The County of Kaua’i has ended foreclosure action against the Kaua’i Habitat for Humanity after the organization repaid a $980,000 county loan for the development of a 24-acre residential project in ‘Ele’ele. With a donation from an anonymous donor, the
The County of Kaua’i has ended foreclosure action against the Kaua’i Habitat for Humanity after the organization repaid a $980,000 county loan for the development of a 24-acre residential project in ‘Ele’ele.
With a donation from an anonymous donor, the organization repaid the loan last week before the county followed through on a summary judgment in court to collect the money, according to First Deputy County Attorney Amy Esaki.
The county also will not pursue $117,600 in late fees because the loan was “made with no interest to assist an affordable housing project by Kaua’i Habitat,” said Gary Mackler, a development coordinator with the Kaua’i County Housing Agency.
“The county demand for repayment was always $980,000. That never changed,” Mackler said.
The repayment of the loan by a donor was “extremely generous,” Mackler said, adding “it says a lot about the individual, whoever that person may be.”
Patrick Stack, director the Kaua’i Habitat, which is based in the historic Amfac Building in Hanapepe, said “we are very, very grateful that the anonymous donor thought to help us out.”
The organization will be moving ahead with the ‘Ele’ele project as it is now seeking final county subdivision approval, Stack said. The next step involves securing county building permits.
In 1997, the County of Kaua’i provided Kaua’i Habitat with a $2 million grant from the Home Investment Partnerships program with the U.S. Housing and Urban Development to build up to 100 self-help homes islandwide, Mackler said.
After Kaua’i Habitat successfully built 51 homes with about $1 million of the grant funds, the remaining $980,000 in grant funds was reprogrammed into a loan to help the organization acquire the 23-acre site from Alexander and Baldwin, Mackler said.
Kaua’i Habitat also secured a $500,000 grant through the Self- Help Home Ownership Opportunity program administered by HUD to complete the land purchase, Mackler said.
When Kaua’i Habitat had delays with the project, the county was compelled to recover the money to avoid future problems with HUD. The county later filed foreclosure action against Kaua’i Habitat.
The near-default of the loan by Kaua’i Habitat won’t make it more difficult for the organization to borrow funds from the county for housing in the future, Mackler said.
“Kaua’i Habitat is eligible to apply for federal grant programs the county administers, should they decide to do that,” Mackler said. “The county will evaluate any applications we receive from Kaua’i Habitat or any other applicant on their individual merits.”
Mackler said Kaua’i Habitat has been very successful in building self-help units on Kaua’i. The county has assisted Kaua’i Habitat with various costs for 71 homes the origination has developed, Mackler said.
The organization uses volunteer labor in the construction of homes and is associated with the national Habitat for Humanity organization started by President Jimmy Carter.
Staff Writer Lester Chang can be reached at mailto:lchang@pulitzer.net or 245-3681 (ext. 225).
