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HomeMy WebLinkAboutMIN FC 2025/11/19 (2024-2026) DRAFTCAT.T. Tn XI RP ' Committee on Finance 23"d Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawai `i November 19, 2025 The regular meeting of the Committee on Finance ^scall d to order at 10:00 p.m., in the Council Chambers, Kailua-Kona, by Mr. James E. Hustace, Ayes: Committee Members Ualimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Hustace — 9. Noes: None. Absent: None. Excused: None. FC-23 November 19, 2025 Comm. 73.9: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED MAY 31, 2025 From Finance Director Diane Nakagawa, dated October 21, 2025, transmitting the above report pursuant to Section 6-6.3(h) of the Hawaii County Charter. Vote on Comm. 73.9: Filed Comm. 118.3: Vote on Comm. 118.3 Filed Res. 384-25 Ms. Galimba moved to close file on Comm. 73.9. Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Galimba ^Y�aba,giwada, Kaneali `i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and A ' g Chair Hustace — 9. Noes: None. hA Absent: None. Excused: None. FIRST QUARTER DULY 1 — SEPTEN From Human Resoi 30. 2025 Director Somm okihiro, dated October 23, 2025. Ms. Galimba lose file on C Seconded by Mr. Ana rried by voice vote: Committembers G ba, Inaba, Kagiwada, Kaneali`i- infelder, Kierkiewicz, Kimball, Onishi, Vill s, and Acting Chair Hustace — 9. oes: None. to proceed to the next order of business, AUTHO ES THE OFFICE OF HOUSING AND COMMUNITY DEVEL ENT TO AWARD FOUR GRANTS FOR PROGRAMS :de or grant awardstoHo`omalu at Waikoloa LP ($3,000,000) for the opment of affordable multi -family housing, Housing and Land Enterprise of wai`i 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) for financial assistance for homeownership through deferred -payment loans. Reference: Comm.601 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Page 2 FC-23 Motion to Approve November 19, 2025 Ms. Galimba moved to recommend adoption of Res. 384-25. Seconded by Ms. Villegas. ACTING CHR. HUSTACE: We have Office of Housing in the room here. Any specific questions? Council Member Onishi, we'll go with you first. MR. ONISHI: Thank you. Royce, can you help explain? (Note: At this time, Housing and Commu e opment Specialist Royce Shiroma came forward to addres embers of the Committee.) MR. SHIROMA: Good morning. Royce Sl kol a frNVffice of Housing and Community Development. MR. ONISHI: So this is new appropriated for these project MR. SHIROMA: Yes. This resoluti the Bill 105. MR. ONISHI: 105? MR. SHIROMA: Yes. I h along with additional mom i listnNISHI: at we ha 4 ay. And so halesolution? SHI A: Ye . '`Oa' o scal year. or present funding that'liftp be ected. in hand with the appropriation, current U.S. allocation dated to award the current bill coming up, 105, that $16 million, so of it is brought up because it has lapsed as of MR. HI: NMWis one but, correct? Not this one. HI: Yeah, Okay. And then so the awardees, so called, so they went an application process. 1. SHIROMA: Correct. And if anyone has any questions for the awardees, they're either in attendance here along with on Zoom. MR. ONISHI: And these awardees, is this money that's going to be appropriated to them? Is it going to be used or you folks don't really know? Page 3 FC-23 November 19, 2025 MR. SHIROMA: Well we are hoping that there will be encumbrances for them before the end of the fiscal year so that it doesn't lapse again. MR. ONISHI: Okay, Okay. Because that's what happened with this other one, right, that we're going to be talking about, Bill 105? MR. SHIROMA: Yeah. Correct. MR. ONISHI: Okay. And so how do you folks do you guys monitor this? I guess the previous® MR. SHIROMA: Yes. It was like during applic that there needs to be other sources that applyin application process. So we selected based o that and we would have been awarded the ad4j#onal funding. MR. ONISHI: Okay. And so they for them to get that funding you get. ran c uTn nr a n MR. ONISHI: Then y Well, that's ,d and that's t ect t will a common practice? of this funding; how ess they're notified ch was during the ing that they a deadline rly y method that we can come up with because method we can do so that we can select we adding affordable housing units. MA:AAnd if we were not confident that we were getting the funds, Idn't be selecting them. HI: Right. But then previously you folks had this one project that I mean, I don't want to talk too much about Bill 105, but it's just that the ing part, right. MR. SHIROMA: Yes. We constantly ask them for monthly reports to let us know and also we make sure that the application is still viable within that. MR. ONISHI: Good. You know, like I don't know if these developers they try to use these funds that you folks provide them and use as leverage to show that they Page 4 FC-23 November 19, 2025 have this funding, so all they need to do is get this other part, right? But when they don't get it, then they cannot do the project. MR. SHIROMA: Yes. The project cannot move forward. And that's one of the complexities of these large scale development projects, that they're banking on various source of fundings. If we weren't able to award or have any commitment for the award then I think it pretty much stops that project right then and there. MR. ONISHI: And do you folks follow, is this requirements that you folks have to do this certt MR. SHIROMA: No. Well we kind of guide. But because these are County f programs. MR. ONISHI: Because what o ready but just needed funding and guess interest of having, you know, to right? For example, tax credits and so f MR. SHIROMA: Y RFP (Request for Pr for and what type of i not as law or federal t of federal funds as a as federal come in and hNEWroiect N. on any other�rlu know, I their funds for their project, it? Would that be good? ►n. But because there's an hat the applicants come in federal government or state? Because this ogram is unique and it's very new, the eligible ply for these s can either be a nonprofit organization, a y, or a deve r, a for profit organization. So it doesn't really fit or only ose organizations other than nonprofits. So we had together and that's the reason why we went with an RPF I: OlAy. And so just for example, so if there was a for profit who applied or did the RFP and they like needed maybe $5 million to funding for their project, would they be able to get that funding? MR. SHIROMA: Well if they ranked high in the order of the other applicants. XONISHI: But then see, that's a problem too because other nonprofits are depending on this to help leverage, right, to get these other pieces of the puzzle, right? But whereas another nonprofit or a not for profit, all they need is this extra funding to complete, you know, I guess the amount that they need to start their project right away. Page 5 FC-23 November 19, 2025 MR. SHIROMA: Yes. It's kind of hard what you're kind of trying to compare because they're not all apples. Basically there's a mix of different fruits inside there and we try to kind of have them meet certain criteria, you know, whether they're ready to go for the project or, you know, they have everything lined up and what's the most need and how they can provide the results. Because for this funding we're making sure that we can add as many affordable housing units as possible in a short amount of time because that's where the need is. So that's pretty much what we are trying and hoping to do. In rocess, maybe some things we need to tweak because it's a fairly new ram, e can do that along the way, which we're hearing different types of ents right now. So we're trying to work with everyone to make sure it o etter. MR. ONISHI: Okay. I just hope tha�kn w, with ppropriations that the awardees are like 99 percent thee to fulfill it, we'll be okay for everyone, right? But then now if e of t mean, because they, let you fol too, using this portion to help leverage ei MR. SHIROMA: We usually do. And whoever the other, y w, we review th financials to make sur thing is li of the application they' in. ind of a c we've got to sift through make decision. A to Good. TACE are just using leverage, I on't they let yInee if they're that they o they? we try to work with, you know, of funding to perform their ri hat status, or what stage web of information that me up with the right , I yield. Thank you. Fyou, Council Member. I'm going to go over I'll come back here to Kona. Council ank you, Chair. So this might be a question for Deputy over there. It's more of a programmatic one. But I see you havWe fun ' g going to the Hawaiian Community Assets for acquisition of property for affordable housing utilizing rent to own mode with financial assistance o support home ownership. Do you know how many families this ,100 9 can support approximately; do you have a number in mind? (Note: At this time, Assistant Housing Administrator Keiko Mercado came forward to address the members of the Committee.) MS. MERCADO: Sorry, I'm going to defer to program staff for a second. At least 28 units. MS. KAGIWADA: Thank you. And will these be deed restricted, so they stay in affordability? Page 6 FC-23 November 19, 2025 MS. MERCADO: Yes. MS. KAGIWADA: Great. And similarly for the Hawai `i Community Lending financing for financial assistance for homeownership through deferred payment loans, do you have a sense of approximately how many families that could support? MS. MERCADO: Sorry, one second. MS. KAGIWADA: Sure, no problem. MS. KAGIWADA affordability? MS. KAGIWADA: Great. Okay. Well that's happening wit ing from other sc way for some of this f>ding makes a lot of families into their own homes. it and see how it works o S and that people are �4ettinX t( for you know, given everything and everything that going this t to get some of our local I ift and hope we can follow o see the reporting back on this Thank you so much. I yield. Council Member K h you. Just a quick question. Is there ow the funds are being spent by these projects progress? DMA: . We have reporting requirements that we put upon them in the r lts and what type of different avenues or methods of reaching blic to get the beneficiaries. And at the end of each year, we report to make sure that we provide the data on what the outcomes are for that. that time, anyone can ask. �ILLEGAS: Okay, great. Just, you know, once again assurances that public f nds, no matter how amazing some of the organizations are, unfortunately, we've had instances of monies being used fragrantly or inappropriately or overspending on certain things. And as we continue to navigate this program with the best intentions, just wanting the public to be able to be ensured that we're watching and that the organizations are being held accountable. Page 7 FC-23 November 19, 2025 My last question is about the housing, thank you for confirming that it will be deed restricted and remain in affordable housing. I think that's imperative in order for us to ever be able to overcome this perceived housing crisis. The question I have is does the requirement or prioritization of residents being placed in the housing apply to this as well. Residents get priority versus, for anything it's my understanding we passed something that allows for when government funding is allocated for housing, we can give residents priority. MS. MERCADO: Okay. I'm going to invite Z MS. VILLEGAS: Hi, Zara. MS. MERCADO: She'll be able to MS. VILLEGAS: Thank you. (Note: At this time, Hawai Nicholson came forward to MS. NICHOLSON and I am the Director program called Ua Hale everyone. I re My name is e thorou planation. Assets NF�ina�nirector Zara members of the Committee.) Hawaiian Community Assets, LNigholson. So we have a couldyt speak, bring the microphone right ICHk : ApologiY in this program we serve residents of Ha nat' our primus in this program. All the units in this apart enpied. When we acquire this building, we will provtio program. At that point we will then work with"them f two years to purchase their unit. We will provide housing counse g or with them to make sure they qualify for that MS. VIL GAS: Okay. Thank you. Just putting a tickler out there that, yeah, prioritiIdby, n is for those that already live here. And having seeing in the news, one ofhallenges in Kauai is they built all this affordable housing and then it was us people who don't live here and were moving here. And so we just want"to avoid that potential pitfall. Thank you for your explanation and service. I yfeld. MS. NICHOLSON: Thank you. ACTING CHR. HUSTACE: Thank you, Council Member. Council Member Galimba. Page 8 FC-23 November 19, 2025 MS. GALIMBA: Thank you. I just wanted to say that kind of following up on what Council Member Onishi was talking about a bit. I'm not an affordable housing developer but I can see how difficult it is to get the funding and make all the parts work. So I think it's great that you are making the shift and taking some of those uncertainties that are not in any of our control really. And so you're sort of going more directly towards the actual folks that need the housing and getting the money directly towards them. At the same time you also have some projects for new affordable housing in this mix. So yeah, just wanted to say that I'm really happy with this blend of different methods of addr ng tls horrible housing situation that we are in. So thank you very muc all your hard work. ACTING CHR. HUSTACE: Thank you, Council Member Kierkiewicz, please. MS. KIERKIEWICZ: Thank me right now how many units I'm not sure if ai built in4 the aff production funds since it was estabNre that information on hand? Just becau that we could realize housing for loca20 years from now. o I' just curio many homes have bee bwn and then what that are in the development p MR. SHIROMA: Current%trinHilo ndiii homes for Hale O Hawai`i. ago. Going to Hilo with 's able to tell 'dab sing Do nvone have ition in creating this fund was so immediately and not 10 or L :hm s that have been spent, how been set aside for homes past fiscal year we have two in Volcano. And also in development rig t now in Wa loa Village is called Hale O Makoa. We have 140 units, whic hould be co eted by February of next year. The other projects that are urrently being loped is one that we're working with the develo r in Kona called Kua ' Family and then we have the residential HILP ome I rovement-Loan P gram), which are trying to have renovations that works on right now normally in our office. And we have a couple of de ents e ill in the Planning stages. But we're looking at hopefully one aiminani, one in continuation of Kamakoa Nui. Hopefully we get iWin 2027or 2028, the infrastructure and then go out for that. MS. KIERKIEWICZ: Royce, would it be possible by Council to provide us with Y h[eet of all of that information? I was trying hard to write everything t I can't really compete with how many actual units, tens of millions of as translated to so I think that would just be really helpful. Iappreciate f projects that's being offered here in the resolution, but I will say that I am disappointed to see so much money lapsing. And I'm still trying to wrap my head around the reason why that occurred. Could you just refresh my memory? know you may have said it earlier when Council Member Onishi was asking questions, but I just can't wrap my head around the fact that we had this money that's lapsed that we had to go out and reappropriate. What happened? Page 9 FC-23 November 19, 2025 MR. SHIROMA: Yeah. Well because this is a new type of funding from the County, I'm not sure how it's being recorded in the County books but then I'm told that every year on June 30a', the funding if it's not encumbered, it lapses and unfortunately some of those monies is being used in our department for infrastructure development throughout a couple projects so those monies do not actually get encumbered until they actually have a contractor working on the ground. We have a memorandum of agreement (MOU) with our other division but that does not encumber the funds. So that's the r why a lot of the funds are being lapsed and we need to reappropriate it a MS. KIERKIEWICZ: Director Nakagawa, can y e shed light on this process please? Because this program is like new bu ow new, new. We've done this a few times so the fact that contracts weren't e ed in time is very concerning to me. (Note: At this time, Fi irector Lane Nakagawa c rward to address the members of the itt MS. NAKAGAWA:,,Good morning, Counci embers. Diane Nakagawa, Finance Department. So as you know it is new cause this is the fourth, but not new, new. This is the fourth r. In the first s there was, I believe, $9 million appropriated for this and $5 million in ast year. So each of those initial years and I think in previous s Ho ng has come forward in the last couple of years to talk about the im p and what it took in the first year to get ing and issuing the RFP (R est for Proposal) and some of those funds and contracts were not issued until the second year. But the funding is no different, right. o they have t ap ropriation at the beginning of the year. If coritrac are na encumbered th e funding does go back into AHP (Affor HousingPro m t the department will have to figure out what he al year and reappropriate. If they don't know igeting, it's not budgeted. So you don't have an era udget is in the beginning in July 1st, for the department to cts aren't encumbered through a PO (Purchase Order) or then those funds will lapse. Okay. But it doesn't stop the process of getting the contract. : Right. I just want to clarify really quick. So you put out the RFP, people apply, you select folks to award; the contract is not executed, money goes back into the pot. Do those folks have to reapply for funding? MS. NAKAGAWA: No. MS. KIERKIEWICZ: No. Okay. Page 10 FC-23 November 19, 2025 MS. NAKAGAWA: No. This is just that if it's not done in the fiscal year as anticipated, then the appropriation is not there. So then we would have to reappropriate those funds and sometimes the department may not know what that timing is and they identify the reappropriation amount in the next fiscal year. But the process, they don't have to start all over, this is just an appropriation. MS. KIERKIEWICZ: Okay. That is helpful. I'm hoping that we can do some kind of after action review for these last few ye<aative fund has been operating. There is an ad hoc that is taking a lnty's affordable housing policy, and I do think that it behoovese more specific about the priorities the Office of Housing should h out this bond, this mandate. I know that there are rules, but I body we should be providing that specific directive so 're ry cleaNinot ities. Like I said earlier, I'd like housing now, n ter. nd I'm wo many developers that have means lever g this funding so thigher points on an application and t applic n for Lome Housing Tax Credit) or whatever it reje nd ts and millions of dollars there sitting that co een leverways or used to build housing So I think there's a lot f soul arching that w do in relation to this fund so that it's actually achi ing t e original intent, is to create an affordable housing product for local amilies. ou f 11 of your support, Finance Director. Thank you, Hous' g. ill mg up directly on this program. I 2niUSTACE: kyou, Council Member. I'm going to go over to CdAcil Meiffber Inaba. INA7W Yeah, . Just a clarification. Director Nakagawa, your %teme was that they don't need to reapply if the money lapses. Can you explain that? My understanding is that if they didn't, I mean, they e in compliance with the contract. So is that whole award done? I think lAbst confused with that statement. MS. NA . , GAWA: Yeah. I'm happy to try to walk us through that, Chair aba. it's two different process; there's the procurement process, which I they did a request for proposals that went out during a certain timeframe. 's happening is that timeframe has overlapped with our fiscal years and the a propriation isn't there. The process in which they have conducted in the RFP process, OHCD (Office of Housing and Community Development) can jump in but unless there's any type of other criteria and a timeframe in there, we should be able to continue with this process. They cannot execute the contract until there's an appropriation. But it doesn't mean that the process would stop, but it's not that the process would have to start all over. If that makes sense. Page 11 FC-23 November 19, 2025 MR. INABA: Maybe let's just make sure we're talking the same thing. So for those who lapse because they didn't follow through with the contract, whatever the reason may be, they're not eligible for the funds anymore because the contract period is pau? MS. NAKAGAWA: Yes. If there was an issue with the contract and they're not going to fulfill the contract, that is correct. If they are those that we have just gone through this procurement process with and we not yet entered into the contract because we can't do that without the appr atio they're still in the process of developing or getting to an executed act, which would encumber the funds. MR. INABA: Okay. Yeah. I think yo ere talking a what's right before us and I was just thinking about the pr 'ously awarded folks whose funds actually lapsed. MS. MERCADO: Yeah. Sorry. Mercad Office of Hous Maybe this example will help. This is kind of an program. Our Home Improvement Loan Program was a arded last year thr HP for $875,000. Staff worked to develop a program a rocess in order to t and award these HILP applications. So this s $875,000, ha e nd we're asking for that to be reappropriated not ca set e work wasn't e but because we're still in the process of securing a icants and contractor o fulfill that work. So once that hap ens then this money will be utilized. ftfthat makes sense. So it's not alw ething isn't executed or fol.lowed through on. ABA:' ah. And that' little bit different because that's internal mo ersus s mebody that w uld've entered into a contract with whether it be a n rofit provider or fo ofit developer. Okay. So I think in terms of maybe p i g mor �nfo tion just for the public to see, Communica 0 1. 1 contains a good executive summary and good descriptions of the awards r osed in this resolution. I think what we're missing though, that you get us hopefully by the end of this week, so we have time to review, the al budgets for these four awards and even for the 30 percent that you f s are retaining for the internal programs. We have general understa ng whether it's acquisition or construction, but I'm sure there was rther ail provided in the application. So if you folks can provide that for projects; four for the resolution and two for the internal programs, that w d be super helpful. And, you know, in support. Just wanting to double check, I know there was some interest from Housing to go into identifying specific priorities for the homelessness programs, but for this program we just put out affordable housing production and then whatever came in we awarded based on the priorities you folks have identified in the community outreach. Is that correct? Page 12 FC-23 November 19, 2025 MR. SHIROMA: Yeah. Usually when we do the RFPs, we have certain priorities that we want to hit and for this application process we wanted the target group to be from 80 to 120 because we felt that was a piece that was missing. And also we wanted to ensure preserving the existing housing units were not forgotten and certain projects were hitting that type of priority also. MR. INABA: So was that specified as part of the RFP? MR. SHIROMA: Yeah. Yes. MR. INABA: Okay. So everyone, I mean, tried to address projects that targeted those® MR. SHIROMA: Yes. MR. INABA: Okay. I just w clarify an internal priority, but had wet ut th Thank you so much. ACTING CHR. HU'l Hilo, Council Memb MR. KANEALI'l-KLEII walking through your num the affor ousiniz nro, Yes. Thank you, CM `'-Kleinfelder. fund, smart, would've probably r that was. that was like that. O ,perfect. Member. Going to go back to ,Chair. To Housing, I'm just Ilion appropriation per Code to for 2025-26? �LI`I-KLEINFELD : Thank you. And then there was a on of $7.3 million from 2024-25? ition, that was part of it. Yes. MR. KANEALI` LEINFELDER: Okay. And then we had a total of $12.3 mi ' n available, correct? Yes. PKANEALI'l-KLEINFELDER: And then we had $437,000 inistratively? MR. SHIROMA: Yes. That was removed out of that number. MR. KANEALI`I-KLEINFELDER: Okay. So about $11.9 million, correct, available? Page 13 FC-23 November 19, 2025 MR. SHIROMA: Yes. MR. KANEALI`I-KLEINFELDER: Okay. We're awarding $8.1 million, right? MR. SHIROMA: Yes. MR. KANEALI`I-KLEINFELDER: It's November. The remaining $4 million is going to be used for the remainder of 2025-26? MR. SHIROMA: We had certain projects that d to reappropriate. A couple of projects were —sorry, can I ask our specia to in? (Note: At this time, Housing a o unity Deve opment Specialist Linda Bui came forward to ess e members of ommittee.) MS. BUL Hi. Linda Bui fro of Hou g. Can you ple at your question? MR. KANEALI `I - fourth whereas cla MS. BUI: Yes. MR. KANEALI`I- adm' ' nd UI: Ye MR N 7 A T T`T- ,DER: I'm inthrough your numbers in the million appro g n for FY (Fiscal Year) 2025-26 KLEIN LD : Reappropriating $7.3 from 2024-25 unused previousl nded projects. Totaling up to $12.3 million. .EINFELD : Minus $437,000. So it leaves about herbs clause awarding $8.1 million in 2025-26. And it the next three point something million dollars is 5-26, if there's a plan, given where we stand right now 1 million is going to organizations outside of OHCD, n-profits and then one other organization. And the r two internal OHCD projects. That includes provement loan program to do cesspool conversions r this new pilot program that our office is looking into re either in tax dealing and foreclosure or bank foreclosures to turning to permanent affordable housing. MR. KANEALI`I-KLEINFELDER: Okay. So we have a plan for 2025-26 is what I'm hearing for the funding in this specific fund? Correct, Mr. Shiroma? MR. SHIROMA: Yes. Page 14 FC-23 November 19, 2025 MR. KANEALI`I-KLEINFELDER: Beautiful. My final question, What is the allowable amount of administrative costs for the organizations that are receiving a grant? MS. BUI: So, for AHP we do not allow administrative costs. It's something the organizations need to provide. We provide direct project costs. MR. KANEALI`I-KLEINFELDER: you. MS. BUI: Thank you MR. KANEALI`I-KLEINFELDER: ACTING CHR. HUSTACE: Kimball, I believe your light Good job. Thank stions. Thank you Council Member IV MS. KIMBALL: Yeah, I just had quiNe irector Nakagawa. All I really want to under tand is this kind que situation or is this something we're goi ome up agyear. Because of just the timing that it takes to t plement soma s in essence wondering if we need kind of a differ t strategy ng with this every time. I see that the RFP inputtin o the Re'0 in May of 2025, so it just seems like we couldn't even there was no charilee of meeting this cycle this systematic or just a oe-off thing? AGMAKAGAWA: I think it's a programmatic thing. It is the timing of when we and wh n we enter into co tracts. The system is there. Today we're lookin at this appropriation or this resolution and then another appropriation. I hu w we kbe a now ey have that appropriation plus the current year if t at goes tho that is the budget for this year. So it's really programming them out toend that by June 30a'. MS. KIALL: 's not aone-off thing. It sounds like it's inevitable. 4` MS. NAI 4GAWA: It's programming. It's budgeting, right? So, the budget is own. It 11 be known. It's known now if this goes through what it is for 025-26. It is like all other funding that we go through in our budget process looking at what can be done in that fiscal year timeframe. These funds go back ito the purpose of the fund. But the mechanism of it being reappropriated is not the is not an issue. This is timing of the programming of the funds. MS. KIMBALL: So is there any solution to that timing challenge with the structure we have for budgeting right now or is this just an inevitability? Page 15 FC-23 November 19, 2025 MS. NAKAGAWA: I think that's the question for OHCD in the timing, right? So for the first couple of years, what we learned was we needed a —the first year most of the funds went into the second year because it took a while to establish the program, set criteria for these procurement opportunities to get started. Now, like I said, I think this is for OHCD to kind of respond to in terms of how the timing of our funding works with the issuance of RFPs, or entering into contracts, or taking a look at their overall budget. MS. KIMBALL: You had suggested that the is actually something that would fall under the and maybe, yeah. Okay, great. Thank you. ACTING CHR. HUSTACE: Thank discussion? Council Member Onish MR. ONISHI: Thank you, C ay so what this program is all about. Ok is provided to Housing to get more affor four years ago, three ears ago, right? A think you folks answered his, but question till today with using the f ad hoc that this of the ad hocs discussion it MemNWbAnv other I'm kind of gerht re about ly County fun was ing be built. Anrted about ,'re now on the fourth year and I 4ow many houses was completed MS. MERCADO: I thin hat w be helpful ' if we provide a spreadsheet document to you folks so c ee everything that's transpired. Say, you kn why because to me I just wanted this funds was %wkaionitbut tedg that first y it was something new like Director Nakagawa don't think ody had a real plan, right? So that was like the fir o c e with some kind criteria requirements, right? And so that ney la went to the next year. Then your RFPs went out, right? And no 't's not guaranteed that whoever got awarded would be able to complete the proje r' lit? And so to me it seems like monies been lapsing. Is that true? MS. ME ADO: Yes and no. So yes, this is our fourth year. The first year was spen/creg admin rules in order to administer the funds. What's different ouogram is that I'll just compare it to Homelessness and Housing Fund, ore you folks in order to grant out the money, we work with the o izations, contracts are executed in that same fiscal year. Sometimes because a many of you have alluded to this AHP funding is used as leverage with other funding sources. So it could be that we don't enter into contract with them in that same fiscal year that they're awarded. So it appears as if the funding has lapsed, but it appears as if they haven't done their due diligence. But the rules allow for that timing. Page 16 FC-23 November 19, 2025 MR. ONISHI: But listening to what Ms. Kierkiewicz mentioning there's funds that was created was to get projects done now and not five, six, years from now, right? And so that goal is not being hit, right? MS. MERCADO: Yup, absolutely. I think that's the benefit of this conversation, right. There have been some changes based on conversations that we've had with Council Members, based on conversation with community and the public meetings that are had when we're shaping the rules, t dministrative rules. And so you see a little bit of that change this year, and m so in the coming year, right? Because we're taking all of this int ount and staff is making adjustments to ensure that the fund is being m din a way that is having affect now. MR. ONISHI: And then I hear fro er uncil Memb out having these affordable homes for the local fa es, right? But now if an ee is using this for leverage to get other fundi hey gek l funds then restrictive to of how you award, right. Is that t? MS. MERCADO: MR. ONISHI: Yeah. change the whole game, MS. MERCADO: Yes, ani zaesingaWo earlier in be address that in Okay Yes. the this for locals could shi I think is the program that Linda he Office ousing now will have a fund in of that. So units now. s Communication 601.1, you folks have MR. HI: O good. One of the projects awarded, Laula Road, new construSMfors e, $300,000. That is to purchase one home or purchase the That $300,000. That is for land trust to build a new single-family a land that's owned by the State and leased for them. 1. ONISHI: So is that the land that was given or that was executive ordered (EO), that 38 acres? MS. BUI: No, it's not that land. It's a different land. 10,000 square -foot land. Also, EO from the state to the County and leased to the non-profit to build a house on. Page 17 FC-23 November 19, 2025 MR. ONISHI: Okay. Now my question is because even like for this Hawaiian Committee Assets (HCA), it's supposed to acquisition of properties for affordable housing, utilizing and you had mentioned about having a program for two years hopefully these lessees could purchase the properties. And also with this other one Laula, this non -profits, County provided or funding has been provided to them to startup and to get this project done. Supposedly if they sell it, the money that they make, the profit is supposed to roll over into the next project. Is that correct? MS. BUI: Correct. So for example, if you take roperty acquisition, they would use the money to acquire the property ach unit that successfully does the rent -to -own, those proceeds woul used uire a next property for affordable housing. So then it revolve MR. ONISHI: Okay, I understa o that means then that on't be coming back to you guys again, correc MS. BUI: Yes. MR. ONISHI: Okay. now Laula, that they have come to you folks before, they sold hom still giving the n MS. BUI: So for Laula Woad, an t is h . They have multiple properties that they're building. So ac this round it's more for capacity building have two pro* cts that they plied funding for. However, we only funde ecause they uld use the proceeds from the previous projects that e funde build the oth ne. So this is for them to reach however many pro s the n build a year. heir goal is, I believe, four properties a year but in ee bigger pot to revolve the funds. ONIS why don't they do what they did at University Heights, where they lease to o me and not the land? Why can't they do it that way? Because tQ me th es it more affordable for the families to purchase the home because all�they ng is it the home, right? MS. BUL- That's what they're doing is leasehold properties, so the lease will k,main,.,,yifh them and then they will have a leasehold on the house itself. ONISHI: Okay so this new project that you guys talking about on Laula. So t1fre property is going be leased and the home is going be like how University Heights is? MS. BUI: Exact same model MR. ONISHI: Okay. And then so but then how come it says, "For Sale" or "Housing For Sale"? That means the home? Page 18 FC-23 Recess: Reconvene: November 19, 2025 MS. BUL- The home is for sale. But if you go to the project details MR. ONISHI: So with the Hawaiian Community Assets, is this also leased to them and the home is purchased? Or this is land and home being purchased? You can come up front. MS. NICHOLSON: Under our model it's land and home MR. ONISHI: Okay. So I think Housing you fol on ind of come up with a more because we talking about affordable, I thi should start looking more into the leasing part of the property especiall s f this money that Hawaiian Community Assets going be usi ounty to purchase the properties, then I feel we should be going int at way sing and then having them pay just for the home, right? I mean, how does Hous el about that? Because I think that can be the new model. MS. BUI: That could be the new nM HCA when we acquire the property t] forever. Whatever a its that get sold perpetuity. have to go into recess her R. goingVlderst� USTA MR. ONISHL Thank yoll—Y wanted to claffv that for striction will be in -perpetuity, so building will be in affordable in We're going to -IRMUSTACE: But at this point since I haven't had a chance either re's o ablsome other thoughts, we're gonna have to put this into this committee into recess until conduct the business via council by that, this Committee on Finance is in recess. Thank you. We'll fter the proceedings of the Council Meeting and that adjourns. , the Acting Chair called for a recess. g reconvened at 3:01 p.m. ACTING CHR. HUSTACE: We are now reconvening the Committee on Finance. It is 3:Olpm. Thank you for your patience. We were discussing Resolution 384-25, and I want to open up back up to the members to see if that anymore discussion points. Okay, seeing none. Then I just wanted to chime in a little bit. I just wanted to thank Assistant Administrator, I know you're back in Page 19 FC-23 November 19, 2025 Hilo Chambers. I just had a question for you on regarding the goals and priorities laid out in the affordable housing production. MS. MERCADO: Aloha. Keiko Mercado, Assistant Housing Administrator for the Office of Housing. ACTING CHR. HUSTACE: Thank you, Assistant Administrator. Just curious, earlier in the day we had discussion a little bitgaboutriorities and you established these through County wide surveycommunity. How often are we seeing this change? These three hatare established within here; how often are they shifting one w MS. MERCADO: It's my undersi engage with community annually ACTING CHR. HUSTACE: you think that just reach out 4t�hje should there be any sort of baseline pc Mayor's office or he e at Council that like at least some bas that we can that kind of playing in MS. MERCADO: Yes. I thi appreciate the dialog so m i Vaisto about the m dscape aroun s hange, and w e sure there's a ing within_ Y is is ann because we do administra les. more structur fit? Or do uni use you have d sense or t either you and your office or the to establish some sort of guideline via m a little bit. How do you see t' appeningtodayand whyI M*wha lywe have been askingthese ective uthe fund and how we need to changes. So federal government changes, ave to be nibble enough to be able to pivot. But cture in place so that we know the parameters ING C WUSTACE: Thank you. I think there's possibility to set some soNyo e .�?. looking to you and your office on how do we establish thw we upport on the legislative side that these are the parameters toance d strengthen the affordable housing production fund. So thThank you, Administrator. S. M CADO: Thank you. NG CHR. HUSTACE: Of course. Any other discussion? Alright. All in favor of approving Resolution 384-25, please say "aye." Page 20 FC-23 November 19, 2025 Vote on Res. 384-25: The motion to recommend adoption of Res. 384-25 was (Approved) carried by the following voice vote: Ayes: Committee Members Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Hustace — 8. Noes: None. Absent: Committee Member Galimba —1. Excused: None. Change Order As directed by the Acting Chair and with no ec orm the Committee of Business: Members, the following items were taken of orde Bill 105: AMENDS ORDINANCE NO. 25-4 S ENDED, T ERATING BUDGET OF THE COUNTY O AWAI`I FOR THE FIS EAR ENDING JUNE 30, 2026 Appropriates revenues in the Fund ce^1evious Year a unt ($16,515,493.51) and appropriates the ousing Production account. Comm. Council r aneali `i-Kleinfelder (B/R) Motion to Approve: Mr. Kaneali`i-Klkanilo. ved to rec mend passage of Bill 105 on first onded b r. Onishi. G USTAcussions or questions. We have Office of g staff e in KoAre there any remaining questions on this dis n? I-KIIq=ER: Chair? Anyone in Hilo? Yes. Mr. Kaneali`i-Kleinfelder. MR. KANEALI` LEINFELDER: Yes, please. Just a little background from the depargMent if they could. HR. HUSTACE: Please, Mrs. Administrator or Mr. Shiroma, I don't you want to give a little background on this. (Note: At this time, Assistant Housing Administrator Keiko Mercado came forward to address the members of the Committee.) MS. MERCADO: I think Royce would be the best person to provide that background. Page 21 FC-23 November 19, 2025 (Note: At this time, Housing and Community Development Specialist Royce Shiroma came forward to address the members of the Committee.) MR. SHIROMA: Thank you. Royce Shiroma, Office of Housing and Community Development. As mentioned earlier in today's meeting in the Finance Committee, this is like the third not really the full third year of the program itself but it's the third year of getting the funding and this reappropri ati on is needed in order to fund projkheeither lapsed in a prior program year or it was either allocated thrandum of agreement to another division in OHCD for inrehab work that also lapsed. When it lapses in the end of the fisc it needs to be reappropriated in order for us to encumber of the monies cannot be encumbered due to various reasons, e it beingNen not, you know, we award based on contingencies, w t get full fom other sources of funds, or we cannot encumber morandums of agrthat reason, it lapsed. And therefore, hope ce a ye we need to reapp e the funds back into the AHP program t ble the funds. MR. KANEALI`I-KLEINFELDER: Th u, Mr. Shiroma. I'm looking at the two different numbers in Resolution 384 an 105; the totals are very different. So what's the di`erence between th ance? which we've kind of been discussing in Resolution nd this bil . MR. SHIROMA: Yes. I'1 a to here to provide information. KANEALI I-KLEINFE ER: Okay. And please introduce yourself for the when y are seated. �ote: At this tim ng and Community Development Specialist to address the members of the Committee.) Office of Housing. I work under the Grants the total reappropriation is about $16 million dollars ce mentioned some of our previous projects that were 11 happening, but we haven't entered into contracts with includes from prior year Kaiminani subdivision, and provement loan program that we funded also and or example, if our homeowners that are looking to ire unable to find a contractor by June 30a', those funds znt and for us to be able to access these funds again we would need to come and reappropriate. So part of that $16 million is for our existing projects that are still happening and the other part are those projects that did not proceed or could not fulfill the contingencies such as securing additional funding. Then there's also a portion of that $16 million that consists of our OHCD administrative funds that we did not Page 22 FC-23 November 19, 2025 use that fiscal year that also lapses and we're planning to use those unused admin funds towards projects. MR. KANEALI`I-KLEINFELDER: Okay. Thank you. So the difference between the resolution and the bill is about $4 million dollars, does that sound right to you? MS. BUI: So out of the $16 million I can tell you our OCHD projects and the remaining of that was round, which is the additional $7.3 million doll MR. KANEALI`I-KLEINFELDER: O I million is reserved for htd awarded in this $16.5 million, this is Bill 105, and then from'our previo Resolution 384-25 there was an add* al reappropriation well, it doesn't list the fiscal year I'm assuming that $7.3 2024-2025. Did I miss somet e, are nk numbers not MS. BUI: So the $7.3 million dollars just not adding the f amount to this reserved for our OH11 of ects from from 2024-2025 was zussion for L.3 million from, n was from the'$16.5 million dollars. We're i because those are already MR. KANEALI`I-KLE Okay. I go Okay. Thank you, Chair. I yield. '4� ACTING ' �.� HUB. ank you, ncil Member. Any other questions on Bill 105'. MS. KIERKI ICZ: Chair? es. Mr. Inaba. 143 F M BA: right. *So just to clarify. There's about $4 million dollars curre lready appropriated for the current fiscal year, right. And then we are reapprop ting the $16 million and the total appropriations that were approved via the re ution including the project funds that are reserved for our County are $12 milli . So technically we don't have about $8 million programmed, is that rrect� hat wasn't an easy question I just asked. Sorry. But if we have on already appropriated for the current fiscal year and we have another $ illion extra based on this reappropriation that would be $8 million, so what is t e plan for that? Unless my math isn't mathing. MR. SHIROMA: Just to clarify. So you're asking on what is the other projects? MR. INABA: Let me ask a simplified version perhaps. Passing that resolution, does that leave us with any additional funds in the current fiscal year that are not being programmed? Page 23 FC-23 November 19, 2025 MR. SHIROMA: No it wouldn't. It will take up almost 100% of the funding. The $4 million, I'll call it $5 million allocation for this fiscal year is already in the budget and then the additional $16 million dollars, like Linda mentioned, was a mixture of different types of funding types of funding situations in which we had to reappropriate and so those are the source of funds. MR. INABA: Thank you. I'm probably just getting mixed-up with a conversation I had last week. I'm going to go based off of what's ided here in your documentation. Thank you. ACTING CHR. HUSTACE: Thank you, Co i ber. Back to Hilo, I think Council Member Kierkiewicz? Yes. MS. KIERKIEWICZ: Yes, Chair. nk particular bill today and here's w . You knoo fund; I don't have enough information and th has been so muddy. I think it would have be particular piece of legislation today and th c award those additional funds. This is ius i fiscal year all the lapsel something to sneeze at. I'm going I'm the creat iformation that t cleaner if voting no on this :oauction provided d this e back with the resolution to everything just very confusing. t provides a breakdown of which SO* dollars is not so I'd like to just see better iro' cts we're looking at? And I'll ist think that we need a lot more decision on this. Thank you. Council Member. Any other discussion I spoke already, but if can. Go ahead. MR. KANEALI` LEINFELDER: I understand the numbers. But a $16 million dollar re ropriation it just speaks to something not working. That's why that's I think t s what we're all searching for is we set up the production fund to oduc t we're reappropriating a large amount of funding back in. I nd we have some programmed if not all programmed but the reason w e here is because the stuff that we programmed last year, and we're in ovember of the new fiscal year isn't or hasn't completed or been able to get to completion or even encumbered. So something's not working. So to Ms. Kierkiewicz' point, I agree with her. I'm not going to vote no, but something's not right. So if you can come back to us with more information next hearing that would be very much appreciated. Thank you. Page 24 FC-23 November 19, 2025 ACTING CHR. HUSTACE: Thank you, Council Member. Council Member Kagiwada. MS. KAGIWADA: Thank you. I think for me what I'd really like is to understand, well I do understand why some of this previous programming didn't go through, but for this fiscal year like a little more background and maybe assurances from OHCD that you feel confident that we're actually going to spend this money this year and get it out the door and get the ordable housing that we need with this money. So I guess by having those brea ns I think that would really help me see where that's all going. Okaydlkknk you. I yield. ACTING CHR. HUSTACE: Thank you, Concil Back here in Kona anyone? Alright. Well thank you for the discussion. A ant Administrator, I think you hear some of the concerns and some of the confu ' ossibly about the numbers and discussion on the resolution we had and now thi So with it going forward I think we need e more de nstration and a s e of some of these funds and how they're bei ken So I would a eciate that sort of guidance as we continue this conversA on in Council. With that, we'll take the vote on this. Those in favor of mov' Bill 105 to Council, a roll call vote, please. Vote on Bill 105: The motion to recommend passage NBilon first (Aproved) reading was Carrie by the'e: Bill Motion to Approve Committ embers G ba, Inaba, Kagiwada, -neali `i-Kleinfelder, Kimball, Onishi, and tin Chair Hustace — 7. oes: Committee ers Kierkiewicz None. AM ORD CE NO. 25-45, AS AMENDED, THE OPERATING BUDG T F THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUKE 30. 2026 Appropri s revenues in the Federal Grants — Emergency Rental Assistance V OVID-19 (Emergency Rental Assistance 2 Pass Through) account ,623.34) and appropriates the same to the Emergency Rental Assistance m COVID-19 (Emergency Rental Assistance 2 Pass Through) account. Reference: Comm.603 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Mr. Kaneali `i-Kleinfelder moved to recommend passage of Bill 106 on first reading. Seconded by Mr. Onishi. Page 25 FC-23 November 19, 2025 ACTING CHR. HUSTACE: Any discussion from the members? MS. KAGIWADA: Chair? ACTING CHR. HUSTACE: Yes. Council Member Kagiwada. MS. KAGIWADA: Thanks. Can I please have Assistant Administrator back up again? So can you explain what we're doing here 2*� en I have a follow-up question. (Note: At this time, Housing Assisrof 1 came forward to address the membthe MS. MERCADO: This is ERA given to the state and the state t MS. MERCADO: MS. KAGIWADA: O I was just making sure reimbursed basically? similar runamg, going is it looking like we're Keiko Mercado -e.) that was through to us® 30a'. that's what I thought, and got it now. You're getting ;ive us just a little picture about this kind of rd; do you know anything about the general to be steady, is it totally unknown, is it RA funding was a specific funding source that came one rrd that that will happen again. As far as we know right rental assistance funding coming from the federal MS. K WADA: Okay. Just in general, assistance for our community funding from the federal government around housing like this. Any possibilities out there like with our community partners or anything or is that looking bleak as well? MS. MERCADO: We don't have anything concrete yet. We're tracking it's possible. It's possible that we could find additional funding. It's possible that we could lose funding. So at this point nothing has come down directly to us yet. Page 26 FC-23 November 19, 2025 MS. KAGIWADA: Okay. For the people that were getting this support, what kind of situation are they in? Are able to maintain their housing, are some of them struggling? Do you have any feedback on that? MS. MERCADO: We can ask the organization that was leading this project. It is my understanding that part of the program was housing stability services so not just the rental assistance but all of the other things that would come into play to help support the family. That assistance is continued e offered from the organization for folks who have signed up to recei at ice. MS. KAGIWADA: So it's just the rental asWnlqW that got cut? MS. MERCADO: Yes. MS. KAGIWADA: Okay. Alri it would be great if you c eep the Council apprised to what's go' the co unity around s the stuff especially if you see big, large 'Nat be affected. I nk it's really important that we know what's going MS. MERCADO: LI MS. KAGIWADA: Th y1AkWJ1d. ACTING CHR. HUSTAytyofqqt� ember. Hilo, we lost visual. W�*u, but anmberstions on this particular bill, B IW A: Looks like We okay over here. Thanks. J okay. No other discussion. Okay. Those in favor 106 to Council with a favorable recommendation, please say Vote on '� ,I 6: 1 moti to recommend passage of Bill 106 on first (Approved r 'ng was carried by the following voice vote: Return to Order of Business: es: Committee Members Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Acting Chair Hustace — 9. Noes: None. Absent: None. Excused: None. The Acting Chair directed the Committee to return to the order of business. Page 27 FC-23 November 19, 2025 BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. (Note: Items in this category were taken up previously, out of order.) Bill 103: AMENDS CHAPTER 19, ARTICLE 7, SECTION 19-53, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAX AL Applies the homeowner classification's three-perc ann 1 assessment increase cap to a property's agricultural assessed value certain conditions, including if the property is no longer assessed accordi i icultural use; expires after two tax years. Reference: mm. 93 Intr. by: Council Members Kimball and Hustace Motion to Approve: Ms. Kimball moved to rec nd e of Bill 103 07 first reading. Seconded by ba. ACTING CHR. HUSTA( on this please. MS. KIMBALL: Yes. T1 from the conceptual stand think that 14 discussed t terms of th wh 're 1 it Member a whcsile. I W ecifi, but sniz at here is Council Mem imball, if you want to start us off you. �m goin o talk about this bill a little bit d the some of the specifics because I ace and I RPT (Real Property Tax) had anted to get something in front of you to discuss t k we're not fully settled on those. So generally w nted to institute a program for senior farmers who h in one of the a ultural programs for a long time that are then retiring or eaving far n at on their primary residence, if that's the property that they've e farming, their property won't automatically overnight go to market rate. S t w what happens is you have that valuation that is reduced on the la cause you're in one of the agricultural programs and then when you et out one of those programs because you no longer qualify, it goes to marke te. And that for some folks can mean an increase in the 500 to 700 that their property taxes go up in one sudden step. rI thisbillproposes is that if you've been in at least one of the programs for 0ofthe last 15 years, you will be able to have the value of your land the last amount that it was in the ag program and then increased three percent per year following that just like you would do in the homeowner's program. It's really an issue of fairness. Folks at some point made a decision about whether or not to keep their properties in the ag program or in the homeowner's program until recently when we changed the law so you could be both. And what ends up happening here is the folks who made the choice to go into farming and to do agriculture, they have this big cliff that they're going to be Page 28 FC-23 November 19, 2025 standing on whereas if they stayed in homeownership and had not farmed that whole time they would cap with that three percent. So we don't want to inadvertently punish these folks who have been contributing to our food systems all this time. We did have a sense that either should have been a commitment to having farms, so we settled on 10 years out of the last 15 that you had to have been in the program. We could consider something shorter. We d say five out of the last ten. We could say seven out of the last twelve, w er. ut I do want to have a dialog about what's appropriate there. What I want to set up is a situation where people come in, they buy a piece of property, the farm it for a few years, and then they've locked themselves in at th' ower r ere, you know, rather than really honoring the folks that hav een g time lturalists in our community. So that's one of the ca is to think about. The other thing about this is wye've set it up tole somewhat retr And I say that somewhat in the sense that you can quay for this even i ou've already been out of the program for a few yea at poin . So it goes back to 2012, so your 10 years can be from 2012 to 2022. you got out of the program in 2022, you would stil av the opportunity advantage of this program. And we did that becau in at time frame; on V (Coronavirus Disease). That was the last straw a%t o lks, and sot e of out of the agricultural programs then. It was als the t2ing that we started talking about the reforms to the agricultural tax programs, m it clearer that some of these folks either no Ion r were not going to qualifyvhen they retired. And so some of t chose t0 st out before t became effective. That's another thing for o considde and I'll share e numbers on that in a moment, is whether or not ant to ve that retroac So what that would happen for those folks is they uld go back to the st r that they were in the program and then their xt tax bill would be that three percent per year added from that time if that sense. The i in ab is is that we've built in a sunset date. So we have this setups tit w' only apply for two tax years and then after that a future Council ld have to come in and just determine whether or not to renew the program. gain, we set that in as a default but if you guys feel comfortable that is is s ething that the County should continue to do in perpetuity than that ate is not necessarily appropriate. We are calling this the Senior Farmer T batement Program because it's not like we're losing taxes, it's just that e're not going to collect the taxes that we could potentially collect in the future. We did some preliminary numbers. A lot of assumptions behind those numbers. We're probably looking at the $800,000 area for the annual, not collection or abatement. If we can include the retroactive roughly as it is proposed right now starting in 2012, 10 of the last 15 years, we're looking at about a loss of $165,000. This would apply to about 350 properties, average savings for the homeowners would be about $1,300. I don't know if Administrator Miura is still over there in Page 29 FC-23 November 19, 2025 Kona. I know she was going to speak to this. But there are a lot of assumptions if these are challenging numbers to pull out so we don't know how many people will take advantage and other things. I just wanted to give you kind of a ball park of what we're looking at. The last thing I will say that in terms of Real Property Tax time and staffing power. The nice thing about this is that it's not going to take any more staffing time because what happens now is when people gtothe programs, they go in and they set the value to market rate for the lan0ase when people get out of the program, they just won't do anythin only require the folks that are kind of the retroactive group.do some sort of application because they would have alrea Moving forward there isn't actual/annproperty tax side. I'll pass it overany additional comments or provi Hustace, if you'd like to add aD#tbjgLas n you. ACTING CHR. HU5TACE did you want to chime in lye Thanks for coming d in their values. ork on the real wants to make Chair Thank aber. Administrator Miura, feedback to the members? (Note: At this tim Real ax Adffiinistrator Lisa Miura came forward to address bers ommittee.) 14, IU ood afternoo Lisa Miura, Real Property Tax Administrator. re this i st what you a ant to be thinking about after the long day you ad. So know there's g to be a lot of different questions. I will tell you that Keita tried to ots ifferent scenarios because this did change over the discussions. They t different proposals, whether it was the five years p to the tenNreo think as far as statements go, Council Member Kimball said quite a bit in me people had chosen the homeowner tax class because prior to beingto do both, which just really started. Not long ago they had to pick and co if you wanted the lower ag value on your land, you could get the homeowner's exemption but not the tax class. And so people during COVID ' start dropping out of the ag and going to the homeowner tax class before ' as allowed to do both. So I think the idea of having to have so many years a d going back makes sense because you don't want to lose a lot of those that had to choose to get out of the program. I do have more questions, but I think it really depends on where the Council discussion goes today and where that lies. But Council Member Kimball is correct. If you take it as it is it could be as low as $169,000 in tax revenue loss going forward, assuming everybody applies for this program. I think my biggest concern would be getting information to the individuals that could qualify Page 30 FC-23 November 19, 2025 because they're so confused with the ag program right now that they may not understand how this fits for them and making sure we notice the right people. My other concern is due to the timing if this is repealed on June 30, 2028, I'm not sure if it gives us a full two fiscal years for them to apply and see it because our assessment period would have to when the fiscal year ends on June 30, 2028. That really applies to your January 1, 2027, assessment because we collect July 1, 2027, and ends in 2028 and I think it needs Alve ast a full two years. Being that were already in November, if this got ap's already 2026 and were missing that assessment period already. Sp I'm here for any questions you have depending where you guys land it coul be a lot more. She's right though it's not really a loss in revenue unless you' e doing retroactive, which is a whole other discussion we'd have to have at some point but until we hear from everybody I won't know. ACTING CHR. HUSTACE: ou, Ad * istrator. I think mbers are mauling it over. Council Member ada u. MS. KAGIWADA: Thank you so much, Chair. On the question of tax fairness this makes a lot of se We don't want our farmers to be overburdened. They should have the same at our homeowners tax -,class have. I philosophically really li w is going. I guess my question would be this is really dealing with like nd of 'mess and the real property tax issues, but is there anything that co offe ho once they retire, but are still livi and, and we d offer the to encourage them to keep utilizing t roductive land in so way; some kind of way we could support them don't kno if you woul 11 it leasing or sub -leasing or what you would cal ut to en urage people t sider that so that it's not a real property tax issue a productive a nd issue that we keep those lands producing d for and. that uld just be my main question. Is there a way to buil in or do you feel like if they did that they wouldn't get that three pe j1d eas e ould keep it the same? I'm not sure how that would work. it sta the productive ag category if they're leasing it out and therefoey wouldn't even get that three percent increase per year? SoI'djust like to habout that or if you discuss that or thought about that. Thanks. I Sorry, Council Member Onishi. 1. ONISHI: Thank you, Chair. It seems like this proposal, I think, should be worked out more within property tax and the two makers to kind of have. I guess to be more on board that you folks both understand where you folks both are coming from, right? And how you guys are going to implement this whereas now we're kind of fishing all around and this is going delay things or might, you know, this means it might last long, right? Because then we going be asking questions to property tax, they going have to go back and research, come back Page 31 FC-23 November 19, 2025 again, and so forth. So I would suggest the makers work with Administrator Miura, with property tax and then kind of at least get some basic foundation and then from there we can work it out. I yield. ACTING CHR. HUSTACE: Thank you, Council Member. Council Member Inaba. MR. INABA: I think Vice Chair Onishi hit it right o head. Far from prime time. I think the concept is good, but we shouldn' spe ing our committee meetings with such broad concepts and things ned out. So I don't even want to provide feedback on what is here be e 't think it's even agreed upon between the two makers. I yield. MS. KIMBALL: Acting Chair ACTING CHR. HUSTACE: MS. KIMBALL: To Chair Inaba an( been worked on extesively between department. What w couple of numbers. O And two, the sunset dat of what Administrator 1V feedback that there is no disc mmittee. t the ap ate tin TALE: I make a ber. lember Onishi, this actually has ember Hustace and I and the ing for right n consensus from the body on a of the 15 year n appropriate range? o viously is pro not enough time based off said. So what were ally actually looking for is r y to achieve t to bring this forward for ike the fedback from the rest of the body if and if the body wants a sunset date or not? Th vou_ Council Member. Council Member M _ � � ALIM ' Thank you. Yes, I thank the two makers for working on this. I kno a vet 'r ated kind of an issue, so yeah, a bit of clock making here actua e tinyFor me, I think the sunset date is essential because that takes ca f Coumbers Kagiwada's concern about this then having some Vnegativeentive for folks to not use theirag land for agriculture. So this is s that got into a particular kind of situation as we move from these classes and programs but then doesn't create a negative incentive ultural use. So I would agree that it probably needs to be a few years ut definitely like that. As far as the 10 years within the 15, you know, I am a little bit of an agricultural sell it, so that part of me is, yeah, they need to have done it forever. But I think that maybe perhaps we could go down to something lower because even five years is a pretty good commitment to actually do ag. Five or seven, I would be fine with. But I would also be fine with 10. But yeah, I do really appreciate you Page 32 FC-23 November 19, 2025 folks working on this because I know that there is a certain number of people in the community that this would help. So thanks. ACTING CHR. HUSTACE: Thank you, Council Member. Any other discussion? Council Member Kimball, I'll go back to you if want to chime in on anything else before I share some thoughts. MS. KIMBALL: No. I think I'll just share, just reite that I do appreciate Council Member Kagiwada's concern and this is s t i that we are considering at least as far as applying a sunset Olate really kind of understanding. We won't know how this will impact that aspect of it until it's actually put into practice. The one thing that I will say is, again, it onl lies to the primary residence where they have the homeow 's cssificati ' 'ng. And so it does leave those larger properties that are ev loped that are or agriculture still being pushed towards being produc ve so that they get the to fits being in the ag program. So there is thAOasjWt of it. ank you. ACTING CHR. HUSTACE: Thank y ncil Member. I'll just chime in here a little bit and then we can decide on the ion here. The intent and the purpose here is to su rt our aging farmer can no longer at some point work the land as they nce were productive. o t s re gnizing the work and the commitment that they've given to communities thr h their active production of ag, and in a point where they have nowhere to go d this is their home; this is the place where they've worke so this an opportunity to age in place in Athel herthey've wor where they ave a homestead. And so it's izing thei place and th role that they've given to the community here lso supp ing them as t all often are on fixed income. It provides rdrails or them going ard. So I do recognize that and want to just that for the committee re. There's definitely, you know, when Council Member Kimball and I were talking about this, we were looking for a way, as this body discussed the agricultural tax program, there were,pieces that we needed to kind of figure out and streamline and help as people move in and out of that program. And Administrator Miura, ou have done a fantastic job. I know you said that there's definitely challenges Vw'iththeogram but you yourself havedone a fantastic job with your staff and educate community about the program and the new rules and the there, and this only adds a little bit more complication to that I would . So it's something we need to kind of iron out some of these kinks I appreciate the feedback we've had here from the committee and the members. I do recognize that 10 years of that 15 is important. They really made that commitment to ag and yes, there is a sense of maybe people have done it for a smaller period of time, and we should also recognize that. But this is really showing that they've made that investment of the agricultural property and have Page 33 FC-23 Motion to Postpone: November 19, 2025 worked at through this program here. So I do really want to stick with that, if possible. But we do need to have that discussion and potential amendment about that repeal date and what that looks like and how that affects some of those numbers there. So I'll kind of leave it there for now. It seems that we have more discussion to have about this so my recommendation would be to leave it here in committee. But if there is any other discussion, please let me know. I do not see any other lights. MS. KIMBALL: Acting Chair? ACTING CHR. HUSTACE: Yes. Council MS. KIMBALL: Again, as I m ention forward for discussion in com out of ten, ten out of fifteen. two ways that we can do this Council Member Galimba has I can just bring evidence to th us to discuss. But I ink it would be mo the body with that ra o a drafted would n something else? or 2nd HUSTAC Not seeing. Mr. hi moved to Dece r 2, 2026. 11 ball. the mai ons we brought this to get that r about the five )riate ratio the here's one of e in right now a e. I mean, it Shat they thin e best is? Or eects potentia alternatives for luctive just to get the sense of from kLnse or if they would like to see iVIMember. Any other discussion shi, please. Bill 103 to by Ms. Galimba. discussion on the postponement? Council Inaba. .BA: w ted to check in with the two of you if that's enough time ough a the proposed amendments with Real Property Tax? I think, if I may respond, Acting Chair? Please. [BALL: Yeah. I will just bring an amendment that proposes an alternate e and an alternate sunset date then we can have that discussion on the MR. INABA: Okay. Thank you. In support. Page 34 FC-23 Vote on Motion to Postpone: (Approved) ADJOURN- MENT: Approved: November 19, 2025 ACTING CHR. HUSTACE: Thank you, Council Member. Any other discussion on the postponement? Okay. All those in favor of postponing Bill 103 to the December 2nd Finance Committee meeting, please say "aye." The motion to postpone Bill 103 to December 2, 2025, was carried by the following voice vote: Committee Members Galimba, Kaneali`i-Kleinfelder, Kierkiei Onishi, Villegas, and Acting None. None. None. There being no further business adjourned the meeting at 3:47 Mr. Matt Kaneali `i-Kleinfelder, Chair Finance Committee MK/tk (Date) Hustace Page 35