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(Wed., June 20, 2012)—Mayor Peter Carlisle today announced that Honolulu Affordable Housing Partners LLC has been selected to complete a leasehold purchase agreement for the City's 12 rental housing complexes. 

"I challenged our team to find a buyer who would be committed to making the capital improvements necessary to provide our residents with a better living environment," Carlisle said. "We have much work ahead of us, but we are very pleased to have achieved this milestone and look forward to working with the City Council and our residents as we move forward."

Honolulu Affordable Housing Partners is comprised of Highland Property Development LLC of Arcadia California; Mr. Richard Gushman of Honolulu, who has over 40 years of real estate experience in Hawaii and on the mainland; and Mr. Stephen Gelber, a Honolulu real estate and tax attorney who has worked on many affordable housing transactions in Hawaii.

Through its Honolulu Affordable Housing Preservation Initiative, the City released in February 2012 a Request for Proposals seeking a qualified entity to purchase the housing complexes and lease the land under them for 65 years.

The proposal submitted by Honolulu Affordable Housing Partners provides for a substantial payment to the City for the acquisition of the properties, a commitment to undertake substantial capital improvements, and a commitment to preserve affordability within the City's housing portfolio.

The City and Honolulu Affordable Housing Partners will soon be negotiating the details of the Purchase and Sale Agreement and the leases that will be submitted to the City Council for review and approval.

The 12 apartment complexes include 850 units which qualify under the federal Department of Housing and Urban Development guidelines for low and moderate income households with incomes of 80 percent or less of the median; 189 "gap group" apartments for families with incomes of 80 to 120 percent of the median; and 218 market rate rental units.

The leases will require continuation of current affordable housing guidelines throughout the term of the leases. The buyer will assume full responsibility for rental housing operations, management, and maintenance.  


Media contact: Johnny Brannon, Mayor's Office, 768-5767.