A resolution to allow leases of six county-owned residential properties to nonprofits to provide “long-term permanent housing for underserved populations who face significant barriers to secure, safe and affordable housing” was shelved for a second time last week by the County Council Finance Committee.
The committee on Tuesday voted 7-0 — with Councilwomen Ashley Kierkiewicz of Puna and Michelle Galimba of Ka‘u excused — to table Resolution 425-26 until the committee’s April 7 meeting. The request for the postponement of Resolution 425-26 came from the county’s Office of Housing and Community Development.
“We’re requesting a postponement until April 7 to compile all the information that council has requested, OHCD Administrator Kehaulani Costa told the committee. “We’ve also asked (Corporation Counsel) to provide us with a legal memo in regards to … the federal Fair Housing Act and Adults With Disabilities Act and related laws, just to make sure we are in compliance with those laws, that the direction that’s being given to us is in compliance with those federal laws.”
A property at 76 Makani Circle in Hilo’s Waiakea Uka neighborhood was taken off the inventory of houses in the resolution, which would be leased to the nonprofits for $10 each per year. The county’s plan for that home, purchased in October by OHCD for $809,000, irked many in the neighborhood, and testimony against the lease prompted the nonprofit, Going Home Hawaii, to pull out of the deal.
Still, all but one of the testifiers Tuesday were from the Makani Circle neighborhood, all opposing the resolution, voicing the same concerns about potential residents having a negative impact on the family-oriented neighborhood, and a perceived lack of transparency by the county surrounding its plans for the property and the others.
Tom Callis, spokesman for Mayor Kimo Alameda, told the Tribune-Herald earlier this month the federal funding requires the homes purchased be used for “long-term affordable housing” which, according to the U.S. Department of Housing and Urban Development, requires it to be leased for six months or longer.
Makani Circle resident Joan Toledo called the purchase of the homes by OHCD with the intent to lease cheaply to nonprofits that provide rehabilitative services to individuals with special needs “a poor use of money.”
“The use of these homes will not meet the intent stated to be for long-term leases, but will be revolving doors of tenants coming and leaving, because the long-term leases are with the nonprofits, not with the tenants,” Toledo said. “As regards 76 Makani Circle, while this property was removed from the resolution at the March 3 meeting, it is still with OHCD, and we still do not know what will be done.”
Marsha Krieger said she was concerned by both the ethics surrounding the sale and purchase of the property and “the continued lack of transparency” by the county.
“We’ve been told over and over that we don’t need to be told, we don’t need to be informed,” Krieger said. “President Lincoln once said of our government it is a government of the people, by the people, and for the people. But what I see is an administration that doesn’t want to collaborate, doesn’t want to communicate. Instead, it wants to dictate.”
Krieger urged the council and the administration to act in a manner to “encourage a more transparent and service-oriented mindset moving forward.”
Dave Baptiste suggested the properties could be rented to traveling nurses and doctors, many of whom work at Hilo Benioff Medical Center, saying, “They could actually help the community.”
“I’d rather not have bringing back any kind of a rehab or halfway home. It’s not a great idea,” he said.
Ashley Ferraro, an Orchidland Estates resident, said she had received services years ago as a homeless mother and later worked as a homeless outreach coordinator for a nonprofit she declined to name for “privacy” concerns. Ferraro testified against the measure.
She said she was “particularly concerned” about a 4,472-square-foot multi-family home at 16-1397 35th Ave. in Orchidland purchased by the county for $840,000 in November. According to the resolution, OHCD wants to lease the property to HOPE Services Hawaii, a homeless services provider.
“This street is a home to many families with young children,” Ferraro said. “While we have excellent organizations that provide 24/7 staff on site for the safety of multi-households, there’s no guarantee that this will be the case. Moreover, there are no council meetings where the public can vote on which organization will be allocated to lease these residences.
“This lack of transparency is troubling, as there are numerous issues within the system that put neighborhoods at risk for increased crime. It’s misleading to claim that these permanent housing residences don’t function as transitional housing.”
Douglas Halsted, an attorney and Makani Circle resident, said he received “a very nice email” at the end of the business day last Monday from OHCD’s private secretary seeking payment prior to supplying documents he’d requested Feb. 11 through the Freedom of Information Act.
“I feel (OHCD) has continued to stonewall to make it difficult for citizens and for the council to analyze and to review the information sought,” Halsted told council members. “I will purchase what I have and forward it to you. I think the appropriate course, based on this conduct, is for you to deny the amended resolution until and unless you receive all the information relevant, that you need to make an informed decision.”
Halsted said he believes the property purchases “were made without any clear link to an articulated county housing policy.”
“Perhaps I feel the money could’ve been more effectively spent by purchasing other than luxury, high-end homes,” he said. “I don’t think that’s the answer. I understand (OHCD) was under pressure to spend the unused grant money. You know, housing doesn’t cure the social problems. The individuals who have those types of special needs will still have those special needs when they move in. So there has to be other services brought to it. The county may have bought a potential $6 million mess. If the many issues I and other citizens have raised … are not addressed up front for the seven purchases, we run the risk of future losses and claims, and the county will hold the proverbial bag.”
The other county-owned properties listed in the resolution are:
— 73-4338 Napoo Place in Kona Palisades, bought for $1.28 million in October, with Hale Kipa the prospective lessee.
— 74-5068 Kealapua St. in Kona Chocho Estates, bought for $990,000 in October, with Mental Health Kokua the prospective lessee.
— 15-1393 29th Ave, in Hawaiian Paradise Park, bought for $530,000 in October, with Hope Services Hawaii the prospective lessee.
— 81-994 Hale Keekee Place in Kealakekua, bought for $1.25 million in October, with Mental Health Kokua the prospective lessee.
— 2089 Kinoole St. in Waiakea Homestead Houselots, bought for $860,000 in October, with Big Island Substance Abuse Council the prospective lessee.
Email John Burnett at jburnett@hawaiitribune-herald.com.
