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COUNTY OF HAWAI`I RESOLUTION NO. ° 1 A RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE TO NEGOTIATE A SIXTY-FIVE (65) YEAR LEASE WITH THE HOUSING AND LAND ENTERPRISE OF HAWAI`I COUNTY, DBA: HALE O HAWAI`I FOR THE PURPOSES OF DEVELOPMENT AND CONSTRUCTION OF A BELOW MARKET RATE SINGLE- FAMILY HOME ON TAX MAP KEY (3) 2-4-051:094 FOR A COMMUNITY LAND TRUST PROGRAM AT A SET LEASE AMOUNT OF $10.00 PER YEAR. WHEREAS, on November 9, 2022, the State of Hawaii by way of Executive Order 4686 set aside a 10,125 square feet (0.2324 acres) parcel, situtated on Tax Map Key (3) 2-4- 051:094 for the purpose of affordable housing and related purposes to the County of Hawaii, through its Office of Housing and Commuity Development; and WHEREAS, State land under Executive Orders cannot be sold and are restricted to maximum lease terms of 65 years; and WHEREAS, Section 171-11, Hawaii Revised Statutes, as amended, provides the County the power to issue leases for the stated purpose in accordance with the Executive Order; and WHEREAS, the typical community land trust transaction involves land that is held in fee by the community land trust with a sale of the improvements to a qualified purchaser and an underlying 99-year ground lease that will ensure that the affordability status of the project is maintained during that entire term; and WHEREAS, the Office of Housing and Community Development has determined that the Housing and Land Enterprise of Hawaii County, dba: Hale O Hawai`i (hereinafter "Hale O Hawaii") is a non-profit organization with experience in the development of affordable housing for low and moderate income households; and WHEREAS, the County of Hawaii through its Office of Housing and Community Development proposes to partner with Hale O Hawai`i in a project to enter into a sixty-five (65) year ground lease with Hale O Hawai`i who will finance and construct a below market rate home that will be sold by Hale O Hawai`i to an eligible purchaser with an underlying ground sublease, any subsequent resale of the affordable home will be subject to affordability restrictions; and WHEREAS, Chapter 2, Article 19, Section 2-120(a)(2), Hawaii County Code, as amended, provides that the Hawaii County Council may, by resolution approved by a majority of members, direct the Finance Director to negotiate the disposition of real property by leasing it to a non-profit organization, at such rentals and on such terms and conditions as deemed proper; and