thank you. Page 7 GOREDC-8 May 4,2021 And I did want to offer, and I know I said this before, but just want to remind you we're reactivating the Pahoa Council Office. We've secured a couple of partnerships including a Neighborhood Watch Coordinator to be in the space. And so I do want to offer that up to you. Central location in downtown Pahoa, so you folks—if you find value in using that space, we can certainly accommodate requests to meet there. I have a few questions related to the program. I am wondering about documentation and if there are any issues with title. How long are you going to be giving folks to provide that information, resolve any of those issues before you make a determination that, "You know what, we need to move on." MR. LE: That's a great question. You know, I think for many of the properties that would be eligible for this program, I'd like to think that the title escrow process will be pretty straight forward, especially in the more established residential areas. But of course, knowing the history of our island and how things can become complicated, we know that there will be applicants that may face title issues. And so, we're weighing kind of, not only how any title escrow company we bring on board, can provide support and guidance and the research needed to navigate these complicated issues with potential applicants. We also know that sometimes attorneys may need to get involved to really get people to the finish line, right,to be able to move forward with the acquisition of property. And so talking to kind of legal service providers, attorneys in the community, about who might be prepared to receive those kind of referrals, you know, through a warm handoff with our staff. You know, we haven't really specifically called out the policy, as you framed it, how long we would wait for issues of title or probate to be resolved, but right now we are looking at something close to a year. A year is a lot of time in the program lens. But a year is not a lot of time in terms of resolving more complicated situations of title and those kinds of issues. And so that's the current thinking. You know, we want to start taking a hard look at how other County programs have dealt with that issue and what expected timelines could look like. We have personal experiences, right? Just from members of our team who've been through similar things. So you know, no less than a year, but then we really want to gauge if we need some additional time. For sure,the program itself, right, from the beginning of Phase 1 to the end of Phase 3 is a year-and-a-half course. And we know we'll need some time after that to really button up any pending acquisitions and also any grant close out. And that two-year timeframe roughly is within the six years we have to expend the grant. And so, I will say there is some flexibility to be able to be accommodating to applicants who may need more time to navigate the situation. But I think it's Page 8 GOREDC-8 May 4,2021 also important to say that, you know, in choices to extend time for title escrow issues, probate issues, that means that's encumbered funds with a clock on them, right,to be able to serve others or to even think about programing towards other housing-type programs. So I share that to say that that is the balance that, you know, we're going to have to be really monitoring on a quarterly basis at a minimum. And one of the benefits of actually approaching this program from a phased approach is that each pause, each application phase gives us an opportunity to take stock and actually take a hard look at these kind of questions in addition to just more standard questions like budget expenditures, and you know, workflows and pipelines of applicants so that we can plan the next steps accordingly with each phase. MS. KIERKIEWICZ: Okay, so just to summarize, about a year. I just want to make sure. I really appreciate all those details. You know, the question I ask is because there are as you say, six years to spend the funding. And you've established a very, I think a good cadence for how you want to, you know, phase out this program and offer it to different tiers of folks in the community. And I just appreciate you working at that accelerated pace but good to know that there is flexibility in accommodating, you know, helping folks with all their issues. Director, did you need to add anything, no, okay, great. Thank you. Couple more questions. I'm curious at what point in the process do we make the determination around what we are going to be doing with the properties that we acquire. We talk about ways in which we can steward the land, if there are, you know, potentials for some light agriculture. Just curious as to when we begin to have those conversations. MR. LE: Right. So, in planning for the program, we felt that it was going to be really critical to understand the properties themselves that are being acquired and what the pipeline looks like in order to really set down what future management could be. You know, we with some due diligence about how land is managed following buyout programs from other parts of the country but also best practices around how public/private partnerships have succeeded in terms of stewarding land and conserving open space here on our island, we know that we have some options, right, of what that could be. You know, directed to your question, we really want to have a clear sense of the properties that are coming our way. So it is, I think, probably well into Phase 3, because the undeveloped properties could have quite a number coming through. And, you know, whether it's a couple of houselots or, you know, five contiguous farm lots. You know,those present very different types of management opportunities. And so I think within the next, you know, 12 to 18 months is when that picture will become more clear. And, you know, really look forward to being able to engage the community in what that approach looks like for future management with the visibility on what the properties are. Page 9 GOREDC-8 May 4,2021 MS. KIERKIEWICZ: Great. Thank you. And I'm hoping that, you know, I just want to put out there, I do want to explore partnerships with say, Habitat for Humanity. I think there are going to be situations where we're buying properties that have homes that are still intact. And so if there are ways in which we can do waste diversion and find ways to take those liabilities and turn them into assets. I don't know if we can, you know, create new homes from them, but this is an opportunity for a raised community garden bedside. I don't know, but I do want to say that, you know, I have reached out to Habitat for Humanity to have that conversation. I think it's really important. And if there are ways in which we can encourage more workforce development with the deconstruction of some of these homes, let's talk about it. There's just so many opportunities that we can provide experiences to our community. You know, the final question I have is in relation to economic development. You know, when we've had conversations as Housing Agency, folks wanted to see some of this money programs for economic development. Can you speak at all to that? I know that we have other buckets of funding that we can tap to support economic development specifically, but in reviewing the slide deck, you know, you mentioned roughly $93 million being earmarked to resolve or respond to some of the folks that have indicated interest in the program. So there is sizable funding available. So I'm just curious, you know, do you foresee any of this being pivoted to support economic development initiatives. MR. LE: Sure. Happy to have worked with—kind of respond to that, but also I want to leave some space for Director Kern to chime in too. You know, specific to this funding with the U.S. Department of Housing and Urban Development, the requirements in our Federal Register Notice that covers our funds, it's just not our County, but also 2018 and 2019 grant recipients. It is very clear that we must address our housing unmet need prior to being able to program any of the HUD funds towards other otherwise eligible activities. And so, you know, the numbers break down in the Action Plan. We'll be updating the figures as well in the Substantial Amendment Plan, but the back envelope is this: You know, once we've identified our $269 million, kind of Housing need from this eruption, we've factored in any assistance folks may have received through FEMA, the volunteer organizations, we've factored in this HUD grant, and the remaining balance essentially, right, is $133 million. The one missing piece of the picture, which we've talked about a little earlier was getting precise clarity on insurance payments. Because insurance payments are a type of disaster assistance that can be factored in, in order to kind of resolve some of our unmet housing recovery need. Page 10 GOREDC-8 May 4,2021 You know, the survey was, I think a really good indicator of what we could expect, but it was voluntary kind of sharing information. It was survey level. It points to direction, but we're looking after kind of continuing to chasing down this information and get the full picture. What we do know about the whole picture, though, is that, you know, to resolve that $133 million worth of unmet housing recovery need following this HUD funding, and if we know that, you know, roughly 700 impacted properties had structures on them that could be insured, half of them had insurance, you know, insurance payouts need to be across-the-board, be averaging closer to $500,000 each this is my brain-math, we'll look at the actual numbers in a bit. And so we have concerns about even if we were able to get that full picture of direct insurance payouts, and folks are still getting paid out to this day. Just heard about some resolution of cases this week. We may never get to that$133 million that would resolve our housing unmet recovery needs, which would then enable us to kind of explore other types of programs with this funds, such as economic recovery. I think the infrastructure investments that are happening kind of with the FEMA funds, in terms of reinvestment of public infrastructure, support to our economy, and the revitalization of the area, I feel that, you know, some of the other grant funds through our Kilauea Recovery Grants, almost half of that funding did go towards agriculture and other kinds of economic operations to get setup again. I think there's real ways to still work in economic revitalization. I just want to be very clear on HUD's administration of these funds and what we are required to work through. And even within our discretion to program funds within eligible activities, like Housing. MS. KIERKIEWICZ: Great. Thanks for that clarification. Director, did you want to add anything? MR. KERN: Not a lot to add. Douglas did a really great job doing that. I think it's important to keep into account that we have the different funding mechanisms. And that economic recovery for Puna and Pahoa is very, very important. But the unmet housing needs through this funding source are going to be extremely challenged as Douglas laid out. MS. KIERKIEWICZ: Okay, thank you. Yeah, economic support, recovery, development, of Pahoa and Puna is, you know, critical. You know, yesterday we celebrated not celebrated, but we marked the third year anniversary of the eruption. Lava Zone Museum, they hosted a wonderful gathering of community to just mark where we are, and we're still strong and resilient. But the town certainly needs some help, so anyway in which we can tap some of those funding streams to support, you know, economic revitalization, you know, I'm a huge fan and I'm happy to help support. Page 11 GOREDC-8 May 4,2021 Thank you very much for your time and the information. I really appreciate it, how we've used data consistently throughout this this process to really inform how you've shaped the program. I think the application is very simple, which is not—you know, and I applaud you for that. I mean I think this government sometimes tend to overcomplicate. And so this was very refreshing. Thank you for that. And again, really appreciate the use of data in helping us to form our decisions and direct future investments. Keep us posted on how this progresses. Thank you. Chair, I yield. CHR. KIMBALL: Thank you. Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Thank you for being her today, gentlemen. Doug, thank you. Good job, as usual and on point. A question for you, what rules do we have to follow as our guidelines set forth by HUD as far as what happens when we purchase or we obtain the properties through the Voluntary Buyout Program? MR. LE: So specific to the management of these properties following the buyout, HUD has general guidelines and requirements. The most essential to those being that these properties must be maintained as open space moving forward. Oftentimes, that is worked through in a deed restriction as part of the acquisition of the property by the local government. You know, whether we rezone the property specifically, I think is kind of, to be explored. But it's really that mechanism of the deed restriction for the use of the property. In other disaster areas, like in floods, it is pretty clear that these properties after a buyout are often utilized to manage flooding. Whether that be kind of best management practices; kind of returning areas of wetland, building in culverts. And you know, there are specific really best practices, I would even go so far as requirements relative to flood control that govern what can and cannot happen on a property after it gets bought out. But that's when we're dealing with water. There aren't such specific level of best practice guidance or even requirements in our context, you know, following an eruption. And so, this is kind of uncharted territory in terms of how these specific Federal dollars under the Community Development Block Grant for disaster recovery can be applied. We can look to, you know, floodplain management practices as an equivalent, but I have examples where standard practice there just doesn't make sense in a lava context. I think long story short, though, we do have a lot of examples of how conservation areas in parts of our island have been managed effectively. And so we're also kind of taking a very deep exploration of what we can bring into the management of these acquisitions, these buyout properties, after they have changed hands for their future management. Page 12 GOREDC-8 May 4,2021 MR. KANEALI`I-KLEINFELDER: So it sounds like there's not a clear document for us to follow then? MR. LE: Yeah, not from HUD's perspectives. That would be much more clear in other realms of this program. MR. KANEALI`I-KLEINFELDER: So as we get further in, I mean, who do we have this discussion with, what we can or cannot do with the properties that are obtained from the buyout program. MR. LE: So there's definitely consultation with the local communities where these buyouts are occurring. I think other really important voices, of course, are you know, on the County side Property Management and Real Property Tax. This is their bread-and-butter work every day. And you know, for us we also anticipate doing some type of environmental review relative to the specific change of use, right, where these types of management practices could be further developed and kind of explored and a consensus built round them. And so, you know, I don't mean to say that everything's on the table, but I do think it's really important to focus in on, you know, where can we learn from, who needs to be at the table, and also what business practices, procedures, or really laws that we do have to consider in terms of mapping out what management looks like. I wish that things were as clear cut as they are in other types of contexts like flooding, but we aren't there. And you know, I think, the other partner who really needs to be consulted is HUD, because I think there's so much about our experience with this program that is unique and has kind of pushed their envelope a little bit too. MR. KANEALI`I-KLEINFELDER: Does anyone from HUD—have they understood and wrapped their heads around the lava aspect and the kind of unknown future of Puna? MR. LE: You know when, earlier before COVID, we did have opportunities for them to visit here as part of the technical assistance and kind of the early work to prepare for this program. We made sure that they did experience the eruption area and what the land is like now to help set that context. It's very different when you're just kind of talking about it. So we've created opportunity for them to see firsthand. Page 13 GOREDC-8 May 4,2021 MR. KANEALI`I-KLEINFELDER: Okay. We have a good point in contact over there? I mean, I'm looking down the line. If we acquire 200 properties and maybe, let's say it's 500 acres, you know, what then? There has to be some kind of guidance of what we can and cannot do as we walk into that? Obviously, we're not going in blind. So is there a document that we can refer to so we can understand what possibilities there may be within the guidelines? MR. LE: You know, as of today, what I can point to is how they address issues in flood context, for example. And so, even in some of our own building of this program, that has been helpful for our staff to look at and evaluate and really reflect on. But to point anyone to something specifically about our lava situation, the document doesn't exist, and based on the knowledge of the lands that are being identified for acquisition, and also the broader context of where these pieces of land are, we've really got to intentionally, build that rule book for us within the broader kind of context of consultation. MR. KANEALI`I-KLEINFELDER: Okay, so, kind of but not really? MR. LE: Examples, but nothing I can pull off the shelf today that indicates to us this is how it should go or needs to go. MR. KANEALI`I-KLEINFELDER: Okay, okay. I'd like a little more clarity on that so that I can understand what we're going to be doing with a variety of different sorts of property that may be obtained through the Voluntary Buyout Program. It's important for us to understand as we walk into the future. You know, overall though, this is a great opportunity. It's been coming for a long time. And thank you for your perseverance. I mean we're years in and families are still trying to figure out what to do and how to move on. So, mahalo for what you're doing and for your information today. Thank you, Sir. I yield, Chair, thank you. CHR. KIMBALL: Thank you. Any other questions from the body? Alright, with that I will thank Director Kern and you, Mr. Le, for your very comprehensive transparent and well-informed presentation. Certainly appreciate that you guys are kind of flying blind in some areas. This is a unique situation. There's not another State in the Country that has to solve this problem. So appreciate that you're pulling from resources that are available best you can, but there's a lot of this that you're going to have to just invent, and I appreciate that you're doing that with a good basis of information. Page 14 GOREDC-8 May 4,2021 Just wanted to do a quick highlight to something Council Member Kierkiewicz said with respect to looking for ways to recycle, reuse any of the facility buildings; facilities on these properties that we ultimately acquire. Thank you for bringing that up. You know, it's not something that I was thinking about, but yeah, let's divert that waste, let's reuse. Particularly now, I'm sure you all know that plywood has doubled in price and it's hard to get concrete these days. You know, we're just, I think, at the beginning of the shortage of a lot of building materials. So if we can reuse this, I think that's great. And certainly from my standpoint as a Council Member. And I hope my colleagues as well will put our thinking caps on and figure out how we can facilitate that. But I just want to thank you for highlighting that. Alright, oh I have another light on, Matt, go ahead. MR. KANEALI`I-KLEINFELDER: Thank you. One follow-up question, Doug. If I remember right,this is six years we had to fulfill the buyout program, is that correct? MR. LE: The grant funds, we have six years to expend. MR. KANEALI`I-KLEINFELDER: Six years to expend all the grant funds. The priority being Housing. So what, do we have to wait the full six years before you can start to look into doing other things? That was always the catching point before. MR. LE: Yeah, that's right. So these grant funds, and it's not easy to access everyone kind of within our class of grantees. We have six years to expend the funds. You know, whether you have $10 million like Kauai or dealing with billions of dollars like Puerto Rico, right? And for us, even though we know that we have that six-year window, we're actually centering more so the client-service aspect of a program like this. And so, that even two years to deliver a buyout program, especially perhaps for some of the property owners who are on the undeveloped side, for those parcels. It's more time. But our real focus and our real effort is to deliver on this program in order to meet the needs of the folks we're looking to serve. Regardless of the larger window of time we may have to spend the funds. Of course, if things pivot and new projects or programs kind of come online, you know, we will still have that time to deliver on that program. But it's, you know, not a bad thing to have a four-year cushion, essentially, right, with such a complex project and a complex funding source. MR. KANEALI`I-KLEINFELDER: Okay, so we have six years to spend and the Voluntary Buyout Program will last ? Page 15 GOREDC-8 May 4,2021 MR. LE: I'd say, 18 to 24 months based on what we kicked off last week. You know, that's accommodating the phasing and the time to actually close out those applications towards the end of the program. MR. KANEALI`I-KLEINFELDER: And then at the end of the two years, we can start to look at what to do with any extra funds that may be unused. MR. LE: Any remaining funds, that's right. I think the requirements and the limits of where those dollars can be programed are exactly the ones that I talked through today. That won't change in two years and that won't likely change at all in the next six years that we have to expend the funds. But if there are unexpended funds after this buyout program is completed, we can look at other kind of housing solutions. MR. KANEALI`I-KLEINFELDER: Okay, thank you, Sir. Thank you, Chair. CHR. KIMBALL: Council Member Kierkiewicz, you have another question? MS. KIERKIEWICZ: Thank you. Douglas, one more question. I know a component of this program is related to Housing Relocation Services. Could you just talk a little bit about that? You know, what does that entail, who qualifies, when is that program available to residents that are participating in the buyout program? MR. LE: Sure. No, thank you for suggesting that, actually. It's a point that I didn't get to earlier. So in addition to the Voluntary Housing Buyout Program, we have our Housing Relocation Services. The Housing Relocation Services are only eligible for low to moderate income households. However, they are eligible both for those who are participating in the buyout program, as well as other property owners or renters who were displaced by the eruption or otherwise directly impacted by the eruption but may not be wanting to go through the buyout program, right? I think that's an option. Essentially what the program offers is for an applicant who is looking to buy a new home as part of their recovery. At the time that they apply, they can receive up to ten percent, kind of down payment assistance essentially. And this is the mid-to-low-to-moderate-income households. And for folks who are looking for their next home to be a rental property. We can assist with essentially kind of two months of the lease rent, which operates as the security deposit, right, to be able to enter into a rental agreement. We know that can be a barrier for a lot of families, in general, but especially kind of are experiencing kind of recovery from the disaster event. Page 16 GOREDC-8 May 4,2021 And so, part of this is also a kind of a call out for families that were longtime renters and were displaced when the home that they were renting was covered by lava or isolated. This can be a resource for them, even though they may not be eligible for the buyout program, because they didn't own the property. And now that the buyout program is launched, we're looking to launch the relocation services as like a sibling to the buyout program in the next week or so. MS. KIERKIEWICZ: Great. Thank you so much for those details. I remember that program. I didn't hear you talk about it, so I wanted to make sure that you shared with folks that this is also another thing that your team is coordinating. Thank you. Chair, I yield. CHR. KIMBALL: Alright. I think we are all set here. Again, thank you both for being here today and thank you for your presentation. There's a motion on the floor to close file on Comm. 216. All of those in favor? Vote on Comm. 216: The motion to close file on Comm. 216 was carried by Filed the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Okay, thank you. ORDER OF The Chair directed the Committee to proceed to the next order of business, Order RESOLUTIONS: of Resolutions. (There were none.) BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. (There were none.) CHR. KIMBALL: Alright, I'll take a motion on adjournment. Page 17 GOREDC-8 May 4,2021 ADJOURN- There being no further business, at 1:52 p.m., Ms. David moved to adjourn the MENT: meeting. Seconded by Ms. Kierkiewicz and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: We are adjourned. Thank you. Approved: S (a Ms. eather L. Kim all, Chair (Date) overnment Operations, Relations, and Economic Development Committee HK/dt Page 18