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Committee forwards 65-year lease for Hale O Hawaii community land trust project to full council

Hawaii County Council Committee on Legislative, Approvals and Acquisitions · September 16, 2024
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Summary

The committee voted 8–0 (1 excused) to forward Resolution 611-24, authorizing negotiation of a 65-year lease to the Housing and Land Enterprise of Hawaii County (doing business as Hale O Hawaii) for a below-market, single-family community land trust home on a state lot; staff said engineering and infrastructure planning funds exist for the site.

The Hawaii County Council Committee on Legislative, Approvals and Acquisitions voted Sept. 16 to forward Resolution 611-24 to the full council with a favorable recommendation, authorizing the director of finance to negotiate a 65-year ground lease with the Housing and Land Enterprise of Hawaii County (doing business as Hale O Hawaii) for a 10,000-square-foot state parcel to build a below-market-rate single-family home under a community land trust model.

Committee members voted 8 ayes, 1 excused. The resolution (read on the record) directs the director of finance to negotiate a lease at a set lease amount of $10 per year and allows Hale O Hawaii to finance, construct and sell a below-market-rate home on state lands subject to affordability restrictions to eligible purchasers for affordable housing and shelter purposes.

Assistant Housing Administrator Harry Yada told the committee the Office of Housing Community Development considers the University Heights project in Hilo a pilot that has progressed to permits and site work; staff therefore supports moving forward with a second lot. “Given the progress we've made on the University Heights, which we consider kind of a pilot... we feel confident we can proceed with the next project on this lot in Hilo,” Yada said.

Loretta Wickenden, introduced as executive director of Hale O Hawaii, said construction activity is beginning on the pilot house in University Heights (permits approved and septic work underway) and that the organization looks forward to expanding the community land trust model across the island.

Council member discussion focused on scale and implementation. Council member Galimba asked whether adjacent state-owned acreage might also be planned as part of a larger effort; Yada said the Office of Housing has funding to do engineering and infrastructure plans for the parcel and anticipates issuing RFPs for multifamily and single-family development as part of a broader approach to community land trust projects. On lease protections, Yada said the 65-year leases include standard default clauses and that the land-trust model anticipates mechanisms for the trust to assume or repurchase a lease from an individual purchaser to preserve affordability.

With the committee’s favorable recommendation, the resolution will move to the full Hawaii County Council for final action.