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HomeMy WebLinkAboutCOM 0657.005 2018-2020 AOL At F/ CNK.oT From: Kevin Carney To: Council Testimony Cc: Kevin Carney n r•� s c,? t. 41s try Subject: Resolution 431 Creation of Affordable Housing Fund Date: Monday,January 06,2020 10:22:15 AM i Council Chair Chung, Vice Chair Eoff and Members of the County Council: Thank you for this opportunity to submit testimony is support of Resolution 431 and in particular the creation of a County Affordable Housing Fund. I am Kevin Carney, Vice President of EAH Housing, EAH is a 51 year old nonprofit developer, manager and promoter of affordable rental housing and has been operating in the islands for 23 years. We currently manage 23 properties, over 2,200 affordable rental units on Kauai, Maui and Oahu. We are in the process of developing our first affordable rental property on the Big Island at the corner of Kawili and Kapiolani Streets in Hilo. It will consist of 92 units for seniors, age 62 and over, with a preference for veterans, EAH primarily serves those with incomes at or below sixty percent (60%) of the Area Median Income (AMI). We are a long term owner/manager having never sold a property in our 51 year history. We are submitting testimony in support of Resolution 431 because developing rental housing to serve those at the lower income levels requires a great deal of subsidy. The Low Income Housing Tax Credit (LIHTC) Program (Section 42 of Internal Reserve Service Code) is our primary source of equity. We supplement that source with local state and county funding sources such as the Rental Housing Revolving Fund (RHRF), HOME Program and Community Development Block Grants, and Affordable Housing Funds if available. Our capital stack typically includes a number of funding sources in order to make the project viable given the low rents regulated by HUD. EAH along with Faith Action for Community Equity, a social justice organization on Oahu made up of various Churches, Temples, etc., strongly advocated and were successful in helping to create an Affordable Housing Fund on Oahu a few years ago. The funding source for this Fund is a percentage of the County's real property tax, which required a charter amendment on the public ballot. The County of Maui has a similar fund. After the initial passage, it was amended, again by ballot, to clarify that the Fund serves projects serving those at sixty percent (60%) of the AMI level and below. EAH strongly supports a similar Fund be established to serve the same AMI levels on the Big Island. We believe access to use of the Fund should be via a competitive Request for Proposals process on an annual basis. We should also note that the 60% AMI maximum was chosen because that is the maximum AMI level you can serve in order to receive tax credits from the LIHTC Program. Please give your support to Resolution 431 and the start of the process to create an Affordable Housing Fund for the Big Island of Hawaii. Sincerely yours, Kevin Kevin R. Carney, (PB), NAHP-E Vice President, Hawaii RB-16444 Office: (808)523-8826 Fax: (808)523-8827 I kevin.carne eahhousin .or wwv-aah,housinE orz I Twi ear i Facebook IY u ibe 1001 Bishop St.,Suite 2880, Honolulu, HI 96813 EAH Housing I HI Lic. RB-16985 i CalBRE Lic. 853495 Comm. I Ref. To: p �U Ref. Date JAN - 7 2020 A "The mission of EAH Housing is to expand the range of opportunities for all by developing, managing and promoting quality affordable housing and diverse communities." This message,including any attachments,is intended solely for the addressee(s)and is confidential.it may also contain information that is legally privileged.Any person other than an intended recipient, or other party expressly authorized by the sender, is prohibited from using, copying, distributing or otherwise disclosing the information contained herein.If you received this message in error,please immediately delete it and all copies,and promptly notify the sender.