Loading...
HomeMy WebLinkAboutRES 662 Draft 01 2018-2020 ..00.17 OF,,,,,' COUNTY OF HAWAII �•� �''�= /_•- STATE OF HAWAII _ • ,tt OF MF'41 RESOLUTION NO. 662 20 A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO A MULTI-YEAR LEASE AGREEMENT WITH BIG ISLAND BOND PARTNERS, LP, FOR THE REHABILITATION OF AINAKEA ELDERLY HOUSING LOCATED IN THE DISTRICT OF NORTH KOHALA, HAWAII COVERED BY TMK: (3) 5-3-011:107. WHEREAS, on January 27, 1989, the County of Hawaii ("Lessor"), through its Office of Housing and Community Development ("OHCD"), entered into a 55-year lease ("Original Lease") with Kohala Union Housing Corporation ("Original Lessee"), a Hawaii non-profit corporation, to build and operate the Ainakea Elderly Housing which sits on a parcel containing 132,155 square feet located at 53-3996 Ainakea Drive, Kapa'au, Hawaii, 96755, on TMK: (3)5-3-011:107; and WHEREAS, the Original Lessee successfully secured funding and allowed the construction of multiple single-story buildings with a total of 21 one-bedroom apartments and one meeting room (the "Premises"), and secured U.S. Department of Housing and Urban Development ("HUD") Section 8 rental vouchers for the project; and WHEREAS, the Original Lessee determined the Premises are in need of substantial renovations; and WHEREAS, the Original Lessee has entered into a partnership with Ahe Group, LLC to complete the renovations. Ahe Group, LLC has experience in the affordable housing development industry and has demonstrated success in all facets of development, from acquisition and rehabilitation to new construction and ownership through out the State of Hawaii; and WHEREAS, the Original Lessee desires to amend the Original Lease and assign all of its interests to BIG ISLAND BOND PARTNERS, LP, a Hawaii limited partnership, whose address is 157 Makawao Street, Kailua, Hawaii 96734 (the "Lessee"), and Lessee desires to amend and restate the Original Lease in its entirety; and WHEREAS, the Lessee will seek funding for the rehabilitation of the premises through Low Income Housing Tax Credit allocation and other soft funding sources; and WHEREAS, for the duration of the Lease, the Lessee shall use said Premises solely as a rental housing facility for low and moderate income elderly housing and related uses in accordance with federal, state or county laws of such other elderly housing which is a"qualified low-income housing project", health care, nutrition programs, or support services for elderly residents including residents of rental units on premises; and WHEREAS,the Lessee's use of the Premises shall be operated and rented at rents to tenants with incomes that do not exceed the U.S. Department of Housing and Urban Development (HUD) Section 8 income admission limits at time of admission and Lessee shall conform to the rental ceiling established and as amended from time to time by the HUD in its administration of the Section 8 Rental Assistance Program (together with the admission limits, the "HAP Requirements") for the duration of the Lease; and WHEREAS, the proposed transfer of leasehold rights to the Lessee would ensure that the residents of Ainakea Elderly Housing can continue to live in safe, decent and affordable rental housing; and WHEREAS, Chapter 2, Article 19, Section 2-120(a)(2), Hawaii County Code, as amended, provides that the County Council may direct the Finance Director to negotiate the disposition of real property by lease to affordable housing developers at such rentals and on such terms and conditions as deemed proper; and now, therefore BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, that the Finance Director is hereby authorized to negotiate a multi-year lease with BIG ISLAND BOND PARTNERS, LP for the purpose of rehabilitating and maintaining the existing rental housing apartment for senior citizens at a set lease rental amount of Ten Dollars ($10.00) per year. BE IT FURTHER RESOLVED that the Mayor of the County of Hawai`i or his authorized representative is hereby authorized to execute the lease agreement and any other documents required to induce financing entities to provide funding for the project; and BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this resolution to the Office of the Mayor, the Department of Finance, and the Office of Housing and Community Development. Dated at Kona , Hawaii, this 17th day of June , 2020 INTRODUCED BY: _.11W-01 115 (.231(__ *41111iCOUNCIL _► ,WOF HA AI`I COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i CHUNG X DAVID X I hereby certify that the foregoing RESOLUTION was by EOFF X the vote indicated to the right hereof ado ted bythe COUNCIL of the County of Hawaii on June 17,2020 KANEALPI-KLEINFELDER X KIERKIEWICZ X LEE LOY X ATTEST: POINDEXTER X RICHARDS X VILLEGAS X 1 9 0 0 0 Reference: C-966/Waived FC CHz1 Y CLERK 662 20 CHAIRPERSON & PRESIDING OFF ER RESOLUTION NO.