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HomeMy WebLinkAboutCOM 0199.000 2002-2004 OOJMtt Oi /4~ Harry Kim Y Christopher]. Yuen Mavar Di~ccmr ~~Tt Oi~NA~'\ Roy R. Takemoto Depurv Direcmr ~nixn#~ u~ ~rx£tYZrii PLANNING DEPARTMENT 101 Pauahi Street, Suite 3 Hilo, Hawaii 96720-300.3 (808)961-8280. Fax{g08)961-8742 March 13, 2003 Mr. James Leonard PBR, Hawaii 101 Aupuni Street Hilo, HI 96720 Dear Mr. Leonard: - SUBJECT: Change of Zone Ordinance No. 97-36 (REZ 846) Subject: Compliance with Conditiou M (Hokali`a Members' Lodge Employee Housing Program) Use Permit No. 115 Subject: Compliance with Coudition (Golf Course and Clubhouse Employee Housing Program) Applicant: 1250 Oceanside Partners Tax Map Kev: 8-1-004 Portion of 003 This is to acknowledge receipt of your letter of transmittal dated March 5, 2003 submitting the two (2) signed Agreements with Administrative Guidelines between 1250 Oceanside and the County regarding the employee housing program for the Hokuli`a Golf Course and Clubhouse and the Hokuli`a Member's Lodge. Submittal of the signed agreements, dated August 29, 2002, completes compliance with Condition M of Change of Zone Ordinance No. 97-36 and Condition No. 16 of Use Permit No. 115. Thank you for following through in complying with this requirement. Should you have any further questions, please contact Susan Gagorik or Esther Imamura at 961-8288. Sincerely, ` ~ ~qq Comm. No. CHRISTOPHER J. Yi3EN 0.'p Planning Director File No.- Itet. To: SG:mad Kef. Date APR 2 2003 PC 01102~planning~puhGc~WPWIN60ASUSAN Lllokuhahousmgagrceskg doc Mr. James Leonard PBR, Hawaii Page 2 March l3, 2003 cc/agreements: Hawaii County Council ~ Kona Planning Department J~tY OI 4 i~'t"v ~ ~b Harty Kim Edwin S. Taira d4npor •~r Hoasing dAminislramr ti~O~~M•~ ~'Coutttp of ~~ma~it ~ , OFFICE OF HOUSING AND _ COMMUNITY DEVELOPMENT ~ ~ 50 Wailuku Drive • Hila, Hewai'i 96720-2484 Lv"~ VITT (808) 961-8379 • FAX (808) 961-8685 August 30, 2002 TRANSMITTAL TO: PBR Hawaii 101 Aupuni Street Suite 310 Hilo, Hawaii 96720 SUBJECT: 1250 Oceanside Partners Hokuli'a Golf Course and Clubhouse Employee Housing Program WE ARE TRANSMITTING THE FOLLOWING AS REQUESTED: COPIES DATED DESCRIPTION Orig. +2 08/29/02 Agreement REMARKS: Please call us at 961-8379 if you have questions or need additional information. Signed• ~-LI.G~C~z~~~u~//r-CI,~i1d~~ '~iEdwin S. Taira Housing Administrator 4433DTLW EQUAL HOUSING OPPORTUNITY "AN EQUAL OPPORTU NITV EMPLOYER" AGREEMENT THIS AGREEMENT, made, executed, and delivered this a~ ~ day of 2002, by and between 1250 OCEANSIDE PARTNERS, a Hawaii limited partnership, whose mailing address is 78-6831 Ali'i Drive, Kailua-Kona, Hawaii 96740 (hereinafter referred to as "OCEANSIDE"), and the COUNTY OF HAWAII, whose mailing address is 25 Aupuni Street, Hilo, Hawaii 96720 (hereinafter referred to as the "County"), by and lddnaging Dhaeinr through its 3Mape~ WITNESSETH WHEREAS, OCEANSIDE, has partially completed the development known as "Hokuli'a Golf Course And Clubhouse" (hereinafter "Hokuli'a"), pursuant to the terms of Use Permit No. 115; and WHEREAS, OCEANSIDE's employee housing program, as approved for in Use Permit No. 115, is designed to assist qualified employees of the Hokuli'a, and thus addressing their housing needs; and WHEREAS, on December 19, 2001, the County Council adopted Resolution No. 151-01 which authorizes the Mayor, on behalf of the County, to negotiate and enter into an agreement with Oceanside for the satisfaction of the affordable housing requirement as provided for in Use Permit No. 115 for Hokuli'a, based upon the County Housing Agency's approval of Hokuli'a's implementation plan; and WHEREAS, pursuant to a revised affordable housing policy which was adopted in Ordinance No. 98-1, as effective on January 7, 1998, the County Housing Agency has authority to review and approve such implementation plans. NOW, THEREFORE, the parties hereby agree as follows: ] . Pursuant to the "Hokuli'a Golf Course And Clubhouse Employee Housing Program", as approved by the County Housing Agency, and in satisfaction of the employee housing condition of Use Permit No. I ] 5, OCEANSIDE shall implement a housing program according to the terms of the "Hokuli'a Golf Course And Clubhouse Employee Housing Program", as attached hereto as Exhibit "A." 2. For good cause and in conformity with the purposes and objectives of the "Hokuli'a Golf Course And Clubhouse Employee Housing Program, the terms of the "Hokuli'a Golf Course And Clubhouse Employee Housing Program" may be amended by OCEANSIDE without formal amendment of this Agreement upon the prior written concurrence of the County Office of Housing and Community Development. IN WITNESS WHEREOF, the parties hereto have caused these present to be executed the day and year first above written. COUNTY OF HAWAII 1250 OCEAN5IDE PARTNERS, a Hawaii limited partnership By By RED HILL 1250, INC., `"I~I'bfi E1XIE KAETSU Its General Partner IiS-A42~}+AF Managing Director By JO eFRIES RECOMMENDED APPROVAL: Its e President By Date: t ~Q~ H mg Administrator Office of Housing and Community Development APPROVED AS TO FORM AND LEGALITY: By ~~LiR.6~~ K. ~~19- Date: C~ ~0~~ Deputy Corporation Counsel COUNTY OF HAWAII 3 STATE OF HAWAII ) SS. COUNTY OF HAW{{~~AII ) On this ~"'3ay of 2002, before m~i4~~~~~c'~ a duly commissioned and sworn Notary Public in and for the State of Hawaii, appeared JOHN DeFRIES, who being by me duly sworn, did say that he is the Vice President of Red Hill 1250, Inc., general partner of 1250 Oceanside Partners dba Oceanside 1250, a Hawaii limited partnership, and that the foregoing instrument was signed in the name of and in behalf of said partnership, and said JOHN DeFRIES acknowledged that he executed the same as his free act and deed and as the free act and deed of said partnership. BARBARA E. NEVILLE NOTARY PUBLIC, STATE OF HAWAII ~ , , _ COMMISSION EXPIRES: 11/28/2003 Q' ~,/'/j (Seal) Print Name: ~ Notary Public, State of Hawaii My commission expires: 4 STATE OF HA II ) SS. COUNTY OF HA Il ) On this _ day f , 2002, before me personally appeared HARRY KIM, who, being me duly sworn, did say this he is the Mayor of the County of Hawaii, a municipal corporatio of the State of Hawaii; that the seal affixed to the foregoing instrument is the corporate seal of ie said County of Hawaii; the foregoing instrument was signed and sealed in behalf of the Co ty of Hawaii by authority given to the Mayor of the County of Hawaii by Section 5- l A(g) o e County Charter, County of Hawaii (1980), as amended; and said HARRY KIM, as Mayo of the County of Hawaii, acknowledged said instrument to be the free act and deed of said unty of Hawaii Print Name: (Sea1J Notary Pu lic, State of Hawaii My commisst n expires: 5 STATE OF HAWAII ) SS. COUNTY OF HAWAII ) ~ L On this ~q day of ~`+k~~1 , 2002, before me personally appeared DIXIE KAETSU, to me personally known, who, being by me duly sworn, did say that she is the Managing Director of the County of Hawaii, a municipal corporation of the State of Hawaii; that the seal affixed to the foregoing instrument is the corporate seal of said County of Hawaii; that the foregoing instrument was signed and sealed in behalf of the County of Hawaii by authority given to said Mayor of the County of Hawaii by Section 5-1.3(g) of the County Charter, County of Hawaii (1991), as amended, and assigned by the Mayor to the Managing Director pursuant to Section 6-1.3(h) of the County Charter; and said DIXIE KAETSU acknowledged said instrument to be the free act and deed of said County of Hawaii. v JEA VIERNES Notary Public, State of Hawaii My commission expires: 11/1/200__ ~ ~i i~~~ ~7~ i C~ f` r ~ 'o(~C3L~G f ti' T~,~~„ ~ \~P HOKULI`A GOLF COURSE AND CLUBHOUSE EMPLOYEE HOUSING ADMIIVISTRATIVE GUIDELINES ExHZBIT A HOKULI'A GOLF COURSE AND CLUBHOUSE EMPLOYEE HOUSING PROGRAM ADMINISTRATIVE GUIDELINES 1. PURPOSE The purpose of this Program is to effectuate the Hokuli`a Employee Housing Plan as required by Condition 16, Use Permit No. 115. The Program shall be administered in coordination with Hawaii County and its Office of Housing and Community Development (OHCD). 2. DEFINITIONS "Eligible Employees" means full-time employees of the Hokuli'a Golf Course and Club House, who qualify under affordable housing income guidelines, as defined in Ordinance No. 98-1, and under criteria for eligibllities which are established in this document and which may be modified from time to time with approval of the appropriate County agency. "Fund" means a housing subsidy fund which is funded by Oceanside 1250 to assist eligible project employees in the acquisition or construction of housing "units" in the County of Hawaii, as defined in Ordinance No. 98-1. "Immediate Family" means "qualified households," as defined in Ordinance No. 98-1, and shall include: 1. The applicant and his or her spouse, and their children residing with the applicant, who will be residing in the home to be purchased; 2. Other dependents who have been included on the applicant's tax return for the most recent tax year and who wlll reside with the applicant; and 3. Anon-married "significant other " if that individual appears as a co-applicant and a co-owner in the title of the property to be purchase and will reside with the applicant in the home to be purchased. Page 1 "Household Income" means total household income, which shall be based on the gross incomes, including wages, tips, dividends, and interest of the applicant, spouse, and children over the age of 18 and any other dependents or individuals who are presently in the household who shall physically reside in the home purchased. If the residence will be co- purchaser with another adult or significant other, then the income of the co-purchaser will be included in Household Income. "Household Size" means Applicant and spouse or significant other who are residing together, plus dependents residing in the home, and who shall reside in the home to be purchased. For purposes of determining selection preference, to include a dependent then the dependent must have been listed on latest year's tax return. "OC 1250" means Oceanside 1250, developer of the Hokull`a Golf Course and Golf Club House Project or its assignees, successors or other designated representatives and the entity obligated to provide an employee housing plan in compliance with requirements of the County of Hawaii. "Median Income" means income as determined by the County of Hawaii, Office of Housing and Community Development and the U.S. Department of Housing and Urban Development on an annual basis for the County Of Hawaii. "OHCD" means of the Office of Housing and Community Development, an agency of the County of Hawaii. "Program" means the Hokuli'a Golf Course and Clubhouse Employee Housing Program. "Project" means the Hokuli'a Golf Course and Club House development. 3. ISSUING ENTITY OC 1250 will establish an employee housing fund and certain housing loan subsidies to eligible employees who qualify for assistance under this Program. The Fund will be established for the general benefit of the employees of the Project. The purpose of the Fund will be to provide Page 2 housing assistance, as well as to promote other housing-related educational programs for the benefit of employees of the Project and their families. 4. ADMINISTRATION The Fund will be administered under the direction of Oceanside 1250 (OC 1250). OC 1250 will be responsible for establishing the policies and procedures of the Fund and the Program and ensuring that the Program, as implemented, satisfies applicable governmental policy applicable agreements, and conditions of approval. OC 1250 will establish applications periods and deadlines and will set the annual budget for the Fund. OC 1250 may select a separate "Selection Committee" which will review applications and determine the eligibility of each applicant. 5. FUNDING AND TERM OF PROGRAM OC 1250 will make a commitment to the Fund an aggregate of twenty-five (25) times the current County "in-lieu" fee at the time of funding has been contributed. OC 1250 will deposit the funds beginning August 30, 2002 and no later then August 30 of each subsequent year until the total funding has been met. A budget will be established for each year of the Program to distribute the funds completelywithin a maximum five-year duration, which period may be renewed, at OC 1250's sole discretion, if the total funding has not been distributed. As an alternative to renewing the Program for a second five-year period, at their sole discretion, OC 1250 may commit the undistributed balance of funds to OHCD for the use of supporting affordable housing construction projects on the Island of Hawaii. In the event that all the committed money is not distributed during a particular application cycle, then the excess money shall be carried forward and made available for the next application period. Principal payments on housing loans shall be repaid to the Fund and will be included in the Fund aggregate, which can then be awarded to other eligible employees. Upon the termination of the Program by OC 1250, the balance of repaid, undistributed principal and any subsequently received Page 3 principal payments may be contributed to another affordable housing project mutually agreed upon by OC 1250 and OHCD, or may be paid directly to OHCD at OC 1250's discretion. 6. EMPLOYEE SURVEY OC 1250 or its designee will conduct an initial employee survey to determine the initial number of interested employees and their approximate income levels. The information obtained in the survey will be utilized to refine the elements of the Program. 7. EMPLOYEE INFORMATION AND COUNSELING Prior to the application phase of the Program, OC 1250 or it designee will conduct a series of employee information programs designed to describe the benefits and criteria of the Program. Additionally, the application process and application due dates will be described. OC 1250 or its designee will also arrange an informational program for interested employees, which will include presentations by local mortgage companies and builders of local housing. The mortgage company wlll work with each employee to help them determine the type of first mortgage they can obtain and help them determine the type of housing they can afford, given the amount of down- payment they have and the subsidy which they may be eligible for. Additional counseling will be available to eligible employees throughout the process until the time of purchase. 8. ELIGIBILITY To be eligible under this Program, an individual: • Must be an employee of the Project for more than 90 days, and must be in good standing. • Must be a citizen of the U.S. or permanent-resident alien and a resident of the State of Hawaii for at least 12 months. Page 4 • Cannot own another residence (prior ownership of a home or other property does not disqualify to applicant). • Must have an amount of gross household income which qualifies under guidelines established by OHCD and the State of Hawaii. • Must be an owner-occupant for the duration of the loan. 9. APPLICATION PROCEDURES Employees interested in applying for the loan subsidy will provide a completed application prior to the established application date. Applications maybe submitted at any time after the initial application date. The application will require information about family size, annual household income, and current or prior home ownership. Additionally, the applicant shall provide a copy of the most recent two-year federal tax returns, if applicable, covering all of the immediate family members to ensure accuracy of the information represented on the application. Applications will be reviewed and awards made at least annually. The application deadline wffl be 30 days in advance of the selection date. This is to provide adequate time for the Selection Committee to determine each applicant's eligibffity and obtain additional information or clarification from the applicants if needed. If an application is deemed incomplete, the applicant will be given not more than seven (7) days to submit the required information or clarification. OC 1250 or its designee may contract for the services of an outside consultant to review the applications for completeness and eligibility. The consultant will work with the applications confidentially. 10. APPLICANT SELECTION OC 1250 or the selection committee will review applications and make awards at least annually and depending on the number of applications, OC 1250 will prioritize the selection based on need. Page 5 Applicants who are approved will receive a letter of notification from the committee describing the amount of the subsidy and any other relevant details. The approval letter may be used by the applicant in applying for and obtaining a first mortgage. 11. ELIGIBLE HOUSING The subsidy may be used for the purchase of an existing housing unit on the Island of Hawaii or for construction of a new housing unit. Self-help housing projects on the Island of Hawaii will also be eligible if the home is to be constructed under an OHCD approved mutual self-help housing program. In addition, the subsidy can be used to construct a new housing unit on a lot already owned by the applicant or the applicant's family. In the event the subsidy will be used by the applicant desired to construct a housing unit on a lot owned by themselves or their family, then the applicant must obtain approval of the site by OC 1250. 12. COMPLETION OF HOUSING CONSTRUCTION The approved applicant must complete construction and close the purchase of the housing unit within twelve months of the date of notification of the loan subsidy approval. If construction is not completed or the purchase is not closed within twelve months, then the approval for the subsidy shall expire and the money shall be available to be distributed to another applicant. OC 1250 may allow extensions of time (cumulatively not to exceed one year) to the twelve-month construction and closing period if substantial construction has occurred within the initial twelve-month period. "Substantial construction" shall mean that foundations and a roof have been constructed. Page 6 13. LOAN FUNDING The amount of the loan awarded to the applicant will be paid by the Fund immediately prior to closing, directly to an escrow established for the purchase for the housing unit. 14. LOAN AMOUNT The loan amount will be determined based on an average subsidy calculated by OHCD for the target groups which includes those famllies whose incomes range from 80% to 120% of the County of Hawaii median family income. The average subsidy amount would be calculated in the same manner used to calculate the "in-lieu" fee within the County of Hawaii Affordable Housing Policy (Ordinance No. 98-1). These guidelines may be exceeded or modified based upon the number of qualified applicants, and an assessment of distribution of income levels and the qualifications of applicants. An applicant may also apply for and borrow less than the amount allowable under the program. 15. LOAN TERMS The Loan will be secured by a Deferred Sale Price Mortgage ("DSPM") in favor of OC 1250. The DSPM will be a recorded encumbrance against the property which is being purchased or constructed with the loan. The name of the employee-applicant must appear as an owner in the property to be acquired, or improved in the case of a lot already owned by the applicant and/or their family. All individuals who appear in title to the property must be a signatory to the loan. The loan may be subordinated to a first mortgage on the property. In the event the first mortgage is refinanced, the DSPM may be subordinated to the new loan with prior approval OC 1250, so long as the principal amount of the new first mortgage is equal to or less than the original first mortgage. Page 7 APR-02-03 WED 09 54 RM C OF H OHCD FRX N0. 9618685 P. 02 18. LOAN SECURITY/TITLE The loan will be for a period of ten years and will be interest five. The loan amount will be repaid to the Fund at the time tlu residence >s sold. If the borrower remains an employee for threr years from the date of the loan closing, then the full amount of the loan will be forgiven sad the DSPM w111 be released. if at anytime within three years from the date of the loan closing the borrower ceases to be an owner-occupant or craves to be a full- timc employee of the protect, then the prirscipai amount of the loan wail be reduced by a pro rata amount based upon the percentage reached by dividing the number of months which the borrower was an employee and owner-occupant by thirty-s1x months. The remaining loan balance will be repaid to the Fund when the residence is sold; provided that if the Program is not in existence at that time, loan payments shall be paid to OHCD for future .Affordable Housing protects. If the residence is not sold within ten years of the date of the loan, then the loan will be released in full regardless of whether the employee ltimained sa employee of the Project or an owner-occupant, 17. OTHER SUBSIDIES OR PROC#RAiliis The applicant may participate in other forms of subsidies or housing programs an still be eligible for parlidpating the Program. Specifically, applicants can utilize Hula Mae Financing. Hawaiian Homelands program. Self-Help Housing Programs or other programs which may assist eligible employees ffi acquiring or constructitrg housing units. 18. STATUS REPORTS OC1250 shall prepare a annual report describing the status of the new applications. and loans previously Lssued. T1re report will be provided to the Pianriing Director and OHCD. The report will include the followixig information: 1. Amount in the Fund awaiting distribution; Page 8 2. Total distribution in the current fiscal year and total to date (dollars and number of loans); 3. Number of applicants during the current period; 4. Status of each application (issued and funded, awaiting closing, pending review/lottery, etc.): 5. Names of recipients of loans, with family size and income group; 6. Location and size of housing units purchased (bedrooms, square feet); and 7. Record of any money returned to the fund from a borrower. 19. REALTORS An eligible employee may engage the services of a Realtor after being approved for participation in the Program. Brokerage fees will be paid by the seller of the properly, and not from subsidy by the Fund. 20. CONFIDENTIALITY All personal information obtained in the application, selection, and funding process, except as provided in the annual status reports described in Section 18 will be kept confidential and will not be disclosed to any third party without the prior consent of the person to whom such information pertains. Page 9 t"4 ti arty Kim Edwin S. Taira MnT~or •u: Housing Adminisframr ?~r~ oi,Mk'~ ~'Countp of ~a~oaft OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT 50 Wailuku Drive • Hilo, Hawai'I 96720-2484 V/7"C (ROS) 961-8379 • FAX (SOS) 961-8685 August 30, 2002 TRANSMITTAL TO: PBR Hawaii 101 Aupuni Street Suite 310 Hilo, Hawaii 96720 SUBJECT: 1250 Oceanside Partners Hokuli'a Members' Lodge Employee Housing Program WE ARE TRANSMITTING THE FOLLOWING AS REQUESTED: COPIES DATED DESCRIPTION Orig. +2 08/29/02 Agreement REMARKS: Please call us at 961-8379 if you have questions or need additional information. Signed : G,-~r-'r-' ~fllf/.b~j .Edwin S. Taira Housing Administrator 4434dt1w EQUAL HOUSING OPPORTUNITY 'AN EQUAL OPPORTUNITY EMPtOVE R' AGREEMENT THIS AGREEMENT, made, executed, and delivered this day of 2002, by and between 1250 OCEANSIDE PARTNERS, a Hawaii limited partnership, whose mailing address is 78-6831 Ali'i Drive, Kailua-Kona, Hawaii 96740 (hereinafter referred to as "OCEANSIDE"), and the COUNTY OF HAWAII, whose mailing address is 25 Aupuni Street, Hilo, Hawaii 96720 (hereinafter referred to as the "County"), by and through its Mayor. WITNESSETH WHEREAS, OCEANSIDE, has partially completed the development known as "Hokuli'a Members' Lodge", pursuant to Condition "M" of Ordinance No. 97-36; and WHEREAS, OCEANSIDE's affordable housing program is designed to assist qualified employees of the Hokuli'a Members' Lodge, thus addressing their housing needs; and WHEREAS, on April 3, 2002, the County Council adopted Resolution No. 183-02 which authorizes the Mayor to negotiate and enter into an agreement for the satisfaction of the affordable housing requirement for the "Hokuli'a Members' Lodge Employee Housing Program" ("hereinafter referred to as "Hokuli'a") under Ordinance No. 97-36, based upon the County Housing Agency's approval of Hokuli'a's implementation plan; and WHEREAS, pursuant to a revised affordable housing policy which was adopted in Ordinance No. 98-1, as effective on January 7, 1998, the County Housing Agency. NOW, THEREFORE, the parties hereby agree as follows: 1. Pursuant to the approved "Hokuli'a Members' Lodge Employee Housing Program", and in satisfaction of the affordable housing condition of Ordinance No. 97-36, OCEANSIDE shall implement an affordable housing program according to the terms of the "Hokuli'a Members' Lodge Employee Housing Program", as attached hereto as Exhibit "A." 2. For good cause and in conformity with the purposes and objectives of the "Hokuli'a Members' Lodge Emp]oyee Housing Program, the terms of the "Hokuli'a Members' Lodge Employee Housing Program" may be amended by OCEANSIDE without formal amendment of this Agreement upon the prior written concurrence of the County Office of Housing and Community Development. IN WITNESS WHEREOF, the parties hereto have caused these present to be executed the day and year first above written. COUNTY OF HAWAII 1250 OCEANSIL)E PARTNERS, a Hawaii limited partnership By By RED HILL 1250, INC., y~,,,~~E~h+i- CIXJ~ KAEiSU Its General P ner Its ".'"J ~^naginR [l;r~r7~r By JOHN RTES RECOMMENDED APPROVAL: Its V' resident BY Date: ~ ~r ~`~'Z-- Housing Administrator Office of Housing and Community Development APPROVED AS TO FORM AND LE(G~ALITY: q-~Q BY 1 /.~'~~l~C.e.~ ~ - l~~ \C~bL~ Date: ~ ~L- Deputy Corporation Counsel COUNTY OF HAWAII 2 STATE OF HAWAII ) SS. COUNTY OF HAAWAII ) On this ! ~ay of , 2002, before me, a duly commissioned and sworn Notary Public in and for the State of Hawaii, appeared JOHN DeFRIES, who being by me duly sworn, did say that he is the Vice President of Red Hill 1250, Inc., general partner of 1250 Oceanside Partners dba Oceanside 1250, a Hawaii limited partnership, and that the foregoing instrument was signed in the name of and in behalf of said partnership, and said JOHN DeFRIES acknowledged that he executed the same as his free act and decd and as the free act and deed of said partnership. BARBARA E. NEVILLE NOTARY PUBLIC, STATE OF HAWAII print Name: COMMISSION EXPIRES: 11/28/2003 [Seal) Notary Public, State of Hawaii My commission expires: 3 STATE OF HAW II ) SS. COUNTY OF HAWA I ) On this day of , 2002, before me personally appeared HARRY HIM, who, being by me duly sworn, dt say this he is the Mayor of the Cowlty of Hawaii, a municipal corporation of the State of Hawaii; at the seal affixed to the foregoing instrument is the corporate seal of the said County of Ha aii; the foregoing instrument was signed and sealed in behalf of the County of Hawaii by authorit given to the Mayor of the County of Hawaii by Section 5-1.4(g) of the County Charter, Count of Hawaii (1980), as amended; and said HARRY HIM, as Mayor of the County of Hawat' acknowledged said instrument to be the free act and deed of said County of Hawaii Print Name: (Sea1J Notary Public, S to of Hawaii My commission exp' es: 4 STATE OF HAWAII ) SS. COUNTY OF HAWAII ) On this ~ q day of ~u S , 2002, before me personally appeared DIXIE KAETSU, to me personally known, who, being by me duly sworn, did say that she is the Managing Director of the County of Hawaii, a municipal corporation of the State of Hawaii; that the seal affixed to the foregoing instrument is the corporate seal of said County of Hawaii; that the foregoing instrument was signed and sealed in behalf of the County of Hawaii by authority given to said Mayor of the County of Hawaii by Section 5-1.3(g) of the County Charter, County of Hawaii (1991), as amended, and assigned by the Mayor to the Managing Director pursuant to Section 6-1.3(h) of the County Charter; and said DIXIE KAETSU acknowledged said instrument to be the free act and deed of said County of Hawaii. ~ v JEA IERNES Notary Public, State of Hawaii My commission expires: 11/1/ 5 jGr~~'`,. ~~~T ~~'I- ~ a~ ~Cr~~ j, HOKULI`A MEMBERS' LODGE EMPLOYEE HOUSING ADMII~TISTRATIVE GUIDELINES EXHIBIT A HOKULI`A MEMBERS' LODGE EMPLOYEE HOUSING PROGRAM ADMII~TISTRATIVE GUIDELINES 1. PURPOSE The purpose of this Program is to effectuate the Hokuli'a Employee Housing Plan as required by Condition M of Zoning Ordinance No. 97-36. The Program shall be administered in coordination with Hawaii County and its Office of Housing and Community Development (OHCD). 2. DEFII~TITIONS "Eligible Employees" means full-time employees of the Hokuli'a Members' Lodge, who qualify under affordable housing income guidelines, as defined in Ordinance No. 98-1, and under criteria for eligibilities which are established in this document and which may be modified from time to time with approval of the appropriate County agency. "Fund" means a housing subsidy fund which is funded by Oceanside 1250 to assist eligible project employees in the acquisition or construction of housing "units" in the County of Hawaii, as defined in Ordinance No. 98-1. "Immediate Family" means "qualified households," as defined in Ordinance No. 98-1, and shall include: 1. The applicant and his or her spouse, and their children residing with the applicant, who wlll be residing in the home to be purchased; 2. Other dependents who have been included on the applicant's tax return for the most recent tax year and who will reside with the applicant; and 3. Anon-married "significant other " if that individual appears as a co-applicant and a co-owner in the title of the property to be purchase and will reside with the applicant in the home to be purchased. Page 1 "Household Income" means total household income, which shall be based on the gross incomes, including wages, tips, dividends, and interest of the applicant, spouse, and children over the age of 18 and any other dependents or individuals who are presently iri t:he household who shall physically reside in the home purchased. If the residence will be co- purchaser with another adult or significant other, then the income of the co-purchaser will be included in Household Income. "Household Size" means Applicant and spouse or significant other who are residing together, plus dependents residing in the home, and who shall reside in the home to be purchased. For purposes of determining selection preference, to include a dependent then the dependent must have been listed on latest year's tax return. "OC 1250" means Oceanside 1250, developer of the Hokuli`a Members' Lodge Project or its assignees, successors or other designated representatives and the entity obligated to provide an employee housing plan in compliance with requirements of the County of Hawaii. "Median Income" means income as determined by the County of Hawaii, Office of Housing and Community Development and the U.S. Department of Housing and Urban Development on an annual basis for the County Of Hawaii. "OHCD" means of the Office of Housing and Community Development, an agency of the County of Hawaii. "Program" means the Hokuli`a Members' Lodge Employee Housing Program. "Project" means the Hokuli'a Members' Lodge development. 3. ISSUING ENTITY OC 1250 will establish an employee housing fund and certain housing loan subsidies to eligible employees who qualify for assistance under this Program. The Fund will be established for the general benefit of the employees of the Project. The purpose of the Fund will be to provide housing assistance, as well as to promote other housing-related educational programs for the benefit of employees of the Project and their families. Page 2 4. ADMINISTRATION The Fund will be administered under the direction of Oceanside 1250 (OC1250). OC1250 will be responsible for establishing the policies and procedures of the Fund and the Program and ensuring that the Program, as implemented, satisfies applicable governmental policy applicable agreements, and conditions of approval. OC 1250 will establish applications periods and deadlines and will set the annual budget for the Fund. OC 1250 may select a separate "Selection Committee" which will review applications and determine the eligibility of each applicant. 5. FUNDING AND TERM OF PROGRAM OC1250 will make a commitment to the Fund an aggregate of 50% of the number of accommodation units within the Member's Lodge, times the current County "in-lieu" fee at the time of funding, has been contributed. OC 1250 will deposit the funds beginning August 30, 2002 and no later then August 30 of each subsequent year until the total funding has been met. A budget will be established for each year of the Program to distribute the funds completely within a maximum five-year duration, which period may be renewed, at OC 1250's sole discretion, if the total funding has not been distributed. As an alternative to renewing the Program for a second five- year period, at their sole discretion, OC 1250 may commit the undistributed balance of funds to OHCD for the use of supporting affordable housing construction projects on the Island of Hawaii. In the event that all the committed money is not distributed during a particular application cycle, then the excess money shall be carried forward and made available for the next application period. Page 3 Principal payments on housing loans shall be repaid to the Fund and will be included in the Fund aggregate, which can then be awarded to other eligible employees. Upon the termination of the Program by OC 1250, the balance of repaid, undistributed principal and any subsequently received principal payments may be contributed to another affordable housing project mutually agreed upon by OC 1250 and OHCD, or may be paid directly to OHCD at OC1250's discretion. 6. EMPLOYEE SURVEY OC 1250 or its designee will conduct an initial employee survey to determine the initial number of interested employees and their approximate income levels. The information obtained in the survey will be utilized to refine the elements of the Program. 7. EMPLOYEE INFORMATION AND COUNSELING Prior to the application phase of the Program, OC 1250 or it designee will conduct a series of employee information programs designed to describe the benefits and criteria of the Program. Additionally, the application process and application due dates will be described. OC 1250 or its designee will also arrange an informational program for interested employees, which will include presentations by local mortgage companies and builders of local housing. The mortgage company will work with each employee to help them determine the type of first mortgage they can obtain and help them determine the type of housing they can afford, given the amount of down- payment they have and the subsidy which they may be eligible for. Additional counseling will be available to eligible employees throughout the process until the time of purchase. 8. ELIGIBILITY To be eligible under this Program, an individual: • Must be an employee of the Project for more than 90 days, and must be in good standing. Page 4 • Must be a citizen of the U.S. or permanent-resident alien and a resident of the State of Hawaii for at least 12 months. • Cannot own another residence (prior ownership of a home or other property does not disqualify to applicant). • Must have an amount of gross household income which qualifies under guidelines established by OHCD and the State of Hawaii. • Must be an owner-occupant for the duration of the loan. 9. APPLICATION PROCEDURES Employees interested in applying for the loan subsidy will provide a completed application prior to the established application date. Applications may be submitted at any time after the initial application date. The application will require information about family size, annual household income, and current or prior home ownership. Additionally, the applicant shall provide a copy of the most recent two-year federal tax returns, if applicable, covering all of the immediate family members to ensure accuracy of the information represented on the application. Applications will be reviewed and awards made at least annually. The application deadline will be 30 days in advance of the selection date. This is to provide adequate time for the Selection Committee to determine each applicant's eligibility and obtain additional information or clarification from the applicants if needed. If an application is deemed incomplete, the applicant will be given not more than seven (7) days to submit the required information or clarification. OC 1250 or its designee may contract for the services of an outside consultant to review the applications for completeness and eligibility. The consultant will work with the applications confidentially. Page 5 10. APPLICANT SELECTION OC 1250 or the selection committee will review applications and make awards at least annually and depending on the number of applications, OC 1250 will prioritize the selection based on need. Applicants who are approved will receive a letter of notification from the committee describing the amount of the subsidy and any other relevant details. The approval letter may be used by the applicant in applying for and obtaining a first mortgage. 11. ELIGIBLE HOUSING The subsidy may be used for the purchase of an existing housing unit on the Island of Hawaii or for construction of a new housing unit. Self-help housing projects on the Island of Hawaii will also be eligible if the home is to be constructed under an OHCD approved mutual self-help housing program. In addition, the subsidy can be used to construct a new housing unit on a lot already owned by the applicant or the applicant's family. In the event the subsidy will be used by the applicant desired to construct a housing unit on a lot owned by themselves or their family, then the applicant must obtain approval of the site by OC 1250. 12. COMPLETION OF HOUSING CONSTRUCTION The approved applicant must complete construction and close the purchase of the housing unit within twelve months of the date of notification of the loan subsidy approval. If construction is not completed or the purchase is not closed within twelve months, then the approval for the subsidy shall expire and the money shall be available to be distributed to another applicant. OC 1250 may allow extensions of time (cumulatively not to exceed one year) to the twelve-month construction and closing period if substantial construction has occurred within the initial twelve-month period. "Substantial construction' shall mean that foundations and a roof have been constructed. Page 6 13. LOAN FUNDING The amount of the loan awarded to the applicant will be paid by the i~rnd immediately prior to closing, directly to an escrow established for the purchase for the housing unit. 14. LOAN AMOUNT The loan amount will be determined based on an average subsidy calculated by OHCD for the target groups which includes those families whose incomes range from 80% to 120% of the County of Hawaii median family income. The average subsidy amount would be calculated in the same manner used to calculate the "in-lieu" fee within the County of Hawaii Affordable Housing Policy (Ordinance No. 98-1). These guidelines may be exceeded or modified based upon the number of qualified applicants, and an assessment ofdistribution of income levels and the qualifications of applicants. An applicant may also apply for and borrow less than the amount allowable under the program. 15. LOAN TERMS The Loan will be secured by a Deferred Sale Price Mortgage ("DSPM") in favor of OC 1250. The DSPM will be a recorded encumbrance against the property which is being purchased or constructed with the loan. The name of the employee-applicant must appear as an owner in the property to be acquired, or improved in the case of a lot already owned by the applicant and/or their family. All individuals who appear in title to the property must be a signatory to the loan. The loan may be subordinated to a first mortgage on the property. In the event the first mortgage is refinanced, the DSPM may be subordinated to the new loan with prior approval OC 1250, so long as the principal amount of the new first mortgage is equal to or less than the original first mortgage. Page 7 16. LOAN SECURITY/TITLE The loan will be for a period of ten years and will be interest free. The loan amount will be repaid to the Fund at the time the residence is sold. If the borrower remains an employee for three years from the date of the loan closing, then the full amount of the loan will be forgiven and the DSPM will be released. If at anytime within three years from the date of the loan closing the borrower ceases to be anowner-occupant or ceases to be a full- time employee of the project, then the principal amount of the loan will be reduced by a pro rata amount based upon the percentage reached by dividing the number of months which the borrower was an employee and owner-occupant by thirty-six months. The remaining loan balance will be repaid to the Fund when the residence is sold; provided that if the Program is not in etdstence at that time, loan payments shall be paid to OHCD for future Affordable Housing projects. If the residence is not sold within ten years of the date of the loan, then the loan will be released in full regazdless of whether the employee remained an employee of the Project or anowner-occupant. 17. OTHER SUBSIDIES OR PROGRAMS The applicant may participate in other forms of subsidies or housing programs an still be eligible for participating the Program. Specifically, applicants can utffize Hula Mae Financing, Hawaiian Homelands program, Self-Help Housing Programs or other programs which may assist eligible employees in acquiring or constructing housing units. 18. STATUS REPORTS OC 1250 shall prepare a annual report describing the status of the new applications, and loans previously issued. The report will be provided to the Planning Director and OHCD. The report will include the following information: Page 8 1. Amount in the Fund awaiting distribution; 2. Total distribution in the current fiscal year and total to date (dollars and number of loans); 3. Number of applicants during the current period; 4. Status of each application (issued and funded, awaiting closing, pending review/lottery, etc.); 5. Names of recipients of loans, with family size and income group; 6. Location and size of housing units purchased (bedrooms, squaze feet); and 7. Record of any money returned to the fund from a borrower. 19. REALTORS An eligible employee may engage the services of a Realtor after being approved for participation in the Program. Brokerage fees will be paid by the seller of the property, and not from subsidy by the Fund. 20. CONFIDENTIALITY All personal information obtained in the application, selection, and funding process, except as provided in the annual status reports described in Section 18 will be kept confidential and will not be disclosed to any third party without the prior consent of the person to whom such information pertains. Page 9