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The Honolulu Advertiser
Posted on: Wednesday, February 14, 2007

Nonprofit wants to buy city properties

By Mary Vorsino
Advertiser Urban Honolulu Writer

A nonprofit organization that manages 900 affordable housing units on O'ahu and Kaua'i says it wants to buy all of the city's up-for-sale rental properties for low-income residents, and has pledged to put money into backlogged maintenance and repairs.

EAH Housing, one of the largest affordable-housing nonprofits in the state, announced yesterday it has the money and the know-how to buy the city's affordable housing sprinkled across the island.

But the city says it has no plans to put all of the complexes on the market at once, and stressed it must follow procurement guidelines in the sale of the properties.

The announcement comes just days after the city said it would sell the properties. Tenants at the affordable complexes say it gives them hope that other nonprofits will come forward in the coming weeks and months.

Though Mayor Mufi Hannemann has said the housing complexes will be kept affordable in perpetuity through deed restrictions, many residents say they would prefer the properties were owned by a nonprofit group rather than a for-profit corporation.

"This is the kind of thing we're generally happy about," said Steve Lohse, a tenant at Chinatown Gateway Plaza and a member of the Ohana Housing Network O'ahu, a group of tenants at city-owned complexes.

"Somebody like EAH could be the right owner for the right reasons. If EAH Housing bought the properties, there is at least an assurance these would be managed and maintained as affordable housing."

Hannemann announced last week that the city will sell the properties in phases, starting with the 160-unit Kulana Nani apartment complex in Kane'ohe. There is no timetable for the sales.

Kevin Carney, vice president for EAH Housing in Hawai'i, said he would prefer the city sold the properties at once. He said EAH Housing asked the city as far back as 1998 if it could buy the properties; the agency has not approached the city recently about the sales.

Cyndy Aylett, housing consultant for the city, said officials looked at selling the properties in one lump, but decided against it.

"Slow is probably better for the residents," Aylett said.

She also stressed the city would be following procurement guidelines, though it is still unclear whether some complexes will be sold together.

Aylett will be addressing residents at the Kulana Nani complex tonight. She is not scheduled to talk to any other tenants at city complexes.

EAH Housing is based in California, but has been managing affordable properties in the Islands for more than a decade.

Reach Mary Vorsino at mvorsino@honoluluadvertiser.com.