Business Briefs

Reported by Star-Bulletin staff & wire

Friday, August 29, 1997

Construction begins on
Napili housing project

Construction begins today on a state-backed Maui townhouse project for low-income renters.

Napilihau Villages Joint Venture is developing the 80-unit project on 3.5 acres in Napili.

It is getting federal and state tax credits worth more than $10 million over 10 years for the project, according to the Housing Finance and Development Corp., which administers the tax-credit program. In exchange for the credits, the developer has to keep the apartments affordable to low-income renters for 30 years. Monthly rents will range from $515 to $660 for the two-bedroom townhouses.

The Hawaii Community Reinvestment Corp. is providing financing for the project.

Two economic reports
spark inflation fears

WASHINGTON -- Fresh signs of a robust U.S. economy emerged today, but they fed concerns about a new round of inflation.

The Commerce Department reported that consumer spending shot up 0.8 percent in July, fastest in six months, while sales of new homes rose 0.9 percent, the third straight advance. Stock and bond prices fell in response.

"The kind of growth we're seeing and are likely to see is eventually going to be too strong for the Fed," said economist Richard Berner of the Mellon Bank. "The domestic economy is fundamentally extremely strong and the threat that inflation could rise is with us."

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