The board of the state public housing agency selected a replacement yesterday for the agency's executive director in spite of some pleas from community members to keep the popular chief.

In a closed-door session, the Hawaii Public Housing Authority's board interviewed three finalists and decided to make an offer to one to replace Executive Director Chad Taniguchi.

“;We were very, very impressed”; with the chosen candidate, said board Chairman Travis Thompson.

Thompson said the board sought a new executive director in September because of different challenges facing the agency, such as $100 million in capital improvement projects, a $316 million renovation of Kuhio Park Terrace, vacant units and collections.

“;We just felt there was enough work involved to go to the next level,”; he said. “;From a financial point of view, it's going to be a real management challenge.”;

Before naming the candidate, the board must conduct a background check, get the candidate's acceptance and negotiate a starting date. An announcement could be made by the Jan. 21 meeting.

Thompson could not identify the finalists because it is a personnel matter, but said they were from Hawaii and the mainland.

Denise Wise, one of the finalists, paid her own way from Colorado to interview for the job yesterday. She told the Star-Bulletin she would bring a sense of urgency and focus and “;foster a transparent organization.”;

At the beginning of the special meeting, six community members testified in support of Taniguchi, citing his relationship with the community and the improvements he has brought to public housing.

“;He's been giving us hope,”; said Leva Alualu, president of the resident association at Kuhio Park Terrace.

She praised Taniguchi for visiting public housing facilities and encouraging residents to volunteer and clean up vacant units.

“;None of the previous executive directors has ever walked the properties,”; she said.

She said she wanted the board to know how the residents felt and possibly keep the current director.

Taniguchi, a lawyer who was hired for the position in 2007, declined to comment on the board's decision to seek a replacement. He reapplied for his current job, one of about 50 candidates, but was not a finalist.

“;I consider these 2 1/2 years as one of the highlights of my work life,”; Taniguchi, 57, told the board yesterday.

He said after five years of losing about $7 million a year, the housing authority balanced its $120 million budget last June.

The agency, which has 288 employees and oversees 6,200 public housing units, balanced its budget by improving rent collections and increasing occupancy to about 94 percent, Taniguchi said.

The agency also reduced the renovation time for vacated units from 69 days to eight.

Thompson said Taniguchi had “;done a great job.”;

But the Rev. Bob Nakata of the community group Faith Action for Community Equity said the agency's leaders do not like Taniguchi because he is outspoken.

He cited Taniguchi opposing the board's plan in 2008 to move homeless shelter residents into public housing, jumping them ahead of some 8,600 people already on a waiting list.

Thompson disputed Nakata's statement, saying the board has a much broader set of responsibilities to ensure safe, secure and sanitary places to live for many facilities across the state.