HomeMy WebLinkAboutRES 173 Draft 01 1996-1998
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COUNTY OF HAWAII STATE OF HAWAII
RESOLUTION NO. 173 SL
RESOLUTION APPROVING THE ALI'I KAI APARTMENT COMPLEX RENOVATIONS
AS A GOVERNMENT-ASSISTED PROJECT PURSUANT TO HAWAI'I REVISED
STATUTES CHAPTER 201E AUTHORIZING THE COUNTY OF HAWAI'I TO EXEMPT
GENERAL EXCISE TAX AND REAL PROPERTY TAXES.
WHEREAS, the Office of Housing and Community Development
(hereinafter "OHCD") has issued exemptions from State General
Excis~ Taxes for affordable housing projects developed and/or
renovated pursuant to Chapters 201E-205 and 46-15 of the Hawai'i
Revised Statutes; and
WHEREAS, the OHCD has supported and requested exemptions
from County Real Property Taxes for affordable housing projects
developed and/or renovated pursuant to Section 19-87 of the
Hawai'i County Code; and
WHEREAS, the OHCD has reviewed the proposed project and has
determined that it would be in the interest of the residents of
the County of Hawai'i to maintain the afforqable housing stock;
and
WHEREAS, the Hawai'i Community Reinvestment Corporation
(HCRC) is a duly formed non-p~ofit organization, pursuant to
501(c) (3) of the Internal Revenue Code, created to provide low
cost loans for affordable rental projects; and
WHEREAS, the HCRC loan program can be considered a
"government assistance" program, for the purposes of Real
Property Tax and General Excise Tax exemptions, according to
opinions from the Attorney General and Corporation Counsel; and
WHEREAS, the County will enter into an agreement with the
developer, Day-Lum, Inc., to restrict the maximum income of
tenants to less than 80 percent (80%) of the median income of
residents of Hawai'i County; and
WHEREAS, the agreement with the developer, Day-Lum, Inc.,
will also restrict the maximum rent charged to less than
30 percent (30%) of 80 percent (80%) of the median; and
WHEREAS, the OHCD recommends that the General Excise Tax
exemptions and Real Property Tax exemptions be limited to the
time period covered by the agreement, and that the exemptions run
concurrent with the mortgage and loan documents in effect with
HCRC and the restriction of the rent amount charged.
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NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY
OF HAWAI'I, that it hereby approves the Ali'i Kai Apartment
rehabilitation project for General Excise Tax exemptions pursuant
to Chapter 201E-20S, as amended, of the Hawai'i Revised Statutes.
BE IT FURTHER RESOLVED, that the Office of Housing and
Community Development is hereby directed to support the request
to the Department of Finance, Real Property Tax Division, for
Real Property Tax exemptions pursuant to Section 19-87 of the
Hawai'i County Code.
BE IT FURTHER RESOLVED, that the Mayor or Acting Mayor is
hereby authorized to execute an agreement with Day-Lum, Inc., to
regulate the implementation of the exemptions of the State
General Excise Tax and the County of Hawai'iReal Property Tax.
BE IT FURTHER RESOLVED, that the Office of Housing and
Community Development is hereby directed to enforce and monitor
said agreement and to notify the affected agencies when the
project is no longer eligible for the exemptions of the State
General Excise Tax and the County of Hawai'i,Real Property Tax.
BE IT FURTHER RESOLVED, that this resolution shall take
effect immediately.
BE IT FURTHER RESOLVED, that a copy of this resolution be
transmitted to the Hawai'i Community Reinvestment Corporation;
Day-Lum, Inc.; and the Office of Hou~ing and Commu~ity
Development. '
Dated at Hilo, Hawai'i, this 13th day of November
1997.
CO
COUNTY COUNCIL
County of Hawaii
HHo, Hawaii
I hereby certify that the foregoing RESOLUTION was by the
vote indicated to the right hereof adopted by the COUNCIL of the
County of Dawail on November 13, 1997
ATTEST:
COUNTY CLERK
I _
AYES NOES ADS EX
ARAKAKI X
CHUNG X
LEITHEAD- TODD X
RAY X
REYNOLDS X
SANTANGEW X
SMITH X
TYLER X
YAGONG X
7 1 1 0
Reference
C-547
CHAIRMAN & PRESIDING OFFICER RESOLUTION NO.
17S .' B.,
0720H.EST