With an annual loss of $3.5 million a year to maintain 12 rental properties on O'ahu, a maintenance backlog totaling millions more and the lack of expertise in managing housing units, it's easy to see why the city opted to get out of the public-housing business.

A consultant's report from Los Angeles-based REH Capital made that point clear and recommended the city "divest" itself of its 1,257 affordable units islandwide.

The city has its plate full in dealing with an aging sewer system, providing police and fire services, maintaining its share of streets and working out a new mandate from voters to make recycling a priority.

So Mayor Mufi Hannemann's plan to move the city out of the housing business should come as no surprise.

The good news is that the city is taking a strong stand on preserving the affordability of these rental units. The mayor promised to make sure that the apartments remain as rentals and not be sold off as condos; that the rentals will remain affordable; and that any annual increases in rents would be limited.

Keeping this promise will certainly be a challenge.

The first property up for sale — the Kulana Nani apartments in Kane'ohe — sits on leased land owned by Kamehameha Schools (the land was put on the market for $6.8 million) and the building has roughly $10 million worth of deferred maintenance. With those terms, and in order to keep the units affordable, the city will have to be creative with both Kamehameha and the potential buyer. That likely will require a fair number of incentives.

The mayor says the city is exploring such options, adding that he plans to work in lockstep with the City Council's newly established affordable housing committee to get the job done. Let's hope so.

While finding buyers for all 12 properties will be a challenge, the mayor has rightly placed the priority on maintaining affordable housing — something that O'ahu simply can't afford to lose.