HomeMy WebLinkAboutCOM 0210.000 2024-2026C. Kimo Alameda, Ph.D.
Mayor
William V. Brilhante Jr.
Managing Director
Diane Nakagawa
Director
Malia A. Kekai
Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720
(808)961-8234 Fax (808) 961-8569
March 28, 2025
Dr. Holeka Goro Inaba, Council Chair and r
Members of the Hawaii County Council
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Operating Budget
On March 7, 2025, resolution 94-25 was adopted authorizing the transfer of appropriations from
the General Fund Transfer to Housing account to the HOME Program Income Repayments
account regarding a repayment agreement with the United States Department of Housing and
Urban Development (HUD). Enclosed is a bill for an ordinance amending the Operating Budget
by decreasing the appropriation in the Transfer to Housing account and appropriating the funds
to the newly established HOME Program Income Repayments account.
If there are any questions, please do not hesitate to call me at 961-8092.
Diane NakAgawa
Director of Finance
Enc.
c: OHCD
Comm. o. t/ _
Hawai'i County is an Equal Opportunity Employer and Providepet• To:
q 22 5
Ref. Date
Form * B-52
7/18/91
STAFF CONTACT
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
Office of Housing and Community
Development DATE: February 20, 2025
Kehaulani Costa/Royce Shiroma PHONE: (808) 961-8379
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:
152.451.5469.02.115 Housing Production, Misc. Contract Svc
010,951,5951_ HOME Program Income Repayment
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
$ 451,221,00
$ 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 AHIP funds aligns with projects
support of adding affordable housing units for low-income AMI 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, 2026 County council Meeting.
SIGNED: DATE
Department Head
a