HomeMy WebLinkAboutRES 110 Draft 01 1998-2000 COUNTY OF HAWAII STATE OF HAWAII
RESOLUTION N0. 111 39
A RESOLUTION APPROVING THE CUNNINGHAM BUILDING COMPLEX RENOVATIONS AS
A GOVERNMENT-ASSISTED PROJECT PURSUANT TO HAWAII REVISED STATUTES
CHAPTER 201G AUTHORIZING THE COUNTY OF HAWAII TO EXEMPT GENERAL
EXCISE AND REAL PROPERTY TAXES.
WHEREAS, the Office of Housing and Community Development
(hereinafter "OHCff') has issued exemptions from the State general
excise taxes for affordable housing projects developed and/or
renovated pursuant to Chapters 201G-116 and 46-153.1 of the Hawaii
Revised Statutes; and
WHEREAS, the OHCD has supported and requested exemptions from the
County Real Property Taxes for affordable housing projects developed
and/or renovated pursuant to Section 19-87 of the Hawaii County i_'ode;
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 Hawaii to maintain the affordable housing stock; and
WHEREAS, the Hawaii Community Reinvestment Corporation (HCRC) is
a duly formed non-profit 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, Cunningham Building Partners, to restrict the maximum
income of tenants to less than 80 percent (80%) of the median income
of residents of Hawaii County; and
WHEREAS, the agreement with the developer, Cunningham Build~ny
Partners, will also restrict the maximum rent charged to less that 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
residential areas and 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
HAWAII that it hereby approves the Cunningham Building Partners
rehabilitation project for General Excise Tax exemptions pursuant to
Chapter 201G-116, as amended, of the Hawaii 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 exemption pursuant to Section 19-87 of the Hawaii County Code.
BE IT FURTHER RESOLVED, that the Mayor or Acting Mayor is hereby
authorized to execute an agreement with Cunningham Building Partners
to regulate the implementation of the exemptions of the State General
Excise Tax and the County of Hawaii Real 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 Hawaii 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 Hawaii Community Reinvestment Corporation;
Cunningham Building Partners, and the Office of Housing and Community
Development.
Dated: Hilo, Hawaii, this 9t1~ day of Juil 1999.
INTRODUCED BY:
COUNCILME BER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii AYES NOES ABS EX
Hilo, Hawaii ARAKAICI
CHUNG X
1 hereby certify [hat [he foregoing RESOLUTION was by ELARIONOFF X
the vote indicated to the right hereof adopted by the COUNCIL of the JACOBSON
County of Hawaii on iii
w
Rv
R , . 999
LEITHEAD-TODD g
ATTEST: PISICCHIO g
SMITH X
TYLER X
YAGONG
i 0 0
COUNTY CLERK C RMAN & PRESIDING OFFICER Reference: C-350
V.A.I. ~SOLUTIONNO. 110 99
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