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HomeMy WebLinkAboutCOM 0897.000 1996-1998Stephen K. Yamashiro Mayor June 22, 1998 C�ountvi of �aivnll OFFICE OF HOUSING ANIS - COMMUNITY DEVELOPMENT 50 Wailuku Drive • Hilo, Hawaii 96720-2484 V/TT (808) 961-8379 • FAX (808) 961-8685 TO: James Y. Arakaki, Chairman Hawaii County Council FROM: Edwin S. Taira Assistant Housing Administrator SUBJECT: Resolution for the Hawaii County Council Ka'upulehu Makai Development Transmitted for Council action is a Memorandum from Housing Agency chair John Santangelo to the Council Chair requesting Council action on the resolution approved at the June 16, 1998, meeting of the Hawaii County Housing Agency (HCHA), authorizing the Mayor to negotiate and execute an agreement with Hualalai Development Corporation to satisfy the affordable housing requirement for Ka'upulehu Makai Development. Because the resolution has been amended the Office of Housing and Community Development (OHCD) requested a review of the revised resolution by Corporation Counsel. In order to meet the deadline for submittal to Council, the OHCD is transmitting the enclosed resolution, prior to receiving a response from Corporation Counsel. Encl. Res. .t 89 1 ., v YN 2 g 1998 3138d.tlw EQUAL HOUSING OPPORTUNITY 'AN EQUAL OPPORTUNITY EMPLOYER' Stephen K. Yamashim Mayor June 16, 1998 MEMORANDUM (90urtfg of hl£jz�ti OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT 50 Wailulm Drive • Hilo, Hawaii 96720.2484 VITT (808) 961-8379 • FAX (808) 961-8685 TO: James Y. Arakaki, Chairman Hawaii County Council FROM: John Santangelo, Chairman Hawaii County Housing Agency �. SUBJECT: Resolution for the Hawaii County Council Kaupulehu Makai Development The Office of Housing and Community Development (OHCD) has submitted to the Hawaii County Housing Agency (HCHA) a resolution authorizing the Mayor to negotiate and execute an agreement with Hualalai Development Corporation to satisfy the affordable housing requirement for Kaupulehu Makai Development. The HCHA has reviewed and approved the resolution at its meeting of June 16, 1998. Accordingly, I am requesting that the resolution be included on the Council agenda for action at its July 1, 1998, meeting. Encl. a EQUAL HOUSING OPPORTUNITY 'AN EQUAL OPPORTUNITY EMPLOYER' Hualalai Resort Affordable Housing Implementation Plan The Hualalai Resort Affordable Housing Implementation Plan (the "Plan") consists of the following basic points: 1. KMV will contribute to the development of affordable housing in the County of Hawaii by facilitating beneficial terms of purchase and providing acquisition or construction subsidies for eligible Hualalai Resort employees. 2. KMV will commit to fund up to $1,000,000 into a housing subsidy fund (the "Housing Fund"). The Housing Fund will be used to provide eligible employees of Hualalai Resort with assistance, as described above. 3. The Plan will be offered for (i) a period of five years or, (ii) whenever the Housing Fund is completely disbursed, whichever occurs first (the "Offering Period"). The Offering Period will commence approximately 90 days after approval of the Plan by the County. 4. HDC will use the County of Hawai'i's Income Schedule By Family Size to determine eligibility for the Plan. The general intent is to award housing subsidies to people who would qualify under the County's Income Guidelines (not more than 140% of County Median Income). 5. In order to be eligible for the Plan, employees must complete their probationary period, which is currently 90 days after the date of hire. After completion of their probationary period, employees could apply for a subsidy from the Housing Fund. 6. A simple application process will be used. Interested employees will fill out an application providing information such as income level, family size, current housing situation, and provide a brief explanation of how they intend to use the housing assistance. The basic intent of the application process is to determine income eligibility and the nature and extent of need. A follow-up interview may be used to clarify information or obtain additional information to assist with the determination of need. 7. The Hualalai Resort Human Resources Department will process the applications and, if necessary, conduct the interviews. After a screening process, they will submit the applications to a three-person committee which will make a final determination on the nature of assistance which is appropriate, given the employee's needs and circumstances. 8. The individual housing subsidies will generally vary between $5,000 and $20,000, although HDC reserves the right to determine the final amount based on the need demonstrated in the application or interview process. 3164d.dk1 9. Housing subsidies will be awarded in a first come, first serve basis. 10. The amount of the subsidy will be a loan which is secured by a "Deferred Payment Second Mortgage" (the "Mortgage"). The loan will be non-interest bearing and will be repaid into the Housing Fund upon the first sale of the residence or upon the recipient's ceasing to be an owner -occupant of the housing unit, whichever should occur first. If the recipient does not sell the housing unit and remains an owner -occupant of that housing unit for ten (10) years after the date of receiving the subsidy, the loan balance will be reduced to zero and the Mortgage will be released. 11. In the event the recipient of the subsidy remains an employee of Hualalai Resort for three years from the date of receiving the subsidy, then the principal amount of the loan will be reduced to zero and the Mortgage will be released. 12. For employees who terminate their employment at Hualalai Resort before three years from the date of the subsidy, then the principal amount will be reduced on a pro -rated, monthly basis. The remaining principal balance will be repaid to the Housing Fund at the time of either the first sale of the residence or the cessation of owner -occupancy, without interest thereon. If the Housing Plan is still in existence at the time of the sale, then the principal, if any, will be repaid to the Housing Fund and the Fund aggregate will be available to other eligible employees at that time. In the event the Employee Housing Plan is no longer in existence, then the principal will be paid to the County of Hawai'i. 13. The Plan will be administered by HDC on behalf of KMV. HDC will prepare and submit an annual report to the County of Hawaii Office of Housing and Community Development detailing such information as the number of employees participating in the program, the amount of the grants awarded, the categories of home construction (e.g., house - and -lot packages, house -only construction, self-help construction) to which the funds were applied, and projects in which new homes were constructed. 14. If there remain any unused funds in the Housing Fund at the end of the Offering Period, KMV shall have the option to extend the Offering Period for another five (5) years until the funds are completely disbursed, whichever may occur first, or to commit such funds to an affordable housing project for the development of new housing units in the County of Hawaii. 3164d.dk1