HomeMy WebLinkAboutCOM 0350.001 2016-2018 Harry Kim v ov
Mayor •o°�t: 'k. q'' Neil S.Gyotoku
vibe. Housing Administrator
Wil Okabe `�.'!►% '/ ;}'
Managing Director - -"�'! _., Lance M.Niimi
,•ger ��;:;�. ; Assistant Housing Administrator
Barbara J.Kossow • ''E OF'►+►''
Deputy Managing Director " E
County of Hawaii :
Office of Housing and Community Development
c7 <
50 Wailuku Drive • Hilo,Hawaii 96720 • (808)961-8379 • Fax(808)961-8685
Existing Housing: (808)959-4642 • Fax(808)959-9308 .^"
Kona: (808)323-4300 • Fax(808)323-4301 >.r n
July 25, 2017
MEMORANDUM
TO: Karen Eoff, Chair
Hawai`i County Council
and Hawai`i County Council bers
FROM: NEIL S. GYOTOKU
Housing Administrator
SUBJECT: MOHOULI II Senior Housing Project
********************************************************************kik********
Pursuant to Councilmember Aaron Chung's request during council meeting on July 18, 2017, the
following is a sequence of events regarding the Mohouli II Senior Housing Project:
SEQUENCE OF EVENTS
7/30/2014 OHCD submits request to HUD for project-based vouchers for Mohouli II
Senior Housing, Kamakana Village Low-rent Multifamily Housing and
Kamakana Village Senior Housing Projects.
8/6/2014 HUD approves the Project-based Voucher Application for Mohouli II,
Kamakana Village Low-rent Multifamily Housing and Kamakana Village
Senior Housing Projects.
1/3/2017 Construction begins at Mohouli II.
Co No. .3 SO. 1
Ref. To:
Ref. Date AUG 0 2 2017
04P\%
EQUAL HOUSING OPPORTUNITY
"HAWAI'I COUNTY IS AN EQUAL
OPPORTUNITY PROVIDER AND
EMPLOYER"
July 25, 2017
Page 2
5/31/2017 HUD Voids their 8/6/14 Approval Letter
Re: The OHCD's selection of Mohouli II as an "Existing Housing project is
not possible since the units do not exist. Project is currently under
construction, no Certificate of Occupancy exists".
6/16/17 Since the Project-based Vouchers would not be allowed, the Bank of Hawaii
questioned whether the Low Income Housing Tax Credit (LIHTC) equity
investment would take place since it was based, in part, on having the project-
based voucher rental assistance payments. The LIHTC equity ($7.75 million)
investment is the basis for repaying the Bank of Hawaii construction loan ($7.46
million). This prompted the Bank of Hawaii to issue a notice that they are
freezing the construction loan.
THIS JEOPARDIZED THE PROJECT OF NOT BEING COMPLETED.
Our plan is to utilize Housing Choice (Tenant-based) Vouchers to provide
rental assistance.
However, the HOME Program limits the unit rents and the Housing Assistance
Payment Agreement is needed to subsidize any shortage of funding for the
project.
OHCD= . Office of Housing and Community Development
HUD= Housing and Urban Development
HOME= Home Investment Partnerships Program