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HomeMy WebLinkAbout2019-04-09 HCHA Approved Minutes Meeting of the HAWAII COUNTY HOUSING AGENCY Hilo, Hawaii April 9, 2019 Agency Members Present Absent and Excused Valerie T. Poindexter Arrived at 9:04 a.m. Aaron Chung Susan "Sue" L. K. Lee Loy Ashley Lehualani Kierkiewicz Matt Kanealii-Kleinfelder Maile Medeiros David Rebecca Villegas Karen Eoff Herbert M. "Tim" Richards III, DVM Staff Members Present Neil S. Gyotoku Duane Hosaka Desiree Moore Alison Mukai Amy Bautista Corporation Counsel Members of the Public Malia Hall Eoff: Good morning, we ready? Okay. Good morning everybody. Welcome to the Hawaii County Housing Agency meeting. Today is April 9th. Its 9:00 a.m. We're in the Hilo Council Chambers and I'd like to call this meeting to order. Do we have any statements from the public this morning? Seeing none. May I have a motion to approve the minutes from May 8th 2018? Richards: So moved Kierkiewicz: Second Eoff: Okay I have a motion from Mr. Richards and a second from Ms. Kierkiewicz. Is there any discussion? No? Yes? Mrs. Kierk...no...okay...then all in favor, please say aye. All (present) said aye. HCHA April 9, 2019 Eoff: Any opposed? We have nine ayes. [Note: only eight present at time of vote; later corrected on the record] Eoff: And I forgot to announce the members of the Housing Agency that are hear today so I'll start with my far right, good morning Mrs. Lee Loy, Ms. Kierkiewicz, Mr. Richards, and to my left Mrs. Villegas, Mr. Kanealii-Kleinfelder, Mrs. David and Chairman Chung and I'm Karen Eoff, I'm the Chair of the Housing Agency until we appoint a new one, I think, so we'll move on to new business and the first order of business is appointing a Chairperson. So, does anyone want to... LeeLoy: I nominate Karen Eoff. ??: You can't do that. Richards: I will second that. LeeLoy: Motion to close nomination... Richards: I second that. LeeLoy: All in... Eoff: Okay, well thank you...l'll...l'll remain...l'll remain Chairman of this Housing Agency then for this morning or for this term...all in favor say aye. All (present) said aye. Eoff: Okay, that's nine ayes. [Note: only eight present at time of vote; later corrected on the record] Eoff: And now we need to appoint a vice chairperson. Are there any nominations? LeeLoy: Ah, motion to nominate Val Poindexter, cause like last time if you're absent, you get volunTOLD... ??: you get volunTOLD. Richards: right, right, second! Page 2 of 22 HCHA April 9, 2019 Eoff: okay, and I...I didn't men...mention that she was absent but sha...1 think shes here somewhere but we'll do that... (inaudible) Eoff: then, that's traditional. (inaudible) LeeLoy: Motion to close nomination. ??: So we have eight ayes. Eoff: Okay, all in...all in favor say aye. All (present) said aye. Eoff: Any opposed. Okay Mrs. Poindexter will be the Vice Chair and we'll let her know when she arrives. David: Excuse me Chair. Chair Eoff we had eight ayes on that last one cause Val was not here... Eoff: Oh, I'm sorry, yep Jeanette I'm sorry, I made a mistake, there was eight ayes on both of the motions. Bautista: So noted. Eoff: Okay. The next item under new business is to approve the PHA Plan of the Office of Housing and Community Development for the fiscal year beginning July 1 , 2019 and we have Mr. Neil Gyotoku and I'd like you to introduce yourself. Gyotoku: Neil Gyotoku, Housing Administrator. Eoff: Thank you and did you want to talk on this item here?... Gyotoku: First of all I'd like to introduce my staff, I have Assistant Administrator, Duane Hosaka, Desiree Moore from my Existing Housing Division, and also Alison Mukai from my Grants Management and our Private Secretary Amy Bautista. Eoff: Thank you all for being here. Gyotoku: On this PHA Plan in 1999 Congress passed the law that each Public Housing Agency has to develop a comprehensive housing plan for the Housing Page 3 of 22 HCHA April 9, 2019 Voucher Program. We did a five year plan in 2015 it will expire in 2020. And each year we have to submit a annual plan and this is what we have today. Its a Office of Housing Community Development Public Housing Plan for the Fiscal Year beginning July 1 , 2019 and I request that the Housing Agency approve the PHA Plan for the Office of Housing and Community Development. Eoff: Okay. Thank you and Councilmembers would you like to discuss or have any questions for Mr. Gyotoku? Okay...oh I'd just like to thank you for meeting with us prior so that we all had a heads up on... Gyotoku: You're welcome. Eoff: ....this. So all in favor of...l'm not sure if we file this orjust...move on? Gyotoku: Its just a request to approve it and we will be filing it with the Department of Housing and Urban Development...after approval. Eoff: Okay, then all in favor of approving the PHA Plan for the Office of Housing and Community Development for fiscal year beginning July 1 , 2019 say aye. All said aye. Eoff: any opposed? Okay, we have nine ayes. Motion carries. And the next order of business is a presentation and this will be an Overview of the Housing and Community Development projects and programs. So I see you have your power point up and ready to go. Gyotoku: I do have the power point...l've kinda sat down with most of everybody to discuss this presentation. I'll just go briefly and summarize some of the high points and then open it up for any questions that you may have. Under the Office of Housing and Community Development our basic purpose is to provide housing assistance to low income families, plan and develop community friendly housing projects and be responsible for federal grants that help benefit low and moderate persons. We have two offices, one is 1990 Kino`ole which we just recently moved out of the 50 Wailuku Drive, the Hilo Armory, after 41 + years. We also have a office...a smaller office in the West Hawaii Comm...Civic Center, in Kona. Total wise, we have 51 full time positions in the Office of Housing and I may note that under...were the only agency, sub-department in the County that is not civil service, so all of our positions are exempt and basically we survive on federal funds. Page 4 of 22 HCHA April 9, 2019 If you look at this graphic it shows, and I wanted to make some corrections, we have 20.7 million dollars, 7 million dollars from the housing choice vouchers where we subsidize the rent of about 2,100 families throughout the island of Hawai`i. We own and manage the Ulu Wini Housing project and these are 96 units on Hina Lani Street in Kona and its owned by the County, its run by our Office of Housing although we have a property manager on site doing the management work. We have Hale Kikaha which is in the West Hawaii Emergency Shelter complex. Its 23 units that were built from housing containers, we call it micro-units. We do operate...its like a housing project, that is subsidized...receives...the tenants receive rental assistance through housing and urban development, the housing voucher program. We have Kula`imano Elderly in Pepe`ekeo thats 50 units of elderly units, one bedroom units. We own and manage and pretty much operate it, although we do have site managers on site to take care of some problems...issues that we have. Right now were really going in to intense renovations phase, trying to improve it. It is over, I believe 40+ years old and needs some dire repairs. We looking at replacing a lot of the appliances and doing some handicap ADA work outside. Were also trying to harden the community center. Later on were going to be doing ADA improvements in the interior of the project and we also provided some exterior improvements like perimeter security fencing. We also be looking at some...developing some ADA compliant ramping on the sidewalks. We also have Ouli Ekahi which is a housing project along Kawaihae road in South Kohala. Its 33, one...three bedroom units. It does receive some section 8 assistance but basically its not subsidized low income housing tax...1 mean subsidized housing project. Its owned by the County and we run...and we own it. Under the Community Development Block Grant which Alison Mukai handles. Each year we receive about 2.5 million dollars which we subsidize different projects throughout the island. I believe Alison's group have meet with most of you to explain what the program is, how it works and the different projects that we have and its also listed in this presentation. Last year we received HOME and Housing Trust Funds from the Department of Urban...Housing and Urban Development. Every three years they come out with, each turn...each County has their turns, Kauai, Maui and ours. Last year was ours and we received 2.5 million dollars of HOME and 1 .4 million dollars of Housing Trust Fund. And right Page 5 of 22 HCHA April 9, 2019 now its designated to go into Kaloko Heights Project in Kona off of Hina Lani road. The last thing was have also is the Workforce Innovation Opportunity Act program where we provide basically job education training for disadva....dislocated workers and also youth that may need the assistance throughout the island. There is a correction on the bottom, it actually totals out to 26 million dollars...$26,562,000 that we receive each year through the different grants from HUD and W...labor...Department of Labor. This shows that, and this is an error to because actually the federal grants and revenues totals 92.7% of our funding comes federal grants and program revenues and eight...7.3 shows 8.54 but actually is 7.3% is from County general subsidy funds to help us pay for costs. We try to charge as much as we can to the different projects but there are things that...if we work like, lets say on a non-subsidized program we have to charge those costs to the County as far as help us pay for the expenses. A lot of the projects that when were talking to these people, there's nothing, no program revenue derived but, you know, that time and efforts is usually charged to that...when were working. I'll skip this there's administrative division, existing housing is one of the division. This one shows the breakdown of the housing vouchers throughout the island and right now I hate to say it but because of the cost is much lower on the east side, 78.9% of the housing vouchers are on the eastside, the rest is on the westside from Kohala all the way to Ka`u. Lot of times its very difficult on the westside to find rental units within the fair market rent values that their limited to. But were working on that as far as trying to build more inventory on the east...westside. This shows the waiting list and its little bit confusing because although there's roughly 2000 people on the waiting list for different...for the housing voucher program and various projects. One person can be on be on several waitlists so it can be a little bit confusing but its all, each waitlist is kept separate for each project. Right now the housing voucher program we have 385, we recently purged the waitlist to make sure that these people are really interested in participating and these are current, updated, waiting list applications. This one shows the different programs also on existing housing you'll see self- sufficiency program where we provide during five years for section 8 clients where the agency would put monies into an escrow account which they may use later to purchase a home. So lets say the 30% is $300 and we subsidize $500 and they increase their income so now they gunna be paying $400, instead of decreasing the $500 subsidy, we put the...actually we pay $100 into the escrow Page 6 of 22 HCHA April 9, 2019 account. So the family although the income portion has increased, the subsidy stays the same and the balance goes back into account where they can use it later on to purchase a home hopefully. And it shows the number of graduates. It's a tough program but we star...we really starting to work on increase the numbers. Total we've paid about $462,742 I believe...I think over the last three years...five years?...the last five years this program has been in effect and the average escrow payment is $7,586. So it does try to help families purchase homes, more towards purchasing homes, while receiving rental assistance. Under the home ownership we provide payments for families which is between their mortgage payments and what the family can afford into an escrow account if their working. The balance, like I said, just like self-sufficiency goes into an escrow account which they can, after they graduate, can use to...towards their home...to purch...do whatever they need to do for their home. Under the grants management division which is headed by Alison Mukai and her staff we have different projects starting in 2015 and 2018. These are current and open where the projects are right now under...under way being, for example, like the West Hawaii Emergency Shelter certified kitchen, it near construction completion. We anticipate maybe in May getting it completed and the kitchen will be for, to help serve meals to the people at Hale Kikaha and the West Hawai`i Emergency Shelter in Kona. So the certified kitchen was part of our requirement because of health...Department of Health requirements that we cannot just cook, let anybody use the kitchens to cook, it has to be a certified kitchen, run by people qualified to be in the kitchen. And if you look down there, I believe Alison did a detailed explanation to you folks, we have all kind of...like two wild brush trucks...trucks, gym renovations and stuff like that. In 2019, this is sort like a wish list for 2019. We have these projects. Right now they total about $2,100,000 and administration another$500,000 so...but it can dep...it will also depend on what the President Trump approves and HUD issues...approves the budget for HUD, and they'll divvy up the monies to the different counties accordingly. Workforce Innovation like I say it provides training education for adult and dislocated workers who have been displaced or laid off. It also provides for youth, which is the ages of 16 to 25 educational and training opportunities for them. We also established American Job Center which is like supposed to be a one stop center, provide services for training. We having people like Wagner Peyser from the Department of...Workforce Development Division in Department of Labor also TNAF, Senior Employment, all those people supposed to be in this Page 7 of 22 HCHA April 9, 2019 center to provide services so that when the client comes in he can receive...that person can receive whatever service they may need. And we've also done and what we call rapid response sessions where we go out and meet with the clients that lets say dis...the business had closed down, like we had for Jack's Tours, we had one for Bubba Gump Shrimp and we also I believe had for the Lava victims, we had three up in Volcano, Pdhoa & Hilo. We did rapid response to try to service people who got laid off due to those businesses closing. I won't go into the housing program because it kinda explains to you but I wanted to say that were currently involved with about 34 proposed projects and another two with...under the 201 H application proj...process. Those 34 is basically in discussion and preliminary design and just...there just trying to get it off the ground. The prior projects are..are...are...are most recent one is Mohouli III, which is 92 elderly housing units built on Mohouli Street. That's the third phase. It's under construction. I think was due to be completed next year sometime. We hope to be doing in the next year Kamakoa Nui, which is the County owns the property in Waikoloa. We recently got a U.S. Army Remedial Action Report from...for our multi-family project...parcel. We hope to get the letter of no further action from Department of Health and that will clear the way for us to receive funds to build those units. We also wanted to do what we call build homes for employees...working employees in that area, so they can buy homes. We did five phases, 91 homes so far. We sold it to employees and they have to be working within 45 miles of this project. So it can be anywhere from Honoka`a down to I think was Captain Cook I believe. So if their working in an area they would be eligible to buy those homes. And its for, I would say moderate low and moderate income families. The average price in the last phase was about $300,000, its a three bedroom house and about a 10,000 sq foot lot. So if you have any questions I'd be happy to answer them or my staff. Eoff: Thank you very much. Councilmembers any questions? LeeLoy: go Mr. Richards. Eoff: Mr. Richards. Go ahead. Richards: Okay, thank you Chair and Neil thanks so much for the presentation. A couple things Neil, we...l think we briefly touched on it concerning the vouchers for building, could you go back over that, did I understand correctly that you guys basically have used up all your vouchers, your programs working that well? Page 8 of 22 HCHA April 9, 2019 Gyotoku: Yes. We've hit our allocation, right now we're lease uprate is about 97% of our allocation which is really excellent in terms of HUD. We're trying to get more vouchers, we haven't had some...we...we applied for things like mainstream, which we got nine. We also applied for what we call VASH, Veterans Assisted Housing Vouchers which is about 25 vouchers...26 vouchers. So we continue to apply for these different types of housing vouchers...rental assisted programs and its basically coming from the same pot of monies but its very slow I would say from the decis...President administration, as far as housing assistance programs, even our HOME and CDBG funding is right now is very questionable what will get and hopefully we'll get at least what we got last year and that's been pretty much as far as the...the goal. Richards: Well I...I think the fact that your...have that program, the high percentage of utilization is testament to what you guys are doing so...GOOD, thank you so much for you guys putting forth and getting that done cause' I mean that does nothing but help us. Shifting gears a little bit Neil can you talk...you talked about the workforce...l'm try'na find my notes where I was keeping track of this stuff...the 1 million dollars, could you comment on that? Gyotoku: Its roughly two programs, about $600,000 for the adult and dislocated adults and another$350,000 for the youth program where we provide things like training for CDL or go to school or any type of certified nurses training classes so that these people can go out there and get jobs and we try to provide services to hook them up to the different companies that come into to us or that we know of looking for workers. Richards: Is any of that funding available for I...not really daycare but like, end of school day...does any of that funding go towards that, supporting any of those programs? Gyotoku: No its basically for the youth is for persons under...from the ages of 16 to 25 I believe. Mostly for, if they've had difficulty getting their GED, troubled youth, we'd try to work with them and try to provide them with the education and training so that they can go out and compete for the jobs available. Richards: Okay. And then coming back to what you're talking about the existing housing and running through it just rough calculations you mentioned our...our housing primarily projects on the eastside and not on the westside and we're to build more and you know district 9, my district, the Kamakoa Nui the current inventory of housing there and the potential buildout on that, what are those numbers? I realize catching you off the top of your head. Gyotoku: On the multi-family we have a ten acre parcel were looking at like 40- 60 units of multi-family rentals for employees. On the housing sales part we have Page 9 of 22 HCHA April 9, 2019 about 300 acres which can accommodate maybe about 1000 to 200 units, right now we built only 91 . So there is a potential to build out more but the caution about that is that it lies in a FUDS area... Richards: okay. Gyotoku: ....and that has been the major stumbling block, even though you may not use federal funds there some safety health issues that the Department of Health has kinda like cautioned us a lot about so were working with the U.S. Army to get that area cleared. It has been cleared once, but it has to be cleared a second time and then they'll issue a, what we call a remedial action report from the U.S. Army and its...then its reviewed by the Department of Health who in turn issue a letter of no further action, but this is only for if the project is to receive any type of federal funds from HUD and those agencies, especially HUD. Richards: Okay, alright, so...and I...I know we've discussed that coming forward again we have the big need for housing and we've discussed that I think the numbers are 20,000+ units by, I think, 20... Gyotoku: that's for the State of Hawaii, I believe for Island of Hawaii it's about 9,000 affordable housing units by 2025. Richards: Okay. Gyotoku: I'd also like to say that we do have a revolving fund for Kamakoa. This is about 8 million dollars and we use that to do for the infrastructure for bring the roads and sewer and the water which is available in Waikoloa. But we use that and when we sell the homes part of the sale profits goes back into the revolving so that we can build some more housing. So this 8 million dollars came basically from the 91 previous sold units. If you folks give us some more money we can build more... Richards: Okay. Well that's where were going, cause we need housing and, you know, we've discussed some other workforce housing projects coming forward so with that I'll yield. Thank you. Eoff: Okay. Thank you. Mrs. LeeLoy. LeeLoy: Okay. Thank you Chair and working with what Mr. Richards is discussing, you know, that number of 79% of a rental assisted and vouchers being used on the eastside, I think its really critical that we look at strategies on getting more affordable units closer to where the jobs are. So with that that is my question, what are the strategies to get more units on the westside? I know you Page 10 of 22 HCHA April 9, 2019 mentioned kamakona (sic) but what else do we have in our toolkit that we can either put into place as far as policymaking here or champion different funds or accelerate capacity? Help...help us understand that so for the next 20 months as we sit up here helping the Department of Housing, what kind of policies do you folks need? Gyotoku: I...there are several projects, especially in Waikoloa, for example in additional to Kamakoa there's Kaiaulu 0' Waikoloa, that's another proposed housing project, multi-family rental. Also, Waikoloa family, which is another one that is being proposed. Those are, right now in the works. FUDS has been the issue. I...I personally...we cannot designate where we want to build the housing. We can try to encourage but I think the biggest thing and if I've learned that there's different counties, that they have what they call an expedited processing...building permit processing for affordable housing to the private developer. I think this is a tremendous advantage if they can. We've also tried to get more what we call project based housing vouchers which is a critical component when they seek financing for theses proposed housing projects. If we can get more, we've tried...we're trying all the time to talk to our congressional people and to the Department of Housing and Urban Development to increase our allocations. Were the only county that pretty much extensively used the project based vouchers and right now were almost at our maximum allocation. We can do about 20% of our total 2,100 for project based vouchers. And it stays...the housing vouchers stays with the project for an extended period of time. On the free choice they can...the person can take it wherever they want if they can find. My office, including Des...Desiree here, we've tried to increase the fair market rent for Kona, the westside, so it has a higher fair market rent then Hilo, but its just that there's not much affordable housing. Maybe if you give up your vacation rentals we might be able to get more but...but inventory has been a problem, no question about it. I think to try entice the project developer, the private developers, if you can have things like an expedited permit review process, that might help. LeeLoy: And thank you for that Mr. Gyotoku cause that was our body is, we're a policy making body, so creating incentives...the 201 H program thats available to us that does provide exemptions and exceptions AND expedited housing, I think if we could champion from both the housing department side and then this body side I think there's an opportunity there I think we've got the general plan update so if we start to ping certain areas where we can lend ourselves with infrastructure and then accelerate capacity I think there's another opportunity there...please come and talk to us as we start moving through these policy pieces cause that's what this body does. The other question I had was those project based vouchers, and I know its contingent upon our federal government and so, that is my other question...what are the strategies if we don't get the same level of funding from HUD and CDBG just because of the Page 11 of 22 HCHA April 9, 2019 temperature that's going on in our federal government? Do we have any thoughts on that? Gyotoku: We had a scare recently when the federal government shut down. We had to develop contingency plans, how we gunna pay for the housing vouchers and I...I believe we talked to Mayor Kim and Deanna Sako, Finance Director and we came out to, like a contingency plan that we could pay maybe two years because were paying about 1 .6 million dollars of housing assistance a month out. We would have to be able to pay for only a little while and eventually we would have to, I guess, shut down the program if the funding stops. But that's the reality of the program it really depends...so far we've heard that the funding level will continue on this basis. We have no indication so far that they will cut it out. They been talk all, every year we go through this cycle that they, we have to go fight for or sorta like try to seek more funding but it depends on what the federal government issues. And like I said we try to seek the money, we have to...if we don't get the funding, we don't work. That's the name of our agency. LeeLoy: Yeah and I appreciate that forethought cause I think just the natural disaster that we went through has everybody thinking about contingency planning but besides that the self-sustainable part or self-sustainable piece that if that funding runs out. And one other thing I don't want us to ever forget besides the affordable housing for workforce, we need senior affordable housing on the westside too because as the units kinda of absorb in the eastside because of our aging population the same will happen on the westside so I want this department to give some forethought to what that looks like besides the workforce housing, what our kupuna housing would look like. Gyotoku: My presentation, we had several. One of the biggest ones that recently completed was Lei Ohana which is on Ana K highway. Those are 80 units of elderly and we also looking at trying to develop more on that side, on that corridor. One of the basic problems has been infrastructure...sewer especially on the westside, water is another issue and roads. You cannot just put a big gang septic tank for 80 units, could possibly but fish and wild life might come against us. So it's a real balance and the cost to dig in the lava to bring in the sewer is another issue, especially on Kona side. You don't have the...its costly...its more costly then the westside. LeeLoy: The irony with that statement is its expensive for private developers too. So we gotta put or heads together and do more public-private partnerships cause without the infrastructure nobody gets housing! Whether its private developers or community. With that I'll yield, thank you. Eoff: okay, Ms. Kierkiewicz. Page 12 of 22 HCHA April 9, 2019 Kierkiewicz: Thank you Chair. Thank you Neil and thank you to your team for being here, I appreciate you meeting with the Councilmembers in advance so we could just talk through some...just some issues that we found, I have a few questions for you. You know when we met, I had asked if your agency had a strategic vision and knowing that we have to have 9000 affordable housing units in place by 2025 I'm just wondering, I know an assessment is being done right now around the island to get a sense of low-moderate income individuals and what their housing needs are but what other information are we tapping to get a pulse on the community to find out what the housing needs are? Are we taking a look at the homelessness point in time count? Are we looking at the united ways alice report? What sort of information are we using to help architect that strategic vision and when can we expect this vision from your office? Eoff: microphone please. Gyotoku: part of it is we trying to work with the consultants that are doing the study and helping develop a comprehensive housing plan. We've worked with the State of Hawai`i Department of Planning, what we call the Transit Oriented Development where they try to develop housing, affordable housing along transit lines, especially like in Honolulu, the rail, but for us its here like along our real transportation routes like Prince Kuhio, University of Hawaii. We're looking into developing State lands, County lands which is very few but mostly with State so we trying to see if there is State available. Where ever we can and we working with the consultants to develop a strategic plan. Kierkiewicz: Will that plan also include ways to encourage developers to come and do more 201 H applications or other affordable housing projects? You mentioned that we had, you were reviewing two 201 H applications at the moment. Is that typical? I mean, how many do you see submitted each year? And how many does your office help to ensure approval of? Gyotoku: well the problem with the 201 H we have two now and we have several that are pending that want to do it and the problem with 201 H is that they want to have exemptions to certain things but it has to be safe and health...health and safety is the main concern that these 201 H projects. And lot of them they come in hoping to build fast but it doesn't mean they can get the necessary approval from the different departments. Part of the 201 H process is when we get the application we send it to the different department and they return with comments or issues and it has to...the developer has to resolve that before we come before you. You know in the past, I think that just used to come to the housing...to the County Council with the 201 H application and let you folks make the final approval or disapproval but for us, my administration and my stand was that we'll try to give you something that we would support, not Page 13 of 22 HCHA April 9, 2019 necessarily...and the departments has to be...we have to back whatever the departments or different agencies have issues with that project, that make sure that the application is resolved and is viable project. I don't want to submit something that is gunna be doomed to fail or... Kierkiewicz: Sure we certainly don't want compromise the health and safety of residents who could potentially move into the housing. Do you know off the top of your head the last time a 201 H application was approved? Gyotoku: I believe was Kaloko Heights was the last one. Kierkiewicz: So what year was that, sorry. I don't know. Gyotoku: About a year and half ago, two years... Kierkiewicz: ....a year and half ago. And before that one? Gyotoku: That was before my time. Kierkiewicz: Okay. So, there pretty rare to come by...it seems to me... Gyotoku: To be...come before the Council...yes Kierkiewicz: ....okay. And you've seen a number of applications so this is right, I think an opportunity, knowing where we need to go, these 9,000 units by 2025, looking at our process, and making adjustments so that we can include ways for creative financing but also, to really I think incentivize developers and see if there are adjustments that we need to make to our code to really get these kinds projects off the ground. I just...) see lots of opportunities... Gyotoku: And yep. Kierkiewicz: ....The other question...the last question that had was, the number of vouchers on page five under existing housing, has...have any...l'm just wondering when these figures are from? And if these figures have changed as a result of the lava eruption? You shared that with me that none of the vouchers could be use in lava zones one and two and so with that said I still see 489 vouchers for district four. So have tho...1 mean have any of those folks relocated...if someone is in lava zone one and two, and has been receiving a housing voucher for a number of years, will you still honor giving them those vouchers or you're asking them to now relocate post eruption? Gyotoku: Well 1...lcan tell you, for example, Leilani Estates we had 17 vouchers that were receiving assistance in Leilani... Page 14 of 22 HCHA April 9, 2019 Kierkiewicz: okay, pre...pre lava? Gyotoku: ....that's pre lava and actually lot of them lost their homes so we re- issued the vouchers so they were able to look for another unit. Inventory has been a problem with the puna district because you also have FEMA housing assistance people and you also have what we call TBRA (inaudible) so they all competing for the same available rental unit. Not to say they couldn't because the puna district we do have a lot of lower cost housing. It's just that on the westside we couldn't do it because the rents are too high up there. But in the puna district we do have a lot of businesses, I mean, vouchers being there. We... Kierkiewicz: and so this data its from when? Gyotoku: Its was recently done about a month ago. Kierkiewicz: A month ago. Okay. Gyotoku: So it does reflect a current situation. I don't know the exact amount of people that were affected by the lava but its not...HUD has said that they won't allow us to build or subsidize people in lava zone one, which is Leilani Estates, or if the...like lava zone two is close to a lava...lava zone one ah you know...zone, they won't let us...they kinda told us to refrain from building ah doing that and the same way for CDBG... Kierkiewicz: So to refrain from future vouchers, but if someone has been part of the program say for a decade?... Gyotoku: Oh yeah, oh no we honor...we honor... Kierkiewicz: ....and their living in lava zone two you're gunna continue to honor that? ... Gyotoku: ....It continues to be honored. Kierkiewicz: ....Okay. I just wanted to get clarification. Gyotoku: Yeah. yeah. yeah. No it continues to be honored as long as their qualified and their...we...we qualify every year and we renew their contract and we won't terminate that because of the lava flow. Kierkiewicz: Okay. Okay, that's great to know. Thank you so much. I yield. Eoff: Okay, thank you. Thank you. Mrs. Villegas. Page 15 of 22 HCHA April 9, 2019 Villegas: aloha Neil. Thanks for being here today and thanks for coming to meet with me in Kona and explaining and going through this project...housing project platforms and everything that's being done. One thing that comes to mind to me being new...a new member of this body is historically looking at the westside we do have much higher real estate prices and rental prices. Something that I am finding concerning is the historical variances being provided by private...or to private developers in allowing land swaps and the County taking a different piece of property in exchange for a developer not having to actually build the affordable housing that their development otherwise required and I also heard of another developer that was able to pay a nominal sum of like $50,000 to not have to build the 11 homes or whatnot, now in my mind that's a red flag cause you could barely build a garage for$50,000 right now so I have some interest and I...I'm hoping I can rely on your help for how and where its written in the code that allows for that kind of land swaps or for the payout in exchange? Gyotoku: I think you talking about what we call excess housing credits. Villegas: Okay. Gyotoku: And its in Chapter 11 of the County Code. Villegas: Okay. Gyotoku: Under the Chapter 11 , if they build so much units or develop so much lots they receive housing credits and those excess credits can be sold to another developer. So lets say this other developer, if they buy the credits, do not have to build 20% of affordable housing, they can use that housing credits to satisfy their affordable housing credits. Villegas: Okay. Gyotoku: And it can very as far as the amounts. In the past its been kind of, I hate to say, loosely used, as far as given out... Villegas: Yeah, to the negative impact of community. Yeah. Gyotoku: ....our Corp Counsel and myself we are in the process of really trying to correct the situation and make sure that the County receives the affordable housing that we are supposed to be receiving and tying these developers to make sure that they comply with the affordable housing agreement so once they come in if they gunna have a development then they have to sign with us an affordable housing agreement which says that they gunna either build so...20% of the units or...of the total units for affordable housing or, you know, as Page 16 of 22 HCHA April 9, 2019 far as comply with that within a certain period of time. That's the nature of the affordable housing agreement. Villegas: Right. Gyotoku: We're trying tighten that up... Villegas: Yeah. Gyotoku: ....and make sure that we are getting the production of affordable housing that were supposed to get and it's a...l'm not a lawyer but it's a really technical and complex process. But we are aware of it. There're been a lot of wheelin' & dealing so to say to get by the affordable housing credit thing, I mean, compliance of the affordable housing. Villegas: Yeah. thank you, cause I see we have a number of different potential developers looking at doing kupuna housing and then just looking and getting to know my district in a whole nother realm, identifying pieces of property that were then given to the County, unfortunately, some of them in fold zones or in places that not only is the County...we would struggle to build that affordable housing...but that land itself isn't something that you would necessarily want to put housing on so anything I can do to help you with that and to also educate myself more completely in that capacity. I know there are a number of developers with eyes on the prize on the westside and really I...that's a real...a hot point for me is making sure that we are doing everything possible within the administration and the Council to ensure that those loopholes get tightened up and so the...the levels of accountability and investment in our long term community are, developers are being held accountable for contributing to that. Gyotoku: And...and I think your participation in the process would be very helpful, like for example, Councilmen Richards and Councilwoman LeeLoy we've been deeply involved with several projects. I think their input and participation has been very helpful. Trying to get affordable housing, which I...you know is the goal from everybody here, including myself...so I think getting to participate, like there's several in your district that is on the works and we'll try to include you... Villegas: That be wonderful. Thank you. Gyotoku: ....and ah...in the discussions. Right now its...this is a dream we wanna do this... Villegas: Yeah. yeah. yeah. Page 17 of 22 HCHA April 9, 2019 Gyotoku: ....its really not really close to being finalized. Its not to say you can't participate. We do have one 20H (sic) project in your district that's coming due. There are some issues like that and we need to resolve that before we proceed further. But I think participation on your part would be helpful. Villegas: Great. Thank you. And if there's opportunity or need for reviewing the county code and how things are written and if the terminology needs to be tightened and more specifically written that...which would make it easier to execute for everybody involved then potentially maybe we could look at something like that as well. Great thank you. I yield. Gyotoku: Welcome. Eoff: Thank you. Mrs. David. David: Thank you Chair. Aloha Mr. Gyotoku and I as well, I appreciate the efforts that you made in meeting with us, trying to explain this very complex process and procedure. I know we all agree that in each of our districts affordable housing, senior housing, is so at the forefront because its become a real issue in the last several years and the population has grown so I appreciate the fact that your looking into that whole process on the developer interaction with the 201 H because I agree that any process that we give exemptions must be meaningful and it must be fair for both sides, right? and I think that's where were...were at a hang up because of the...those credits, that people are utilizing or developers are utilizing now because I think the person or the community that basically is hurt is the ones that really need to benefit from this process. And I'm looking at your, and we talked about this, a lot of the vouchers in my district, the low numbers, is because people are not participating or your don't have the available units so I'd like to offer my cooperation with you when we start discussing a senior...possible senior housing project or calibration in Nd`dlehu and also the Pahala situation so I'm really happy that you came and talked to me about that so I'm open for helping with anything that I can in that respect. Thank you very much. Gyotoku: and I just want to add like Pahala Elderly we have eight units. David: right. Gyotoku: ....you know I told you I was gunna talk to you about that and this Ahe Group I gunna be taking over and renovating... David: yes. Page 18 of 22 HCHA April 9, 2019 Gyotoku: ....also right next door is the Hawaii Public Housing Authority, eight units of elderly units and their in the process of renovating that... David: yes. Gyotoku: ....so that will bring another eight units more into the area. I do have some information, for example a housing voucher program there been an increase in number of vouchers, especially in the Oceanview area, which is really, right now booming... David: That's really good. Yes. Urgently needed. Gyotoku: ....part of illegal home though. It has to be housing quality standards and my inspectors go out make sure, but there has been increase because the housing is cheaper there and we have a lot of low income families in that area so its been an increase in that particular... David: It's a challenge out there I know... Gyotoku: Yeah. David: ....because...so appreciate everything that your office is doing to...to get to those areas that are the rural areas especially that are so, where its actually needed a lot so I appreciate everything that you're doing and extend my offer to you as well as we work through this... Gyotoku: Thank you. David: okay? Alright. Mahalo. Eoff: Okay. Thank you Mrs. David. Anyone else? I know Mr. Richards wants to speak again but before that? Kanealii-Kleinfelder: Can I? Richards: Yeah, go ahead. Kanealii-Kleinfelder: Morning Neil. Thank you. So my...my district has an incredible amount of large rural sub-divisions and we have both in district four and five this constant issue of squatting and that really equals out to having homes that have nobody inside them. And as I walk through the grant in aide process last month I realized that there's a lot of different programs and a lot of different agencies and a lot of different people working on getting people into homes or helping them get ahead and I would really like to see some sort of a Page 19 of 22 HCHA April 9, 2019 concerted effort to get people into those homes and we touched on that a little bit, when we talked previously and I just wanted to say that again...that I'd really like to see the families that need homes be able to get in, whether that's public-private, whether that's County...l'm...l'm not sure where to head with that but I just would really like to follow up on that and make sure we are getting people into homes that need homes, even if their underprivileged or they have access...and they have jobs...they just can't seem to get to that next level. Getting them a home, gives them a next step and that's where I'd like to see some of this money go. Habitat for Humanity, I liked a lot...1 like what they are doing. By...by helping people get into that home and I...I just I'd really like to see if we can go there. Gyotoku: We've dealt Habitat for Humanity and we've built some homes in, especially in the Paradise Park area. But I wanted to mention that we recently signed a FEMA Grant and Duane Hosaka here is in charge of that where they would do case management for the people with the lava flow who were affected by the lava flow, trying to get them whatever needs that they have, doing assessment and housing is one of them, trying to get...its 1 .7 million dollars. They going to be working with a non-profit agency to try to work with the families that were effected and try to do case management and provide service to try to get they into homes or improve their situation. Kanealii-Kleinfelder: That is...that's...that is good and I think beyond lava eruption we still have...we had before the eruption and we still have now and its still an issue so whatever we can do to help people get in, past the eruption, now, in the future, and continue on and the more money that we can get for that, from whatever source it comes from, if that's a goal for us...because it just...its just helping the island as a whole. Your helping people get into a house become secure, get financially stable, and helping their kids own that house and helping...it just, it's a...as a County if we can do that in any shape or form, were creating stability in our own economy, in our own...in our own people here so I'd like to see us move towards that. Gyotoku: Okay. Kanealii-Kleinfelder: Thank you. Eoff: Okay. Thank you. Any other comments before I go back to Mr. Richards? Okay, thank you. Go ahead. Richards: Thank you Chair. Thanks Neil, I think this was longer meeting but you can see the interest from the Council for the housing. Real quick I meant to ask you previously the Ahe Group that you and I were at that meeting in Kohala. What's the update on that? Is that going forward? Page 20 of 22 HCHA April 9, 2019 Gyotoku: Right now we own the land... Richards: ....excuse me Neil for the...for the Council can you explain what the Ahe Group is? Gyotoku: ....okay, there are four projects that are managed by what we call...by the Bob Tanaka Realty of Honolulu. Its Pahala Elderly, Ainakea in Kohala, Jack Hall Waikoloa and Jack Hall Kona. They managed by Bob Tanaka Realty but the process is that Ahe Group is a management company is gunna try to take over...is willing to take over the management of those projects and in the process, what they want to do is come in and renovate it, upgrade the projects, make it better. So we encouraged them to go out to the different projects, meet with the tenants to make sure that the tenants are informed of this process and right now were working with Ahe Group to change the lease because right now the leases are to Bob Tanaka Realty or different like Pdpa`aloa...l mean Pahala Housing Foundation, so we have to change the lease to reflect the new management and once we do that they'll be coming in and doing the renovation process that they had explained at the tenant meetings. Richards: Okay. So its in process right now? Gyotoku: Right. Richards: ....there no big obstructions at this point? Gyotoku: No. no. Richards: ....okay. I was with Neil at the meeting in Ainakea and seems like a pretty good group, and that was just my...my first (inaudible), but anyway I appreciate the update and thank you. I yield. Eoff: thank you. Kierkiewicz: Okay. I just have one more comment. Eoff: Sure. Ms. Kierkiewicz. Kierkiewicz: Thank you Chair. You know to spring board off of what my fellow Councilmember from Puna pointed up was, we have all of these assets that are essentially wasting because squatters are in them and Neil I've seen you and Duane at Community Land Trust meetings that Planning Director Michael Yee has convened over the last few months and my colleague Councilmember Sue Page 21 of 22 HCHA April 9, 2019 LeeLoy and I are very excited about that idea...they have a very successful model on Maui that's being run, so I guess just throwing down a challenge to you in your department, how do we move forward on this land trust idea faster? But also ensure that it plays a role in your strategic vision because I think this is a very promising avenue for us as a County to realize our affordable housing goals sooner rather than later. Eoff: Thank you. Okay. Are there any other comments or questions from Council? From this Housing Agency? If not, then I'd just like to thank you again for your presentation today and...and all of us are excited to work with you and find solutions for housing shortage here... Gyotoku: Thank you very much. Eoff: ....especially affordable. Gyotoku: Thank you very much. Eoff: Okay. Thank you. And thank you all for being here. And if there's no further business. Richards: Motion to adjourn. Eoff: Thank you. I have a motion from Mr. Richards a second from Mrs. LeeLoy and all in favor say aye. All said aye. Eoff: Okay. That's nine ayes and the meetings adjourned. Meeting adjourned at 10:02 a.m. Page 22 of 22