HIGHLIGHTS OF JULY 2, 2008 HCDA MEETING

Following is a summary of actions taken at the July 2, 2008 regular meeting of the Hawaii Community Development Authority (HCDA).

Landscape Maintenance Services on Ilalo Street and Queen Street Extension 

The Authority authorized the HCDA Executive Director to spend up to $60,140 per year to provide landscape maintenance services for Ilalo Street and the Queen Street Extension.  HCDA will execute a one-year contract, with two options to extend for twelve months each, with Hoonani Landscaping, Ltd. to maintain the median landscaping for Ilalo Street and the Queen Street Extension.   

Requests from Reserved Housing Owners to Waive or Defer HCDA’s Purchase Option of Equity Share

HCDA members authorized the HCDA Executive Director to respond to requests from reserved housing owners for a waiver or deferral of HCDA’s purchase option or equity share.  Under current HCDA rules, the Authority has a first right of refusal for a period that ranges from two to ten years from the purchase date, should a reserved housing owner desire to sell their unit.  HCDA also has an equity sharing right that is triggered upon HCDA’s waiver of its right of first refusal or upon sale (after expiration of the two to 10 year period).  With the Authority’s authorization, the Executive Director will now analyze the economics of the purchase and potential resale price of a reserved housing unit.  Should there be an economic advantage, HCDA would exercise its right to purchase the property.  If there is no economic advantage, HCDA would waive its right of first refusal and enforce its equity sharing rights.