HomeMy WebLinkAboutRES 691 Draft 01 2018-2020 ..oJMtYOsp��,'
COUNTY OF HAWAII I• �''�-���% .M- STATE OF HAWAII
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RESOLUTION NO. 691 ZO
A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO A MULTI-YEAR
LEASE AGREEMENT WITH PAPA'ALOA HOUSING INC. FOR THE
REHABILITATION OF THE PAPA'ALOA ELDERLY HOUSING PROJECT
LOCATED IN THE DISTRICT OF HAMAKUA, HAWAII, TMK: (3) 3-5-003:049.
WHEREAS, on April 3, 2002, the County of Hawaii ("Lessor"), through its Office of
Housing and Community Development ("OHCD"), entered into a lease for at least 20-years
(``Original Lease") with Papa'aloa Elderly Housing ("Lessee"), a Hawaii non-profit corporation,
to build and operate the Papa'aloa Elderly Housing Project which sits on 2.5 acres of land
located in Papa'aloa, Hamakua district, TMK:(3) 3-5-003:049 (the "Property").
WHEREAS, after entering into the Lease, the Lessee relocated old teacher cottages to
the site and renovated them into ten (10) rental units for elderly residents who met the criteria
described in the Lease, and a community center. The site became known as the the Papa'aloa
Elderly Housing Project ("Project); and
WHEREAS,the Lessee has successfully operated the facility for the past nineteen (19)
years, and now desires to replace the existing aging structures with a new 20 unit building and a
community center, and the Lessor agrees this is a worthwhile expansion given the shortage of
affordable housing on the island of Hawai`i; and
WHEREAS, in 2018 the Lessee was approved to receive twenty (20) U.S. Department of
Housing and Urban Development ("HUD") Section 8 project rental vouchers for the project; and
WHEREAS, the Lessee is seeking funding for the rehabilitation of the premises through
Low Income Housing Tax Credit allocation and other soft funding sources; and
WHEREAS, on February 5, 2019 the Lessor and Lessee entered into an Option to
Amend the Lease ("Option Lease"), and the Lessee provided written notice to the Lessor on
April 4, 2020 that the Lessee intends to exercise its option to Lease in Section 1(a) to extend the
Lease for seventy-five (75) years subject to council approval; and
WHEREAS, for the duration of the Lease, the Lessee shall use said Premises solely as a
rental housing facility for low 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 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, 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 PAPA'ALOA
HOUSING, INC. 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 Hawaii 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
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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 22nd day of July , 20 20
INTRODUCED- t:
COUN -L ME ! _' OUNTY OF H A AI'
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 July 22, 2020 _
KIERKIEWICZ X
LEE LOY X
ATTEST: POINDEXTER X
RICHARDS X
VILLEGAS X
9 0 0 , 0
ALA Reference: C-1010/Waived FC
_ _ ► Y CLE AIRPERSON & PR SIDING OFFICER RESOLUTION NO. 691 20
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