There shall be established within the Department of Finance a fund to be known as the "housing development fund." The purpose of this fund is to provide a stable and continuing source of monies to be utilized for planning, administering and constructing government affordable and workforce housing projects and to provide a policy for the use of said funds.
(Ord. No. 428, June 1, 1982; Ord. No. 882, July 8, 2009)
The annual Capital Improvements Projects Budget Ordinance shall contain a housing development fund. The Council shall, in making the appropriations in the budget, identify the housing projects and cost estimates for the projects similar to other capital improvement projects and identify amounts anticipated for the County to exercise its repurchase rights pursuant to the restriction on sale or transfer, debt, and use and limited equity leasehold estate program.
(Ord. No. 428, June 1, 1982; Ord. No. 882, July 8, 2009)
The housing development fund shall contain the following separate accounts:
(a) 
Development Revolving Account. The development revolving account shall be used for the interim financing of housing development projects. The proceeds generated from the sale of housing units, the rental of housing units or the refinancing of such projects shall be deposited into the fund and credited to the development revolving account. Other revenue received by the County for its housing programs that is not specifically designated to an account in the housing development fund, including but not limited to the County's share of net appreciation from a shared appreciation program, and developer fees or donations, shall be deposited into the fund and credited to the development revolving account.
(b) 
Buyback Account. The buyback account shall be used to administer the County's restriction on sale or transfer, debt, and use, commonly known as the "buyback" provision. All revenue received upon the sale of fee simple dwelling units resold pursuant to the "buyback" provision shall be deposited into the fund and credited to the buyback account.
(c) 
Development Trust Account. The development trust account shall be used to administer payments made by developers in lieu of providing housing units required by Ordinance Number 860 or other law. Inlieu fees approved by the Housing Agency and accepted by the County shall be deposited into the fund credited to the development trust account until such time there are sufficient funds available to develop affordable workforce housing units. The monies shall be utilized by the County for the planning, administering and construction of affordable workforce housing and such use may include, but not be limited to:
(1) 
Subsidizing the capital improvements of rental or home-ownership housing;
(2) 
Purchasing the County's fee interest in establishing leasehold estate properties; or
(3) 
Acquiring real property suitable for residential purposes.
(d) 
Leasehold Account. The leasehold account shall be used to administer the County's limited equity lease-hold program and other County residential lease programs, including, but not limited to, the acquisition and maintenance of property, and operation of the programs. All revenue received upon the sale of leasehold dwelling units sold pursuant to the County's limited equity leasehold program shall be deposited into the fund and credited to the leasehold account.
(Ord. No. 428, June 1, 1982; Ord. No. 882, July 8, 2009)
In adopting each fiscal year's budget and capital program, the Council shall appropriate a minimum of 2% of the certified real property tax revenues to the housing development fund. If the 2% appropriation from certified real property tax revenues is used in connection with the issuance of any bonds, including securing the payment of any bonds and the interest thereon, the Council may covenant with or for the benefit of the holder of any bonds issued that so long as any bonds remain outstanding and unpaid, the Council will fix, maintain, and collect the necessary revenue. Appropriations for expenditures from the housing development fund shall be pursuant to ordinance and limited to government affordable and workforce housing projects developed by or in conjunction with the Kaua'i County Housing Agency, which shall include plans; land acquisition; onsite, offsite, and building construction; interim construction financing; administrative project costs; buybacks; efforts associated with the Department of Water Facilities Reserve Charge for additional rental units certified as affordable by the Housing Agency; and other related government affordable and workforce housing expenditures as authorized by the Council. When possible, appropriation from the development trust account shall be for an affordable, workforce, or employee housing project that is located within the same real property tax zone as the development that generated the in-lieu fees.
(Ord. No. 428, June 1, 1982; Ord. No. 882, July 8, 2009; Ord. No. 1061, November 12, 2019; Ord. No. 1143, December 5, 2022)
Interest revenue earned on the deposit of the cash proceeds contained in each account of the housing development fund shall remain in the housing development fund and be credited to the respective account.
(Ord. No. 882, July 8, 2009)