The URL can be used to link to this page

Home My WebLink AboutFY 2027 (Housing Agency) KAUA‘I COUNTY HOUSING AGENCY FY 2027 BUDGET AND OPERATIONS SYNOPSIS Adam Roversi Director 1 Department: HOUSING AGENCY Fund: GENERAL FUND 1. FY 2026 to FY 2027 BUDGET COMPARSION FY 2026 FY 2027 $ + / - % + / - Salary and Wages 973,946 1,064,759 90,813 9.3% Benefits 612,912 658,863 45,951 7.5% Utilities 0 0 0 0.0% Vehicle/Equip, Lease 2 2 0 0.0% Operations 596,266 606,266 10,000 1.7% 2,183,126 2,329,890 146,764 6.7% 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 45% 28% 0% 0% 27% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 46% 28% 0% 0% 26% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 2 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET For FY27 we are projecting a small increase in salaries, wages, and benefits as a result of: 1) typical step movements and associated salary and benefit increases under applicable collective bargaining agreements; and 2) the reclassification of a vacant federally funded Section 8 Program position to a 50% general funded Homebuyer Program Specialist. The operational budget remains effectively unchanged from FY26. 3. OPERATIONAL CHALLENGES Our two primary operational challenges are the administration of increasingly complex and layered sources of funding necessary to successfully complete numerous large-scale development projects simultaneously, and the successful administration of the federal Housing Choice Voucher (HCV) program. Historically, the Housing Agency focused its development efforts on one relatively small development project each couple of years, targeting project sites that required little in the way of complex infrastructure. With the Lima Ola Workforce Housing Project, the Housing Agency shifted into the business of organizing and implementing significantly more complex development projects requiring large-scale infrastructure development. As we continue into Phase II of Lima Ola and begin similar large-scale master planned developments in both Waimea and Kīlauea, we have been required to manage increasingly complex workflows and diverse funding sources. Regarding the HCV program, in FY26 we continued to serve a historically high number of around 810 participants, a dramatic program increase realized beginning in 2022 after previously serving an annual average around 650 clients in prior years. During the past year, however, the program has seen significant external challenges that have driven significant uncertainty at the County level. First, roughly 80% of the federal Honolulu based HCV staff were fired, or preemptively accepted early retirement, leaving a vacuum in the office we have historically received guidance and direction. Secondly, we have been left guessing regarding funding levels. 4. OPERATIONAL HIGHLIGHTS FROM FY26 Operational Highlights in FY26 include completion of three multi-family projects in Phase I of the Lima Ola Subdivision. These projects include a 32-unit Supportive Housing Project for Homeless Families, a 45-unit Workforce Rental Project, a 40-unit Senior Housing Rental Project, and 24 three-bedroom single-family homes. In FY26, we are on track to break ground on a final 14 two- bedroom single-family homes in Phase I and to go out to bid on the development of Phase II, which will pave the way for 100 additional rental units and 75 single-family homes. Paving the way for future large-scale County affordable housing development, in FY26, we have completed community-driven master plans for both the 50-acre Kilauea Town Expansion Project and the roughly 40-acre Waimea 400 Workforce Housing Project. For both projects, we are now working to complete required predevelopment, environmental, and cultural studies necessary to accompany our 201H applications to Council to secure required land use entitlements for development. Collectively these two projects are planned to provide roughly 700 new homes. 3 Beyond the Housing Agency’s direct developments, three private partner development projects made possible by County assistance continued work on a collective 235 new affordable rental units. The 75-unit Kai Olina project in Port Allen, completed 50 new rental units and is working to complete another 25. The 94-unit Uahi Ridge Phase I project in Lihue broke ground and is proceeding on course. And the 66-Unit Rice Street Apartment project across the street from the historic County building has broken ground with three floors framed up. Lastly, we are proud to announce the pending closing on the County’s acquisition of 150 acres in Līhu‘e, which will support the future development of the County’s largest workforce housing development project to date.