Updated at 4:38 p.m., Tuesday, October 23, 2007
City in talks to acquire land under Kaneohe apartments
Advertiser Staff
Honolulu Mayor Mufi Hannemann announced this afternoon that Honolulu Hale will solicit proposals from private or nonprofit housing organizations to take over ownership and management of the 160-unit Kulana Nani apartment complex, located on Kahuhipa Street in Kaneohe.Kulana Nani is one of 12 properties owned by the city, representing a total of 1,257 rental apartments.
While the city is preparing to divest itself of Kulana Nani, preparations that include negotiations with landowner Kamehameha Schools, it will be spending $2.8 million for repairs and maintenance, including replacing an elevator and reroofing.
"If there was a common recommendation of the Mayor's Affordable Housing Advisory Committee and the Asset Management Review Team, it was that we divest ourselves of our affordable housing inventory," Hannemann said in a news release.
He added: "While the city had the best of intentions in establishing a housing program, its duplication with state government efforts, ever-changing real estate market conditions, and mismanagement eventually led to voters calling for the end of the city's foray into housing back in 1998. We're now attempting to make the best of a bad situation — particularly a very low rental income stream that costs taxpayers $3.5 million a year and failure to invest in basic maintenance over the years — by turning over the properties to non-government organizations that have the resources and experience to properly manage these projects."
Hannemann said that Kulana Nani would be a test of private management. He reiterated that all city properties would remain as rental units, would stay affordable based on federal income standards, and would have limited rent increases.
