Posted on: Tuesday, July 6, 2004
Mainland firm hired to handle housing sites
By Vicki Viotti
Advertiser Staff Writer
After receiving a failing grade in a federal review, a state housing agency has called in expert help from Bremerton, Wash., to oversee the managers of more than 50 private, low-income apartment complexes that receive Section 8 federal assistance.
The Bremerton Housing Authority is preparing to move into a Queen Street office to take over most of the supervision of how housing assistance payment contracts are managed.
This means checking on administrative details, such as whether managers charge the correct rent or ensure that tenants meet income requirements, said Stephanie Aveiro, director of the Housing and Community Development Corp of Hawai'i (HCDCH).
Aveiro emphasized that this does not affect the true "public housing" projects that come under HCDCH — complexes such as Kuhio Park Terrace or Mayor Wright Housing — but instead involves privately owned and managed apartments such as the senior-citizen high-rise Keola Ho'onanea on A'ala Street or Maunakea Tower downtown. The roster as of January stood at 58 multi-family projects including more than 3,000 units.
In April HCDCH finished three years of administering those contracts for the agency that heads the Section 8 housing subsidy program, the Department of Housing and Urban Development. HUD gave the state agency its annual compliance review, and in May judged its administration to be "unsatisfactory," Aveiro said.
Aveiro said that when she started as director in December she realized there had been problems with the supervision of the projects from the beginning.
"For whatever reason, (the agency) didn't invest in the unit that did the work, and never had resources or training to do it well," she said.
Aveiro said the state was not faulted for its policing of upkeep at these projects but was concerned with less visible problems. The flaws cited included findings that the state allowed outdated forms to be used in some cases and, in others, failed to check for verification of tenant income or citizenship, she said.
The review team suggested that if corrective action was not taken, the state could lose its HUD contract, Aveiro said, adding that she decided to follow a national trend toward hiring specialists to do the work by subcontracting with Bremerton Housing Authority.
It seemed a "good fit," she said, because of the authority's West Coast location and because it has enough staff to handle the additional work for Hawai'i.
Bremerton oversees 367 similar projects in Washington state, said Clarence Nelson, who directs contract administration for the authority.
Nelson said ensuring that the property is in good repair and safe is part of the job, as well as seeing that managers comply with the complicated regulations of Section 8 housing subsidies.
Bremerton will work here, based in offices at the Kamakee Vista building on Queen Street, for six months with an option to renew. He declined to disclose what the state will pay Bremerton.
Posters beginning to appear on apartment bulletin boards list a resident's hotline for those who have concerns about management: (866) 591-6218.
Aveiro said Bremerton will receive 80 percent of the HUD fee for the administration work, although on Friday she said she did not know the amount. Because the state agency retains only 20 percent, she said, three employees had to be terminated.
However, she added, the federal agency also offers incentives for improved performance — bonuses in which the state will have a half share — so HCDCH hopes to recoup much of its lost revenue.
Reach Vicki Viotti at vviotti@honoluluadvertiser.com or 525-8053.
