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HomeMy WebLinkAboutAnnual Report for Fiscal Year 2024-25AFFORDABLE HOUSING PRODUCTION PROGRAM FY2024-25 ANNUAL REPORT (JULY 1, 2024 - JUNE 30, 2025) Na Hale Makoa -Waikoloa Hale O Hawaii University Heights -Hilo Hale O Hawaii Pa Alii Street -Volcano Office of Housing and Community Development 1990 Kinoʻole Street, Suite 102 Hilo, HI 96720 Phone: (808) 961-8379 Email: ohcd.ahp@hawaiicounty.gov 1 FY2024-25 AHP Program Annual Report This Annual Report is submitted in accordance with the Affordable Housing Production Program Administrative Rules Section §2-2 Annual Report to promote transparency and accountability regarding the use of public funds and the status of funded projects. 2 FY2024-25 AHP Program Annual Report EXECUTIVE SUMMARY Funding for the Affordable Housing Production (AHP) Program is authorized through Ordinance 22-77, which appropriates a minimum $5,000,000 annually to the Office of Housing and Community Development (OHCD) to support initiatives that promote affordable housing in the County of Hawaiʻi. OHCD is responsible for the planning, administration, and implementation of all County housing programs. Its mission is to foster viable communities by promoting decent housing, suitable living environments, and expanded economic opportunities. In Fiscal Year (FY) 2024-25, OHCD received a $9,000,000 appropriation for the AHP Program and reallocated an additional $5,500,000 from a previously funded project that could not proceed. Through a competitive Request for Proposals (RFP) process, OHCD received thirteen proposals requesting approximately $48 million. Following evaluation using weighted scoring criteria, OHCD awarded a total of $13,275,000 to four projects. The remaining balance of $705,000 was not awarded due to proposal limitations and has been carried forward for future funding opportunities, in accordance with AHP Program policies. Funding for the awarded projects was approved by both the County Finance Committee and the County Council via Ordinance 47-25. The selected projects are currently in various stages of pre-development and development. 3 FY2024-25 AHP Program Annual Report OVERVIEW OF THE FUNDED PROJECTS Project Name Total Funded Units Project Type District Hale Ola O Mohouli $3,200,000 91 New Construction 2 Kuakini Family Affordable I $5,000,000 48 Acquisition, Plan and Design 7 Kaiminani Subdivision $4,200,000 25 Infrastructure 8 Home Improvement Loan Program* $875,000 17 Financial Assistance Island-wide Total of 4 Projects $13,275,000 181 *Formerly the Residential Repair Program OVERVIEW OF THE ADMINISTRATIVE EXPENDITURES FY2024-25 Admin. Allocation Actual Expenditure Total Remaining $ 520,000.00** $ 285,280.29 $ 234,719.71 **In accordance with the AHP Program Administrative Rules §1-3 (5): On an annual basis, up to 10% of the fund's appropriation shall be used for administrative expenses by the OHCD. For FY2024-25, the OHCD has allocated approximately 5.78% for this purpose. OVERVIEW OF OTHER EXPENDITURES Ordinance 25-29: In FY2024-25, the County allocated $451,221 from the AHP Program to repay federal HOME funds tied to a prior affordable housing project administered by Habitat for Humanity Hawai‘i Island. Due to unforeseen delays beyond the project's control, including pandemic-related challenges, the two homes were completed after the federal deadline, rendering the project ineligible under HOME program requirements. The AHP funds were used to fulfill the repayment obligation, ensuring compliance with federal regulations. Habitat for Humanity Hawaiʻi Island has executed a repayment agreement with the County and will reimburse the full amount over time from sale proceeds. This approach reduces the financial burden on the nonprofit while preserving the homes as long-term affordable housing. 4 FY2024-25 AHP Program Annual Report PROJECT LOCATION MAP Note: The “Residential Repair Program” is now called the “Home Improvement Loan Program” 5 FY2024-25 AHP Program Annual Report HALE OLA O MOHOULI Organization: Hawaii Island Community Development Corporation (HICDC) dba Hale Ola O Mohouli LLLP Total Funded: $3,200,000 Location: Hilo, TMK: (3) 2-4-001:168 Located on Mohouli Street toward Kaumana Drive, right before the intersection with Kukuau Street Project Type: New Construction Housing Type: Multi-family Rental Units: 91 (including one manager’s unit) Affordability Period: 60 years Current Status: The AHP Program funds were withdrawn as the project was unable to secure the required funding from the Hawaiʻi Housing Finance and Development Corporation by the contingency deadline. The awarded amounts will be carried forward for future funding opportunities, in accordance with AHP Program policies. 6 FY2024-25 AHP Program Annual Report KUAKINI FAMILY AFFORDABLE I Organization: GSF LLC dba Kuakini Family I LP Total Funded: $5,000,000 Location: Kona, TMK: (3) 7-5-017:005 Located on Kuakini Hwy in the direction of Kailua-Kona, right before the intersection with Walua Rd and Oni Oni St Project Type: Acquisition, Planning, and Design Housing Type: Multi-family Rental Units: 48 (including one manager’s unit) Affordability Period: 61 years Current Status: • Planning and design Milestones and Achievements: • AHP Program Grant Agreement executed, and funds obligated • Property acquisition finalized Upcoming Activities: • Secure additional funds from the Hawaiʻi Housing Finance and Development Corporation Expenditure Report: Total Funded Total Expenditure Total Remaining $ 5,000,000 $ 2,526,787 $ 2,473,213 7 FY2024-25 AHP Program Annual Report KAIMINANI SUBDIVISION Organization: County OHCD Community Development Division Total Funded: $4,200,000 Location: Kona, TMK (3) 7-3-010:056 and (3) 7-3-010:061 (portion of) Located on Kaiminani Drive toward Queen Kaʻahumanu Hwy, right before the intersection with Ane Keohokalole Hwy Project Type: Infrastructure Housing Type: Single-family Leasehold Units: 25 Affordability Period: 65 years Current Status: • Planning and design Milestones and Achievements: • AHP Program Grant Agreement executed Upcoming Activities: • Obligate AHP funds with the relevant provider Expenditure Report: Total Funded Total Expenditure Total Remaining $ 4,200,000 $ 0 $ 4,200,000 8 FY2024-25 AHP Program Annual Report HOME IMPROVEMENT LOAN PROGRAM (Formerly the Residential Repair Program) Organization: County OHCD Community Engagement Division Total Funded: $875,000 Location: Island-wide Project Type: Financial Assistance Program Housing Type: Owner-occupied Properties Units: 17 Affordability Period: 10 years minimum Current Status: • Marketing efforts and the homeowner selection process are ongoing Milestones and Achievements: • Program policies and procedures finalized Upcoming Activities: • Execute the AHP Program Grant Agreement Expenditure Report: Total Funded Total Expenditure Total Remaining $ 875,000 $ 0 $ 875,000 9 FY2024-25 AHP Program Annual Report PROJECTS FUNDED IN PREVIOUS FISCAL YEARS Project Name Fiscal Year Award Amount Disbursed Status Kamakoa Nui Workforce Housing FY2023-24 $ 5,400,000 $ 0 Planning and Design Na Hale Makoa FY2023-24 $ 2,000,000 $ 2,000,000 Construction Land Trust Pa Ali'i Street FY2023-24 $ 300,000 $ 25,988.83 Completed Land Trust University Heights FY2023-24 $ 300,000 $ 257,584.99 Completed Project Details: For more information on prior projects, please refer to the Affordable Housing Production Program Annual Plan available on our website at www.hawaiicounty.gov/ahp. Ongoing Monitoring: OHCD continues to monitor the progress of all funded projects through regular reporting and site visits to ensure compliance with program requirements and timelines. Future Reporting: Projects that remain active will continue to be tracked and reported on in subsequent Annual Reports until project completion. 10 FY2024-25 AHP Program Annual Report PREVIOUSLY AWARDED PROJECTS NOT PROCEEDING Project Name Fiscal Year Award Amount Status Notes Hale Ola O Mohouli FY2023-24 FY2024-25 $ 824,559.46 $ 3,200,000 Withdrawn Did not secure required funds by contingency deadline Hoʻomalu at Waikoloa FY2023-24 $ 3,000,000 Withdrawn Did not secure required funds by contingency deadline Manago Mauo FY2023-24 $ 5,500,000 Withdrawn The property purchase was not finalized Note: Affordable housing development involves multiple phases and dependencies. The projects listed above were unable to move forward due to unmet contingencies or other unforeseen challenges, such as securing additional funds or completing property transactions within required timelines. As no funds were disbursed, the full award amounts will be carried forward for future funding opportunities, in accordance with AHP Program policies.   FY2024-25 AHP Program Annual Report APPENDIX A: PRELIMINARY DESIGN SKETCHES The following sketch represents a preliminary design concept for the Kuakini Family Affordable I Project. This visual is for reference only and is subject to change as the project advances through planning and development phases.   FY2024-25 AHP Program Annual Report APPENDIX B: PROGRAM FLYER The following flyer provides outreach material used to promote the Home Improvement Loan Program (formerly the Residential Repair Program) across the island.