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Home My WebLink AboutCOM 0162.000 2024-2026C. Kimo Alameda, Ph.D. Mayor William V. Brilhante Jr. Managing Director County of Hawaii Finance Department 25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720 (808) 961-8234 • Fax (808) 961-8569 February 21, 2025 Dr. Holeka Goro Inaba, Council Chair and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Operating Budget Diane Nakagawa Director Malia A. Kekai Deputy Director The United States Department of Housing and Urban Development (HUD) is requiring the County to pay back HOME funds for a Habitat for Humanity Hawaii Island (Habitat) project that was not finished in the required 5 years. HUD requires the funds to be utilized for future HOME projects. The repayment will be made from the Affordable Housing Production account. Habitat was awarded $451,221 of federal funds through the 2018 HOME Investment Partnership Program. Habitat coordinated a self-help affordable housing project for two homes in the Puna District. Due to extenuating circumstances, the two homes were completed after the program deadline, deeming the project ineligible. The two homeowners have 0% interest mortgage agreements with Habitat and Habitat will utilize payments from the homeowners to repay the County over the next 30 years. Enclosed is a resolution transferring funds from the Transfer to Housing Fund account to the HOME Program Income Repayment account and a bill for an ordinance amending the Operating Budget by reducing the Housing Fund subsidy and the Housing Production account, bringing the new total to $8,548,779. The Office of Housing and Community Development requests that a breach be authorized to submit this resolution after the February 18, 2025 submission deadline, and to waive it from the Finance Committee in order to be placed on the March 7, 2025 Council agenda. If there are any questions, please do not hesitate to call Kehaulani Costa or Royce Shiroma of the Office of Housing and Community Development at 961-8379. (g, ��L Diane Nakagawa Director of Finance Enc. c: OHCD Hawai'i County is an Equal Opportunity Employer and Provider •� Res. 9i It 53 > . 4.m STAFF CONTACT DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION Office of Housing and Community Development DATE: February 20, 2025 Kehaulani Costa/Royc Shiroma PHONE: (80 3) P61 -8379 Please submit the attached bill to amend Ordinance No.24-32, as amended, the Operating Budget for the County of Hawaii for the Fiscal Year ending June 30, 2025, to add additional Home Investment Partnership (HOME) Program allocation and appropriate the same for the General Fund, as follows: 152,461,5469,02.115 Housing Production, Misc. Contract Svc 010,951,5951 __ HOME Program Income Repayment B, BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): $ 451,221 ,00 The HOME Investment Partnership Program (HOME) is a federal program from HUD, through the State HHFDC, that is allocated to the County of Hawaii every three years, on a rotation with the other neighboring island counties. As required by federal statute, the County is required to allocate no less than 15% to a Community Housing Development Organization (CHDO) for affordable housing initiatives. For the 2018 HOME allocation, the County awarded $451,221,00 to Habitat for Humanity Hawaii Island, who qualified as a CHDO, to coordinate a self-help affordable housing project of 2 homes in Puna District. These funds were to pay for building materials only. Potential homeowners provide the labor, working alongside a certified general contractor. The deadline to complete construction of these 2 homes was July 18, 2024. However, through various obstacles such as COVID-19 Pandemic, change in Executive Directors, construction work scheduled on weekends only, and other unforeseen issues, these 2 houses were completed after the July 18, 2024 deadline. Due to completion occurring after the deadline, the State HHFDC and HUD have deemed this project ineligible and is requiring the County to pay back the expended HOME funds to the County's HOME Program Income Account for use on future Hawaii County eligible projects. To accomplish this, the OHCD will use Affordable Housing Production (AHP) funds to advance repayment. Use of the AHP funds aligns with projects support of adding affordable housing units for low-income AM[ families. In turn, Habitat for Humanity Hawaii Island will pay back the County using all proceeds of the sales of these 2 homes for the next 30 years. The 2 new homeowners have a 0% interest mortgage agreement with Habitat for Humanity Hawaii Island for only the cost of the materials (project total), to keep the cost affordable for them. Therefore, this appropriation needs to be created to allow the County to transfer funds to the HOME Program Income Repayment Account to allow it to be used for future HOME projects, This will provide proof to HUD that funds were repaid back to the HOME Program, Any delays in repayment will jeopardize future federal funding from HHFDC and HUD for affordable housing, The OHCD is requesting a breach to allow this B-52 to be processed, since this Request didn't meet February 18, 2025's 12:00 pm deadline. Also, the OHCD requests a waiver to bypass the Council's Finance Committee, to be placed on the County Council Agenda for the March 7, 2025 meeting, And finally, the OHCD is requesting to waive the 5-day Council hold on the March 19, 2025 County Council Meeting. SIGNED: DATE: Department Head 0 MATT KANEALI`I-KLEINFELDER Chairperson JAMES E. HUSTACE Vice Chair HAWAI`I COUNTY COUNCIL County of Hawai `i Hawai `i County Building 25 Aupuni Street Hilo, Hawai `i 96720 February 24, 2025 Dr. Holeka Goro Inaba, Council Chair Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 DR. MICHELLE M. GALIMBA DR. HOLEKA GORO INABA JENN KAGIWADA ASHLEY L. KIERKIEWICZ HEATHER L. KIMBALL DENNIS "FRESH" ONISHI REBECCA VILLEGAS RE: Resolution No. 94-25 A RESOLUTION TRANSFERRING/APPROPRIATING AN APPROPRIATION OUT AND FROM THE DESIGNATED FUND ACCOUNT(S) AND CREDITING SAME TO A DESIGNATED FUND ACCOUNT(S) Bill No. 33 AN ORDINANCE TO AMEND ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2025. Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawaii, this written request is submitted with my approval that the above -referenced matter be waived from the Committee on Finance to the full Council for immediate action. In reviewing this matter, timely approval is crucial. It is therefore advantageous that approval is granted and the matter be placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Committee on Finance for placement on its future agenda. Sincerely, Matt Kdneali`i-Kleinfelder, Chairperson Committee on Finance rove Date/W 've to Council: Disapproved/Date/Refer to FC: 111 zl(_4� Dr. Holeka Goro Inaba, Council Chair _ Dr. Holeka Goro Inaba, Council Chair Hawai�_ i County Council �2 5 _°��`;� Hawaii County Council MKKAkh Ilawai `i County Is an Equal Opportunity Provider and Employer