HomeMy WebLinkAboutCOM 0158.006 2002-2004 <;r,o! x
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Harry Kim ' Edwin S. Taira
Mayor Housing Administramr
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OFFICE OF HOUSING AND
COMMUNITY DEVELOPMENT
50 Wailuku Drive • fiilo, Hawaii 96720-2484
V~TT (808) 961-8399 • FAX (808) 961-8685
April 2, 2003
The Honorable Aaron S. Y. Chung, Chair
Finance Committee
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Subject: Cost of Government Commission Report
dated February 20, 2003
Communication No. 158
Office of Housing and Community Development Reaponae
The Office of Housing and Community Development (OHCD) offers the
following response to Communication No. 158:
RECOMMENDATIONS:
1. Pursue Community Development Block Grants with priorities
for public facilities, economic development and public
service needs.
Rational: To provide a funding source for public
service needs in the County's rural districts.
RESPONSE: The OHCD agrees that more Community
Development Block Grant (CDBG) funds could be used for
public facilities and economic development. However the
OHCD does not recommend expending CDBG funds to pay for
public services.
The CDBG program requires that beneficiaries meet
low/moderate-income guidelines.
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E(]UARiOUSING OPPORTUNITY
'AN EQUAL OPPORTUNITY EMPLOYER"
The Honorable Aaron S. Y. Chung, Chair
Page 2
April 2, 2003
NOTE - The OHCD receives applications to fund projects
and administers the CDBG program for the County. The
OHCD encourages other entities to pursue CDBG funding.
2. Office space for the entire staff should be centrally
located and in close proximity to other County
departments.
Rationale: The location and physical space of the Armory
has inhibited the Department's ability to implement and
coordinate its missions and goals.
RESPONSE: The OHCD concurs. Office space more suitable
for our operations would enhance staff productivity.
3. The County should provide general fund monies to pay for
administrative and planning functions.
Rationale: At times, federal funds are difficult to
obtain, and may not be used to pay for administrative and
planning functions.
RESPONSE: The OHCD concurs. In the past the OHCD had
General Fund monies to do planning and development of
affordable housing. For the past 10 to 12 years, the
OHCD has been able to use Section 8 administrative fees
to fund the planning and technical assistance of non-
profit or private affordable housing, and to implement
the County's affordable housing guidelines.
Congress has indicated that federal funding for social
welfare programs may be reduced. One version of the FY
2004 HUD budget proposes to reduce the Section 8
administrative fees we can earn and to restrict its to
Section 8 activities. The current law allows the use of
Section 8 administrative funds for any housing related
activity.
If the Section 8 rules change and/or administrative fees
are reduced the County may no longer be able to
administer or implement County initiated affordable
housing programs.
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The Honorable Aaron S. Y. Chung, Chair
Page 3
April 2, 2003
4. The County should look into long-range planning and
monitoring of current housing conditions by staffing the
Development Division.
Rationale: With the current economic condition of the
work force, the County should initiate, with the private
sector, development of affordable housing.
RESPONSE: The OHCD concurs. The OHCD experience is
that demand for affordable housing is localized and
cyclical. Planning and implementing affordable housing
projects should be ongoing. It takes approximately two
to three years to process and implement an affordable
housing project.
The County should target areas and plan for affordable
housing in anticipation of demand. Within a targeted
area the County could obtain resources such as land,
infrastructure and/or funds for affordable housing. When
the demand in a targeted area is high enough, the County
could have land, infrastructure and/or other resources
available t.o implement affordable housing projects, to
act in a matter of months instead of the years it takes
to react.
5. The County should work with the State to process
contracts on a timely and expedient basis.
Rationale: Time constraints in contract processing
between the State and County can result in undue delays
in program implementation.
RESPONSE: The OHCD concurs. However, as explained to
the Commission, the State process cannot be altered by
any single state agency. The entire State government
must revise its process, which is highly unlikely.
We do work with the individual State agency we are
involved with to streamline the process within our
control.
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The Honorable Aaron S. Y. Chung, Chair
Page 4
April 2, 2003
Thank you for the opportunity to respond to the Cost of
Government Commission Report dated February 20, 2003.
~L~
Edwin S. Taira
Housing Administrator
C: Dixie Kaetsu, Managing Director
William Takaba, Director of Finance
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