HomeMy WebLinkAboutResolution No. 2019-40COUNTY COUNCIL
COUNTY OF KAUA’I
t&I 01 Ut ~0 fl No.2019-40
RESOLUTION SUPPORTING EFFORTS TOWARDS PRESERVING THE
AFFORDABILITY RESTRICTIONS AT COURTYARDS AT WAIPOULI
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUA’I,STATE
OF HAWAI’I:
WHEREAS,K D Waipouli LLC is the owner of the Courtyards at Waipouli
(“Courtyards”),an 82 unit multi-family dwelling development on a 5.837 acre lot
located in Waipouli,Kaua’i;and
WHEREAS,Courtyards is the housing project associated with the Kaua’i
Lagoons Affordable Housing Agreement;and
WHEREAS,Courtyards is subject to a 10-year affordability restriction in
accordance with Kaua’i County Housing Agency Affordable Rental Housing
Guidelines for 41 of the 82 multi-family dwelling units;and
WHEREAS,the aforementioned 10-year affordability restriction expires on
August 19,2019,on which date the Courtyards will no longer be restricted from
market sale or market rents;and
WHEREAS,paragraph 7 the Kaua’i Lagoons Affordable Housing Agreement
(“Agreement”)states:
“7.Offer to Sell.In the event the Developer decides to sell the Waipouli
Affordable Housing Site or any portion thereof,or any Unit at the Waipouli
Affordable Site,at any time during the ten (10)year period of affordability,or
during the ten (10)year period after the expiration of the period of
affordability,the Developer shall first offer the Waipouli Affordable
Housing Site (if the entire site is being offered for sale),or the portion thereof
being offered for sale,or such Unit being offered for sale,for purchase by the
County at its or their fair market value,subject to such reasonable terms
and conditions of sale as may be agreed upon between the County and the
Developer and approved by the Council of the County of Kaua’i.If the parties
cannot agree on a fair market value,then the fair market value shall be
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determined by a panel of three appraisers chosen as follows:each party shall
choose a Hawai’i licensed appraiser to represent the party,and the two
appraisers shall then choose a third Hawai’i licensed appraiser.The fair
market value of the property or units shall be determined by the decision of
two of the three appraisers.The appraisers shall follow the arbitration process
set forth in Hawai’i Revised Statutes Chapter 658A in determining the fair
market value.Each party shall be responsible to pay each party’s appraiser,
and shall equally split the cost of the third appraiser.”(Emphasis Added.)
WHEREAS,Colliers International Hawai’i has listed Courtyards for sale —
“Fee Simple,Potential Condo I Hotel I Timeshare /Condo-Tel Conversion
Opportunity,”and is accepting offers to purchase the property;and
WHEREAS,via letter dated May 28,2019 to Bernice Littman,Esq.,Counsel
to K D Waipouli LLC,Managing Director Michael A.Dahilig initiated the appraisal
procedures set forth in the Agreement;and
WHEREAS,the Hawai’i Housing Finance &Development Corporation
(HHFDC)is the State of Hawai’i (State)agency tasked with developing and financing
low-and moderate-income housing projects and administering homeownership
programs;and
WHEREAS,HHFDC administers several programs targeted at increasing and
preserving the supply of decent,safe,and sanitary affordable housing for extremely
low-income and very low-income households,including homeless families;and
WHEREAS,on August 19,2019,families currently living in the 41 units with
affordability restrictions may be forced to face homelessness because of higher rents
and the limited supply of housing units;and
WHEREAS,the loss of 41 affordable rental units will further intensify Kaua’i’s
current housing crisis;now,therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUA’I,
STATE OF HAWAI’I,that it supports and encourages the Administration’s efforts to
secure an agreement with K D Waipouli LLC to obtain a “fair market price”for the
Courtyards at Waipouli.
BE IT FURTHER RESOLVED,that the Administration is requested to
negotiate an extension of the current tenancies at Courtyards at Waipouli,as
necessary,until appraisals of the property is complete and evaluated by K D Waipouli
LLC,the County of Kaua’i,and HHFDC.
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BE IT FURTHER RESOLVED,that it strongly urges Hawai’i Housing
Finance &Development Corporation to collaborate with K D Waipouli LLC and the
County of Kaua’i towards the timely acquisition of Courtyards at Waipouli for the
purpose of preserving the affordability of the units.
BE IT FINALLY RESOLVED,that copies of this Resolution be transmitted to
Hawai’i Housing Finance &Development Corporation Executive Director Craig K.
Hirai,Governor David Y.Ige,State Senate President Ronald D.Kouchi,Speaker of
the State House of Representatives Scott K.Saiki,State Representative Nadine K.
Nakamura,State Representative Daynette “Dee”Morikawa,State Representative
James Kunane Tokioka,County of Kaua’i Mayor Derek S.K.Kawakami,and County
of Kaua’i Acting Housing Director Steven Franco.
Introduced by:
KIPUKAI KUALI’I
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