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The Honolulu Advertiser
Posted on: Friday, March 17, 2006

State backs Kukui purchase

By Rick Daysog
Advertiser Staff Writer

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The Lingle administration yesterday threw its support behind a plan for the state to buy the Kukui Gardens apartment complex and preserve it as an affordable housing project.

Kukui Gardens Corp., owner of the 857-unit apartment complex on the edge of Chinatown, began looking for a buyer in January, raising concern that a new owner would tear down the complex and build more expensive housing.

Yesterday, the Senate Commerce, Consumer Protection and Housing Committee unanimously approved a House bill that calls for the state to use its powers of eminent domain to acquire the 22-acre property.

The committee also approved a resolution urging the owners to sell the property to a nonprofit affordable housing developer.

Janet Takahashi, chief planner with the state Housing and Development Corp. of Hawaii, said yesterday that the state is willing to issue revenue bonds to help finance a purchase of the property.

She said the state will work with a nonprofit affordable housing organization to preserve the affordable units.

"The owners have the obligation to sit down with the state and the other parties to preserve affordable housing," added Sen. Ron Menor, chairman of the Commerce, Consumer Protection and Housing committee.

Yesterday's hearing was attended by more than 100 Kukui Gardens' tenants and their supporters, who spoke in favor of keeping the project affordable.

The project's owner did not attend the hearing.

A Kukui Gardens Corp. spokeswoman, contacted by phone, said she had no immediate comment.

When it announced plans to sell the complex, Kukui Gardens Corp. said the proceeds will go to the Clarence T.C. Ching Foundation. The foundation benefits the Saint Louis School, Chaminade University and St. Francis Medical Center.

The 36-year-old apartment complex charges tenants between $444 and $1,100 a month for one- to four-bedroom units. It houses about 2,500 residents.

Kukui Gardens Corp. built the project using funding from the U.S. Department of Housing and Urban Development.

In exchange for the HUD financing, the owner agreed to keep the units affordable until 2011.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.