Palolo units find rescuer
By James Gonser
Urban Honolulu Writer
The state's public housing complex in Palolo Valley has been falling apart.
Jeff Widener • The Honolulu Advertiser
Palolo Valley Homes, built in the early 1950s, has more than 400 units, of which 306 are under state control and the remainder federal. But 60 units at the state's largest such facility are uninhabitable because of problems with lead paint, asbestos and leaking roofs — and the rest need plenty of work.
The 40-year-old Palolo Valley Homes has 60 units uninhabitable and in need of repair
Talks begun nearly a year ago aimed at turning over the complex to a private nonprofit corporation promise big improvements for the low-income residents. The negotiations are now nearly complete, and major interior and exterior work on the units could be just months away.
"We are very hopeful and cannot wait to bring the buildings up to par," said Palolo Residents Association president Dahlia Asuega. She said some homes have kitchen cabinets falling off the walls and some residents are using pans to collect water dripping from leaking refrigerators.
"For us it has been an exciting process, and residents have been involved since the beginning from planning the construction to moving tenants, even the new color scheme."
The newly formed Palolo Valley Homes Limited Partnership, working through the Mutual Housing Association of Hawai'i, expects to complete a lease agreement for the 32-acre Palolo Homes project by March. It will then invest $12 million in private money to renovate the complex.
The partnership filed an environmental assessment on the project with the state last week detailing its plans and seeking public comment.
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| • | To comment on the Palolo Valley Homes Project, send letters by Dec. 8 to:
Include copies for the state approving agency, the consultant and OEQC. |
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The complex, which residents acknowledge has a reputation for crime, is made up of row after row of beige, two-story, barracks-like buildings. The narrow streets are lined with parked cars, leaving room for only one vehicle to move through. Trash containers overflow and worn murals depict tropical plants that have long since disappeared from the valley.
"It is in very poor shape now," said David Nakamura, Mutual's executive director. "Everything needs work. The $12 million will really turn it around."
The state Housing and Community Development Corp., which owns the property, recently reached an agreement to lease it to Mutual for 55 years at $1 per year. Mutual will sublease the property to the Palolo Valley Homes Limited Partnership for 30 years at an annual rate of $250,000. That money, to come from rents, will be used for capital improvement work, Nakamura said.
The state has fallen behind in maintenance at its 11 public housing developments because the Legislature has not provided enough money, said HCDC executive assistant Robert Hall.
The lease will allow the nonprofit group to seek investment from the private sector, which can take advantage of tax incentives to finance repair work. Verizon Capital Corp. will be a major player in the limited partnership, Nakamura said.
Mutual has included residents in the planning and decision-making, and they will participate in management of the property through a resident council with elected leaders and committees.
Mutual will have a full-time on-site resident services coordinator to provide crisis intervention assistance, case management for families with multiple social service needs, budget and credit counseling, and leadership development training, Nakamura said.
"This is the first initiative to privatize a state public housing," Nakamura said. "It is the first attempt to really change the management style and operation. There will be a lot of eyes on it. It is not enough anymore to just run the property. You have to provide supportive services. You have to look at the community holistically, rather than just build affordable housing but not take care of the families and look after their needs."
Reach James Gonser at jgonser@honoluluadvertiser.com or 535-2431.
