Kukui Gardens Corp., which is in the process of selling the 857-unit complex near Chinatown to San Francisco-based Carmel Partners, said the prepayment, which requires HUD approval, will allow it to make necessary repairs.

Residents and community leaders are opposed to the $130 million sale, saying it will lead to the displacement of hundreds of low-income and elderly tenants. If the prepayment plans is approved, Kukui Gardens Corp. said all rental increases from now until 2011 must be in accordance with affordable guidelines set by HUD.