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Home My WebLink About2020-02-24 Letter to Donovan M. Dela Cruz and Gilbert S.C. Keith-Agaran SB 2625, SD1 Relating Housing J�tv;or„� Roy Takemoto �o. �,'• Managing Director • • Harry Kim .: 1. Mayor _ ' �- +° Barbara J. Kossow Deputy Managing Director County of H awai`i Office of the Mayor 25 Aupuni Street,Suite 2603 • Hilo, Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740 (808)323-4444 • Fax(808)323-4440 February 21, 2020 Senator Donovan M. Dela Cruz, Chair Senator Gilbert S.C. Keith-Agaran, Vice Chair Committee on Ways and Means Dear Chair Dela Cruz, Vice Chair Keith-Agaran, and Committee Members: RE: SB 2625, SD1 Relating to Housing The County of Hawaii strongly supports SB 2625, SD1. SB 2625, SD1 creates a revolving loan fund to serve Hawaii's local people by developing new affordable homes for sale for households that are ALICE (Asset Limited, Income Constrained, and Employed). The resources would be directed to the Hawaii Housing Finance and Development Corporation, which would then loan to non- profit organizations across the Hawaiian Islands. The revolving loan fund is an innovative proposal designed to work with various development models used by nonprofits to build homes around the state. It will serve as access to capital for a non-profit organization to either: • Serve families with affordable housing loans. The non-profit organization may provide down payment assistance, purchase or leverage loans made to qualifying families, and their loan repayments will pay back into the fund over time to benefit additional first-time homebuyers. • Serve families with affordable housing construction. The non-profit organization will build a single-family home and upon sale, will pay back into the fund to benefit additional first-time homebuyers. • Serve families with land for affordable housing. The non-profit organization will acquire and manage land in trust to reduce the price of single- family home prices and upon sale, will pay back into the fund to benefit additional first-time homebuyers. County of Hawaii is an Equal Opportunity Provider and Employer. February 24, 2020 Page 2 Homeownership is a critical part of the housing continuum. When you create affordable homeownership opportunities for our local people, they move ahead and free up existing inventory for other individuals and families experiencing or at-risk of homelessness. Our housing market is dynamic and our response needs to be equally dynamic, looking at rentals AND homeownership as well as alternative housing solutions like rent- to-own, duplexes and four-plexes, student housing, kupuna housing, tiny homes, and kauhale development. An affordable homeownership revolving fund ensures capital is available to transition rental housing revolving funded units so they can preserve affordability and transition to ownership, making rent-to-own a viable model in Hawaii. Respectfully Submitted, Harry K MAYOR County of Hawaii is an Equal Opportunity Provider and Employer.