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
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PROJECT LOCATIONS MAP
IMINANI SUBDIVISION
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HALE OLA 0 MOHOULI
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RESIDENTIAL REPAIR
PROGRAM (ISLAND-WIDE)
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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
�
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~,. 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.
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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.
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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.
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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
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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---"