The document provides an update on $64 million allocated over two fiscal years for homeless relocation initiatives in Honolulu. As of the date, $61.7 million has been budgeted total, with $22.2 million already encumbered. The budget has been allocated to property acquisitions, capital improvements, equipment purchases, and engineering/construction services. Several potential property acquisitions are being considered but details are sensitive. The Department of Community Services appreciates the funding and partnership with the City Council to address homelessness.

1. The Honorable Ann Kobayashi, Chair
and Members of the Committee on Budget
Honolulu City Council
530 South King Street, Room 202
Honolulu, Hawaii 96813
Dear Chair Kobayashi and Councilmembers:
SUBJECT: Update on $64 million allocated for homeless relocation initiatives
in FY15 and FY16
In response to Council Chair Martin’s request at the Committee on Budget meeting on
Wednesday, March 2, 2016, here is an update on plans for the $64 million allocated for
homeless relocation initiatives in FY15 and FY16, as well as what monies have been
encumbered to date.
It is important to note that we have reviewed and assessed over 16 properties as
potential acquisitions for the program. Given the funding restrictions pertaining to non-taxable
General Obligation Bonds, some of these properties fell out of consideration. In some cases,
we were simply outbid by private investors due to the scarcity of good investment properties for
rental cash flow. We are actively looking at several promising properties that are vacant and are
turnkey or require only a reasonable amount of renovation so that we can bring affordable
housing units online as soon as possible. These potential acquisitions are at critical junctures
and the related information is sensitive. The budget for these acquisition properties are shown
below as “To be Determined.”
As of today, $61,696,616 has been budgeted, $22,246,616 of which has been
encumbered.
• $39.3 million has been budgeted for property acquisition, $18.3 of which has been
encumbered.
$ 6,220,000 $ 6,220,000
$ 300,000 $ 300,000
$ 5,500,000 $ 5,500,000
$ 6,350,000 $ 6,350,000
$21,000,000
Subtotal $39,370,000 $18,370,000
DEPARTMENT OF COMMUNITY SERVICES
CITY AND COUNTY OF HONOLULU
715 SOUTH KING STREET, SUITE 311 •HONOLULU, HAWA1196813. AREA CODE 808 • PHONE: 768-7762 • FAX: 768-7792
KIRK CALDWELL
MAYOR
March 4, 2016
GARY K. NAKATA
DIRECTOR
BARBARA YAMASHITA
DEPUTY DIRECTOR
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Project
Family Justice Center
Fa rrington
Hassinger
lwilei Building
To be Determined
Planned Budget Encumbrance
DEPT. COM. 128

2. The Honorable Ann Kobayashi, Chair
and Members of the Committee on Budget
March 4, 2016
Page 2
• $9.4 million has been budgeted for capital improvements, $1.5 million of which has
been encumbered. Unit numbers are projections.
Project Planned Budget Encumbrance
Winston Hale Repair 26 units $ 1,501,076 $ 1,501,076
Halona 3 units $ 300,000
Farrington Parcel Site Work $ 350,000
Winston Hale Micro Units 6 units $ 800,000
Hassinger 43 units $ 6,500,000
Iwilei Building Improvements $ 7,000,000
Subtotal $ 9,451,076 $ 1,501,076
• $2.9 million has been budgeted for equipment purchases, $900,000 of which has
been encumbered.
Equipment Purchases Planned Budget Encumbrance
Sand Island Container 25 units $ 550,000 $ 500,000
Halona Modular 3 units $ 350,000 $ 350,000
Waianae Modulars 20 units $ 2,000,000
Subtotal $ 2,900,000 $ 900,000
• $2.9 million has been budgeted for engineering, construction, appraisal, and
architect services for all projects, $1.4 million of which has been encumbered.
Service Planned Budget Encumbrance
Master Agreement for Engineering
Services $ 500,000 $ 500,000
Master Agreement for Engineering
Services, Phase 2 $ 1,000,000
Master Agreement for Construction
Management $ 1,000,000 $ 500,000
Master Agreement for Appraisal
Services $ 300,000 $ 300,000
Master Agreement for Architect
Services $ 26,616 $ 26,616
Next Design DDC $ 148,924 $ 148,924
Subtotal $ 2,975,540 $1,475,540

3. The Honorable Ann Kobayashi, Chair
and Members of the Committee on Budget
March 4, 2016
Page 3
The Department of Community Services DCS is grateful to the City Council for
investing an unprecedented $32 million towards homeless relocation initiatives in each of the
last two fiscal years and appreciates the City Council’s continued partnership and kokua on this
important issue. We welcome the City Council to work collaboratively with DCS and provide
possible properties, concepts, and suggestions to maximize the benefit of this funding.
Please feel free to contact me at 768-7760, should you have any questions.
Sinc r y,
GaryK.Na a
Director
cc: The Honorable Ernest Y. Martin
Chair and Presiding Officer
APPROVED:
Managing Director