HomeMy WebLinkAboutRES 663 Draft 01 2018-2020 •
COUNTY OF HAWAII -:, -.'''°=\�� i•' STATE OF HAWAII
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RESOLUTION NO. 663 20
A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO A MULTI-YEAR
AMENDED AND RESTATED GROUND LEASE AGREEMENT WITH PAHALA HOLEI
PARTNERS LP, FOR THE REHABILITATION AND LEASEHOLD RIGHTS OF PAHALA
ELDERLY APARTMENTS PROJECT LOCATED IN PAHALA, DISTRICT OF KA`U,
HAWAII COVERED BY TMK: (3) 9-6-017:038
WHEREAS, on September 27, 1985, the County of Hawaii through its Office of Housing
and Community Development ("OHCD"), entered into a 55-year lease ("Original Lease") with the
KA`U HOUSING CORPORATION ("Original Lessee"), a Hawaii non-profit corporation, to build
and operate the Pahala Elderly Housing Project which sits on a parcel containing 26,807 square feet
located at 96-1183 Holei Street in Pahala, Hawaii, 96777, on TMK: (3) 9-6-017:038; and
WHEREAS, the Original Lessee successfully secured funding and built two single-story
buildings comprised of eight 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 has 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 throughout the State of Hawaii; and
WHEREAS, the Original Lessee desires to amend the Original Lease and assign all of its
interests to PAHALA HOLEI PARTNERS LP, a Hawaii limited partnership, whose address is at
415D Uluniu Street, Kailua, Hawaii 96734 (the "Lessee"), and Lessee desires to amend and restate
the Original Lease in its entirety; and
WHEREAS, the Lessee has secured funding for the rehabilitation of the premises through
secured funding for that project in the form of a $400,000.00 Affordable Housing Program direct
subsidy through the Federal Home Loan Bank and a $326,000.00 permanent loan from First
Hawaiian Bank; and
WHEREAS, for the duration of the Lease, the Lessee shall use the 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 to rent to tenants with low or moderate
incomes or to those with incomes that do not exceed the HUD Section 8 income admission limits at
time of admission and 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 for the duration of the
Lease; and
WHEREAS, the proposed transfer of leasehold rights to the Lessee would ensure that the
residents of Pahala Elderly Apartments 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 PAHALA HOLEI
PARTNERS 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 , Hawai`i, this 17th day of June , 20 20 .
INTRODUCED BY:
COUNC MEMB ', 'i U TY OF AWAI`
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 adopted by the COUNCIL of the KANEALI`I-KLEINFELDER X
County of Hawaii on June 17, 2020
KIERKIEWICZ X
LEE LOY X
ATTEST: POINDEXTER
X
RICHARDS X
VILLEGAS X
9 0 0 0 '
Reference: C-967/Waived FC
OUNT CLERK IRPERSON&PRESIDING OFFIC = RESOLUTION NO. 663 20