Elderly housing contract
in Kaneohe to be awarded

By Jerry Tune
Star-Bulletin

City officials expect to award a contract next week for the long-delayed elderly housing project in Kaneohe.

The city hired Pacific Housing Assistance Corporation to develop the 75-unit rental project on a 1.5-acre parcel near St. Mark's Lutheran Church.

The project has been plagued by rising costs and design problems that delayed construction for nearly two years. The city could lose almost $2 million in federal tax credits if work does not begin by the end of the year.

However, Pacific Housing executive director Marvin Awaya said the project is back on track and a construction contract should be awarded next week.

Thirteen companies submitted bids ranging from $7.78 million to $9.83 million -- all within the budget guidelines of $10 million, Awaya said.

After redesign and dropping six units from plans, the project construction costs came down from an estimated $11.2 million to the low bid of $7.78 million.

The project's total cost, including financing, is about $11-$12 million, he said.

Construction should take 13 months, with occupancy in early 2000, Awaya said.

Under guidelines from the U.S. Department of Housing and Urban Development, 45 units will be rented at no more than 30 percent of the renter's income, and other units also will be less than market rates, Awaya said.