PUBLIC NOTICE
Community Development Block Grant Program
Intent to Change the Use of Real Property
Ewa Villages Area H

NOTICE IS HEREBY GIVEN that the City and County of Honolulu is proposing to change the use of real property acquired in part with federal Community Development Block Grant (CDBG) funds from affordable housing which meets the national objective of benefiting low- and moderate-income families to market rate housing.

The real property is known as Ewa Villages Area H and is located in Ewa Villages, Oahu, Hawaii. The property is identified as tax map key (1) 9-1-17: 76 and 77 and contains 23.8 acres of land. The City provided Hui Kauhale, Inc. (HKI), a Hawaii nonprofit corporation, with $1,536,121 in CDBG funds to acquire the Area H site for the development of affordable housing. In order to facilitate the development of the Area H site, HKI is proposing to enter into an agreement with Avalon Development Corporation whereby Avalon will construct infrastructure improvements at its own cost to support the development of 192 affordable rental housing units by HKI and 50 single family units by Avalon that will be sold at prevailing market rates. In exchange for the construction of the infrastructure improvements, HKI will convey fee simple interest in approximately 8.3 acres of land in Ewa Villages Area H to Avalon for the development of Avalon’s 50-unit market rate subdivision.

To accommodate the HKI/Avalon agreement and to facilitate the development of affordable rental housing at Ewa Villages Area H, the City is proposing to change the designated use of the 8.3 acres of land to be conveyed to Avalon from affordable housing that principally benefits low- and moderate-income families to market rate housing. The effect of this re-designation is that Avalon may proceed with the planning, financing, development, marketing, and sale of the 50 single family units without any CDBG program restrictions or encumbrances. The remaining 15.5 acres of Ewa Villages Area H will be continued to be encumbered with CDBG program requirements. The rationale for the re-designation of the 8.3 acres at Ewa Villages Area H includes:

1. There is no on-site infrastructure to support the development of affordable housing at Ewa Villages Area H. Construction of on-site infrastructure is prohibitively expensive. The proposed agreement with Avalon will facilitate the development of on-site improvements at Ewa Villages Area H to support the future development of affordable rental housing that will benefit low- and moderate-income families.

2. There are no sources of funding currently available to HKI that can finance the development of on-site infrastructure at Ewa Villages Area H

3. The development of affordable and market rate housing at Ewa Villages Area H will promote the development of a mixed income community that is reflective of the broader Ewa Villages community and prevent the creation of an enclave of low- and moderate-income housing at Ewa Villages Area H.

Public comments on the proposed change in use of real property at Ewa Villages Area H will be accepted by the City and County of Honolulu until August 14, 2008. Written comments may be forwarded by mail to the Department of Community Services, 715 South King Street, Suite 311, Honolulu, Hawaii 96813. Comments may also be submitted via facsimile to (808) 768-7792. Questions regarding this matter may be directed to Keith Ishida at 768-7750 or kishida@honolulu.gov.
(SB50188 7/14/08)