HomeMy WebLinkAboutCOM 0560.000 2022-2024Mitchell D. Roth
Mayor
County of Hawaii
Finance Department
Deanna S. Sako
Director
Diane Nakagawa
Deputy Director
25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720 47"-,
(808) 961-8234 Fax (808) 961-8569
October 13, 2023
„r
Heather Kimball, Council Chair and
Members of the Hawaii County Council
Hawaii County Council:
25 Aupuni Street
Hilo, Hawaii 96720
Re: Provide Funds to Various Organizations to Provide Programs Addressing Affordable
Housing
On May 1, 2023, the Office of Housing and Community Development (OHCD) issued a Request
for Proposals ("RFP") to solicit qualified proposals to assist the County of Hawaii with carrying
out the affordable housing goals and priorities. The OHCD has reviewed the project proposals
and wishes to provide $17,324,559.46 in grants to various organizations to provide programs
addressing affordable housing.
Enclosed is a resolution authorizing the OHCD to provide $17,324,559.46 to these organizations,
pursuant to Hawaii County Code (2016 Edition as amended) Chapter 2, Article 25, Sections 2-
139(a)(3)(A) and 2-139(a)(3)(B). Also enclosed is a bill for an ordinance amending the FY
2023-24 Operating Budget by decreasing the appropriations in the Housing Production account
and appropriating the funds to the various program accounts.
If you have any questions, please do not hesitate to contact Susan Kunz or Royce Shiroma of the
Office of Housing and Community Development at 961-8379.
(a- �v
Deanna S. Sako
Director of Finance
Enc.
c: Housing Comm. No.
Hawaii County is an Equal Opportunity Provider and Employer 'Ref: Too
Ref:
mss.-
Form #: B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
Office of Housing & Community
DEPARTMENT: Development DATE: October 9, 2023
STAFF CONTACT: Susan Kunz/ Royce Shiroma PHONE: 808-961-8379
A. REQUEST:
Requesting a resolution Pursuant to Chapter 2, Article 25, Section 2-139(3)
(A) Grant awards in excess of $25,000 to nonprofit organizations shall specifically identify the organization
receiving the grant funds and the purpose for which the grant funds shall be used in an ordinance or
resolution.
(B) Grant awards in excess of $25,000 to organizations that do not qualify as nonprofit organizations shall
specifically identify the purpose for which the funds shall be used in an ordinance or resolution and be
subject to competition in compliance with chapter 103D of the Hawaii Revised Statutes.
Please see attached Exhibit A containing the fund recipients and purpose as specified in Chapter 2, Article
25, Section 2-139 (3)(A) and (B).
Please create separate account numbers for each project listed below and allocate the corresponding
awarded amounts to their respective accounts. The remaining balance will be designated for administrative
costs.
Kamakoa Nui LP - Construction
$
2,000,000
Mental Health Kokua - Property Acquisition
$
5,500,000
Hale o Hawaii County - Volcano Construction
$
300,000
Hale o Hawaii County - Hilo Construction
$
300,000
Ho'omalu at Waikoloa LP - Construction
$
3,000,000
OHCD - Infrastructure Development Kamakoa Nui
$
5,400,000
HICDC - Construction Mohouli
$
824,559.46
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
In June 2022, the County of Hawaii passed Ordinance 22-77, which appropriates at least $5,000,000 per
year for the OHCD to facilitate projects that support affordable housing production. This represents an
investment towards housing production appropriated directly from County funding. Prior to this direct
allocation, housing in the County relied solely on funding from the Federal and State governments, as well as
private grants and donations. The OHCD finds that appropriating the AHP funds reflects the County's
proactive approach to promoting Affordable Housing Production.
Following the passage of Ordinance 22-77, the OHCD conducted extensive research on affordable housing
programs and collaborated with other Counties to explore similar programs, leading to the process of
developing Administrative Rules and the establishment of an online application system for the Program.
The OHCD held two (2) public meetings on March 17, 2023, and March 20, 2023, to receive testimony
regarding the community's needs for affordable housing.
The Administrative Rules for the AHP Program, which outline the framework for its administration, were
formally approved by the Mayor and became effective on April 9, 2023.
On May 1, 2023, the OHCD issued a Request for Proposals (RFP) for a combined funding allocation of
$17,324,559.46 from two fiscal years, $9,000,000 from FY2022-23 and $9,000,000 from FY2023-24 in AHP
Program funds, with a deadline set for July 31, 2023. The intent was to solicit qualified proposals to assist
the County with carrying out the affordable housing goals and priorities set by the OHCD for.this round of
funding.
The project proposals were reviewed in accordance with the AHP Program Administrative Rules §3-4 Grant
Selection Process. The process involved utilizing a weighted scoring system and assessing how projects
aligned with the goals and priorities for this funding round.
Following the Mayor's final approval of the recommended projects, the OHCD awarded funds to the
applicants.
SIGNED: DATE:
Department Head
EXHIBIT A
County of Hawaii
FY2023-24 Affordable Housing Production (AHP) Program Projects
Organization
Project
Amount
Designation
Kamakoa Nui LP
New Construction: 140 -unit rental housing project.
$ 2,000,000
Other Org.
Mental Health Kokua
Property Acquisition: 72 market units to convert into
$ 5,500,000
Non -Profit
affordable workforce rentals.
Housing and Land Enterprise dba
New Construction: 1 single-family dwelling for -sale on
$ 300,000
Non -Profit
Hale o Hawaii County — (Land Trust) Volcano
leased land.
Housing and Land Enterprise dba
New Construction: 1 single-family dwelling for -sale on
$ 300,000
Non -Profit
Hale o Hawaii County — (Land Trust) Hilo
leased land.
Ho`omalu at Waikoloa LP
New Construction: 229 -unit rental housing project.
$ 3,000,000
Other Org.
Office of Housing and Community Development
Infrastructure Development: To make 643 units,
Community Development Division
including 318 rental and 325 for -sale units, accessible
$ 5,400,000
Other Org.
for future construction.
Hawaii Island Community Development
Corporation
New Construction: 90 -unit rental housing project.
$ 824,559.46
Non -Profit
Total Amount Funded:
$ 17,324,559.46