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Date: June 15, 2020
To: Office of the County Clerk
25 Aupuni Street
Hilo, HI 96720
Via e-m_ (counciltestimon rftawaiicounty.;ov) and facsimile (808-961-8912)
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From: Makani Maeva, principal of Ahe Group, LLC
Subject: Written Public Testimony in Support of Res. 664-20
Multi-Year Lease Agreement with Big Island Bond Partners LP for the Rehabilitation of
Waikoloa Gardens Apartments Located in the District of South Kohala Hawaii
Aloha Councilmembers. My name is Makani Maeva and I am the principal of Ahe Group, LLC, a Hawaii-
based affordable housing developer. I write to respectfully request the Hawaii County Council's support
of the multi-year lease agreement with Big Island Bond Partners LP for the rehabilitation of Waikoloa
Gardens Apartments ("Waikoloa Gardens") in South Kohala, Hawaii.
Waikoloa Gardens, located at 68-1820 Pua Melia Street, Waikoloa, Hawaii, is a 24-unit affordable rental
housing project for families built on land leased from the County of Hawaii. Waikoloa Gardens is
presently owned by lack Hall Kona Memorial ("JHKM"). JHKM is a private non-profit corporation
organized under Section 501(c)3 of the Internal Revenue Code whose mission and purpose is to
develop, build, own and operate affordable housing.JHKM has agreed to transfer its interest in
Waikoloa Gardens to Big Island Bond Partners LP, an Ahe Group affiliate, in order to facilitate necessary
capital improvements of the property.To ensure continuity, an affiliate of JHKM will continue on as a
special limited partner of Big Island Bond Partners LP.
Ahe Group is an experienced, active, Hawaii-based developer who specializes in affordable housing.
Ahe Group's projects include new construction, preservation and rehabilitation, and adaptive reuse
projects throughout the State of Hawaii. Over the past 25 years, I have developed over 9,000 affordable
rental units in 17 states.Since forming my own company in 2015, 1 have built or renovated 10
properties in Hawaii.Ahe Group is currently overseeing three active construction projects(one on Oahu
and two on Kauai)that will add 161 new affordable rental units to Hawaii's inventory over the next
year. The Ahe Group has deep experience working with different affordable housing financing programs
and providers in the State of Hawaii.
By way of background, Waikoloa Gardens was originally constructed in 1984. Over the last 36 years,
JHKM has been a good steward of this valuable affordable housing asset. Waikoloa Gardens is now in
need of substantial capital improvements due to its age, and the cost of the required renations area
above and beyond what the rental income can support. o o.
15
ReF. o:
Ref, Date JUN 1 7 2020
* �%
Written Public Testimony in Support ofRes. 664-20
Page
Ahe Group plans to finance the$1,087,000 of capital improvements using the Low-Income Housing Tax
Credit("LIHTC") program set forth in the Section 42 of the Internal Revenue Code.Through the LIHTC
program, we have successfully secured over$74,000,000 in tax credit equity for eight affordable rental
projects in the past 5years alone. A multi-year lease agreement will a||ovv Big Island Bond Partners LP
tosecure the Low-income Housing Tax Credits necessary 1urenovate VVaiko|oaGardens. Significantly,
the L|HT[funding will require that the project: /l\ berentedon|y1ofanni|iesvvhoearnn0moore1han
60Y6ufthe Area Median Income, as defined by HUD; and /2\ nennoim affordable for an extended period
Of61years.
It is important to note that all 24 units a1VVaiko|oa Gardens are covered under United States
Department of Agriculture ("USDA") Rental Assistance project-based contract. Project-based rental
assistance is the USDA equivalent of HUD's Section 8 program and ensures that the 24 families pay only
3096 oftheir adjusted gross income for rent. USDA pays the owner the difference between the gross
rent and the tenant's 30%share. The costs to recapitalize the property and to pay for rehabilitation and
modernization work are built into the USDA approved rent structure.The rental assistance contract
guarantees that tenants' portion oftheir rent will remain the same after the renovations are complete.
Ahe Group's continued partnership with the original owner, developer, and operator will ensure that
Waikoloa Gardens is a safe, affordable home for generations of families.
Thank you for your consideration of this lease. If you have any questions, please don't hesitate to
contact K8akaniK8aevaat (QO8) ]8l'S95QorJoe||eChiu at (80Q) 77O-7928.
cc:Jack Hall Kona Memorial