HomeMy WebLinkAboutCOM 0849.002 2018-2020 Harry Kim 4I OF
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Duane Hosaka
Mayor
Housing Administrator
Roy Takemoto
Managing Director Alisa A.Hanselman
Assistant Housing Administrator
Barbara J.Kossow
Deputy Managing Director
County of Hawaii
Office of Housing and CommunityDevelopment
1990 Kino`ole Street,Suite 102 • Hilo,Hawaii 96720 (808)961-8379 • Fax(808)961-8685 j
Existing Housing:(808)959-4642 Fax(808)959-9308 '
Kona: (808)323-4300 • Fax(808)323-4301
April 6, 2020
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MEMORANDUM
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TO: Chair Aaron Chung --,
and Hawaii County Council Members
FROM: DUANE HOSAKA 3
Housing Administrator
RE: Resolutions 562-20 and 563-20 & Bill 155
The Office of Housing and Community Development (OHCD) would like to submit the
following supporting information for Council's favorable consideration of Resolutions 562-20,
563-20 and Bill 155.
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Resolutions 562-20 and 563-20: 2020-2024 COUNTY OF HAWAII
CONSOLIDATED PLAN AND 2020 ANNUAL ACTION PLAN
Hawaii County receives federal Community Development Block Grant(CDBG), HOME
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Investment Partnerships Program(HOME) and National Housing Trust Fund(HTF)program
funds from the U.S. Department of Housing and Urban Development(HUD). As a condition to
receiving these federal grant funds,HUD requires that grantees (Hawai`i County) submit a 5
Year Consolidated Plan(ConPlan) and an Annual Action Plan(Action Plan). These Plans are
tools used to determine how HUD's funds will be used to address the housing and related needs
of low- and moderate-income families by improving the availability and affordability of decent,
safe and sanitary housing.
The County's ConPlan is a comprehensive planning document which identifies the housing and
community development needs and priorities for the County of Hawai'i for the next five
years. It sets forth the County's strategies and objectives in addressing these needs and provides
a framework for the Action Plan, which details the specific project and activities the County will
undertake in each of the five years to carry out the ConPlan. The goals and priorities contained
in the ConPlan are used to allocate the CDBG, HOME and/or HTF funds, in accordance with
2168aaah Cotmn. No. " -
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Chair Chung and Hawaii County Council Members
April 6, 2020
Page 2
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program eligibility requirements and program rules. These goals and priorities were established
from input from the community, organizations,non-profits and government agencies. Hawaii
County was awarded $2,626,423 in CDBG funds for 2020. In order for Hawaii County to
receive these funds,this 2020-2024 ConPlan and 2020 Action Plan must be executed and
submitted to HUD by May 15, 2020. Although this deadline was extended because of the 4
COVID-19, a delay in the submittal of these plans will delay the County's receipt of these grant
funds. This will jeopardize the ability of some of the projects to move forward because of their
timeline constraints, while others risk losing their other sources of funds as their deadlines will
not be met. Without CDBG projects and its projected expenditures, Hawaii County will not
meet its timeliness expenditure requirements. This will negatively impact its future federal
funding allocations.
The 2020 Action Plan is part of the 2020-2024 ConPlan. The Action Plan contains the projects
that will utilize the 2020 CDBG funds. These projects were solicited on a Request for Proposal
basis and were selected in accordance with the CDBG program's rules and regulations and based
on the County's needs and priorities contained in the County's ConPlan. In addition to meeting
the program's eligibility criteria, project feasibility and its ability to meet the federal expenditure
requirement in a timely manner were also considering factors. All of the CDBG funds are
utilized to benefit low- and moderate-income groups or areas within Hawaii County.
Hawaii County anticipates receiving $1,543,033 in additional CDBG funding as part of the
Coronavirus Aid, Relief, and Economic Security (CARES) Act. OHCD along with the Mayor's
Covid-19 Task Force are preparing for possible eligible activities to utilize the funds and will be
updating the ConPlan and Action Plan accordingly.
Bill 155: APPROPRIATIONS FOR THE BLOCK GRANT ACCOUNT
($2,626,423) AND PROGRAM INCOME ($100,000)
Hawaii County was awarded $2,626,423 in CDBG funds for 2020. The 2020 Annual Action
Plan contains the projects that will utilize the 2020 CDBG funds. These projects were solicited
on a Request for Proposal basis and were selected in accordance with the CDBG program's rules
and regulations and based on the County's goals and priorities contained in the County's 2020-
2024 ConPlan. A total of thirteen(13) CDBG projects proposals were received. Based on the
program rating system, seven(7)project proposals did not meet the minimum 50%or 1,500
points project passing threshold for various reasons including poorly written or deficient project
proposal, insufficient project planning, lack of familiarity or ability to meet the federal overlay
requirements, not meeting program eligibility requirements, inability to meet the federal
expenditure requirement in a timely manner, etc. In consideration of these crucial factors and/or
foreseeable issues,these projects would not be completed within its proposed timeline/schedule
and risk repayment of funds. Therefore, they were not considered for funding.
The five (5)projects that were selected for funding are as follows:
Chair Chung and Hawaii County Council Members
April 6, 2020
Page 3
MENTAL HEALTH KOKUA—FACILITY SEWER CONNECTION
As mandated,the non-profit Mental Health Kokua(MHK) is awarded$220,000 of 2020 CDBG
funds to design and connect to the County sewer line for its 3 Kona homes. MHK provides
housing and services for 18 adults with mental illness at 3 houses in Kailua-Kona. The project
involves renovations to remove existing cesspools, sewer line connection and plumbing to attach
to the sewer line.
KIHEIPUA EMERGENCY SHELTER
Kiheipua is a homeless shelter for families with children. The non-profit, HOPE Services
Hawaii, Inc. is awarded $388,175 of 2020 CDBG funds to renovate the current kitchen to meet
Department of Health's Certified Kitchen requirements to feed homeless families at the Hilo
Shelter. HOPE Services previously received CDBG funds for the design and renovation costs
for its roof replacement and certified kitchen. However, the project was over budget and
additional funding is needed to complete the kitchen renovations.
KAIAULU O WAIKOLOA
The non-profit Ikaika Ohana is awarded $800,000 of 2020 CDBG funds for off-site sewer line
improvements to support its 60-unit affordable multi-family apartment project in Waikoloa. This
project will contain two-bedroom, three-bedroom and four-bedroom units to household with
incomes at or below 30-60%area median income. The project is receiving financing with Low
Income Housing Tax Credits and Section 8 Project Based Vouchers.
HALE MALUHIA SHELTER
The non-profit, HOPE Services Hawaii, Inc. is awarded $561,015 of 2020 CDBG funds to
renovate a homeless single women and senior citizens shelter. This is an 8 unit, 30-year old
facility. HOPE Services previously received CDBG funds for roof replacement and
accessibility renovations. The majority of the funds were used for the design of the roof and
accessible renovations and to conduct a hazard material survey report. However,the project was
over budget as a result of the hazard material report findings and additional funding is needed to
complete the accessibility improvements and remove the hazardous materials at the shelter to
meet Fair Housing and ADA compliance.
RESIDENTIAL REPAIR PROGRAM (RRP)
The Office of Housing and Community Development's Existing Housing Division is awarded
$231,949 of 2020 CDBG funds for its RRP program to provide 5-10 low-interest loans to income
eligible households to rehabilitate their homes. RRP program began in 1997 and has provided
assistance to over 200 homeowners.
ADMINISTRATION, PLANNING AND FAIR HOUSING
$525,284 of 2020 CDBG funds will be used to administer and coordinate the County's CDBG
and Fair Housing Programs to ensure effective and timely project implementation in accordance
with all applicable HUD rules and regulations. CDBG funds will also be used to fund present
and future planning studies and documents in accordance with federal rules.