Home lands gets
By Pat Omandam
$3 million OHA grant
Star-BulletinThe Office of Hawaiian Affairs backed up its joint effort to build rental housing for Hawaiians by awarding a $3 million grant to the Department of Hawaiian Home Lands.
But the two trustees who voted against the grant believe there are better ways to finance the 4-year-old project than in cash.
"Any banker on Bishop Street will tell you that it's far better to finance $3 million, pay a debt service and keep the money in the bank and get a higher return so you continue to make a profit, while financing this project," trustee Clayton Hee said.
OHA Chairwoman A. Frenchy DeSoto yesterday said the board voted 6-2 to reallocate $3 million in trust funds to the department from the $10 million now set aside for Hawaii Habitat for Humanity. DeSoto said the board majority understands the implications of financing raised by trustees Hee and Moses Keale, but decided the money is needed now to build housing for Hawaiians, especially the kupuna, or elderly.
"This may not be the panacea for financing, however, if we have money sitting in the bank and not addressing the needs of a particular group of beneficiaries, then that becomes a problem in my view," DeSoto said.
Hawaiian Homes Chairman Kali Watson said the area of kupuna housing has been ignored in the past and praised OHA's commitment to address those needs. The $7 million joint project calls for a 83-unit rental complex and commercial center on seven acres of land near Waimanalo Beach Park.
The 550-square-foot, one-bedroom units units would be awarded first to kupuna who are homeless, have low incomes or are on the homestead waiting list. Already, Watson said 280 elderly people qualify for the project.
Watson said the department would cover the rest of the $7 million cost through tax-exempt bond financing. The goal, he said, is to keep the building costs down so rental costs remain low. He estimates each unit would rent for no more than $450 each.
After yesterday's announcement, however, Hee complained the OHA leadership was not being fiscally prudent by awarding the grant rather rather than financing the amount.
The former board chairman said the project was originally predicated on bond financing so OHA could keep the $3 million in its $311.6 million investment portfolio while it paid off a lower debt service or interest on the project. That's what any fiscally minded person would do if it was their own money, he said.
"If you treat the money like its yours, you'll make the right decision for all the beneficiaries," Hee said.
Still, OHA Vice Chairwoman Haunani Apoliona stressed the agency will keep control of the grant until the department secures the rest of the financing for the project and groundbreaking begins. The grant reverts back to OHA if the project falls through, she said.
January 97 OHA Ceded Lands Ruling
