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Home My WebLink AboutCOM 0431.001 2018-2020 .051 Os h 7 961-8564 County of Hawai`i .'4!-*�� Phone: (808) �' N• Council District 9- (808)887-2069 :i `",�;,-��;-• ; North and South Kohala � • Email: tim.richards@hawaiicounty.gov Chair: Committee on Agriculture, •> �:�'•�`- Vice Chair: Committee on Finance * ,rE• • OFMP'� Water, Energy, &Environmental Management HERBERT M. "TIM" RICHARDS, III HAWAI`I COUNTY COUNCIL District 9 25 Aupuni Street, Ste. 1402, Hilo, Hawai`i 96720 r-0 - ,_ - DATE: September 11, 2019 TO: Aaron Chung, Council Chair v and Members of the Hawai`i County Council v', - FROM: Tim Richards, Council Member Council District 9 -North and South Kohala SUBJECT: PowerPoint Presentation for 9/17/19 by Ikaika `Ohana Ikaika `Ghana has submitted their presentation material for the scheduled Finance Committee meeting on September 17, 2019. Attached please find a hard copy of the PowerPoint presentation file entitled "Affordable Housing in the County of Hawai`i", as well as an electronic copy via jump drive. I appreciate your assistance in getting this content prepared. Any questions or concerns, please do not hesitate to contact my offices directly. Mahalo! Comm.No, 1'1,5 t• Ref.To: P Ret.Date `am. ! �. Hawaii County is an Equal Opportunity Provider and Employer **--'''''. ''''''-1 ' '''' ' '''''' ' . Ilk-- - *.#4 - . . 3 ,. m , ,.''"mss :i..,, Affordable Housing in the County of Hawaii Presentation by Ikaika Ohana & UHC Communities Introductio Presentation for the County of Hawaii • Our Team • Tools • Case Study • Next Steps Our Team Ikaika Ohana & UHC Communities • Ikaika Ohana is a nonprofit dedicated to the development of meaningful communities and strong families • UHC Communities is a mission-driven developer with unique financial and development expertise jkaika UP-a1C ohana COMMUNITIES Our Team Ikaika Ohana & UHC Communities Our Involvement • Develop property by combining vision with resources and professional expertise • Financial strength to provide required guarantees • Oversight of all construction activities • Long term operation of the rental property • Coordinate and provide valuable social services Our Team Ikaika Ohana & UHC Communities Our Experience • Over 2,000 affordable housing units, $750 million of bond financing, and $1.5 billion of project value • We know the process and the participants involved in affordable housing development Tools Theon everyone's ne's mind ... question Y Why are we here? • The County needs affordable housing, and a lot of it • Development of affordable housing is complicated • There are not enough financial resources within the County to satisfy the affordable housing demand • There are ways to bring more resources to the County by leveraging County tools that already exist ...:Tools,.,._.,. Available Resources What resources are available? • Federal Low Income Housing Tax Credits (LIHTC) • Federal Tax-Exempt Private Activity Bonds • State LIHTC • State Rental Housing Revolving Fund (RHRF) Tools Accessing Resources How does the County access these resources? • Hawaii Housing Finance and Development Corporation (HHFDC) administers funding programs for the State • HHFDC's rules and scoring criteria are documented in their Qualified Allocation Plan (QAP) • Projects submit financing applications to HHFDC • HHFDC ranks applications, applies the QAP scoring criteria, and issues awards to projects Tools Scoring: Overview How can the County help maximize scoring? • An average of 6 points separate LIHTC project awards • Projects with approved zoning and discretionary County approvals receive 2-4 points. • Projects in Hawaii County receive about 1 extra point • Projects receiving rental subsidies such as Project Based Vouchers (PBV) receive 1-7 points • Projects receiving state/local grants or loans receive 3 or 6 points, depending on the amount provided Tools Scoring: Zoning and Approvals How can the County help? • Hawaii Revised Statutes Chapters 46-15 and 201H-38, also known as "201H" • 201H authority allows the County and HHFDC to exempt affordable housing projects from certain planning, zoning, and construction standards • 201H mechanism can document exemptions for an affordable housing project • 201H includes a step for County legislative approval Tools I� Scoring: Zoning and Approvals Should all projects use 201H? • Affordable housing projects often include development on "B" rated parcels, which may benefit from 201H • The 201H process adds time, cost, and complexity • Projects with many requests may benefit from 201H • Projects with few requests may be hindered by 201H • The County should work with developers to determine when a 201H is most beneficial Tools Scoring: Financial Leveraging How can the County help? • The County of Hawaii is a funding priority for HHFDC • The County's PBV program is very beneficial to the County and its residents, and should deployed as fully as possible...KEEP IT UP! !! • The County has an opportunity to receive 3 or 6 more points on each LIHTC application, increasing the probability that a significant portion of a project's total cost will be paid through State administered programs Case Study HHFDC Scoring • The five scenarios below approximate how varying levels of County participation impact HHFDC scoring Category Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 HHFDC— LI HTC Yes Yes Yes Yes Yes HHFDC— RHRF Yes Yes Yes Yes Yes Hawaii County No Yes Yes Yes Yes Zoning Approved No No Yes Yes Yes County PBV No No No Yes Yes County Loan/Grant No No No No Yes HHFDC Score 80 81 83 85 88 Next Steps Available Resources What can the County do? • Coordinate affordable housing projects with qualified developers • Allocate County resources such as PBV and the Revolving Fund to maximize leveraging • Allow for the conditional commitment of County loans/grants BEFORE financing applications are submitted to HHFDC Thank you Ikaika Ohana & UHC Communities For more information please visit us at: ikaikaohana.org uhcllc.net