HomeMy WebLinkAboutREP GOEAC 115 2026-04-07 2024-2026REPORT OF THE COMMITTEE ON
GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS
DATE: April 7, 2026
PLACE: Council Chambers
Hilo, Hawaii
TIME: 9:00 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Re: Comm. No. 793/Res. No. 498-26
Your Committee on Governmental Operations and External Affairs, to which was referred
Resolution No. 498-26, reports as follows:
Resolution No. 498-26, transmitted by Housing Administrator Kehaulani M. Costa, via
Communication No. 793, dated March 11, 2026, authorizes the Mayor to enter into an
intergovernmental agreement with the State of Hawaii, Office of Planning and Sustainable
Development, to receive a grant for the 34 Rainbow Drive affordable housing proposal to be used
by the Office of Housing and Community Development (OHCD).
This resolution allows for the receipt of $1,000,000 in federally derived funds to be used for the
planning and engineering design for roadways and utility improvements to interior areas.
Office of Housing and Community Development Specialist Anne Bailey was present in Kona to
answer questions. She began by providing background about the grant funds for the project at
34 Rainbow Drive and explained that these funds will be used for roadway infrastructure into the
property. Committee Chair Jenn Kagiwada clarified that while there are 24 acres, not all of it is
buildable. Ms. Bailey said that about seven or eight of those acres are planned for development.
Committee Member Dennis "Fresh" Onishi asked if they were still working with the Governor's
Homeless Task Force. Ms. Bailey said they were in conversation with them, especially now that
they have these grant funds. Member Onishi asked if this project was something that would be tied
into the Governor's homeless program. Ms. Bailey said that in their master plan they said there
could be rental units at this site in alignment with the Kauhale Program but they would need to
work with the state on details now that they will be able to create roadways into the interior of the
parcel this will open up potential land for rental housing. Member Onishi asked if these were
multiple projects or one big project. Ms. Bailey stated that the County hasjurisdiction over the
land through an executive order. This allowed them to create the master plan and the
environmental assessment. The state can now choose to enter into an agreement with the County
for the creation of a Kauhale parcel. Member Onishi stated that there had been prior discussions
with the state about this project and asked why there hadn't been updates with the state.
Ms. Bailey said that the infrastructure had to come first and she masn't part of the discussion with
the state.
Member Onishi asked what the definition of affordable housing or target income level would be
for these rentals. Ms. Bailey said that the intention for this project they would be coordinating
GOEAC Report No. 115
GOEAC-115 Page 2 April 7, 2026
services for those that are at risk of or currently homeless and potentially servicing those who have
zero income or very low income.
Committee Member Heather L. Kimball asked for more information regarding intended utility
planning, any early cost estimates beyond the planning phase, and if there are any additional
funding sources identified past the planning stages. Ms. Bailey said that they don't have any cost
estimates identified yet but that is part of the contract for the utility and electrical work. She added
that they are anticipating the entire $1 million will be used for this initial contract. Ms. Bailey said
that at that point they will be seeking additional funding, potentially from the Affordable Housing
Production funds, state funding, or leasing out to a developer.
Member Kimball asked if OHCD would need any additional entitlements or approvals from
Council for the infrastructure work after the planning phase is complete. Ms. Bailey said that she
believes they will just need permits at that point and that is something that they can navigate well
within their department in collaboration with other County departments.
Chair Kagiwada asked if OHCD is in communication with the Department of Public Works
regarding the Waianuenue Bridge project and if Public Works is aware of the proposal to
potentially add more housing in this area. Ms. Bailey said that she wasn't sure if they had been
contacted. Chair Kagiwada asked OHCD to inform the Department of Public Works on these
plans.
Your Committee on Governmental Operations and External Affairs is in accord with the purpose
and intent of Resolution No. 498-26, and recommends its adoption.
slm
AYES
NOES
ADS
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 GOVERNMENTAL
OPERATIONS AND
EXTERNAL AFFAIRS
1
JE I ADA, CHAIR
GOEAC REPORT NO : 115
ADOPTED: W�22 2026