HomeMy WebLinkAboutRES 611 Draft 01 2022-2024A 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 HAWAIʻI 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 Hawaiʻi 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 Hawai‘i, 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 Hawaiʻi County, dba: Hale O Hawaiʻi (hereinafter “Hale O Hawai‘i”) is
a non-profit organization with experience in the development of affordable housing for low and moderate income households; and
WHEREAS, the County of Hawai‘i 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), Hawaiʻi County Code, as amended, provides that the Hawai‘i 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
WHEREAS, Hawai‘i County Code Article 19, section 2-120(b) provides such lease of real property to a non-profit organization may be made without notice or appraisal; now therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I, that pursuant to Hawaiʻi County Code Chapter 2, Article 9, Section 2-120(a)(2), the Director of Finance is hereby authorized
to negotiate a multi-year lease (with renewal options for additional terms) with Housing and Land Enterprise of Hawaiʻi County, dba: Hale O Hawaiʻi, a non-profit organization, without
notice or appraisal, located at 55-3419 Akoni Pule Highway, PO Box 198900, PMS 332, Hawi, HI 96719 identified as Tax Map Keys (3) 2-4-051:094.
BE IT FURTHER RESOLVED, that the Mayor of the County of Hawai‘i or his duly authorized representative is hereby authorized to execute the lease agreement on behalf of the County of
Hawaiʻi following its approval by the Council as noted herein.
BE IT FINALLY RESOLVED, that the County Clerk shall transmit a copy of this resolution to the Office of Management, the Department of Finance, the Office of Housing and Community Development,
and Housing and Land Enterprise of Hawaiʻi County, dba: Hale O Hawaiʻi.
Dated at _____________, Hawai‘i, this ______ day of ___________________, 2024.
INTRODUCED BY:
_______________________________________
COUNCIL MEMBER, COUNTY OF HAWAI‘I
COUNTY COUNCIL
County of Hawai‘i
Hilo, Hawai‘i
ROLL CALL VOTE
AYES
NOES
ABS
EX
EVANS
GALIMBA
I hereby certify that the foregoing RESOLUTION was by
the vote indicated to the right hereof adopted by the COUNCIL of the
County of Hawai‘i on _____________________________________.
INABA
KAGIWADA
KANEALI‘I-KLEINFELDER
KIERKIEWICZ
ATTEST:
KIMBALL
LEE ROY
VILLEGAS
Reference:
COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER
RESOLUTION NO.