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The Honolulu Advertiser
Posted on: Thursday, May 7, 2009

COMMENTARY
Kuhio Park Terrace plan untested

By Rep. Rida Cabanilla

Hawaii news photo - The Honolulu Advertiser

The Kuhio Park Terrace public housing project needs repairs. But how to fix it remains a question.

ADVERTISER LIBRARY PHOTO | 2002

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Kuhio Park Terrace has the reputation of being crime-ridden — and in the eyes of many public housing advocates, in a state of serious disrepair. According to Hawai'i Public Housing authority, 22 units are currently uninhabitable, mostly due to sewer line and roof damage, and the project needs $162 million in repair and renovation.

In my role as chairwoman of the Housing Committee for the House of Representatives, I passed several bills that would make not just Kuhio Park Terrace but our entire public housing system more sustainable.

The Legislature voted for SB 1160, which would streamline the eviction process for public housing tenants who do not pay rent or violate house rules. Considering there are 14,000 applicants on the waiting lists, it is important to provide equal opportunity for this privilege. It also authorizes assessing tenants for common-area expenses and willful damages to the property. This would promote pride in residency. SB 1160 would also require HPHA to establish a minimum rent schedule so that public housing can become self-sustaining.

HB 1692 would limit the amount of time a family spends in public housing to a maximum of seven years, and require HPHA to review federal pilot programs intended to break the cycle of public housing and welfare, including related support programs. The Senate votes on it today.

When the HPHA was established, it was mandated by statute to be self-supporting. According to HRS 356D-43, the rents collected should pay for administration and maintenance. Remember, market housing rents generally pay for the mortgage on the property in addition to administration and maintenance. In 2005, the Legislature appropriated $20 million; $13.5 million in 2006; $10.5 million in 2007 and $20 million in 2008. This year they asked for $9.5 million, which, given the state of our budget, may be difficult or even impossible to provide. So what other options do we have?

HPHA, in response to an unsolicited proposal, published a request for proposal for a for-profit or combination for-profit and nonprofit corporation to lease, renovate and expand KPT. It would be required to renovate or re-construct the same number of public housing units — 748.

It would then be allowed to build additional median-income and general work-force and market units on the same grounds. Mixed-income housing communities have been found to create a positive impact for lower income groups. This is how neighborhoods originally naturally developed — before gated communities and their corresponding slums.

The company chosen through the bid process would also be required to provide facilities and to partially subsidize support services for public housing residents. This would include job skills training, parenting, substance abuse, mental health and physical health prevention and screening services. The goal would be for the social services to also become self-sustaining and, most importantly, relieve taxpayers from this burden.

The only way to transition people through public housing and into market housing is to improve their life skills.

While the RFP sounds good, it is curious that we haven't heard about this process as it has proceeded. For such a large amount of money, and something as important as Kuhio Park Terrace, one would have thought that this issue would have been receiving a lot of media attention and discussion.

Since taxpayers are footing the bill, the Legislature needs to become more involved. Legislative approval is required for the sale of the land, but not for leasing it.

Is this the best solution for public housing? Do we want to lease Kuhio Park Terrace to a private, for-profit company? Will it be able to pull this distressed public housing out of squalor? It is law that public housing be self-sustaining — yet it isn't. How will we make sure that the company that takes over KPT actually fulfills its promises? That is the question before us.

Reach Rida Cabanilla at (Unknown address).

Rep. Rida Cabanilla, D-42nd (Waipahu, Honouliuli, 'Ewa) is chairman of the House Housing Committee. She wrote this commentary for The Advertiser.