HomeMy WebLinkAboutREP FC 108 2025-11-19 2024-2026REPORT OF THE
COMMITTEE ON FINANCE
DATE: November 19, 2025 Re: Comm. No. 601/Res. No. 384-25
PLACE: Council Chambers
Kailua-Kona, Hawaii
TIME: 10:00 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution No. 384-25, reports as follows:
Resolution No. 384-25, transmitted by Housing Administrator Kehaulani M. Costa via
Communication No. 601, dated October 30, 2025, authorizes the Office of Housing and
Community Development to award four grants for programs addressing affordable housing.
This resolution allows for grant awards to Ho`omalu at Waikoloa LP ($3,000,000) for the development
of affordable multi -family housing, Housing and Land Enterprise of Hawaii County ($300,000) for the
development of affordable single-family housing, Hawaiian Community Assets Inc. ($4,100,000) for the
acquisition of property, and Hawaii Community Lending Inc. ($790,100) financial assistance for
homeownership through deferred -payment loans.
Housing and Community Development Specialists Royce Shiroma and Linda Bui, Assistant
Administrator Keiko Mercado, Finance Director Diane Nakagawa, and Hawaiian Communities Assets
Finance Director Zara Nicholson were present. Mr. Shiroma provided a brief background on this matter.
Committee Member Dennis "Fresh" Onishi questioned the allocation of funds and the procurement
process, past utilization of funds and the number of houses completed to date, and the Laula Road
project. Mr. Shiroma and Ms. Bui provided explanations to funds utilization and the Laula Road project.
Mr. Onishi also expressed concern that awardees may use the award as leverage to secure additional
funding sources.
Committee Member Jenn Kagiwada questioned how many families would be helped by the awards to
Hawaiian Community Assets and Hawaii Community Lending. Ms. Kagiwada also requested
confirmation that these units would include deed restrictions for affordability.
Committee Member Rebecca Villegas asked if there is public record of how the funds will be spent by
awardees and if there is a priority for current residents. Ms. Nicholson replied and explained about their
Ua Hale A`ela Hawaii project that is targeting current tenants of an existing 28-unit apartment building
through a rent -to -own model.
Committee Member Michelle Galimba expressed her appreciation for the blend of different methods
utilized to address the affordable housing situation.
FC Report No. 108
FC-108 Page 2 November 19, 2025
Committee Member Ashley L. Kierkiewicz questioned the number of units built using the Affordable
Housing Production Program and asked for a spreadsheet be provided to Council with the information.
Ms. Kierkiewicz expressed her concern over the funding lapses and the need for reappropriation.
Mr. Shiroma and Ms. Nakagawa both explained how funds have been used.
Committee Member Holeka Goro Inaba requested clarification on the procurement. Ms. Nakagawa
explained both the procurement and budgeting processes. Ms. Mercado provided further explanation on
the project evaluation process.
Committee Member Matt Kaneali`i-Kleinfelder questioned the allocation of Affordable Housing
Production Program funds. Ms. Bui provided an explanation on fund allocation.
Committee Member Heather L. Kimball questioned whether the funding lapses and need for
reappropriation is an isolated occurrence or a systemic issue. Ms. Nakagawa provided further
explanation on the procurement and budget processes and the issue of timing.
Committee Member James E. Hustace questioned the structure of the goals and priorities of the
Affordable Housing Production program. Ms. Mercado replied that priorities are assessed annually and
may also change based on available funding, but noted that it would be helpful to know the parameters
in which the program may operate.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 384-25, and
recommends its adoption.
of
AYES
NOES
ABS
EX
GALIMBA
X
HUSTACE
X
INABA
X
KAGIWADA
X
KANEALI'I-KLEINFELDER
X
KIERKIEWICZ
X
KIMBALL
X
ONISHI
X
VILLEGAS
X
Respectfully submitted,
COMMITTEE ON FINANCE
MATT I EALI-KLEINFELDER,
CHAIR
FC REPORT NO.: 108
ADOPTED: DE� 2