Honolulu City Council Policy Resolutions(Link to original Word Processing Version)
ESTABLISHING COUNCIL POLICY ON THE SALE OF CITY-OWNED HOUSING PROJECTS.
WHEREAS, the city owns several residential housing projects, including Bachelor’s Quarters, Chinatown Gateway
Plaza, Chinatown Manor, Harbor Village, Kanoa Apartments, Kulana Nani Apartments, Manoa Gardens, Marin
Tower, Pauahi Hale, Westlake Apartments, West Loch Elderly Housing, and Winston Hale; and
WHEREAS, although the city’s policy at one time was to develop housing projects
to address the housing needs of low and moderate-income and elderly households, the
city has recently curtailed its activities to develop, construct and manage such housing;
and
WHEREAS, the continued retention and operation of city-owned housing projects represents an ongoing
annual operating cost to the city; and
WHEREAS, both the City Administration and the City Council have expressed their intent
to initiate a timely and reasonable plan for the disposition and sale of
all city-owned housing projects; and
WHEREAS, while the City Council supports the intent to dispose of all city-owned
housing projects, the Council wants to ensure that any such disposition proceed in
a fair, open, public, and responsible manner; now, therefore,
BE IT RESOLVED by the Council of the City and County of Honolulu
that it hereby establishes as city policy that the disposition of all city-owned
housing projects shall be initiated and carried out in accordance with the following: (1) Prior to initiating any effort to market or sell any city-owned housing project, the Administration shall submit to the City Council for its review and approval, a master plan for the disposition of all city-owned housing projects, including an inventory of all projects, estimated time frame, and marketing approach; (2) The city shall seek the best possible sale price for each property, or set of properties, through an open public bidding process; (3) The city shall require the purchaser of any property to retain and continue operating residential rental units as residential rental units for a period of not less than 30 years following the sale, and prohibit conversion of these properties to condominium or any other form of ownership; (4) The city shall require the purchaser of any property to continue, for each respective property, the same number or percentage of units that are dedicated or restricted to use by low-income, moderate-income, elderly, or other special needs group at the time of sale; and
BE IT FURTHER RESOLVED that any and all revenues derived from the sale
of any city-owned housing project, over and above that which are classified as
program income or are otherwise restricted by Community Development Block Grant (CDBG) provisions
shall be utilized by the city only in accordance with the following priorities: (1) First, such revenues shall be used to reduce or eliminate any outstanding debt owed by the city on that project; (2) Second, such revenues remaining after satisfying priority (1) shall be used to reduce or eliminate any outstanding debt owed by the city on any other city-owned housing project; (3) Third, such revenues remaining after satisfying priorities (1) and (2) shall be used to reduce or eliminate the city's outstanding general obligation bond debt; and
BE IT FINALLY RESOLVED that copies of this Resolution be transmitted to the
Mayor, the Managing Director, and the Director of the Department of Budget and
Fiscal Services.
INTRODUCED BY:
(OCS/020504/ct)
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