Kukui Gardens tenants are asking federal housing officials to deny a proposed sale of the affordable apartments, saying trustees failed to sufficiently consider offers from nonprofits as required before accepting a Mainland firm's $130 million bid.

During a teleconference with U.S. Rep. Neil Abercrombie in Washington, D.C., yesterday, tenants and advocates said they would push the U.S. Department of Housing and Urban Development to stop the sale based on a federal regulation that requires nonprofits be given a "reasonable" chance to acquire a HUD-subsidized property put up for sale by another nonprofit.

HUD San Francisco Director Janet Browder, who attended the teleconference in Honolulu, said nonprofits that submit an offer must also show they have the "wherewithal" to run a housing complex. She said local housing officials would investigate whether the regulations were followed.

Kukui Gardens Corp. officials contend the four nonprofits that put up bids for the apartments — including Catholic Charities Hawaii and the Ecumenical Association for Housing — could not show they had quick access to money.

"None of them had any funds available," said Steve Gilley, real- estate consultant for Kukui Gardens. "We've got to know we have a deal."

San Francisco-based Carmel Partners was chosen to buy the complex, and has pledged to keep the apartments standing. Gilley said a request to approve the sale will be filed with HUD as early as this month. Under the terms of a 40-year mortgage with Kukui Gardens Corp., the 857-unit complex must be maintained as affordable housing until 2011.

Kukui Gardens trustees and officials, who were in Washington, D.C., to discuss the sale with Hawai'i's congressional delegation, sat in on the teleconference with Abercrombie.

Gilley said Kukui Gardens Corp. president Lawrence Ching and others made the trip to "tell our folks here the real facts."

Also in the meeting were two Washington, D.C., housing attorneys who were retained by Kukui Gardens. They are being paid by the Clarence T. Ching Foundation, which created the Kukui Gardens Corp.

"The deal now with Carmel is subject to one condition — that's HUD's approval," Gilley said. "To get through HUD is not an easy exercise."

He added that if the Carmel offer is denied, Kukui Gardens will likely be sold in five years, after it is no longer under HUD mandate, to a re-developer.

"What I've been trying to get through to the tenants is this is a win-win situation," he said. "We've got a firm that has a commitment to run this."

But tenants at the conference, held at the Prince Kuhio Federal Building, said they want a promise that Kukui Gardens will remain affordable well beyond 2011.

They're hopeful — but not confident — that a bill that would allow the state to condemn Kukui Gardens in order to preserve its affordability will serve as a fallback. The measure is awaiting the governor's signature.

Carol Anzai, president of the Kukui Gardens tenants association, said, "Our people are still very worried."