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The Honolulu Advertiser
Posted on: Sunday, September 23, 2007

Hawaii 'Makeover' home under legal cloud

By Rick Daysog
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

On the steps of her new home, Theresa Akana looked out at the hundreds of people who showed up at the June taping of "Extreme Makeover: Home Edition."

ADVERTISER LIBRARY PHOTO | June 13, 2007

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ON TV

"Extreme Makeover: Home Edition"

Sunday, Sept. 30

7 p.m.

KITV (ABC)

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Hawaii news photo - The Honolulu Advertiser
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Find information on more than 650 Hawai'i charities in our searchable database at www.HonoluluAdvertiser.com/fyi

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Next Sunday, 17 million viewers will tune in to the two-hour season opener of "Extreme Makeover: Home Edition" featuring Theresa "Momi" Akana and the rebuilding of her Kalihi Valley home.

But the multimillion-dollar makeover is also at the center of a different kind of reality show involving the state attorney general's office.

Earlier this summer, the attorney general's tax division began asking questions about the lease arrangement between Akana and the nonprofit Keiki O Ka 'Aina Preschool Inc., which owns the land beneath Akana's new home.

Keiki O Ka 'Aina spokeswoman Kanoe Naone said the organization provided the information sought by the state and that Akana, who is Keiki O Ka 'Aina's executive director, met with the attorney general's office to answer any questions.

"We provided them with the (materials) ... they were seeking to their satisfaction," Naone said.

Sources familiar with the situation, however, say the attorney general's inquiries are still pending.

Naone said that the organization is working with the attorney general's office to come up with a lease agreement in which the rents are set at market rates.

Akana founded Keiki O Ka 'Aina 11 years ago.

The nonprofit organization, which operates traveling preschools and specializes in Native Hawaiian cultural programs, owns the land beneath the 3,500-square-foot home that was built by "Extreme Makeover" for Akana and her family.

Keiki O Ka 'Aina also owns the 4,500-square-foot community center built by "Extreme Makeover" on the same 3135 Kalihi St. property.

Under state and federal laws, terms of the lease must be at market rates or they could be considered "a private benefit," which could result in significant fines for a nonprofit organization.

Keiki O Ka 'Aina officials said the show's producers require that terms of the lease and other details of the episode be confidential until the show airs.

According to Naone, the attorney general's inquiries were in response to a July 2 story in The Advertiser that reported Akana earned more than $100,000 in a year, while her husband is in a position at a local bank that typically pays more than $125,000 a year.

Keiki O Ka 'Aina officials previously said that Akana's compensation was comparable to that of heads of similar nonprofits, and that Akana's pay had been below market levels for several years.

The nonprofit's supporters also said Akana was selected for a home makeover because of Keiki O Ka 'Aina's broad impact on the local community.

REWARDING PROJECT

Some of the 3,000 volunteers who worked on the project said they weren't bothered by the controversy surrounding Akana's compensation.

Michelle Kanehe, who cleared debris and cleaned the house before its unveiling, said she would "definitely" volunteer again, because the show "chose the right people."

Kanehe, who is a manager at Ohana Doggie Day Care and Spa in Honolulu, said the Akanas are deserving because they provide so much help to the community.

"I'm a Native Hawaiian and I agree with the things she's doing," Kanehe said.

Volunteer Robin Blumer, a chief financial officer at Sutton Construction Co., added that the Akanas are deserving of the makeover.

"She does a lot of wonderful things for Native Hawaiians," Blumer said. "They now have a community center she can work out of and she got rewarded for her years of efforts with a new house."

Meanwhile, local promoters of the show said they plan to hold a party for volunteers such as Kanehe and Blumer at the Ala Moana Hotel.

The reservation-only event, which will cost $40 per person, will be held during the broadcast of the "Extreme Makeover" episode.

It will include food and a screening of a DVD that contains behind-the-scenes footage of the show, said Melinda Mullis, creative director and principal at OrangeRoc, which helped bring "Extreme Makeover" to Hawai'i.

ON THE SET IN KALIHI

Founded in 1996 by Akana, Keiki O Ka 'Aina's preschool programs serve about 1,000 children each year. Its programs for parents reach another 1,000 a year.

Naone said Keiki O Ka 'Aina's new facilities have allowed the organization to provide services for an additional 250 to 300 families.

Using a federal grant, the organization also has built an outdoor classroom to add to its new properties. The classroom aims to educate families about the methods and cultural significance of Native Hawaiian plants.

Since its launch in December 2003, "Extreme Makeover: Home Edition," hosted by Ty Pennington, has helped nearly 100 households.

They include victims of Hurricane Katrina, tornado survivors and a wounded Iraq war veteran, according to the show's Web site.

The Hawai'i project is the largest and one of the most difficult in the show's four-year history because of the difficult terrain and frequent rain, said Denise Cramsey, an executive producer at Lock & Key Productions, the show's creator.

The show originally planned to renovate the Akanas' five-bedroom home at 3030 Kalihi St., but "Extreme Makeover" producers shelved the idea because of time constraints and logistical problems with the small property.

Instead, the production team decided to build a new four-bedroom, plantation-style home and a larger community center on the three-acre 3135 Kalihi St. lot, which Keiki O Ka 'Aina bought in December 2006 for $2.7 million.

"It's a roller-coaster ride for two hours," Cramsey said of the episode that airs next Sunday.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.