Fearful of losing their affordable housing, a group of Kahuku residents has filed a lawsuit to stop their landlord from quitting a subsidy program that helps pay the rent.

The Legal Aid Society of Hawai'i yesterday filed suit in Circuit Court on behalf of several senior citizens living in Kahuku Elderly Housing and the Kahuku Senior Citizen Community Association to stop Kahuku Housing Foundation Inc. from leaving the U.S. Housing and Urban Development Section 8 subsidy program.

Leaving the program puts the seniors at risk of losing their homes and other protections required of HUD projects, said their attorney, Gavin Thornton. HUD rules make sure living standards are met, protect against intimidation, allow formation of tenants' associations, limit security deposits and guard against unwarranted eviction, Thornton said.

"There's lots of really scary issues facing these tenants if this opt-out happens, and the biggest one is that these folks will lose their homes," he said.

But the Kahuku Housing Foundation said that will not happen.

John (Junior) Primacio Jr., a member of the foundation board, said the foundation wants to keep the housing project primarily for seniors and intends to apply to a voucher program that subsidizes low- to moderate-income residents. And the program has an added benefit. If a tenant moves, he or she will be able to use the voucher at other subsidized properties, Primacio said.

"We're not opting out of Section 8 per se, because the money (is) still coming from HUD," he said, adding that rumors are upsetting people and he is sure the foundation is doing the right thing for everyone.

Quitting the Section 8 subsidy would also benefit the foundation because HUD requirements are stringent, he said.

"We really don't want to get involved with all the HUD requirements," Primacio said. "Under the voucher system, everything goes through the city. The city would administer the compliance with HUD. Of course, we have some obligations as well, but not as stringent as dealing directly with HUD."

The Kahuku Elderly Housing project opened in 1978 and is part of the Kahuku Village that is across Kamehameha Highway from Kahuku High & Intermediate School and next to the Kahuku Golf Course. There are 64 units in 32 duplex buildings on six acres. Under an agreement with the city, the foundation leases the property for $1 a year and has a 75-year lease.

Primacio said the foundation would like to expand the project and build more affordable units on the property in anticipation of more need.

"We don't want to leave any elderly caught without being able to find some place fair and reasonable to rent," he said. He said the foundation has no money to build but hopes to get others interested.

Primacio said he doesn't understand the resistance to the foundation's move.

Attorney Thornton said once the foundation quits the Section 8 program, it can never go back. The foundation has until April 30 to change its mind, and Thornton said he's not sure the foundation fully understands the consequences of this action.

Residents said they fear once the oversight is gone, residents could be subjected to eviction, especially anyone who has complained about poor conditions. They said they worry for the elderly who are in their 70s, 80s and 90s. Without HUD oversight, inspections won't be as thorough, they said.

The vouchers are useless because there are no units to rent, said Tim Shea, a resident of the elderly housing project. Under the new system, as many as three elderly tenants could be kicked out because they do not qualify for vouchers under the city's rules, Shea said.

"Ladies come to me that are 87, 88 years old and they're telling me ... 'We don't have the strength or will power to go through a moving process," he said.

Reach Eloise Aguiar at eaguiar@honoluluadvertiser.com.