Posted on: Wednesday, April 10, 2002

Kaua'i clears charity after land loan repaid

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — The county has dismissed its foreclosure against Habitat for Humanity after the organization repaid the entire principal of a $980,000 loan for the purchase of land for low-cost housing in 'Ele'ele.

An anonymous donor provided the cash to pay off the loan. The county dropped its demand for $117,600 in late fees.

Deputy County Attorney Amy Esaki said the county dismissed its complaint last week, shortly after receiving payment.

The county in 1997 loaned Habitat for Humanity the money to help pay for the purchase of Alexander & Baldwin land in the west side community, where the organization hopes to build a 95-lot subdivision for lower-income residents.

The county used money from a $41 million federal Department of Housing and Urban Development disaster grant issued after 1992 Hurricane 'Iniki.

When Habitat for Humanity suffered delays in getting the project going, the county felt it needed to recover the federal money to avoid difficulties with the Department of Housing and Urban Development. The county filed its foreclosure action last December.

Habitat for Humanity officials on Kaua'i could not be reached for comment yesterday. Esaki said she was told the agency is still planning to proceed with the 'Ele'ele subdivision.

Habitat for Humanity uses volunteer labor to build low-cost homes.

It has developed dozens of homes on Kaua'i, most of them on Department of Hawaiian Home Lands property and some with county assistance.