ASSOCIATED PRESS Japanese billionaire Genshiro Kawamoto, left, hugged Dorie-Ann Kahale yesterday after handing over keys to a multimillion-dollar home in Kahala for her and her family to live in. Kawamoto selected eight Native Hawaiian families that will each live in one of his multimillion-dollar homes in the neighborhood. CLICK FOR LARGE

Kahala neighborhood has mixed reaction to Kawamoto

Not all residents are happy with his letting families live rent-free in three nearby homes

» The first three families see their new homes

The neighborhood had a mixed reaction to the three low-income families that moved into rent-free multimillion-dollar Kahala homes yesterday.

Some neighbors said Kawamoto was being a generous man, while others called it a publicity gimmick and suspect an ulterior motive.

Japanese billionaire Genshiro Kawamoto carried out the first step of what he dubs his "Kahala Avenue Mission" by handing keys to three families from the Leeward side.

The Kahales, Worleys and Gusmans will be moving in over the next few days.

In the past few months, Kawamoto has had workers remove fences, and fill in the swimming pools at the properties with dirt for lower maintenance.

But some residents, including Anita Bruhl, who sits on the Kahala Community Association board, are livid.

"If these people do not maintain the properties, he will have the full force of the neighborhood coming down on their heads," said Bruhl, also a Realtor with Mary Worrall Associates. "We're going to watch him like a hawk."

Carl Smigielski, principal broker of Sandwich Isles Realty, said a potential buyer changed his mind about buying a Kahala home after reading about Kawamoto's plans.

"Watch out," said Smigielski. "This man is not who he says he is. The bottom line is, how can you say, Hawaiians only need apply."

Richard Turbin, a member of the Waialae-Kahala neighborhood board, said residents have voiced concerns about Kawamoto.

Kahala's property deeds come with covenants requiring that residential lots be landscaped and kept neat and attractive.

"The main thing is we want him to maintain the property," said Turbin. "If he's going to be a good homeowner, he can't just put tenants in the houses and walk away... He has a track record of buying property and letting it become fallow."