Kane'ohe seniors endure residential project delay

By Eloise Aguiar
Advertiser Windward Bureau

KANE'OHE — The treasures of a lifetime share space with pots and pans and other household goods stuffed into a single bedroom that 76-year-old Gloria Byard has occupied since February, when she expected to move into the new Senior Residence at Kane'ohe.

The Senior Residence at Kane'ohe, with half of its units occupied, is still not open to people waiting to move into 44 low-income units because of delays in closing on the financing and assurance on a related sewer project. Richard Ambo • The Honolulu Advertiser

Byard is lucky. She's living with her family, though she has displaced her great-granddaughter from her room and acknowledges the stress on the family.

Queenie is not so lucky. She's paying $750 a month now for her apartment. She'll pay $210 at the Senior Residence. She anticipates moving in December at the earliest, but by then she'll have spent $5,940 more for rent this year because the apartment wasn't available when promised in January.

A retired nurse, Queenie, 67, relies on her savings and Social Security check, but after paying for medical coverage, she has only $400 a month left from her Social Security.

"(Rent) has depleted my savings to practically zilch," she said. "If I don't move in by the first of the year, there will be no funds left."

Others are in the same boat, said Queenie, who was afraid to use her real name for fear she might lose the apartment.

"This little project was an answer to our prayers because it's prorated rent according to your income," she said.

In March the project's developer said closing on the financing and assurance on a related sewer project held up occupancy. Six months later, many of the apartments are rented, but the delay in occupancy for 44 units is still tied to financing and the sewer project.

Pacific Housing Assistance Corp., which is developing the project, ran into trouble when a related $700,000 sewer project it was required to complete as part of its permit for the housing ended up costing $200,000 more than anticipated, said Marvin Awaya, the company's executive director.

Awaya said the U.S. Department of Housing & Urban Development, which is financing these 44 units, required verification from the city that the sewer project was moving ahead before HUD would allow tenants to move into the apartments.

The project to upgrade 3,000 feet of sewer line in the Pu'ohala area is not connected to the housing development but was necessary to ensure carrying capacity for the entire Pu'ohala system, which includes the senior housing.

Pacific Housing had to scramble to make up the $200,000 and eventually cut a deal with the city and the contractor three weeks ago and has begun work on the sewer lines, Awaya said. Now that the project has begun, Awaya said there's no reason to keep the tenants out.

But HUD coordinator Gordon Furutani said tenants can't move in until the project wraps up its finances, which is expected to happen this month. The sewer clearance was given in March and HUD had expected the project to close on its finances then, Furutani said.

"The sewer issue was taken care of," he said. "Right now it's a matter of closing."

Awaya said he wasn't aware that closing was the issue keeping tenants out.

"We have been working on the (sewer project) so hard," he said, adding that Pacific Housing had to resubmit some of its closing documents recently and that, too, added to the delay.

One last document was placed in HUD's hands recently and is awaiting approval, Awaya said. He couldn't say for sure when the closing would take place or when people would be able to move in.

"I'm hesitant to tell them right now until I can see this deal closing," Awaya said.

Reach Eloise Aguiar at eaguiar@honoluluadvertiser.com or 234-5266.