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KULANA NANI HOUSING PRESERVATION PLAN MOVES FOWARD
Mayor Mufi Hannemann announced today that the City has signed a preliminary agreement that will allow it to purchase the land under its Kulana Nani affordable housing complex in
The agreement, called a letter of intent, is an important step toward the City’s goal of leasing or selling the land and housing to a private partner so it will be maintained well and kept affordable.
The Kamehameha Schools trust currently owns the 4.26-acre parcel, while the City owns the housing constructed there. The complex consists of 160 apartments with two, three or four bedrooms. Rents range from $536 to $714 per month.
Once the City owns the property, the package of land and housing can be transitioned to a private housing operator, such as a nonprofit group, under restrictions that will protect the residents from drastic rent increases while ensuring the apartments are not converted to privately owned condominiums.
“We recognize that there is a shortage of affordable rental housing on
Dorothea Pale, President of the Residents’ Association at Kulana Nani, said she was very pleased to hear of the City’s intent to acquire the land beneath the complex.
“This is really great news,” Pale said. “The residents are very happy that they can stay here.”
The City plans to acquire the property in exchange for approximately $3.5 million and some City-owned property on
The City will seek offers for the package of land and housing by issuing a public Request For Proposals, which should be ready by the end of March. The RFP process is expected to take up to one year to complete. The winning affordable housing partner will then assume all responsibility for the management and maintenance of Kulana Nani.
Kulana Nani is one of 12 housing properties owned by the City, which include a total of 1,257 rental apartments.
The City loses approximately $3.5 million each year operating the properties, and has long been moving toward leasing or selling them to responsible private owners who would be required to keep the apartments affordable.
In 2006, the Hannemann administration retained the REH Capital consulting firm to review its affordable housing portfolio. REH confirmed earlier findings by a city Asset Management Review Team and reported that there is an active market of potential buyers that could operate and maintain these properties better than the City.
REH recommended the City transition its 12 affordable housing properties with three major restrictions:
· The units must remain rental apartments (they cannot be sold off as condominiums);
· Rents must remain affordable at the current levels based on federal Housing and Urban Development standards of median income;
· Annual rent increases will be limited.
Following are details about the City’s 12 housing properties:
Contact: Bill Brennan, 527-6928
|Wednesday, February 20, 2008|