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Home My WebLink AboutCOM 0476.000 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 August 13, 2025 Via hand -delivery Dr. Holeka Inaba, Council Chair and Members of the Hawaii County Council 25 Aupuni Street, Suite 1402 Hilo, Hawaii 96720 SUBJECT: FY2024-25 AFFORDABLE HOUSING PRODUCTION PROGRAM ANNUAL REPORT Dear Council Chair and Members of the Hawaii County Council, G7 co The Office of Housing and Community Development respectfully submits the FY2024-25 Annual Report for the Affordable Housing Production (AHP) Program for your information and review. In accordance with Section §2-2 of the AHP Program Administrative Rules, this report outlines the expenditures and accomplishments resulting from appropriations made through the AHP Program. We, kindly request that this communication be placed on the appropriate committee agenda. Should you have any questions or require additional information, please contact Royce Shiroma or Linda Bui at (808) 961-8379 or via email at ohcd.ahp a-hawaiicounty.gov. Thank you, vl!a� Kehaulani M. Costa Housing Administrator Enclosures C: Mayor's Office Comm. No. IN ,Ref. To:—CLK 0 Ref. Date AUG 2 5 2025 1115z1b EQUAL HOUSING OPPORTUNITY COP A N2F AFFORDABLE HOUSING j PRODUCTION PROGRAM FY2024-25 ANNUAL REPORT (J U LY 1, 2024 - J U N E 30, 2025) Na Hale Makoa - Waikoloa Hale O Hawaii University Heights - Hilo Hale O Hawaii Pa Alii Street - Volcano Office of Housing and Community Development 1990 Kino'ole Street, Suite 102 Hilo, HI 96720 Phone: (808) 961-8379 Email: ohcd.ahp@hawaiicounty.gov G� This Annual Report is submitted in accordance with the Affordable Housing Production Program Administrative Rules Section §2-2 Annual Report to promote transparency and accountability regarding the use of public funds and the status of funded projects. FY2024-25 AHP Program Annual Report EXECUTIVE SUMMARY Funding for the Affordable Housing Production (AHP) Program is authorized through Ordinance 22-77, which appropriates a minimum $5,000,000 annually to the Office of Housing and Community Development (OHCD) to support initiatives that promote affordable housing in the County of Hawaii. OHCD is responsible for the planning, administration, and implementation of all County housing programs. Its mission is to foster viable communities by promoting decent housing, suitable living environments, and expanded economic opportunities. In Fiscal Year (FY) 2024-25, OHCD received a $9,000,000 appropriation for the AHP Program and reallocated an additional $5,500,000 from a previously funded project that could not proceed. Through a competitive Request for Proposals (RFP) process, OHCD received thirteen proposals requesting approximately $48 million. Following evaluation using weighted scoring criteria, OHCD awarded a total of $13,275,000 to four projects. The remaining balance of $705,000 was not awarded due to proposal limitations and has been carried forward for future funding opportunities, in accordance with AHP Program policies. Funding for the awarded projects was approved by both the County Finance Committee and the County Council via Ordinance 47-25. The selected projects are currently in various stages of pre -development and development. 2 FY2024-25 AHP Program Annual Report OVERVIEW OF THE FUNDED PROJECTS Name Total FundedProject Units Project Type District Hale Ola O Mohouli $3,200,000 91 Construction 2 Kuakini Family Affordable 1 $5,000,000 48 Acquisition, Plan and Design 7 Kaiminani Subdivision $4,200,000 25 Infrastructure 8 Home Improvement Loan $875,000 17 Financial Island - Program* Assistance wide Total of 4 Projects $13,275,000 181 *Formerly the Residential Repair Program OVERVIEW OF THE ADMINISTRATIVE EXPENDITURES FY2024-25 Admin. Allocation Actual Expenditure Total Remaining $ 520,000.00** $ 285,280.29 $ 234,719.71 **In accordance with the AHP Program Administrative Rules §1-3 (5): On an annual basis, up to 10% of the fund's appropriation shall be used for administrative expenses by the OHCD. For FY2024-25, the OHCD has allocated approximately 5.78% for this purpose. OVERVIEW OF OTHER EXPENDITURES Ordinance 25-29: In FY2024-25, the County allocated $451,221 from the AHP Program to repay federal HOME funds tied to a prior affordable housing project administered by Habitat for Humanity Hawai'i Island. Due to unforeseen delays beyond the project's control, including pandemic -related challenges, the two homes were completed after the federal deadline, rendering the project ineligible under HOME program requirements. The AHP funds were used to fulfill the repayment obligation, ensuring compliance with federal regulations. Habitat for Humanity Hawai'i Island has executed a repayment agreement with the County and will reimburse the full amount over time from sale proceeds. This approach reduces the financial burden on the nonprofit while preserving the homes as long-term affordable housing. FY2024-25 AHP Program Annual Report PROJECT LOCATION MAP KAIMINANI SUBDIVISION NwtIh Ko . DtwKt Waimea K HALE OLA 0 MOUthHQlJLI Hamaktia tstnct Hilo Ea h ti:iuta tttrtlh Kona DtsttKt 4AqfSttKt H* aii Pun Disti tt t 54ttth K,Ona r DISUI(t Kau IN.' 41 PV* D ttxt Kau �ahata RESIDENTIAL REPAIR PROGRAM (ISLAND -WIDE) KUAKINI FAMILY AFFORDABLE I Note: The "Residential Repair Program" is now called the "Home Improvement Loan Program" 4 FY2024-25 AHP Program Annual Report HALE OLA O MOHOULI Organization: Hawaii Island Community Development Corporation (HICDC) dba Hale Ola O Mohouli LLLP Total Funded: $3,200,000 Hilo, TMK: (3) 2-4-001:168 Location: Located on Mohouli Street toward Kaumana Drive, right before the intersection with Kukuau Street Project Type: New Construction Housing Type: Multi -family Rental Units: 91 (including one manager's unit) Affordability Period: 60 years Current Status: The AHP Program funds were withdrawn as the project was unable to secure the required funding from the Hawaii Housing Finance and Development Corporation by the contingency deadline. The awarded amounts will be carried forward for future funding opportunities, in accordance with AHP Program policies. FY2024-25 AHP Program Annual Report Organization: Total Funded: Location: Project Type: Housing Type: Units: Affordability Period: Current Status: • Planning and design KUAKINI FAMILY AFFORDABLE I GSF LLC dba Kuakini Family I LP $5,000,000 Kona, TMK: (3) 7-5-017:005 Located on Kuakini Hwy in the direction of Kailua-Kona, right before the intersection with Walua Rd and Oni Oni St Acquisition, Planning, and Design Multi -family Rental 48 (including one manager's unit) 61 years Milestones and Achievements: • AHP Program Grant Agreement executed, and funds obligated • Property acquisition finalized Upcoming Activities: • Secure additional funds from the Hawai'i Housing Finance and Development Corporation Expenditure Report: Total Funded Total Expenditure Total Remaining 111 111 • ' 6 FY2024-25 AHP Program Annual Report Organization: Total Funded: Location: Project Type: Housing Type: Units: Affordability Period: Current Status: • Planning and design KAIMINANI SUBDIVISION County OHCD Community Development Division $4,200,000 Kona, TMK (3) 7-3-010:056 and (3) 7-3-010:061 (portion of) Located on Kaiminani Drive toward Queen Ka`ahumanu Hwy, right before the intersection with Ane Keohokalole Hwy Infrastructure Single-family Leasehold 25 65 years Milestones and Achievements: AHP Program Grant Agreement executed Upcoming Activities: • Obligate AHP funds with the relevant provider Expenditure Report: Total Funded Total Expenditure Total Remaining 11 111 111E, 1 111 7 FY2024-25 AHP Program Annual Report HOME IMPROVEMENT LOAN PROGRAM (Formerly the Residential Repair Program) Organization: County OHCD Community Engagement Division Total Funded: $875,000 Location: Island -wide Project Type: Financial Assistance Program Housing Type: Owner -occupied Properties Units: 17 Affordability Period: 10 years minimum Current Status: • Marketing efforts and the homeowner selection process are ongoing Milestones and Achievements: • Program policies and procedures finalized Upcoming Activities: • Execute the AHP Program Grant Agreement Expenditure Report: Total Funded Total Expenditure Total Remaining 111 1 111 8 FY2024-25 AHP Program Annual Report PROJECTS FUNDED IN PREVIOUS FISCAL YEARS Project Name Fiscal Year Award Amount Disbursed Status Kamakoa Nui FY2023-24 $ 5,400,000 $ 0 Planning and Workforce Housing Design Na Hale Makoa FY2023-24 $ 2,000,000 $ 2,000,000 Construction Land Trust Pa Ali'i FY2023-24 $ 300,000 $ 25,988.83 Completed Street Land Trust University FY2023-24 $ 300,000 $ 257,584.99 Completed Heights Project Details: For more information on prior projects, please refer to the Affordable Housing Production Program Annual Plan available on our website at www.hawaiicounty.4ov/ahp. Ongoing Monitoring: OHCD continues to monitor the progress of all funded projects through regular reporting and site visits to ensure compliance with program requirements and timelines. Future Reporting: Projects that remain active will continue to be tracked and reported on in subsequent Annual Reports until project completion. FY2024-25 AHP Program Annual Report PREVIOUSLY AWARDED PROJECTS NOT PROCEEDING Project Amount Did not secure required Hale Ola O FY2023-24 $ 824,559.46 Withdrawn funds by contingency Mohouli FY2024-25 $ 3,200,000 deadline Did not secure required Ho`omalu at FY2023-24 $ 3,000,000 Withdrawn funds by contingency Waikoloa deadline Manago Mauo FY2023-24 $ 5,500,000 Withdrawn The property purchase was not finalized Note: Affordable housing development involves multiple phases and dependencies. The projects listed above were unable to move forward due to unmet contingencies or other unforeseen challenges, such as securing additional funds or completing property transactions within required timelines. As no funds were disbursed, the full award amounts will be carried forward for future funding opportunities, in accordance with AHP Program policies. 10 FY2024-25 AHP Program Annual Report APPENDIX A: PRELIMINARY DESIGN SKETCHES The following sketch represents a preliminary design concept for the Kuakini Family Affordable I Project. This visual is for reference only and is subject to change as the project advances through planning and development phases. FY2024-25 AHP Program Annual Report APPENDIX B: PROGRAM FLYER The following flyer provides outreach material used to promote the Home Improvement Loan Program (formerly the Residential Repair Program) across the island. FY2024-25 AHP Program Annual Report DOES YOUR HOME NEED REPAIRS? The County of Hawaii Office of Housing and Community Development invites you to apply to the Home Improvement Loan Program Are you a low- to moderate -income homeowner on Hawaii Island and in need of a loan to repair the dwelling unit you occupy as your primary residence? You may qualify for a low -interest loan to make much -needed repairs! SCAN ME 1:1 13 .& _ M Y V ou Up tcal.? receive force S # 000 � pairsi _ ELIGIBLE USES OF FUNDS INCLUDE: • Roof repairs • Termite treatment • Connecting to sewer system • Updating faulty electrical wiring/plumbing • Solar water heating • And more! v For more information and to apply scan the QR code or visit www.housing.hawaiicounty.gov. oQuestions? Send an email to ohcdloans@hawaiicounty.gov. EQUAL HOUSING OPPORTUNITY