Posted on: Friday, April 12, 2002

Affordable rental for Waikiki seniors planned

By James Gonser
Advertiser Urban Honolulu Writer

Arnold Van Fossen, 64, must move from his Waikiki apartment because he says the cost of living in the area is getting too high. He hopes that proposed senior affordable housing will allow him to return along with his pet parrot, Odie. Deborah Booker • The Honolulu Advertiser

A nonprofit group that says senior citizens are being driven out of Waikiki by ever-increasing rents, condominium conversions and upscale stores wants to help the elderly by building the area's first project dedicated to affordable rental units.

The Genesis Foundation plans to build a $13 million, 11-story, 70-unit building on a vacant lot on Ala Wai between Lili'uokalani and Ka'iulani avenues. The facility, to be called Kahiola, has received preliminary approvals and goes before the City Council next month.

"We knew we had to do something about stopping the elderly from being forced to move away," said Nicholas Christoff, chairman and executive director of the foundation. "This project will be built so they won't lose their dignity. They won't have to live in a tiny box."

All of the apartments will be one- or two-bedroom units and will be air-conditioned. A recreation/meeting room will be included on the ground floor and a small park and barbecue area will be part of the project. To provide security, a camera surveillance system will be installed in the building.

Christoff, an Evangelical Lutheran Church minister, was serving as a counselor and chaplain for the Laniolu, a retirement home on Lewers Street, when it was torn down in 1995, displacing 114 seniors to make room for the DFS-Hawai'i Waikiki Galleria. It was while he was assisting many of those elderly residents with relocating to other housing that the idea for the Genesis Foundation was born.

Since then, the foundation has been working to develop elderly rental projects.

Their first project designed for a city owned property on Kuhio Avenue failed when their proposal was denied. In 1998, they started over and began planning for the Ala Wai site, securing use of the property from owner Starts International.

By soliciting donations and bringing together consultants with experience in developing similar projects willing to work pro bono, the foundation has already spent about $500,000 to make the project happen.

It will be dependent on state and federal money to buy the property and pay for construction.

If all goes well, construction on Kahiola will begin in December and be completed in September 2003.

According to the Census Bureau, Hawai'i's elderly population will increase 43 percent by the year 2010 when 367,500 residents are expected to be 65 years old and older.

A market analysis for Kahiola by Locations Prudential Management said the demand for affordable senior rental units in Waikiki is so great that Kahiola can expect to be fully rented in the first month it opens.

Waikiki is recognized as a great location for senior citizens, with close proximity to hundreds of shops, convenient bus connections and amenities such as the zoo, the beach, parks and the library.

Betty Lou Larson, program director of the housing assistance program at Catholic Charities Elderly Services, said many of her clients would like to live in Waikiki but most cannot afford it.

"There is nothing available there for them," Larson said. "They may have been living in the area and as their income circumstances change or as rents go up they feel the financial hardships. Most of our clients pay well over 50 percent of their income on rent. This forces them to look for something more affordable. Most seniors are good tenants. They will pay their rent first even if it means they aren't buying medication."

Arnold Van Fossen, 64, who lives in an older three-story apartment building on Ala Wai near the Genesis project, is about to move out of Waikiki.

Van Fossen, whose car has been broken into several times and who was almost robbed in front of the building recently, said he cannot afford to move into a more secure apartment building in Waikiki so he is looking at other areas, including Makakilo.

"I'd rather stay here," Van Fossen said. "It's convenient for me but very expensive and not safe."

Christoff cited Larry and Vi Cairns, who rented an apartment for $300 in 1975 and their rent gradually was raised to $1,250 a month by 2000. The couple has since moved out of Waikiki, he said.

According to the federal Bureau of Labor Statistics, Consumer Price Index, the couple's rent should have only increased by about 200 percent, to $929 a month, because of inflation.

At Kahiola the one- and two-bedroom apartments will only be rented to seniors 62 and older with incomes no more than 50 percent of the Honolulu median income level. Seven units will be set aside for seniors at 30 percent of the median income.

Darrell Young, spokesman for the state Housing and Community Development Corporation of Hawai'i, said the median income for Honolulu is $62,600 a year and a person or couple renting a one bedroom at Kahiola would have an income limit of $22,600 a year. Income for two bedroom occupants would be limited to $29,059.

The Rev. Frank Chong, executive director of the Waikiki Health Center, said when Japanese investors bought up dozens of Waikiki properties in the '80s, land values skyrocketed and many elderly rental homes were torn down to make way for developments that never materialized.

"By the time the bubble popped, they had already mowed down a lot of houses," Chong said. "They paid maybe $125 a month and now to get a comparable amount of space would cost $600 to $800 a month. If you are on a fixed income it's pretty rough to make a major adjustment like that."

Christoff said when apartment buildings are converted to condominiums and sold, the new buyers often evict the tenants, many of whom are elderly.

The foundation has completed an environmental review for the state and received approval from the Waikiiki Neighborhood Board.

At one time, the city was considering the property for a 100-stall parking lot for area residents. City Managing Director Ben Lee said buying the property has been pulled from the city budget, and the city will now pursue forming a partnership with the Genesis Foundation to provide some public parking.