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HomeMy WebLinkAboutREP FC 322 03/20/1987 1984-1988 • • OFFICE INFORMATION ONLY Meeting:. March. 20, 1987 Action: Receive and file Bill 272 & PC Rept. 323. Re: 410 REPORT OF THE S COMMITTEE ON FINANCE Date: February 24 , 1987 Re: Comm. 819 Place: Councilroom Time: 9: 00 a.m . Chairman and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Bill 272, reports as follows : Bill 272 proposes to amend Ordinance 86-63, the Operating Budget for Fiscal Year 1986-87 , by increasing the Transfer from General Fund of the County Housing Fund by $200 ,000 and appropriating same to the County Housing Revolving Account . The purpose of Bill 272 is to provide funds for the development of a master plan for a 1 ,500-acre planned community on State lands in Kona. The plan will include a conceptual plan, feasibility study and market analysis and implementation strategy . Project cost is estimated at $500 ,000 to $600 ,000 with County funds being matched on a 1 : 2 basis by the State 's Hawaii Housing Authority . Creation of a planned community will provide for a wide range of housing opportunities and community facilities to serve long-term needs of West Hawaii , especially in anticipation of the growth in resort developments in South Kohala and North Kona . Your committee heard from the Housing Administrator that it is the intent of the project to joint venture with the Hawaii Housing Authority (HHA) on larger housing projects so that the affordable housing project can be addressed . The current practice of putting out projects at a rate of 25 to 30 units per project will not satisfy the anticipated growth in the housing market . It was disclosed that the County Housing Agency (CHA) has entered into three joint venture projects with HHA. Unique resources of both HHA and CHA complement each other to encourage joint-venture considerations . Your committee heard that the intent of the Kealakehe Housing Plan is to develop a master plan involving engineering, traffic studies and other requirements to implement a large scale residential housing and community development project. Tentative funding will be provided by HHA ($600 , 000 ) and CHA ($200 ,000 ) . FC REPORT i 0 r 322 "ADOPTED • FC- 322 Page 2 February 24 , 1987 The master plan is intended to lay out all facilities which include: 1 . Housing 2 . Recreation facilities 3. Community facilities 4 . Police station 5 . Courthouse 6 . Community centers 7 . Schools 8 . Other public, as well as commercial facilities . Your committee also heard that anticipated resort developments in the South Kohala and North Kona districts are going to have an incredible impact on housing and community facilities in West Hawaii . Population growth in Kona is expected to more than double in the next 20 years . Projects by the private sector are not expected to fall within the affordability of the majority of the population. Your committee was informed that the project will include a housing mixture ranging from low income to market rate . Properties subject to market values should generate the necessary income to subsidize the properties targeted as affordable units . Private sector participation will be significant . Although the details have not been worked out, development rights for specific parcels are being considered . Your committee is aware that between 1985 and 2005 , the housing market demand is projected at 29,500 , which equates to 1 ,475 units per year . Since 1970 , HHA has done less than 9 ,000 units statewide . Another alarming statistic presented to the committee was that 72. 2 percent of the families will be earning less than $30 ,000 per year . The projected fee of $800 ,000 was developed from HHA' s experience with the Ewa Plan . The Ewa ._Plan was fully funded by HHA because they could not work out an agreement with the City and County of Honolulu . Upon questioning whether HHA could fund the entire study and the County would, in turn, provide some other kind of contribution, the response was that anything is possible ; however , such a gesture would be a step backward in developing a working relationship with HHA. Your committee heard that within nine months to a year , it is anticipated that an EIS would be completed , public input and community support would be established and the project would be through the State Land Use Commission, Planning Commission , and County Council . Within the next two weeks, joint meetings with the community have been scheduled . 41O 411 FC- 322 Page 3 February 24 , 1987 To illustrate the gravity of the housing problem, a rental survey study by HHA resulted in a zero vacancy in Kona . Equally of concern is the rise in average rent for a 3-bedroom, 2-bath single family detached home from $600-to $700 to $1 , 200 . The selection of Kealakehe as the project site was made only after an elaborate in-house review involving all department heads was concluded . Kealakehe possessed all of the amenities which would allow for the fastest development . It was also disclosed that the agency does receive inquiries from low-income housing developers but they are generally undesirable and insensitive to the well-being of the environment . The Chairman of the County Housing Agency spoke for the project . He pointed out that building a house is not necessarily the problem; infrastructural cost, especially where major infrastructural improvements are lacking, is responsible for the high price tag . Site selection takes into consideration the infrastructure availability so that pass-through costs will be minimized . The Chairman also emphasized that the joint venture is in the County' s best interest because we will then have a say as to the quality of the project . Your Committee on Finance is in accord with the intent and purpose of Bill 272 and recommends that it pass Breading . Lt 01.4. FRANK DE LUZ III, CHAIRMAN '44 )1%'1/4. 5 i • 0'AINE `1PITCHAKU- NOU , V. . JA . K. DAHL:ERG, MEMBER 411, . • TAKASHI/ OMINGO, MEMBER SELL S . KOKU•UN, MEMBER • / 41000 ME'/LE K. LAI, MEM .. R Sr NCER K. SCHUTTE, MEMBER LA/HAT