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Jack Hall Kona Memorial Comm' q ca
451 Atkinson Drive
Honolulu, HI 96814
Date: June 8, 2020
To: Office of the County Clerks
25 Aupuni Street
Hilo, HI 96720 �-
Via Mail and Facsimile
From: Jack Hall Kona Memorial
Subject: Written Public Testimony
Lease Extension for Big Island Bond Partners LP
We respectfully request the Hawaii County Council's support of the Lease Extension for Gilbert
De Motta Waikoloa Gardens through the Big Island Bond Partners LP. Gilbert De Motta
Waikoloa Gardens is presently owned by Jack Hall Kona Memorial. Jack Hall Kona Memorial is a
private non-profit corporation organized under Section 501(c)3 of the Internal Revenue Code.
Jack Hall Kona Memorial's mission and purpose is to develop, build, own and operate
affordable housing.
Gilbert De Motta Waikoloa Gardens is a 24 unit affordable family housing property located at
68-1820 Pua Melia Street, Waikoloa, Hawaii. The property was originally built with a Section
515 loan from the U.S. Department of Agriculture (USDA) and all units of the property are
covered by a Rental Assistance Contract which subsidizes tenant rents so the tenant pays 30%
of their adjusted gross income. The development and building of the property was originally
sponsored by the ILWU Local 142.
For some years now the,non-profit owners have done their best to keep the property in good
condition and operating efficiently;. Thirty plass year old proper ties "gave capital and
modernization needs which are beyond what rental income can support. In Hawaii (like the
rest of the country)the Low Income Housing Tax Credit (LIHTC) Program is the principal tool
developers use to acquire and rehabilitate affordable housing properties. As long time non-
profit owners of Gilbert De Motta Waikoloa Gardens our central objectives are to assure the
property is preserved as affordable housing and that recapitalization proceeds are used to
rehabilitate and modernize the property. To this end, Ahe Group plans for$1,087,343 for
rehabilitation and modernization work at Gilbert De Motta Waikoloa Gardens.
Gilbert De Motta Waikoloa Gardens has project based Rental Assistance subsidies paid by the
USDA to the owner on behalf of eligible tenants. Project based subsidies (Rental Assistance)
provide the tenant pays.30% of their adjusted gross income. USDA pays the owner on behalf of
the tenant the difference between the gross rent and the tenant's share of rent. The costs to
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recapitalize the property and to pay for rehabilitation and modernization work are built into the
USDA approved rent structure. USDA through its subsidies of tenant rent in effect pays the
costs to recapitalize and rehabilitate the property. Eligible tenant rent will remain the same
(30% of adjusted gross income) and other than annual recertification of income will not
increase during this process.
LIHTC Program rules require an extended affordability commitment by the partnership. This
assures the renovated and rehabilitated property will remain as affordable housing for its use
life. LIHTC guidelines also require an extended period of site control to support the extended
affordability requirements. Extended affordability and extended site control in effect supports
the extended preservation of affordable housing.
In 2018 Jack Hall Kona Memorial (the owner) approached the Ahe Group to partner with us In
revitalizing and renovating Gilbert De Motta Waikoloa Gardens. Jack Hall Kona Memorial will
stay in the acquiring/ownership partnership entity through Jack Hall Hawaii Community LLC as a
special limited partner. In this new capacity we will continue providing affordable housing to
Hawaii County. Gilbert De Motta Waikoloa Gardens is part of a portfolio sale of six properties
located in Honolulu and Hawaii County from each of the owner entities to the Ahe Group.
The Ahe Group is an experienced Hawaii based developer and has done a number of affordable
housing new construction, preservation and rehabilitation projects in the State of Hawaii (and
on the mainland). The Ahe Group has singular experience in working with different affordable
housing programs and providers in the State of Hawaii.
As the original developer, owner and operator of our properties,we think a strong Hawaii
based developer will assure the long term preservation of the affordable housing assets we
worked hard to build and operate these many years.
Thank you for your consideration of this Lease Extension request.
If you have any questions, please contact Leonard Hoshijo at (808) 225-1835.
cc: Ahe Group
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