How the experimental housing fund can be spent

A. The revenues and unencumbered balance in the experimental and demonstration housing projects fund will be used for the provision, protection, and expansion of experimental and demonstration housing projects, including the rehabilitation of existing structures, land purchase or other acquisition of land or property entitlements, planning, design, and construction. The projects must provide housing for households with a gross annual family income of eighty percent or less of the area median income as established by the United States Department of Housing and Urban Development, or as adjusted by the department, for Hana, Lanai, and Molokai. The projects must directly advance the objective of providing affordable housing in perpetuity, under the director's supervision. Models of affordability in perpetuity include, but are not limited to: managed appreciation formulas that insulate the housing from market rate appreciation; shared equity formulas; and projects that are owned by a community land trust. B. The revenues and unencumbered balance in the experimental and demonstration housing projects fund may not be used for any purpose except those defined in this chapter. C. On an annual basis, no more than three percent of the experimental and demonstration housing projects fund will be used for administrative expenses. D. The council may make appropriations from the experimental and demonstration housing projects fund for the following purposes: 1. To acquire interests in real property for the uses set forth above. 2. To provide grants or loans to any nonprofit organization that complies with Section 501(c) of the Internal Revenue Code and any other requirement under federal, state, and county law regulating the conduct of charitable or nonprofit organizations, provided that the purpose of any grant or loan must be consistent with the proposed uses set forth above. ( Ord. No. 4978 , § 2, 2019)