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HomeMy WebLinkAboutCOM 0068.001 2024-2026C. Kimo Alameda, Ph.D. Mayor William V. Brilhante, Jr. Managing Director Merrick Nishimoto Deputy Managing Director Kehaulani M. Costa Housing Administrator Keiko M. Mercado Assistant Housing Administrator County of Hawaii Office of Housing and Community Development 1990 Kino`ole Street, Suite 102 • Hilo, Hawaii 96720 - (808) 961-8379 • Fax (808) 961-8685 Existing Housing: (808) 959-4642 • Fax (808) 959-9308 Kona: (808) 323-4300 • Fax (808) 323-4301 December 30, 2024 Via hand -deliver(: Dr. Holeka G. Inaba, Council Chair and Members of the Hawaii County Council 25 Aupuni Street, Suite 1402 - Hilo, Hawaii 96720 - SUBJECT FINANCE COMMITTEE: JANUARY 7, 2025 COUNTY OF HAWAI`l OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT GRANT AWARDS Dear Chair, Inaba and Members of the Hawaii County Council, The Office of Housing and Community Development (OHCD) has prepared additional information to support the discussion on the resolution for County grant awards derived from the Affordable Housing Production (AHP) Fund during your upcoming finance committee meeting on January 7, 2025. OHCD confirms that, in accordance with Chapter 2, Article 25 of the Hawaii County Code, all organizations awarded funding have met the necessary criteria to comply with County regulations. This includes, but is not limited to, meeting the thresholds outlined in Exhibit D — Proposal Guide (Pages 15-17) and submitting a conflict of interest disclosure statement. These requirements must be met at a minimum for an organization to be eligible for scoring and be considered for funding. Enclosed is the following packet for your review: Exhibit A: Timeline Provides an overview of the AHP Program process and key milestones to date. Exhibit B: Annual Plan In accordance with AHP Program Administrative Rules § 2-1, the OHCD has prepared the FY2024-25 AHP Program Annual Plan. This document is submitted for reporting purposes and details the use of program funds. 1079zib Comm. No. Ref. To-P IIF� _ Ref. gut - � OPPORTUNITY Finance Committee January 7, 2024-OHCD December 50.2O24 Page Exhibit C: List of Proposals Provides anoverview nfall project proposals submitted. Exhibit E: Proposal Guide The Proposal Guide outlines the requirements for the specific funding round. Exhibit D:Administrative Rules The Administrative Rules establish the framework for administering the AHP Program. Should the committee require further clarification or supporting documentation, OHCD is prepared to provide additional materials or address specific inquiries during the meeting. For further assistance, please feel free to contact our office at 808-961-8379. Kehaulani M. Costa Housing Administrator Enclosures , EXHIBIT A - TIMELINE COUNTY OF HAWAII OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT FY2024-25 AFFORDABLEV HOUSING PRODUCTION .JANUARY YAHPIPROGRAM — OHCD initiated the amendment process for IME ISE the AHP Program Administrative Rules. FEBRUARY 14,—MARCH 15,2024 • Public comment period opened for the proposed amendments to the rules. MARCH 2024 41 OHCD held: - I Public Hearing to gather community input and testimony on the proposed amendments to the rule,. 41 APRIL 2024 a 2 Public Meetings to hear the community's OHCD posted the final Amended AHP input on affordable housing needs. Program Administrative Rules. MAY 2024 a The Request for Proposals(RFP)for the AHP Program funds was issued on May 1,2024. ® 2 Informational Meetings were held to JULY2024 discuss AHP Program Requirements,RFP Proposals for the AHP Program were due to process and provide assistance for OHCD by 4:30 PM HST on July 1,2024. interested applicants. JULY—SEPTEMBER 2024 • The OHCD reviewed,ranked,and rated eligible proposals,followed by a recommendation of projects to the Housing Administrator SEPTEMBER 2024 Mayor's Final Approval -r- EQUAL HOUSING OPPORTUNITY EXHIBIT B - ANNUAL FLAN r AFFORDABLE HOUSING PRODUCTION (AHP) PROGRAM FY2024-25 ANNUAL PLAN County of Hawaii Office of Housing and Community Development 1990 Kino`ole Street, Suite 102 Hilo, Hawaii 96720 Phone: 808-961-8379 EXECUTIVE SUMMARY Funding for the Affordable Housing Production(AHP)Program iomade possible through Ordinance 22-77.which appropriates o(least$5.00U.00Oper year for the Office ofHousing and Community Development(OHCD)to facilitate programs that support affordable housing production inthe County ofHowoi'i(County). The purpose the Annual Plan is to outline the use of program funds, in compliance with Section 82-1 ofthe AHP Program Administrative Rules. In January 2024,OHCD initiated the process to amend the AHP Program Administrative Rules to enhance the program's overall effectiveness. The public comment period for the proposed amendments ran from February 14 to March 15,2024,followed by a public hearing held in March 2024 to gather input and testimony on the proposed changes.After the hearing, OHCD finalized and published the amended rules inApril 2024. Additionally, UHCD held two public meetings in March 0ogather community feedback on the County's affordable housing needs. Key input from these meetings highlighted the need for: " Homeownership Initiatives ° Workforce Housing Development " Addressing Gap Group Needs " Infrastructure development to support housing construction Based oncommunity feedback and various affordable housing studies, OHCDestablished the AHP Program Goals and Priorities for FY2O24'25a»follows: Background Supporting, increasing, and sustaining affordable rental and owner-occupied housing production in the County is the primary goal of the AHP Program.While the County is committed to fostering housing solutions that are affordable and accessible toindividuals across all income brackets, it has designated specific priorities for this funding round. For the FY2024-25 funding cycle the AHP Program will prioritize projects that serve households earning between 81%and 140%of the Area Median Income(AMI), commonly referred to as the "Gap Group."This group represents moderate-income individuals who often don't qualify for many existing assistance programs due to their income levels yet still struggle to afford market-rate housing, Below this AMI threshold, substantial government support is already in place, including: ° Available programs and assistance include homeless assistance gnonia, hnmo|aos prevention 000istanoe. Emergency Solutions Grants (EGG). and Housing Trust Fund (HTF). ° Available pmgmma and assistance include the Low-income Housing Tax Credito (L|MTC). HOME Investment Partnership Program (HOME), and Hula K0ao Mu|ti- Fami|y(HMk8F). n202+ ^AHP PROGRAM ANNUAL PLAN ° Available programs and assistance include Project-Based Vouchers (PBV). the Community Development Block Grant (CDBG). the Rental Housing Revolving Fund (RHRF), Housing Choice Vouchers(HCV),the Hawai'i Public Housing Authority(HPHA), and various other initiatives by the Department ofHousing and Urban Development(HUD), such aeclosing cost and down payment assistance. FY2V24-25Goals and Priorities: 1 To prioritize the Gap Group: Prioritize projects that serve households earning between 81% and 140% nfthe AMI. The focus aims to expand traditionally subsidized pn4ecta, typically targeted atAK0|sbelow 0OY6.toinclude units uptu14096AMI.This approach aims 1obroaden housing opportunities for the gap group by leveraging AHP Program funds to bridge the affordability gap. 2. Homeownership Initiatives: Prioritize homeownership initiatives such eofor-sale houoing, down payment assistance and rent-to-own models, specifically catering to the workforce and families within the 8114V96AMI bracket.This approach not only helps inbuilding community stability but also promotes wealth accumulation among residents who are typically first-time buyers. 3. New Construction and Adaptive Reuse: Prioritize new construction and adaptive reuse projects to address demand for both new construction and adaptive reuse solutions.Adaptive reuse, which involves transforming existing buildings into residential spaces, is a practical approach to addressing the housing shortage while constructing new homes is essential to meet the diverse needs ofgrowing populations. After incorporating these priorities into the Request for Proposals (RFP). OHCD issued the RFP for the AHP Program funds on May 1,with a submission deadline of July 1,2024, at 4:30 HST In May, OHCD also held two informational meetings to review AHP Program requirements, outline the RFP process, and assist interested applicants. OHCD received 13 proposals totaling approximately $48 million in funding requests. Each proposal was reviewed in accordance with the AHP Program Administrative Rules and the FY2O24'25AHPProgram Proposal Guide. u *ooz4-2nAHP PROGRAM ANNUAL PLAN z o t j N tom, ao to 0- p ¢ p z A a LL _ LO �? lLLL C4 (0 CO � C) iris Q O ' O o o o LO 0_ U o o \ O o O 0_ COLI OO Q Q C0 C7 00 d' a pop N a M M N .... o o N } 00 CL O O O O O w 6 O O O O O O 2 z o 0 o ui to ao ul N Cl N Oro N 0 N > Q M L6 �Y } P O O S c Q uj W O10 O CD CD: O, Q _I z O O O q m X Cl 0 tLO O m o t/1 W c c c y Q O..O u') �P M@ co V "='F N.9 N .2 N o N Ncr� L6 '.. O - „Q Q ffl ffl 4st cfi} to ts� a c°' Wj q N N N N Q H Q c ci @ Wy cc Cao occ a c m i U 0 0 - tL O .SZ o m d � LL 4 L _ LL W O Q ° 0 3 c cu > CL y a ° W o c au) D a) E O' G.. o 7 U co O d W c v W Q a w An 06 a n m c ny > cu u o � Oa s c ac � � '� O 10- O E O G�.F�- ZU QCL C ILQ c I- cc U -o N o m W c N O Q � �.. U o z �_ c v) fl O m o 0 4 C. F LL N .O U cu .`n c n- i w Q � c � c > a) � o c' r� o 'Ili a) °c a m o o n O mo � 'm� magi 0 -6 CL = � � a eco O o - O CIL X W Q 2 2 S c c CL 4) w CL O 7 d N N ar > > m Q O f4 p) O p a) rn m ro o N '.. m LL _Q C� C) E c N N in in Z ._ O cam_ CN CIJc c Q 'CS — .� o �.O m ;N 04 E a EE v" O �a cY6O U > `� Uas�' v �,LL LL a U) as o _ � Ya ODOOwM PROJECT LOCATIONS MAP IMINANI SUBDIVISION I HALE OLA 0 MOHOULI tit na lk �. Nna District n RESIDENTIAL REPAIR PROGRAM (ISLAND-WIDE) N� KUAKINI FAMILY AFFORDABLE-1] 4 FY2024-25 AHP PROGRAM ANNUAL PLAN HALE OLA O MOHOULI Applicant: Hawaii Island Community Development Corporation (HICDC)dba Hale Ola O Mohouli LLLP Total Requested: $3,200,000 Total Awarded: $3,200,000 Hilo,TMK: (3)2-4-001.168 Location: Located on Mohouli Street in the direction of Kaumana Dr, right before the intersection with Kukuau Street Land Tenure: State land conveyed to the County through an executive order and leased to a developer Project Type: New Construction(Anticipated Start of Unit Construction: Q3 2025) Housing Type: Multi-Family Rental Length of Affordability: 60 years* 12 Units @ 30%Area Median Income(AMI) 38 Units @ 50%AMI Affordability 40 Units @ 60%AMI Restrictions: 1 Manager Unit ------------------------------------------------------------------------------------------ Total: 91 Units* *Project details have been adjusted from the initial plan to reflect recent changes in the affordability period and units. Hale Ola O Mohouli LLLP has requested$3.2 million in AHP Program funds for a 91-unit housing development project serving families and the elderly.The project will consist of 32 one-bedroom units, 58 two-bedroom units, and a manager's unit, aligning with the AHP Program's goal of increasing affordable housing supply through new construction. The development has already secured key approvals, including 201 H and environmental compliance. Funding sources include HOME Investment Partnerships Program, Housing Trust Fund, FY2023-24 AHP Program funds, and Project-Based Vouchers.Additionally, the project is in the process of applying funding from the Hawai'i Housing Finance and Development Corporation. The applicant, HICDC, doing business as Hale Ola O Mohouli LLLP, has a strong track record with similar and comparable projects, including the 99-unit Kauhale I Ke Kula Uka (formerly known as the Kaloko Heights project)in Kona. Projected Use of Program Funds: Activity Amount Construction $3,200,000 Total: $3,200,000 5 FY2024-25 AHP PROGRAM ANNUAL PLAN KUAKINI FAMILY AFFORDABLE 1 Applicant: GSF LLC dba Kuakini Family Affordable I LP Total Requested: $5,000,000 Total Awarded: $5,000,000 Kona,TMK. (3)7-5-017:005 Location: Located on Kuakini Hwy in the direction of Kailua-Kona, right before the intersection with Walua Rd and Oni Oni St Land Tenure: Pending Acquisition Project Type: Acquisition and Planning&Design (Anticipated Start of Unit Construction: Q1 2026) Housing Type: Multi-Family Rental Length of Affordability: 61 years 3 Units @ 30%Area Median Income(AMI) Affordability 44 Units @ 60%AMI Restrictions: 1 Manager Unit ------------------------------------------------------------------------------------------ Total: 48 Units Kuakini Family Affordable 1 LP has requested$5 million in AHP Program funds to acquire property for a 48-unit housing development project. The project will consist of 10 one-bedroom, 25 two- bedroom, and 12 three-bedroom units, along with a manager's unit, aligning with the AHP Program's goal of increasing affordable housing supply through new construction. Key pre- acquisition activities,including a Phase 1 Environmental Assessment and an appraisal,have been completed. Future plans include seeking funding from the Hawaii Housing Finance and Development Corporation for the construction phase.The applicant,GSF LLC,doing business as Kuakini Family Affordable 1 LP, has a proven track record with similar and comparable developments, including the 110-unit Waikoloa Family Affordable project in Waikoloa Village. Projected Use of Program Funds: Activity Amount Land Acquisition $2,470,000 Planning and Design $2,530,000 Total: $5,000,000 6 FY2024-25 AHP PROGRAM ANNUAL PLAN KAIMINANI SUBDIVISION Applicant: OHCD Community Development Division Total Requested: $4,200,000 Total Awarded: $4,200,000 Kona,TMK(3)7-3-010:056 and(3)7-3-010:061 (portion of) Location: Located on Kaiminani Drive in the direction of Queen Ka`ahumanu Hwy, right before the intersection with Ane Keohokalole Hwy Land Tenure: State land conveyed to the County through an executive order Project Type: Infrastructure(Anticipated Start of Unit Construction: Q1 2027) Housing Type: Single-Family For-Sale(leasehold) Length of Affordability: 65 years Affordability 25 Units @ 80-140%Area Median Income(AMI) ------------------------------------------------------------------------------------------ Restrictions: Total: 25 Units The OHCD Community Development Division requested $4.2 million in AHP Program funds for an infrastructure development project to prepare land for 25 affordable single-family homes,to be sold under leasehold to workforce households.This project aligns with the AHP Program's goals of increasing affordable housing supply through new construction, supporting homeownership initiatives, and addressing the housing needs of the gap group. The project has successfully selected a professional services provider for planning and land preparation, with the Executive Order nearly finalized and plans to utilize capital improvement and county housing revolving funds.As a specialized division within OHCD,the applicant focuses on implementing community development projects, including the completion of 91 single-family homes in Kamakoa Nui and the ongoing Kamakoa Nui Workforce Housing-Mini Loop Road and Infrastructure Development, which will prepare land in Waikoloa for the development of 643 housing units. Projected Use of Program Funds: Activity Amount Infrastructure $4,200,000 Total: $4,200,000 7 FY2024-25 ANP PROGRAM ANNUAL PLAN RESIDENTIAL REPAIR PROGRAM Applicant: OHCD Community Engagement Division Total Requested: $875,000 Total Awarded: $875,000 Location: Island-Wide Land Tenure: Fee simple Project Type: Financial Program (Anticipated Start of Unit Rehabilitation: Q3 2025) Housing Type: Owner-occupied properties Length of Affordability: 10 years minimum Affordability 17 Units @ 80%or below Area Median Income(AMI) ------------------------------------------------------------------------------------------ Restrictions: Total: 17 Units The OHCD Community Engagement Division requested $875,000 in AHP Program funds for the Residential Repair Program, which aims to provide financial assistance to approximately 17 homeowners through low-interest loans that may convert to grants based on affordability requirements. These funds will support essential repairs to ensure safe and sanitary housing conditions, aligning with the AHP Program's goal of supporting homeownership initiatives. The applicant, a specialized division within OHCD focuses on community engagement and homelessness prevention, has successfully provided approximately 35 loans across the island, with the most recent repairs to property located in Ocean View, replacing the roof and addressing termite issues to ensure safe housing for the low-income homeowner. Currently,27 homeowners are on the waitlist for assistance. Projected Use of Program Funds: Activity Amount 17 Loans $50,000 each Subtotal: $850,000 Inspection Costs $25,000 Total: $875,000 8 FY2024-25 AHP PROGRAM ANNUAL PLAN EXHIBIT C --- LIST OF PROPOSALS FY2024-25 AFFORDABLE HOUSING PRODUCTION (AHP) PROGRAM PROJECT PROPOSALS FUNDS AVAILABLE SUMMARY FY2024-25 Appropriation $ 9,000,000.00 Total Proposals Received: 13 FY2023-24 Reappropriation $ 5,500,000.00 Total Amount Requested: $48,532,660.00 Total Appropriation: $ 14,500,000.00 FY2024-25 Administrative Exp. $ (520,000.00) Total Funds Available: $13,980,000.00 FY2024-25 Set-Aside N/A Awarded: $13,275,000.00 Total Funds Available: $ 13,980,000.00 Remaining Funds: $705,000.00 Action for Remaining Funds: Carry over to the next funding CVCle. RANK ORGANIZATION PROJECT NAME AMOUNT REQUESTED AMOUNT RECCOMENDED ACTNmES (OCCUPANCY UNIT TYPE AFFORDABILITY UNITS AMI LOCATION 1 Hale Ola 0 Mohouli LLLP Hale Ola 0 Mohouli $ 3,200,000.00 $ 3,200,000.00 New Construction Rental Multi-Family 60 years 91* 30-60% Hilo 2 Kuakini Family I LP Kuakini Family Affordable I $ 5,000,000.00 $ 5,000,000.00 Property Acquisition Rental Muhl-Family 61 years 48* 30-60% Kona Planning 8 Design 3 OHCD Kaiminani Subdivision $ 4,200,000.00 $ 4,200,000.00 Infrastructure Leasehold Single-Family 65 years 25 80-140% Kona (Community Development) 4 OHCD Residential Repair Program $ 875,000.00 $ 875,000.00 Financial Program Owner-Occupied Varies 10 years 17 Up to 80% Varies (Community Engagement) 5 Hope Services Hawaii INC HOPE Housing $ 1,000,000.00 Property Acquisition Rental Multi-Family 20 years 29 30-80% Honokaa Rehabilitation 6 Hawi Nani,LLC Hawi Nani $ 500,000.00 Infrastructure For-Sale Finished Lots 10 yearn 0 100% Have 7 Makamae Holdings LLC Renovation of Haiti Sl. $ 928,000.00 Rehabilitation Rental Multi-Family 20 years 39 50-120% Hilo Affordable Housing Units Property Acquisition 8 87-188 Farrington Hwy LLC Makana Heights $ 9,505,286.00 Planning 8 Design For-Sale Single-Family 10 years 29 140% Kona Infrastructure New Construction 9 Sakoda Rock Holdings LLC Adaptive Reuse of $ 985,000.00 Rehabilitation Rental SRO 20 years 20* 30% Hilo 49-55 Kilauea Avenue 10 Kakou Developments LLC Aloha Estate $ 8,626,624.00 Planning&Design Rent to Own Single-Family 20 110 years 32 100% Mt.View New 32 Home Development New Construction 11 RC2 Hawaii Kahi Loa $ 4,400,000.00 Property Acquisition For-Sale Multi-Family 10 years 43 140% Kealakekua New Consruction 12 Men of PAA Men of PA'A- $ 812,750.00 Property Acquisition Rental SRO - 2 50% - Hale Kanaka 0 Puna 13 Smart Pay Network Global Inc C-Class Residence $ 8,500,000.00 Property Acquisition Rental Multi-Family 20 years 25 60% Oahu Smart Home Financial Program Totals: $ 48,532,660.00 $ 13,275,000.00 *Including 1 Managers Unit Awarded Not Awarded: $ 36,257,660.00 Not Awarded Disqualified EXHIBIT D PROPOSAL. GUIDE 1 / f ., AFFORDABLE HOUSING PRODUCTION (AHP) PROGRAM FY2024 - 25 PROPOSAL GUIDE County of Hawaii Office of Housing and Community Development 1990 Kino`ole Street,Suite 102 Hilo, Hawaii 96720 Phone: 808-961-8379 Email: ohcd,ahp hawaiicounty,Qov Amended 5114/2024 This Page Intentionally Left Blank OmEo�� x���m��U��� Starting May 1,2024,the County of Hawai'i,through its Office of Housing and Community Development(OHCD),will accept proposals for the Affordable Housing Production(AHP) Program from eligible non-profit and for-profit organizationu, public agencieo, and community land trusts. These proposals shall mddnaaa the program's objectives to support, increase, and sustain affordable rental and owner-occupied housing production in the county in alignment with the AHP Program Administrative Rules. The information provided in the proposal will be used by the OHCO to make a recommendation tnthe Hawai'iCounty Mayor for final approval. Proposals will be accepted electronically through the online application platform and must bereceived unorbefore: 4:3DPMHawai'iStandard Time (HST)onJuly 1, 2O24. ° Proposals submitted after the deadline will not beconsidered. ° Proposals will beaccepted through ononline application platform only: ° Emailed orhard copies will not beaccepted. Organizations considering proposal submissions are highly encouraged to attend one of the virtual informational meetings. These meetings will provide further insights into the program, submission process, and will be conducted via Zoom on the following dates. Informational Meeting#1 Informational Meeting#2 May 9,2024'at 9:80 am May 17' 2O24. at1:WBpnm To register, visit: To register, visit: _ _ This Page Intentionally Left Blank CONTENTS 1.PURPOSE AND DEFINITIONS....................-- ....... .......— ................ -----........................—.... � 1.1purpose—........... ................................... --.........----..... — ..................................— ................1 1.zDefinitions.......... ......................---................ ....... ...---..... .....................................--- .........1 2.pv2024-25 FUNDING CYCLE......... ....... ... ....................... .............. ..... — ... ..............-----......a n.1Tmenme--......—.... ................ ............ ... ................... ........... ......... .............. ........... .......---'z 2.2 Funmng—.............................. ....— ....... ...........---......— ... ...................................... —.......... .......u 2.aIncome Limits.......... ............—........... ...... ...................................... ........... ....... ........... ... ..........» zoMaximum Subsidy GuidoUmes—............. ....... ........................................... --- ................. ...........» 2.oAffordability Period................. ..... ..........---...— ............ — ............................---............. ........ 4 2.0Goals and prinnoes— --- ................ .......... — ................................—.....---..........---...............« 2.7Compliance with Applicable Regulations............... ......................... ............................ ... ..............s 3.PROPOSAL... ...................... ...... ... ........................-------........... ... .... ..............................--u a.1Table mContents.....................--................. ... — ...................................... ...... —................ —'n a.zOrganization Information...— ................ ................ ............ ...... ......... ............. ................ --- .....r o.aApplicant Experience.......... —............................... .......----.................. — ................................. u a*Project Gvmmary--.................................----.................... --- ..................... ...---............ e aoNeed and Sustainability................................... ....... ..............................................—.............. ... m asSite Information............... ...... ................. -----.................................--- ............. --........ 11 3./Environmental Considerations ..............................................— ...... ....... ................. --.............12 3.0Budget.............. — ...... — ................. ...... — .................. .......... ................— ............ — ....... —'10 aoProject Schedule........... ........---................—......— ............................... ....... ----........ — ...14 4.EVALUATION AND SELECTION.........----- ...............................-- ....... .................... --.......1s 4.1General.......----...... ................. ................... ....... ......................... .......................... — ...............m 4,aThreshold................... .... —... ......................— ...... —................... ........... ...... — ............----15 4.oSelection ontena--... ....... — ...............---........ ......................................... —.........— ...............n 5.AWARD oFCONTRACT. .......--......— .....— ............ ........................... ............... .................... ....zo z/ Award Letter...---................---.....................................—...... ... —.................... ---.................zn c2Grant xQmomen —........ —....... ....................... ............---....... ..............---.... ...................-20 5.aNotice»zpmceeu----... ...... ................... ...................... .................. ...... .............................. ...»« 6.REFERENCES....... -----..................... — ...... ................................... --....... ............ ........ .... un 6.lLink ...... ... ............. ............ ........-- .............................. ................— ......... ----- ....... 'zu 1~ PURPOSE AND DEFINITIONS 1'1 Purpose This Proposal Guide provides general information and instructions hxOrgonizobonoounoidehng proposal submissions for the Affordable Housing Production Program. 1.2 Definitions A. "Administrative Rules"means the rules for the administration of the Affordable Housing Production Program aoamended, and effective from 4/7/2024. B. "AHP Program"means the Affordable Housing Production Program Administered by the County ofHawai'iOffice nfHousing and Community Development. C. "Applicant"means the Organization applying for the Affordable Housing Production Program funds. D. "Chapter 11"means Chapter 11ofthe Howoi'iCounty Code, amamended. E. "County''means the County nfHewei'i F. "O0C@^'means the County ofHawoi'i'oOffice ufHousing and Community Development. G. "Organization"means the entity responsible for the execution of the proposed Project or Program. N. "Program Funds"means funds which are distributed from the Affordable Housing Production Program. o' "Proposal"means the description of activities and representations made in the Affordable Housing Production Program application. 1 2. FY2024-25 FUNDING CYCLE 2-1 Timeline ° Timeline is subject to change, visit the AHP Program website www.hawaiicounty.gov/ahp for latest information. ACTIVITY TENTATIVE DATE Request for Proposals(RFP)available May 1,2024 RFP Informational Meeting#1 May 9, 2024, at 9:00 AM RFP Informational Meeting#2 May 17, 2024, at 1:00 PM Proposals due to the 0HClD July 1,2024 Project Selection and Approvals July-August Notice of Award August-September Finance Committee October-November County Council 1st Reading November-December County Council 2nd Reading November-December 2-2 Funding " Ordinance 22-77 appropriates at least $5.000.000 per year for the OHCD to facilitate programs that support affordable housing production inthe County nfHowai'i ° For FY2024' 5. the OHCD anticipates receiving at least $9.00U.00Owith the final amount depending onthe approved FY2U24-25County Budget. ~ The AHP Program Administrative Rules allow the OHCD to set aside a maximum of 30%of the fund's annual appropriation for County administered projects. • The 0HCDreserves the right not tuaward the total amount offunds available. FUNDING AMOUNT Total Estimated Appropriation FY2024-25 $9,000,000 Estimated County of Hawai'i Administrative Cost ($350,000) Total estimated funds available for Award* $8,650,000 ~Prio,00any set asides z � _ 2.3 Income Limits ° The Maximum rent msales price nfthe AHP Program Units shall follow the appropriate income Umha as determined by the County of Hewoi'i Affordable Housing Guidelines as published annually bythe OHCD. ° The numbers presented below are effective as of July 2023 and may change during or after the application period,depending on when the OHCD publishes the new numbers. The most current income limits must be used when determining eligibility for a prospective tenant or buyer for the AHP units. ° The income limits shall be in accordance with Chapter 11,which currently states 120% limit for rental properties and u14O%limit for properties for sale. SIZE 50%AMI 60%AMI 80%AMI 100%AMI 120%AMI 140%AMI 2 Person $40,350 $48,420 $64,560 $80,700 $96,840 $112,980 3 Person $45,400 $54,480 $72,640 $90,800 $108,960 $127,120 4 Person $50,400 $60,480 $80,640 $100,800 $120,960 $141,120 5 Person $54,450 $65,340 $87,120 $108,900 $130,680 $152,460 6 Person $58,500 $70,200 $93,600 1 $117,000 $140,400 $163,800 2.4MaximumSuhsidy Guidelines ^ The number of affordable housing units required by the issuance of AHP Program funds for new construction projects will be determined by using the federal HOME Investment Partnerships Program Maximum Subsidy Guidelines, pursuant to 24 CPR 92,250. issued annually by the United States Department of Housing and Urban Development(HUD). • The numbers presented below are effective aoofJanuary 202£and may change during ur after the proposal phase,depending on when the HUD publishes the new numbers- • The affordable housing units required by receipt of AHP Program funds shall not be used to fulfill any other obligation for affordable housing units as required by law urother subsidy obligations. ° The requirements for AHP Program units will berecorded against the property. BEDROOMS SUBSIDY LIMIT PER UNIT 0 $ 181,488 1 $208,048 2 $252,993 3 $327,292 a 2.5 Affordability Period ° The affordability period for the AHP Program units shall be in accordance with Chapter 11. which currently states: 1. Rental prices for affordable units shall be controlled for no less than twenty(20)years after initial occupancy. 2. For ownership housing units, enaffordability pehudnftsn(10)yeorohnm\hafinstdoyof oo|n. 2.6 Goals and Priorities Background Supporting, increasing, and sustaining affordable rental and owner-occupied housing production in the County remains the primary goal for the AHP Program. While the County in committed to fostering housing solutions that are affordable and accessible to individuals ocmoo all income brackets, it has designated specific priorities for this funding cycle as follows: For the FY2024-25 funding cycle the AHP Program will prioritize projects that serve households earning between O196and 14OY6uf the Area Median Income(AM|). commonly referred tnaothe "Gap Group."This group represents moderate-income individuals who often don't qualify for many existing assistance programs due totheir income levels yet still struggle to afford market-rate housing. Below this AMI threshold,there are substantial governmental support already in place such as: ° Available programa and assistance include homeless assistance gmnto, homeless prevention ammioLanoe. Emergency Solutions Grants (EQG). and Housing Trust Fund (HTF). " Available programs and uasietono* include the Low-Income Housing Tax Credits (L|HTC). HOME Investment Partnership Program (HOME), and Hula Mae N1u|d- Fom||y(HK8MF), ° Available programs and aae1otanoo include Project-Based Vouchers, the Community Development Block Grant (CDBG). the Rental Housing Revolving Fund (RHRF). Hnusing Choice Vouchers(HC\).the Hawei'iPublic Housing Authority(HPHA).and various other initiatives by the Department of Housing and Urban Development(HUD), such apclosing cost and down payment assistance, 4 - - ' ' FY2824-25 Goals and Priorities: 1' To prioritize the Gap Group: Prioritize projects that serve households earning between 81% and 140% of the AMI. The focus aims to expand traditionally subsidized pn4ects, typically targeted at AMIs below 80%,to include units up to 140%AMI.This approach aims to broaden housing opportunities for the gap group by leveraging AMP funds to bridge the affordability gap. 2. Homeownership Initiatives: Prioritize homeownership initiatives such asfopoe|e housing, down payment assistance and rent-to-own models, specifically catering to the workforce and families within the 81-140%AMI bracket.This approach not only helps in building community stability but also promotes wealth accumulation among residents who are typically first-time buyers. 3. New Construction and Adaptive Reuse: Prioritize new construction and adaptive reuse projects toaddress demand for both newly built and innovmtiva|yrenovated affordable housing solutions. Adaptive reuse, which involves transforming existing buildings into residential spaoes, is practical approach toaddressing the housing shortage while constructing new homes ioessential tomeet the diverse needs ufgrowing populations. Note:Proposals are not required toalign with these priorities to6eeligible for funding, however those that dowill receive higher scores/nthe relevant category. 2'7Compliance with Applicable Regulations ° If AHP Program funds or Federal funds are utilized for site acquisition, Phase I Site Assessment inrequired tobecompleted. ° The applicant shall comply with all applicable federal, state,and county laws and nagu|a1ionu, including but not limited to: (1) Fair Housing and Equal Opportunity (2) Equal Employment Opportunity (3) Conflict ofInterest (4) Chapter 343Environmental Review (5) Chapter 104Labor Standards (0) State and Local Building Codes (7) State and Local Land Use and Zoning Requirements o , � 3. PROPOSAL 3.1 Table of Contents SECTION HEADINGS 1. Organization 1.Organization Information 2. Preparers Information 3. Organization Point of Contact 1. Applicant Background 2. Experience 2.Applicant Experience 3. Staff Capacity 4. Comparable Affordable Housing Projects/Programs 1. Project Summary 2. Project/Program Overview 3. Type of Housing 3, Project Summary 4. Project Unit Mix 5. Accessibility 6. Amenities 1. Project/Program Need 4. Need and Sggatgti!L 2. Long-Term Management and Marketing Plan 3. Financial Need and Sustainability 1. Site Overview 2. Total Site Area 1 Zoning 5. Site Information 4, Utilities 5. Infrastructure 6. Community Services 1. Compliance with Environmental Requirements 6 Environmental Considerations 2. Energy Efficiency and Green Building Practices 1. Overall Budget Summary 2. AHP Program Budget Z_ Budget 3. Leveraging and Matching Funds 4. Summary 1. Key Milestones of the Project/Program 8. Project Schedule 2. Summary 9. Conflict of Interest Disclosure of any potential Conflicts of Interest 10. Certification and Assurances Certification and Submittal 6 3.2 Organization Information A. Eligible Applicants • Public Agencies • Non-Profit Organizations with 501(c)(3)or 501(c)(4)classification • For-Profit Organizations • Land Trusts B. Documentation Requirements DOCUMENT DESCRIPTION REQUIREMENT Partnership and Document outlining the governance structure,financial Partnerships and Operating management,and operational procedures in a partnership Limited Liability Agreement or limited liability company. Companies Articles of Legal document filed with the Department of Commerce All Ora.excluding and Consumer Affairs(RCCA)to officially forma Incorporation Public Agencies corporation. Bylaws Document outlining the rules and regulations governing All Org.excluding the operations of an organization or corporation. Public Agencies IRS Tax Exemption Official letter provided by the Internal Revenue Service Determination (IRS)that recognizes a nonprofit organization's exemption Non-Profit Org. from federal income tax. List of Board Document outlining the individuals serving on the board of All Org.excluding Members directors for an organization or corporation Public Agencies Document outlining the decision or action for applying for Organization the Affordable Housing Production(AHP)Program funds, All Org.excluding Resolution as concurred by the board of directors and organizational Public Agencies members. Document outlining the ownership structure of the project Organizational owner.Should there be any changes in the ownership All Org.excluding Chart structure at any point during the development, include an Public Agencies additional organizational chart to represent the ownership arrangement at that specific time. Certification to show vendor compliance with the State Procurement Office(SPO)including the Hawai'i Vendor Department of Taxation(DOTAX),the Internal Revenue All Org.excluding Compliance Service,the Hawai'i Department of Labor and Industrial Public Agencies Relations(DLIR),and the Hawai'i Department of Commerce and Consumer Affairs(DCCA) 7 3.3 Applicant Experience A. Organizations are required mhave and demonstrate ot least five years nfexperience in housing development and/or housing program management relevant Uothe proposed project or program.Additionally,they must have familiarity with applicable regulations, including the Hawmi'iRevised Statutes(HRG)Chaptor343EnvimnmenLa|RequinamentsandChaptor1O4 Labor Standards. B. Documentation Requirements , DOCUMENT DESCRIPTION REQUIREMENT Official approvals issued by government agencies that allow Licenses and individuals or companies to legally operate a business If available Permits within a certain jurisdiction or industry. Documents detailing the professional backgrounds,skills, educational qualifications,work experiences,and Resumes of Key achievements of key team members involved in developing, All Applicants Personnel implementing,and/or managing the proposed project or Past performance Statements and References from previous clients, partners, Statements and or residents on previous affordable housing All Applicants References projects/programs similar to the proposed project/program. o - - 3.4 Project Summary A. Eligible Activities ° Acquisition ofreal property for the development u[affordable housing. ° Acquisition of existing housing for rehabilitation as affordable rental and/or owner-occupied housing. ^ Planning,design,or construction of affordable rental or owner-occupied housing. ° Rehabilitation of housing to be utilized as affordable rental or owner-occupied housing, such aaadaptive reuse projects. ° To invest in infrastructure in connection with the development of affordable housing projects. = Other activities that directly support, increase, and sustain affordable rental orowner- occupied huuuingpmduuUon. B. Use wfFunds " AHP Program funds can be used to leverage funds provided by federal,state,non-profit or for-pmfitorganizations and other non-government entities 0ofurther expand affordable housing opportunities. ° AHP Program funds can be used for property development activities,such as offlon-site improvements of vacant lots to create finished lots, provided there are executed agreements to ensure these projects lead to housing development within a reasonable time period.The agreement should clearly outline a strategy for how the lots will result to housing,whether through contracting or partnerships with other organizations, e.g.,self-help housing programs,or by setting specific timelines and requirements for construction,thereby maintaining oversight nfthe project until hresults inhousing. = AHP Program funds shall not be used for indirect housing activities,e.g., acquiring equipment, including but not limited to,facilities involved in the construction of housing units or similar production equipment for housing production that requires further acquisition and installation bythe public nrother entities, ° AHP Program funds shall not be used for any overhead or administrative costs in implementing the project. C. Applicants shall provide a detailed overview of the proposed affordable housing project/program, including the type of housing, size, and key features. The emphasis must be strictly on the project or program details, excluding any reference to the implementing Organization, D. Documentation Requirements DOCUMENTATION DESCRIPTION RE# Document outlining any affordable housing requirements Affordable Housing imposed on the project,such as Rezoning Ordinance, If applicable Requirements 201 H Resolution, Land Use Commission Orders, Executive Orders Formal document outlining the guidelines and regulations Financial Program governing the operation,participation,financial All Financial Rules framework,and management of programs including,but Programs not limited to loans and grants. e 3.5 Need and Sustainability A. Applicants shall provide a comprehensive description of why the proposed affordable housing project/program is necessary and the strategy for ensuring its long-term sustainability. B. Applicants must clearly identify the goals and priorities that their proposal aligns with and provide justification for this alignment. C. Applicants are required to detail their outreach strategies involving key stakeholders and the community,demonstrating that key stakeholders such as regulators are informed and that there is community support for the project. D. Applicants are required to justify the need for AHP funds for the specific project activities and demonstrate why timely funding is crucial for the project's success. E. Documentation Requirements •• DESCRIPTION • Housing needs Studies Comprehensive evaluations conducted to understand and Assessments the current and future housing requirements and needs All Applicants within a community. Documentation on outreach initiatives regarding the Outreach Initiatives proposed projectiprogram with different agencies, All Applicants organizations,or stakeholders. Long-term Document outlining strategies and actions that will Management Plan ensure the project's sustainability and effectiveness All Applicants over an extended period. Document outlining a detailed approach and process for identifying and reaching the target clientele, Marketing Plan including the selection of prospective tenants, All Applicants purchasers,or participants for the proposed project/program. Project Based Voucher Letters confirming subsidy secured to the proposed If applicable (PBV)Letter project. Document projecting the income,expenses,and cash Operating Proforma flow of a rental property over a specific period.Fill in Rental Projects the template attached. 10 3.6 Site Information A' Applicants Provide details about the proposed site for the affordable housing project. B. For property acquisition projects Applicants must provide at least a notarized, signed letter of intent from the seller/owner indicating their willingness to sell, should the grants be awarded. C. If your project involves constructions or improvements on separate sites i.e., not on a contiguous piece ofland,each site needs its own proposal submission. D. Documentation Requirements DOCUMENT DESCRIPTION REQUIREMENT Preliminary Title Report Document detailing the legal status and condition of a property's title. Real Property Tax Official record by a local tax authority that specifies the Assessment assessed value of a property for tax purposes. Formally executed document that demonstrates a project owner's legal authority to utilize a specific Proof of Site Control parcel of land or site for the proposed project. For acquisition projects provide at least a signed letter of Projects that include a intent from the seller/owner indicating their willingness physical site to sell,should the grants be awarded. Conceptual documents providing a broad overview of Master or Schematic the intended layout, structure,function,and aesthetics Plans of a proposed development or construction project. Document outlining how land within a specific area is Zonina and Land Use designated for different uses according to local Classificatjg� government regulations. Use link provided to obtain Proof of sewer capacity Copy of sewer application indicating adequacy of existing sewer capacity to service the project. Proof of electricity Letter from local electricity provider confirming capacity and availability availability of electricity to the site. If available Proof of water capacity Letter from Board or Department of Water Supply and availability confirming adequacy of existing water system or availability of water to service the project. Letters from the Department of Education noting New construction Letter from Dept.of enrollment/capacity of school(s)ability to accommodate projects having more Education additional students than 50 non-eldlerly housing units Map outlining the specific location and layout of the Project Site Map proposed project, including a comprehensive overview of the project's physical boundaries and main access points. Projects that include a Pictures of the project site offering a visual overview of physical site Pictures of Project Site the current condition and characteristics of the location, including the terrain,existing structures,vegetation, and any notable features or challenges of the site. Report that analyzing the impact of existing or Traffic Study proposed development on the traffic conditions of a If available specified area. 11 3'7 Environmental Considerations A. Applicants shall address any potential environmental impacts cf the project,oswell as steps the applicant plans totake tomitigate these impacts. B. Chapter 343 of the Hawai'i Revised Statutes(HRS)concerning State Environmental Reviews applies to the AHP Program for all activities involving the use of County funds. C. Part 58 of the Code of Federal Regulations(CFR)concerning Federal Environmental Reviews is triggered for projects using federal funds from the Department of Housing and Urban Development(HUD). D. Documentation Requirements -DOCUMENT DESCRIPTION REQUIREMENT Hawai'i Revised Statues(HRS)Chapter 343 HRS Ch.343 Compliance compliance requirements i.e., Environmental If available Documents Exemption, Environmental Assessment(EA)or Environmental Impact Statement(EIS) Code of Federal Regulations(CFR)Part 58 Projects that include 24 CFR Pt.58 Compliance compliance requirements i.e., Exemption, Federal funds,if Documents Categorically Exclusion, Environmental available Assessment(EA) Document that evaluates the environmental condition of a property to assess if there are any If AHP funds are Phase I Site Assessment environmental conditions or potential being used for contamination that could affect the property's property acquisition value or pose a risk to human health. Lava Zone (No increased density in Lava Zones 1&2) Flood Plain �jj��ent�Area Please use the provided link to obtain the Projects that include JSMAJ documents.The document should indicate the a physical site project boundary or location. Tsunami Zone Wetlands Environmental Environmental site assessment(s),audits, If available Assessments investigations,or asbestos/lead surveys, Architect Certification Certification from the Architect confirming that the If applicable project can meet the building standards selected. 12 3.8 Budget A. Applicants shall provide detailed information about the budget for the project,including sources offunding,detailed cost breakdowns, and financial projections. B. Chapter 104 of the Hawai'i Revised Statutes applies to the AHP Program for construction activities exceeding*2.OU8.O0involving the use ofcounty funds, C. AHP Budget example Appraisal Planning andfor Design Soft Costs All costs not directly bed to the physical constructiork of Permits,Environmental Documents a project Market study Professional Fees Land Acquisition AN costs associated with acquiring real property Existing Structures Tde Search Demolition Site preparation I AN costs for preparing the site for construction,and Site Clearance Improvements enhancing the functionality and accessibtfty of the site OfflOn-Sile Improvements Iriftastruchure Parking Now Buddirig Constructiont All constructionlretiabgitatorKetated costs material Rehabilitation Labor Rehabilitation cable Moving and Houshill Expenses Relocation costs Goals for relocating existing tenants,it apph Lease Termination Fees Other Any activities not included in the list above Clearly Specify Other Activities D. Documentation Requirements DOCUMENT DESCRIPTION REQUIREMENT Overall Budget Document outlining a breakdown of all project All costs. Fill in the template attached. Award Lefters Letters from all financing sources secured for the If there are funding sources project/program. marked as"secured" Appraisal(No more than six months from the Acquisition Projects date of application) Quotes,Cost Estimate,Schedule of Values New Construction,or Infrastructure Projects Cost Justification Capital/Property Needs Assessment Rehabilitation or Adaptive Reuse Projects. Documentation outlining the criteria and calculations used to establish the requested Financial Programs funding amount Audited Financial Formal record of the organization's financial Statement activities and position,verified by an independent All excluding Public Agencies third party 13 3'9 Project Schedule A. Applicants shall provide a timeline outlining the and project phases,including start and completion dates for each stage of the affordable housing initiative. B. Activities funded to increase affordable housing units(e.g.acquisition of land,planning,and design, infrastructure, new i must h*obligated within one year,and result moccupancy orthe affordable housing units within five years from the date the grant agreement is executed. C. Activities funded to support or sustain affordable housing(e.g.acquisition of existing property, rehabilitation of existing property,eligible loan programs)must be completed within two years from the date the grant agreement|sexecuted. D- Examp|nofmnmmimm . Appraisal Regutatory"Program Compliance . Environmental . Proof of Site Control Obligation of AH P funds . Consultant . Contractor Acquisition . Land . Planning and Design . Other(Specify) . Demolition Site Preparation . Site Clear ance Construction I Rehabilitation . New Building Tertant relocation Certificate of Occupancy Placed in service E. Documentation Requirement DOCUMENT DESCRIPTION REQUIREMENT Gantt Chart Graphical visualization of a project schedule, including start and If available finish dates,milestones,key deliverables,and dependencies. 14 4. EVALUATION AND SELECTION 4.1 General A. The selection committee shall bocomprised ufuminimum ufthree(3)members from the OHCD and/or other County departments with regulatory oversight over the planning, permitting,orfinancing ofhousing development. B. The selection committee will forward the funding recommendation to the Housing Administrator,who will then prepare a final recommendation for the Mayor's approval. G. During the evaluation process the QNCDmay: 1. Request additional information nrdata from the applicant. 2. Independently verify any orall information supplied bythe applicant. 3. Conduct any investigation deemed necessary by the selection committee to adequately evaluate the application. 4.3 Threshold A. For oproposal mbeeligible for funding, dmust meet the specified thresholds. B. Thresholds 1' The proposal was submitted ontime and online. OOnorbefore July 1.2024.4:3VPK0HST. OElectronically submitted. 2. The Organization imrecognized asameligible entity: El Non-Profit OFor-Pnofit OLand Trust OPublic Agency 3' All required organizational documents have been submitted: OArticles ofIncorporation(Officially filed with the DC[A) OBylaws(Officially filed with the DCCA) OIRS Tax Exemption Determination(for Non-Profits only) OList ofBoard Members OOrganization Resolution 15 OOrganizational Chart UVendor Compliance(Certification from the SPO) 4. The Organization must demonstrate mtleast five years ofrelevant experience in the field pertaining mothe proposed project orprogram asevidenced by: ORelevant past projects completed that are similar tothe proposed one with supporting documentation tosubstantiate it. 5. Eligible Activities Identified OAcquisition ofreal property for the development ofaffordable housing. OAcquisition ofexisting housing for rehabilitation eoaffordable rental and/or owner- occupied housing. U P|anning, deuign, or construction of affordable rental orownopoccupiad housing. El Rehabilitation of housing to be utilized as affordable rental or owner-occupied housing. 11 Invest in infrastructure in connection with the development of affordable housing projects. O Other clearly specified and outlined activities that directly support, 1nrmase, or sustain affordable housing. 6. The proposed AHP units adheres toincome limits: ORental Housing: 12OY6ofArea Median Income(AJN|)orbelow limit. OFor-Sale Housing: 14O%ofAMI orbelow limit. 7. The proposed AHP units meets the minimum affordability period requirements: URental Housing: Minimum of2Uyears. U For-Sale Housing: Minimum of1Oyears. 8. The Project meets the time for performance requirements: El Activities aimed at increasing affordable housing units(e.g., acquisition of land, p|onning, and design, inkaotruc1um, new construction)must beobligated with the relevant providers, ino|uding, but not limited to, uonuu|tants, oonbantorx, and vendors within one year, and result in occupancy within five years from the date the grant agreement ioexecuted. 1s El Activities aimed at supporting or sustaining affordable housing(e.g., acquisition of existing pmpedy, rehabi|dodun,eligible loan programa)must bacompleted within two years from the date the grant agreement ieexecuted. 4'2 Selection Criteria A. Eligible Proposals will be reviewed and evaluated using a Standard Weighted System based onthe information provided. B' The weight ofeach scoring category will beasfollows: OBJECTIVES WEIGHT Project Impact and Delivery 30% Project Need 25% Applicant Qualifications 20% Project Readiness 15% Project Funding and Leverage 10% C. Overview ofthe scoring categories: PROJECT IMPACT AND DELIVERY A. Alignment with Current Goals and Priorities ° The project aligns with none, some,orall goals and priorities. B. Project Type ° Adaptive Reuse, Financial Program, Infrastructure, Property Acquisition, Rehabilitation, orNew Construction, C. Measurable Outcomes ° Affordability Period. ° Targeted Income Range. ° Total AHP Designated Units Provided. • Total Units Added urImpacted. D. Sustainability ° Clarity and adaptability of the marketing strategy and management structure to ensure long-term operational stability and sustainability. ° Financial projections and funding strategies to ensure the project's financial stability and sustainability. ° Use ufsustainable green building practices and technologies. E. Feasibility ° Budget allocations are sufficient to cover both initial and ongoing expenses. 1/ ° Project meets the relevant local,state, orfederal regulations, including permits and legal approvals, orhas clear plans toaccommodate expected regulatory changes. PROJECT NEED A. Evaluation,Evidence,and Data Supporting Project Need ° The project need is thoroughly and effectively showcased, identifying a critical gap or need the project aims to solve. Incorporating comprehensive and pertinent data and evidence that supports and justifies the necessity and rationale for the project. B. Key Stakeholder Engagement ° Outreach efforts involving key stakeholders such as local authorities and agencies with regulatory oversight over the planning, permitting, or financing of housing development during the planning and implementation phases n[the proposed project. ° The extent to which key stakeholders are informed about the upcoming project and their level ofsupport for it. C. Community Outreach ° Outreach initiatives aimed at involving the surrounding community and public in the upcoming project. • The extent towhich the surrounding community and public are informed about the upcoming project and their level ofsupport for it, D. Use ufFunds ° Justification for the need of AHP funds towards specific activities(soft costs, acquisition, site preparation or improvements, oonmtructinn, nehmbi|itohon, opomUun, nemicoo) detailing how the project cannot succeed without the funding and why other funds cannot cover them. ° Demonstration on why receiving AHP funds in a timely manner is crucial to the success ofthe project, APPLICANT QUALIFICATIONS A. Experience ° Applicant has experience with activities similar tothose outlined inthe proposed project, demonstrated bypreviously completed projects ofacomparable scale. B. Regulatory Knowledge � Applicant's understanding and knowledge of relevant regulations,such as labor standards, planning and permitting,zoning laws and environmental guidelines. C. Demonstrated Capability ° Applicant's ability to achieve project objectives on time and within the budget as demonstrated bypreviously completed projects ofacomparable scale. D. Staff Capacity � Applicant has adequate and qualified personnel to effectively oversee project execution and manage daily operations, 18 PROJECT READINESS A. Site Control ° Applicant has secured ownership or executed long-term leases for the project site. ° All necessary access rights and easements are established to ensure uninterrupted project development. B. Compliance status ° Applicant has secured proper local,state,and federal regulatory approvals required for the project. ° Applicant has clearly outlined plans to adhere to environmental regulations and zoning laws toavoid potential delays orchallenges. C. Plans and Designs ° Completeness and feasibility of the project or program plans, including, but not limited to architectural plans and engineering designs for development projects along with rules and policies for financial programs. D. Schedule and Contingency Planning ° Evaluation of the achievability of the project timeline,considering the complexity and scope ofthe project. ^ Contingency plans to address potential delays and obsLodeo, ensuring the project can adapt tounforeseen challenges. FUNDING AND LEVERAGE A. Secured Funding ° Reliability uffunding sources secured for the project. ° Percentage oftotal projected costs secured. B. Justification of Funds ° Documentation such as appraisals,capital or property needs assessments, detailed cost estimates, and quotes tosubstantiate the requested amount. C. Budget and Contingency Planning ° Evaluation ofwhether the budget is dear and|ugino|, how much additional funding may be needed, and whether the applicant has accounted for the subsequent phases of the project, considering its complexity and scale. ° Contingency plans to address potential delays,financial uncertainties, or cost overruns, ensuring the project can adapt(nunforeseen challenges. 19 � � ��� �������[ ~,. r=��x�m�w� ��n ���~u� nnm^-»Cv 5'1 Award Letter The Applicant, if and upon being selection for funding will receive a Letter of Award from the OHCD. This letter shall not be interpreted as authorization to begin with any project/program activity that is being funded.Any work performed by the applicant prior to execution of the Affordable Housing Production Program Grant Agreement(AgveammnVshall beatthe applicant's own risk and cost, 5.2 Grant Agreement The Agreement shall be executed between OHCD and the selected Applicant. This Agreement will serve anthe official and legal contractual instrument between both parties. |tmay include, as attachments or by reference,the proposal, terms of the RFP, along with any addendums. 5'3 Notice*sProceed Following the complete execution of the Agreement,the applicant will be issued a Notice to Proceed bythe OHCD. authorizing the commencement ofthe project. � ������������������� v�. um��o ��,���"������� 6-1 Links ° Affordable H12oyusin Production Program Website.° Affordable Housing Production Program Administrative Rules.° Hawaii'i County Code Chapter 11 Housing.° Hawaj'i Revised Statutes Chapter 343 Environmental Review° Hawai'i Revised Statutes° Online Application System, ' 20 Neighborly Software: Participant User Guide 10 Neighborly��" _ . ACCESSING THE PARTICIPANT PORTAL The Participant Portal is hosted by Neighborly Software and is accessible via any internet connected device. The recommended browser inGoogle Chrome but will work with any modern web browser(ie, Internet Explorer v1O+. Firefox. Safari). Application Portal Link: REGISTERING YOUR ACCOUNT When you access the Portal for the first time, you'll need to Register your account by clicking on the Register link.The registration process will create a username(which is your email address). The email address you choose will also be used for system emai|o/notifixaUunn. For security purposes,the system will validate that you own the registered email address by sending an email with avehficahon code. Once you have received the code, you will copy the code into the text boxando|iok'^VorifyCode." IfatenypointLhecodeisnotaccepLad. p|ea000dect''GnndNmw Code"to have another one uonL Once you have verified your computer, you will he re-directed tocreate a password. Passwords should be twelve characters |ong, contain uppercase and lowercase |eUem, number, and special character. Once you have created your password, the system will re-direct you tuthe participant dashboard. Note: If you do not receive the system email within 2 minutes, check your spam or bulk mail folder. If the email appears in that folder,you should right click on the email to indicate"Not Junk"or"Not Spam"toensure you receive any other system notifications. ` LOGGING IN Once your account has been nag|stored, you may login (using the same link above) by entering the email address and password used during registration. FORGOT YOUR PASSWORD If you forget your password,click on the link that says, "Forgot your Password?"and follow the prompts to ome1a a now password. For security purposes, the system will send an email to the registered email address with alink toreset your password. 21 � � Neighborly Software: Participant User Guide �� N�����—Neighborly Software ��w CHANGING YOUR PASSWORD Tochange your password, log into the Application Portal.Click onthe icon unthe top right corner ofthe screen and select°KOy Prn*|m" Then select the Password option on the left side of the screen. For security purp000e, you will be required to enter your Old Password before selecting aNew Password. SIGNING OUT To sign out(log out) of the mystem, nUok on the icon on the top right corner of the screen and select"Sign Out." STARTING A NEW APPLICATION Once in the porta|, start new application by selecting ~ Click here tostart new application" Provide your Project Name then select"Start App|icet|om." ToView/Continue enExisting Application select"View/Edit" ADD A NEW USER Touddanewuaertoynurapp|ioatiun. o|iokonthe''ViewUmena^iuonin(hetop|eftcornerufthe page and enter the email address of the new user in the allocated field provided, Each added user must register with a new account.This feature enables group collaboration in completing the application. TASKS During the evaluation pmooan. the 0HCD may request additional information ordata from the applicant. This iutypically facilitated through atask assigned via the application portal. The task will contain detailed instructions and a deadline for completion. Applicants are responsible for regularly checking the portal for any assigned tasks. To access the task, applicants can log into the portal and visit the"My Tasks"section. 22 � XHIBIT E -- ADMINISTRATIVE RULES COUNTY OF HAWAII OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT ADMINISTRATIVE RULES FOR AFFORDABLE HOUSING PRODUCTION PROGRAM Subchapter I General Provisions Chapter 1-1 Purpose and Applicability Chapter 1-2 Definitions Chapter 1-3 Funding Chapter 1-4 Program Administration Subchapter 2 Reporting and Other Requirements Chapter 2-1 Annual Plan Chapter 2-2 Annual Report Chapter 2-3 Compliance Monitoring Subchapter 3 Program Specifications Chapter 3-1 Eligibility criteria Chapter 3-2 Eligible Activities for Program Funds Chapter 3-3 Grant Application process Chapter 3-4 Grant Selection process Chapter 3-5 Grant Requirements Subchapter 4 Other Provisions Chapter 4-1 Non-compliance penalties Chapter 4-2 Recovery of funds Chapter 4-3 Resale Restrictions SUBCHAPTER GENERAL PROVISIONS §1-1 Purpose and Applicability. These rules establish administrative rules for an "Affordable Housing Production Program,"pursuant to Hawaii County Code§11-21,in order to support,increase and sustain affordable housing production. §1-2 Definitions. Whenever used in this chapter,unless otherwise specifically defined: "Administrator"means the Housing Administrator of the Office of Housing and Community Development of the County of Hawaii. "Affordable Housing Unit"means a permanent dwelling unit for sale or rent as a primary residence for the respective buyer or renter and is affordable to qualified households earning no more than the percentages of the median income specified in Chapter 11. "Affordability Period"means the length of time which dwelling units financed with program funds shall remain affordable to eligible households after the project or units are available for occupancy. "Chapter I F means Chapter 11 of the Hawaii County Code,as amended. "Community Land Trust"means a non-profit organization approved by the OHCI)or administrator that acquires land that is 1)held in perpetuity;2)primarily for conveyance under a long-term ground lease for the creation of dwelling units that shall be sold or rented to applicants within the income-qualified groups established by this chapter;and 3)retains an option to purchase any dwelling unit at a price determined by formula that is designed to ensure that the dwelling unit remains affordable in perpetuity. :,Council"means the Hawaii County Council. "County"means the County of Hawaii. "Elderly"means a person that is at least 62 years of age. "Grant"means funds awarded to an applicant for the purpose of financing an eligible activity as outlined in Rule§3-2,with no obligation to repay the monies. :,Grantee"means the recipient of Affordable Housing Production program finds. "Homeless"means individuals and families who lack a fixed,regular,and adequate nighttime residence and those who will imminently lose their primary nighttime residence within 14 days. Also includes individuals who are existing an institution where he/she resided for 90 days or less. "Non-profit organization"means an exempt organization as classified under of the Internal Revenue Code Section 501(c)(3)or Section 501(c)(4)and complies with all other requirements under federal,state and county law regulating the conduct of charitable or non-profit organizations. "OHCD"means the County of Hawaii Office of Housing and Community Development. "Program"means the Affordable Housing Production Program. 2 1 P a g e Administrative Rules for the Affordable Housing Production Program Ver.1.1 "Program funds"means funds which are distributed from the Affordable Housing Production Program. "Permanent housing"means housing that is for sale or for rent for an initial term of at least six months that is renewable and is terminable for cause. §1-3 Funding. (1) Funding provided by the County of Hawaii shall be in accordance with Section 11-21 of the Hawaii County Code. (2) Any remaining balance of program funds at the end of the fiscal year,shall be designated for further use in this program. (3) Any interest earned on the Affordable Housing Production Program account shall be designated for this program. (4) Any repayment or recovery of program funds,including any penalties paid, shall be designated for further use in this program. (5) On an annual basis,up to ten percent(10%)of the fund's annual appropriation shall be used for administrative expenses by OHCD. (b) At the discretion of the administrator,with approval from the Mayor,the OHCD may set-aside no more than thirty percent(30%)of the fund's annual appropriation for County administered projects in accordance with Rule §3-2. §14 Program Administration. The administrator shall be responsible for administering the program. SUBCHAPTER2 REPORTING AND OTHER REQUIREMENTS §24 Annual Plan. The OHCD shall prepare an Affordable Housing Production Annual Plan for the use of the program funds and transmit this annual plan to the Council for reporting purposes.The annual plan shall include the following: (1) Total proposed appropriations for the fiscal year; (2) Description of the projects to be funded including the total amount funded and the total amount requested; (3) Number and types of housing units that will be created and/or rehabilitated, including the approximate number of residents to be served;and (4) Any non-dwelling program funded improvement or acquisition,such as infrastructure improvements or land acquisition,including an explanation on how the project will result in housing. 3 1 P a g e Administrative Rules for the Affordable Housing Production Program Ver.1-1 §2-2 Annual Report. The OHCD shall prepare and submit an annual report to the Council on the expenditures and accomplishments resulting from appropriations from the program funds. The annual report shall include the following: (1) Data on the number and types of housing units created or assisted; (2) Data on non-dwelling program funded improvements or acquisitions,such as infrastructure improvements or land acquisition; (3) Geographic distribution of funded projects; (4) Expenditure report; (5) Status of ongoing projects; (6) Total expenditure for administrative expenses by OHCD;and (7) And any other data or notable accomplishments as a result of the expenditure of program funds as determined by OHCD. §2-3 Compliance Monitoring. The OHCD shall conduct physical inspections and program compliance monitoring during construction and on an annual basis of funded projects during the term of the affordability period. SUBCHAPTER3 PROGRAM SPECIFICATIONS §3-1 Eligibility Criteria. (1) Eligible applicants include public agencies,approved non-profit organizations,for-profit organizations,or community land trusts. (2) Eligible applicants shall provide proof of compliance with all applicable laws governing entities doing business in the State of Hawaii. §3-2 Eligible Activities for Program Funds. Program funds shall be used for the following eligible activities: (1) Acquisition of real property for the development of affordable housing; (2) Acquisition of existing housing for rehabilitation as affordable rental and/or owner occupied housing; (3) Planning,design,or construction of affordable rental or owner-occupied housing; (4) Rehabilitation of housing to be utilized as affordable rental or owner- occupied housing; (5) To invest in infrastructure in connection with the development of affordable housing projects; (6) Other activities that directly support,increase,and sustain affordable rental or owner-occupied housing production. 41 Page Administrative Rules for the Affordable Housing Production Program--Ver.t-1 §3-3 Grant Application Process. (1) The OHCD will solicit eligible project proposals through a Request for Proposal(RFP)process via public notification,at a minimum electronically on the County's website or in the local newspapers. (2) The open application period shall not be less than thirty(30)consecutive calendar days in duration. (3) The OHCD shall hold at least two(2)public meetings on separate days, prior to the proposal deadline to receive testimony regarding the community's needs for affordable housing. (4) Eligible project proposals shall include a completed application and all required documentation as outlined in the application instructions. (S) Cost of preparing and submitting proposal applications will be the sole responsibility of the applicant. (6) Project proposals shall be received by the OHCD no later than the deadline specified in the notification and proposal packet. (7) Proposal applications submitted may be rejected if the application is incomplete,does not meet the program eligibility requirements,or failed to meet the submission deadline. (8) Grant proposal applications shall include,at a minimum: (a) A detailed description of the proposed project,outline the marketing strategy,and income categories the project will serve; (b)An overview of the long-term management plan for the proposed project; (c)A description of all efforts to leverage or match funding from non- County sources for the proposed project; (d)An anticipated project schedule with milestones and approximate dates of completion; (e)Applicant's qualifications,experience,and capacity to carry out the proposed project; (f)A detailed budget and,for rental projects,an operating pro forma statement;and (g)Proof of compliance with the requirements of HRS§103D-3 10(c),tax clearance and compliance. §34 Grant Selection Process. (1) A selection committee shall be comprised of a minimum of three(3) members from OHCD and/or other County departments with regulatory oversight over the planning,permitting,or financing of housing development. (2) The selection committee shall review each project application. (3) The selection committee may do the following: (a) Request additional information or data from the applicant 51 Page Administrative Rules for the Affordable Housing Production Program-Ver.l-1 (b) Independently verify any or all information supplied by the applicant (c) Conduct any investigation deemed necessary by the selection committee to adequately evaluate the application. (4) The selection committee shall use a standard weighted scoring system that will consider the following objectives: (a) Project Impact and Delivery (b) Project Need (c) Project Readiness (d) Project Funding and Leverage (e) Applicant Qualifications (5) The selection committee shall evaluate,rate,and rank eligible project proposals and submit their recommendation for funding to the administrator. (6) The administrator shall prepare a recommendation for funding to the Mayor, for the Mayor's approval. (7) The OHCD may at its discretion re-solicit eligible project proposals through additional Request for Proposal(RFP)process if it's determined that none of the project proposals meet the goals and objectives of the program or if there is an insufficient amount of proposals received. §3-5 Grant Requirements. Requirements outlined below shall be incorporated into the grant agreement between the County of Hawaii and the grantee,unless otherwise approved by the administrator. (1) General Requirements. (a) The real property that is to be acquired,rehabilitated,and/or developed for the purpose of affordable housing production,shall be used only for affordable housing for the affordability period by the grantee and recorded at the State Bureau of Conveyance or State Land Court by the grantee,unless the real property is conveyed to the County. (b)The project shall not be sold,exchanged,divested,or converted to other uses that are inconsistent with this program without the prior approval of the administrator. (c) The grantee shall comply with all applicable federal,state,and county laws and regulations,including but not limited to: (i) Fair Housing and Equal Opportunity (ii) Equal Employment Opportunity (iii) Conflict of Interest (iv) Environmental Review (v) Labor Standards (vi) State and Local Building Codes (vii) State and Local Land Use and Zoning Requirements 6 1 P a g e Administrative Rules for the Affordable Housing Production Program--Ver.l-t (2) Use of Funds. (a) Program funds can only be used for the purposes and activities stipulated in the grant agreement and approved by the OHCD. (b) Program funds can be used to leverage funds provided by federal, state,non-profit or for-profit organizations and other non-government entities to further expand affordable housing opportunities. (c)Program funds can be used for property development activities,such as offlon-site improvements of vacant lots to create finished lots, provided there are executed agreements to ensure these projects lead to housing development.The agreement should clearly outline a strategy for how the lots will result to housing,whether through contracting or partnerships with other organizations,e.g.,self-help housing programs, or by setting specific timelines and requirements for construction, thereby maintaining oversight of the project until it results in housing. (d)Program funds shall not be used for indirect housing activities,e.g., acquiring equipment,including but not limited to,facilities involved in the construction of housing units or similar production equipment for housing production that requires further acquisition and installation by the public or other entities. (e)Program funds shall not be used for any overhead or administrative costs in implementing the project. (f)The grantee shall not distribute or redistribute grant funds to other organizations. (3) Payment of Program Funds. The grantee shall: (a) Submit payment requests on a cost-reimbursement basis to the OHCD with the necessary supporting documents and certifications. (b) Allow for site inspection by the County as a condition for payment. (c) Cover all costs in excess of the awarded program funds. (d) Agree that any cost underruns of program funds shall be returned to the Affordable Housing Production Fund. (e) Submit and comply with all required tax clearances and applicable program requirements to receive final payment. (4) Time for Performance. (a) Activities funded to increase affordable housing units(e.g.acquisition of land,planning,and design,infrastructure,new construction)must be obligated within one year,and result in occupancy of the affordable housing units within five years from the date the grant agreement is executed. (b) Activities funded to support or sustain affordable housing(e.g. acquisition of existing property,rehabilitation of existing property, eligible loan programs)must be completed within two years from the date the grant agreement is executed. 71 Page Administrative Rules for the Affordable Housing Production Program Ver.1-1 (c) Requests for time extensions shall be made in writing and approval will be at the discretion of the administrator. (5) Term of Affordability Period. (a) The affordability period for resale and/or rental restrictions for affordable housing units created or rehabilitated with program funds shall be in accordance with the affordability periods outlined Chapter 11. (b)The administrator has the authority to require an extended affordability period beyond the requirements of Chapter 11,depending on the term of the grant agreement. (c) The term of the grant agreement shall extend for the term of affordability period. (6) Affordable Housing Requirements. (a) The number of affordable housing units required by the issuance of program funds for new construction projects will be determined by using the federal HOME Investment Partnerships Program maximum subsidy guidelines,pursuant to 24 CFR 92.250,issued annually by the United States Department of Housing and Urban Development(HUD). (b)The affordable housing units required by receipt of program funds shall not be used to fulfill any other obligation for affordable housing units as required by law. (c) Affordable housing requirements imposed by this section shall be recorded against the property. (d)The grantee shall maintain affordability for the required affordable housing units in accordance with Chapter 11. (e) Maximum rent or sales price shall follow the appropriate income limit as determined by the County of Hawaii Affordable Housing Guidelines as published annually by OHCD. (f) The grantee shall abide by resale restrictions for affordable housing units created or rehabilitated with program funds in accordance with Chapter 11 or as determined by the administrator. (?) Reporting Requirements. (a)The grantee shall submit quarterly cumulative reports to OHCD documenting the progress of the project during the construction until occupancy. (b)The grantee shall submit a final report to OHCD at the completion of the project summarizing the work completed under the Agreement. (c)Upon project completion of affordable housing units for rent,the grantee shall submit annual reports documenting the projects compliance with affordability requirements set out in Section§3-5(6) of these rules throughout the duration of the affordability period. 8 ' Page Administrative Rules for the Affordable Housing Production Program-Ver.1-1 (d)Upon project completion and sale of affordable housing units,the grantee shall submit a report documenting the projects compliance with the affordability housing requirements set out in Section§3-5(6) of these rules. (8) Records.The grantee shall do the following: (a) Establish,maintain,submit,and make available to the OHCD records to enable the OHCD to determine whether the grantee has met the requirements of the program. (b) Make all of its records related to the project available to the County for inspection at any time during normal business hours. (c) Retain all records pertinent to the issuance of grant funds and compliance with grant requirements for at least five(5)years after the end of the affordability period. (d) Allow the County,upon request,to inspect,examine,and audit its financial records. (9) Insurance Requirements. (a) The grantee shall maintain throughout the term of agreement, insurance to cover the operations that may be required under the laws, ordinances,regulations,or policy of any governmental authority. (b) The grantee will provide current certificates of insurance and/or insurance policies as requested by the County. SUBCHAPTER OTHER PROVISIONS §4-1 Non-compliance penalties. (1) If the grantee is not in compliance with the requirements included in the grant agreement or is found to have violated the terms of the grant agreement,awarded grant funds may need to be returned to the County. Grantee may be further penalized as outlined within the terms of the grant agreement §4-2 Recovery of funds. (1) Abandonment. Should the grantee cease to use the property purchased or constructed,rehabilitated and/or converted with program funds for the purposes described in the grant agreement,the grantee shall repay the County the total amount of program funds expended for the project. 91 Page Administrative Rules for the Affordable Housing Production Program-Ver.1-1 §4-3 Resale Restrictions. (1) The grantee shall not sell or otherwise transfer any real property purchased or constructed with program funds,without prior written consent from the administrator. (2) The resale and transfer of affordable housing units is restricted during the affordability period that is in effect. (a) This restriction gives the County the first option to purchase the property in the event of a sale or transfer during the affordability period.The owner that wishes to resell or transfer the owner-occupied unit shall inform OHCD of this intention. (b)The County's repurchase price shall be calculated as the Owner's original base purchase price,plus cost of capital improvements added by owner,plus simple interest of one(1)percent per year on the original sales price,and capital improvement costs. If the County opts not to purchase the property,the sale of the affordable unit shall be approved by OHCD and may only be sold to another eligible buyer in the same or lower median income level as the original purchaser at an affordable rate as determined by the current affordable sale price calculation as determined by the County of Hawaii Affordable Housing Guidelines as published annually by OHCD. 101 Page Administrative Rules for the Affordable Housing Production Program-Ver.1-1 ADMINISTRATIVE RULES FOR AFFORDABLE HOUSING PRODUCTION PROGRAM as amended on MAR 2 0 2024 2024. CERTIFICATION 1,Susan Kunz,Administrator of the Office of Housing and Community Development of the County of Hawaii,State of Hawaii,do hereby certify: I a That the foregoing is a full,true,and correct copy of the Amended Administrative Rules for Affordable Housing Production Program relating to Section 11-21,Hawa'i'i County Code,County of Hawai'i. 2. That notice of the public hearing on the foregoing amendments to the rules was published on the Office of Housing and Community Development's website on February 14,2024, under Public Notices,and was published in the Hawaii Tribune Herald on February 14, 2024,and March 1,2024,and in the West Hawaii Today on February 14,2024,and March 1,2024. By Susan Kunz Housing Administrator Date ADMINISTRATIVE RULES FOR AFFORDABLE HOUSING PRODUCTION PROGRAM APPROVED: Mitch Roth Mayor,County of}Haawai`i Date: APPROVED AS TO FORM AND LEGALITY: ,� 1-- 1 —4,�—, Sylvia Wan Deputy Corporation Counsel Date: I HEREBY CERTIFY that the foregoing rules were received and filed in the Office of the County Clerk,in the County of Hawaii,this 28th day of March ,2024. 4QMrt9 TY CLERK---"