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

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 change is use of real property is being pursued pursuant to the provision of 24 Code of Federal Regulations §570.505.

The real property is known as Ewa Villages Area D and is located in Ewa Villages, Oahu, Hawaii. The property is identified as tax map key 9-1-126: 9 and contains 22.933 acres of land. The City provided St. Francis Healthcare System of Hawaii (SFHSH), a Hawaii nonprofit corporation, with $2,000,000, in CDBG funds to acquire the Area D site for the development of affordable housing. The City also provided SFHSH an additional $700,000 in CDBG funds for related planning and engineering expenses. In order to facilitate the development of the Area D site, SFHSH is proposing to develop Area D as a mixed-income community that will feature a mix of 149 affordable rental units for senior citizens, 142 market rate for-sale housing units, an adult day care center, and a senior community center. Revenue generated from the development and sale of market rate units will help finance the construction of infrastructure systems necessary to support the development of the affordable rental units and other community facilities.

To facilitate the development of Ewa Villages Area D, the City is proposing to release the CDBG affordability restrictions on approximately 14.629 acres of land at Area D underlying the market rate housing units and the senior day care facility. The remaining 8.304 acres of Ewa Villages Area D will continue to be encumbered with CDBG program requirements. The rationale for the re-designation of the 14.629 acres at Ewa Villages Area D includes:

1. There is no on-site infrastructure to support the development of affordable housing at Ewa Villages Area D. The development of on-site infrastructure improvements is prohibitively expensive and there are insufficient resources available to SFHSH to finance the construction of on-site infrastructure improvements.

2. The release of the CDBG use restriction is a precondition for SFHSH to secure the financing necessary to construct on-site infrastructure improvements and market rate housing.

3. The development of affordable and market rate housing at Ewa Villages Area D 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 D.