good afternoon everyone the meeting of the housing human services and transportation committee would all come to order it is just about one thirty one p m on thursday june thirtieth twenty sixteen members and  our visitors in the gallery before we begin may i please request that we all turn off or is silence our cell phones or other noisemaking devices at this time members i want to thank you for being here back to introduce our voting committee voting members i see secret fellow chair of the housing human services and transportation committee with us this afternoon as afternoon committee secretary and our legislative analyst michelle remembers we have two items on the agenda today so work at start it with public testimony assisting us this afternoon from the hon a district office where our interactive communication is don ladies for individuals who were testifying in the chamber please sign up at the does located in the eighth floor lobby just outside the chamber door if you will be testifying from the remote testimony locations testifier will be a lot to testify for up to three minutes prior i don't with one minute to conclude if requested when testifying please state your knee and the name of any organization you are still talking about what are we going to do we got a hundred and fifty acres we gave to the filmmakers to the school so they could do their danger but we're sitting over here with fifty filmmakers that we can't do anything until we get where we do it in sections but still we're dumping seven million dollars plus shipping for infrastructure how long do we have to keep doing this before we develop for wanting i'm going to be only gone  rephrase any questions or comments there be none thank you very much for joining us this afternoon mr m ok thank you before we continue i'd like to recognize council member don called to thank you for being here this afternoon thank you is there anyone in the gallery who would like to testify if we have any testifies from the gallery we have no further to suppliers and we don't have any testifying as in the gallery i'm just going to conclude with chicken our district office one more further individuals in the concert chamber or district offices wishing to testify without objection i would like to close public testimony thank you or one h affordable housing project presentation given at a meeting hosted by the department of housing and human concerns on april twenty sixth seen at the nih senior center and we have with us and at that time a copy of the presentation the committee may discuss the two or one affordable housing project and related presentation the committee may consider defining of communication sixteen dollars seventy six and other related action so we will have a presentation from the department of housing and human concerns in regards to  eight affordable housing project explain the council and the accompanying exemptions that were helpful in moving the projects forward he also outlined some of the challenging state land use conditions imposed on this project and body made our housing administration administrator what's your information about the recent r p and ideas how to move forward but he will also explain the criteria for ownership and pricing previous income levels based on area median income but he will also provide you with the scenario of what monthly payments would look like for a thirty year fixed mortgage for qualifying income levels as well as well as rental costs so here we go s in orange it has two parks and a public quasi public site for future community center modifications there were various exemptions granted all primarily just to move the project forward on this body is very familiar with those types of exemptions these were not the extreme on this one got to the next light so these are the bigger requirements the will serve letter from line i water company we were able to get something year or two back i believe seventeen seventeen years of the effective date of the resolution d j c needs to work with the planning director on the council to create a schedule for the project's completion and the need for routine verification of adequate waste water capacity and water availability also prior to the completion of fees one are within seven years of the effective date of this resolution so it looks like we're going to be coming up on the seven years of effective date of this of the resolution  deadline will need to be seeking advice from the lanai planning commission and submit to the planning director of schedule for completion verification of wastewater capacity for the total build out  verification of water availability and updated lanai affordable housing survey information assuring that housing needs alumni residents are being addressed so the department is aware of this requirement and will be working  also involved in the two on each process is going in front of the state board of land and natural resources i'm sorry about your commission so they went through that and there were some  conditions in there forty two acres for the expansion of the high and elementary i believe everyone was familiar with that requirement they also require the will serve letter which we received water conservation best practices we believe that was a moral boilerplate type requirement on transportation streetlights archaeological survey or start preservation and identify burials all the types of things we would very very cognizant of when moving forward construction on any  project established access rights protected will look further into that when the time is the time comes drainage will always work towards that to be responsible we swaddle facilities also  fans best management practices energy conservation infrastructure deadlines and we plan on working towards the infrastructure deadlines and getting something worked out once we establish how we're going to move forward so this next slide outlines phase one of the build out its eighty one units mix of single family homes in lots and multi family units it also encompasses the park and the public two thousand and sixteen and unfortunately the deadline expire with no applications submitted so because we didn't get any responses from the r f p and there are basically two options we had to make revisions and keeping within the current to a whiny which could trigger for their council and or state lang use review all right regard this of how we move forward the following slides kind of explain the cost factors and qualification criteria that will be involved you know for this project as you can see these are the general  qualifications for residence virtual one age you can read them there the main one probably being at the bottom that this particular project was approved for area meeting comes between eighty and one hundred twenty percent these figures are based off of two thousand and fifteen hundred numbers we have gotten the two thousand and sixteen feet years and updated them but didn't have time to incorporate them sold the moving forward giving examples based off of the two thousand and fifteen hundred area median incomes at the time of the presentation the area median income for the night he was fifty nine thousand eight hundred sixty one dollars and the other figures are obtained by simply multiplying them by the percents that are represent anywhere from eighty to one hundred twenty percent in order to qualify as mentioned you have to be within you can exceed one hundred twenty percent of area median income or seventy one thousand eight hundred thirty dollars annually and for the rental you cannot earn more than one hundred twenty percent a very immediate income to qualify for the rental of the unit the income breakdown it was a little bit of overlap typically follow two point nine six small economy code when we break down the percentages for area meeting homes we usually break it down as is the seed here thirty fifteen twenty percent breakdown based off of those percentages however as mentioned this tool one h application limited the project to one hundred twenty percent of area median income so we adjusted it to forty percent of the units to be at below more moderate income or eighty to one hundred percent and sixty percent of the units at moderate income or one hundred and one technically to one hundred twenty percent of not the rest of the slides will go over basically this analysis provides an assumption that the borrower would have to put twenty percent down on their purchase and would obtain interest rate of four percent and we give figure as for anywhere from well one bedroom unit to a four bedroom unit so these are basically what the limits would be for the sales prices would be for the  different area meeting income groups starting at eighty percent so as you go through you see if all the way from eighty to one hundred twenty percent will be listed this slide shows you what the this is again we do it we break it down anywhere from going to one twenty assuming again a twenty percent down payment four percent interest rate these was what your monthly payments would be principal and interest only it does not assume or incorporate any property tax or insurances associated with with  mortgage is strictly a principle an interest payment and it goes through and it will do all that from ninety all the way up to one hundred twenty all right the general or the ownership unit restrictions base of the tool in each approval there is a ten year on or occupancy requirement restriction that would be recorded on all of the mortgages the county does have the first right to repurchase any affordable unit if the owner decides to sell within the ten year owner occupancy period we calculate what the buyback price is and then we resell it to another buyer which in that income category we all right for the rental side of the project does fit within the two point one six requirements because for rental projects we go from eighty to one hundred twenty which is exactly what fits this project we break it up a third in th to eighty percent category a third in tech to either one to one hundred and a third in one hundred one to one twenty for the purposes of this presentation we did all rental figures based on a family of four but it can be anywhere from one to nine based on the one hundred regulation guidelines receive so again will go through it does it from all the way from eighty to one hundred twenty percent it will break it down from one to four bedroom units assuming a family of four and it indicates what the rental amount would be so just to reiterate the next step would be to be cognizant of the march twenty seventh deadline that's a seven year mark where we're so close to have started phase one  residents and you know we're just trying to gauge a way to be march to any seventeenth deadline so that we can do the right thing and do what's best for me so after we do this survey will go back to the community and share the results of that survey and get their feedback and try to move forward from there thank you  yes we are putting together a survey and we have all of petered out the deadline for receiving bids for this would be july so once we get the bids will be ready to make a decision to move director roman for their comments i'd be interested first to law other members of your committee to share some thoughts or questions if they have at this point in time i would have some to be on a his list of technical questions or whatever else he has but he'd like to open the floor to the rest of you any comments or question mr college thank you madam chair you know you put you put out that r f p in your due diligence or are you allowed to to say talk to different developer say we put this r e p l we really appreciate here your response that are you allowed to do that a and b did you do that chairman thank you member counts for that question yes we were the r p was put out we wanted to get word out it's advertised so you know we made outreach to certain developers that we do work with let them know made them aware of it and were very interested and hopeful that they would give at least something with regards to a proposal or you know a suggestion unfortunately none of them did during the application period and did any of them tell you why the general consensus was that the infrastructure costs were they based on their analysis the we had all the files in office really we did have a couple of developers who came in and actually you know they have the right they went through the files they did their analysis the general comments they had concerns with regards to infrastructure and the cost of developing the infrastructure is going to be too costly l of the project and written verification of water availability for that and then update it so you going to do the survey and you have less than a year  what happens to the project if the deadline of march twenty seven thousand is not me ilka i guess i wouldn't necessarily call it a deadline per se it's more with that the kits we have certain requirements regarding our planning you know working on it out with the planning department to various plans as to how we anticipate moving forward that that's the deadline we're up against but the resolution doesn't expire we do not lose our entitle minutes that is our understanding of it right now get this project moving forward in a responsible manner so some of the things that i would tell you that i would like you to consider is that we have misty quite now or as our current state underground or over the ground infrastructure requirements to move this forward i would say let's not waste time company has talked a long time up a shift being in the line where the project supposed to remain responsible for employee how was it of their projects which was a take everybody else a government employee hospital employee independent businessman of those you know on line i were a union town ok when we know our history we know our roots by thing our presidents are very reasonable and know that and i'm going to use the word is better to be in a starter home than any potential dream of affordable home that you may never get equity could then make we make it there affordable geom house of three bedrooms two and a half best tool for car garage covered with security they will have that opportunity but we gave them the start something they can say is their own so if it's a small unit itself fordable two hundred thousand but that's what they can all for i don't have a problem that that is what we should be building our young people believe there's no future for them on a level of compassion did make sense for the night and their issue right now with those so for me one of the things that i think this community needs to be aware of i'm pretty aware but i think all the members need in the community need to be reminded is there is a component under condition and fifteen i believe department and the thing condition fifteen pieces of infrastructure deadlines so is there a current deadline for any phrase phrase one or the total project regarding the infrastructure component  fifteen infrastructure did lanes on page four of six it talks about this deadline in the infrastructure in command opened as described in exhibit six and so i'm just curious since we don't have a copy of exhibit six is there something that we should be aware of regarding a potential clock that is the kean or there is no class so we don't need to be concerned about make a decision or we may need to petition the news for an extension i mean i don't know that's why we're here we asked this question so that we all can be knowledgeable person and i guess depending on what type of dwelling unit people dealing with do we make people aware that health department has restrictions on per square feet of how many people came be  compliance with laws is considered when we're beating it out currently for these numbers that we're looking at it's the only reason why we use the family size is because that's what the high guidelines quanah for us for pricing that's what we would throw out to the developer are you know whoever hopefully builds this for us and we would it would be our understanding that the developer wouldn't build up something for ninety nine member family that's way on their size that's our whole crunching in a small unit unreasonable amount of bodies that's not healthy or sick but it but they don't want to be on the street don't want to be known overseas so that they do it this way or what we call the hidden ones i i just feel to recognize that there's an issue in it which should be also just seen there you know whatever race reasonable the other one i have is on twenty two regarding the simple interest on still there first by a back options on the loose or when they subdivisions but as i remember running the opinion for the company we had agreed with the county at seven percent increase years ok so that one percent is not flexible it is what the law currently states and even if it doesn't even match the current financial environment that is what we have to utilize correct yeah that's for the  percent rate simple interest rate for our projects but because this is a state law and we're going under and using the exemptions from the state law we feel it's prudent to follow toward each his requirements thank you that second i was going to ask you know the will call letters from the water department i would say is still valid because it's very very clear to me that they're going to provide water for us we need to participate where it is our responsibility i have no problems with that are there any other issues with the dewey component so that until phase one actually moves forward we don't need to transfer or are we already transfer in title of the forty two acres department that is still in a condition that needs to be complied up on freeze one moving forward application or thing but we probably would come back to this body for in accordance with three point four for this position of county real property if we'd be giving it over to the state and there probably would be some type of state process for them to accept the land from us also so we were planning on moving on that until they they requested thank you thank you and the state requires this as a free transfer of title correct we don't work do it like that where the guy when we just give us an executive order so the mayor wouldn't be able to just executive order and say you can use county land for public purposes department of education on a school system that wouldn't work right state executive orders transfer in land but they don't give us title so i'm just asking for this to be in full compliance we're going to have to give them our title o regarding how we make use conditions of approval to help expedite and support your this project for one day under your department's truest diction you know i prefer to allow the ministries shane to deal with their complaints responsibilities first before i ask the council and my colleagues for some kind of council action i would like to give their department their opportunity to  of agencies how else to look at learn why because i appreciate you try to work it as a it was presented how commissions reviewed it and how he was approved and we train it in this point in you know i said just the legislature seeing for hawaiian home projects i don't i would say does it make sense for us to your department to have consider x credit for another couple of housing project that it will need to approve within my wee county i will put that because the county will make that call regarding county housing projects credit if that's the right term for the right option two because i don't know i just think that is one way we might want to look at it but it is something doable that we can consider as one of the ways to approach how we want to i think you number okama yes absolutely we would be open to consider a proposal of that nature to you know get the projects started as you mentioned with starter homes i we're hoping that the survey will provide us with a wealth of information with regards to needs in areas of focus and given i think you know what you said is very true and that's probably going to be one of the areas are really going to have to focus on so doing something like that i think would be a win win and would help get it started absolutely thank you another area i would ask you to consider it is already in the code if it allows the county and i'm not sure if we need  addressing especially since because of technology innovation i have people asking me if they would like to if we can considered maybe their product for the new way to late streets and that would be its pilot project and so they would fit the bill to have their new innovation installed to be utilized in this type of project and of course their benefit is to get it on the ground true life going to use this as our test project some of the additional cost to do come with the developing on the night so those are all very good suggestions and things that i will research with regards to this particular chapter in the marconi code if it does still exist and find out what the options are to utilize it building which is keeping in character with the current community or i would like you to be able to tell us what it's your current character if you still are adamant up our corrugated  is the cost of corrugation if you choose to go as for chain go you can see forty five percent of the roofing costs because that's the price difference between asphalt shingles and put on roof at so i'm hoping to those adjustments as long as we can communicate and respond why we are recommending certain adjustments i'm happy to do it so that's my suggestions i program or degrees in jobs i think that's i'm very open to those other ways of making it happen so i think this is something we can do people sorry we recently received the updates from hud and recently updated the affordable price guidelines the area median income for the ninety actually dropped it's now fifty three thousand six hundred eighty for two thousand and sixteen so all have separate areas meeting comes very good and then briefly how do the obtain that figure is it just due to the economy of the the climate at the time is that used to determine it but to my knowledge that's the the the data that the used to come up with their numbers ok and i'm glad that mr will come a point out slide twenty two it was taken aga also in reference to that one percent and it's good to see that was a figure out of two and h in particular and sword two point six as a whole the seven percent that mr okama mentioned is a different figure because of that and ahead a question in regard because for me i mean ten years is ten years and that's all great as long as we get some homes out there with us over people's heads but i am looking for perpetuity myself is how i like to look at are affordable because in order to stay ahead of the ball i mean it flips i don't care if it's five ten fifteen twenty years goes into market we've lost those that inventory now we've got to try and make up for the good how long this is taking and as well we spent time in this committee most of two thousand and fourteen we assemble a task force and met with a lot of different public figures in different areas and the recommendations of the around the fact that deed restrictions for at the time two point one six of the twenty five year restriction and it was perpetuity for rental projects that that was very detrimental to obtaining the financing  to get those projects started so at that point it was recommended that it be reduced in the was approved by committee to the present two point nine six standards but we try to work in conjunction with  non profits like the holly on and try and you know collaborate to at least get a certain percentage of projects in perpetuity with them but it is more difficult honestly to to obtain financing on a larger scale for  six on affordable housing projects committee is a receipt in your binders of county communications sixteen does one for from the director of housing human concerns transmitting a status update on affordable housing projects in the county of moey including the project naming district and number of affordable and market rate units the committee may discuss this report and the committee may also consider filing of county communications sixteen does one run for and other related action so i am going to the department of housing and human concerns to go over that list that you provided for us thank you thank you chair so the spreadsheet that you have before you is something that we  the department of housing worked very hard to update there were various types of reports that had been done previously before i took over as administrator and i try to basically take everything and put it in a manner that could be easily followed going forward the spreadsheet is broken down into several categories to start we have the current projects that are ongoing further down we have a list of completed projects and the main reason for doing this was they were all jumbled together before so now going forward when we report the reports will report on the current projects and will remove this section but we will have this filed so that you can always go back and reference it if you have any questions with regards to projects that have been completed and then the final section has to do with projects that we considered you know canceled or dead at this point for one reason or another i'm going to go over  basically the existing or current projects that we have to the best of my knowledge of the status of that project and then we'll open the you know for any of the questions that you may have at that time so starting under the current project section the first project is how they might hold those while the project at this time basically they're continuing to work on obtaining financing it's a senior housing project that's up and cool model the primary conjunction with this project financing continues to be an issue with regards to the development of this project hola nonny subdivision we recently did of the measurement to their workforce housing agreement and we're hopeful that that project car both have had litigation issues on and off for the past at least three or four years we've just learned recently we thought that those are finally resolved but there's still some housekeeping needs to be done once done we hope those projects will move forward  quickly they are ready to go they just need to get the caught off title so they can take their title to the property is a maui county co two point one six project we expect mystic you who need to get started on this project he hopes to break ground on sometime later this year so we're excited about that project kind of a hey we recently received an extension to the two a one each through member carol's committee and are hoping that the developer is finalizing all of his height and seeing and he will finally move forward on that project on the next page  multifamily for sale for purchase project they are currently having issues with the guards to finding qualified buyers at this time so we're working with them very closely we made hoping that they will get much more qualified buyers to sell off that project come allow me is a and b s project they have gotten started they're moving dirt and we're excited there's one hundred seventy three affordable units in that project they're going to be building those off first and we hope to see those go up within the next couple of years the next to come all the point and callaway they are executed workforce housing agreements with us through  t c and they're currently trying to get everything else in place with the other departments to get their their permits told and hopefully move forward within the next twelve months with vertical construction kennelly zero apartments is another t h project rental project hundred eighty four units it's a considerable project fifty five million dollars total cost i had a correspondence with the developer last week and they're trying to move forward but they have gaps in the financing that they have not met yet so those who are still kind of on hold with regards to moving forward are there then we have our project the county of mahler's project which i'm happy to say has broken ground and we're moving forward we hold meetings with the department of management meant as well as the developer on a weekly basis so we're monitoring that progress and we hope to see that move forward  very quickly and then we just went over the affordable housing project status molly loni is pretty two point one six it's a project district so they continue their build out and the numbers are reflected with regards to the number of units built to date model on a v m x i will honestly admit is one project i'm not familiar with and i have to do a little more research on but i will get back to you with regards to what's the developer returns my calls as far as how things are going with that project very pleased to hear that we have been told they have their financing in place to develop the sixteen units and we hope to see units being built in the near future while they is a tool one h project right next  to gardens that was just recently approved in member carole's committee and that one should be developed very quickly they pretty much have everything in place in the trying to pull permits as we speak so we're we're very positive  hopeful that that one will begin by the end of the year by lou parkside again another project that's older parks preseason my time here so we have been told and i just have to verify mr carr states that the affordable units were satisfied donation and credits so i'm doing the research on that to verify that so we can better handle on this because it's something that i'm trying to close out and he stated that they were satisfied so he gave us the agencies that he dealt with so i just gotta find that paperwork and verify that because it's some kind of a misnomer when used in even the times in the last ten years so i have because i familiar with this area other one was spencer that was never a two one each right that was just off what about housing that they built t thank you chair and thank you member okama that's something that we collectively work on daily and can discussions with developers we just hear the term for the products that are stalled that we don't that happened have moved that they just are not penciling out and they're having trouble with the financing aspects of their projects how we can can bridge that gap is ways we try and get creative and possibly assist but  the recommendations from this body are definitely really you know we're open to it it's very difficult with regards to developers trying to meet all the requirements and  process through again from what they tell us and from the number of projects that we see stalled we think that there's probably something to that he says start the whole project is stalled or just a component of the project just for the projects that have not broken ground yet they are stalled stalled they're having issues and the issues are primarily with regards to the financing of the project in do you know whether this is  regards to the creativity or the sources that they try and utilize with regards to to financing i could unfortunately i'm not sure exactly which avenues they're trying to pursue at this time i know they're exhausting them and trying to spicer thank you very much chair i would like to thank the staff for this report i was very privileged to have these folks come in and visit and i met with mr oldmeadow with the director and we went through the lists and i found it really helpful to really understand you know what we have and what's in the works and believe it or not something i learned in that meeting and i did a cool community association they had missed the fact that cooler ridge was no longer going to happen and they really appreciated having that information so i want to thank you for communicating with us that is really important so thank you chair i think today also more people will know about it and i think that's important because you know we go through such activity here on the floor when we're discussing these projects and then they kind of drop out of sight and know everybody what happened to that so it kind of you know brings and master planning of the project so once we have a better grasp of exactly what it is he plans to proceed with we'll definitely update it and have it on the list going forward thank you thank you but i was in that project and i wasn't here to work on the entitlement process of that project but was that it was an entitled based on an existing plan so now this new owner is going to take over and redo the layout when i think this body voted on a plan and it's kind of been sitting in limbo and now this person came in to purchase it on yet thank you chair car and on my understanding the list in front of you is for those projects that have residential workforce housing agreements or two on each agreements in place the political project my understanding is  zoning but it's and i appreciate it very much to follow two point nine six in regards to your residential workforce housing so my other things that's why it's not on this list because we don't department that where aware of according to the if you notice the process is how they got their entitlements what process if they went into a whiny jord two point one six yet they want to be like a large lot out of a bigger lot but we don't kick in then we kick in when they're going to me for if they're going to build ten thousand homes when they start subdividing into the ten thousand lots two point and molly line your project district so that's where there are affordable home residential or first housing requirement is under those project district then zoning but for pulling what specifically states in the conditions that we shall follow two point  last page at the very top break so purchased seen others someone else's credits from state who were what does it do you have those details and i know i can i can research the file and get that information to you as far as and you know i apologize if this has been asked but i had to step out for a second but on the climate project you mentioned that they're having trouble getting qualified buyers that seems to imply that there would be trouble getting qualified buyers anywhere or is it just maybe because of that location which i think it's a pretty good nat n thank you chair thank you we met with mr wayne murrell who was working with armstrong development in the development of this project and the problem that we had and we worked with mr olcott to get an amendment to two point one six which reduce the buyback period the time the county has to repurchase a unit from one hundred twenty to ninety days and this allowed basically  approve financing of any projects that that had any you know period to buy back to the unit that exceeded ninety days so based on that adjustment we're very hopeful that now they will be able to obtain this financing which provides low down payment options and it will open the door for a lot of people who couldn't qualify because the other banks requiring larger down payments etc so we're hopeful now that they'll be able to get a lot of qualified borrowers those roots thank you members any more questions or comments for the department or for mister members say we've concluded our agenda  twenty sixteen meeting of the housing human services and transportation is now