LIHU’E – The Kaua’i County Council decided yesterday to issue a lot purchase guarantee to assure a West Kaua’i affordable housing subdivision already two years behind schedule can go forward. After an extensive explanation from Kenneth N.Rainforth, Kaua’i County’s executive
LIHU’E – The Kaua’i County Council decided yesterday to issue a lot purchase
guarantee to assure a West Kaua’i affordable housing subdivision already two
years behind schedule can go forward.
After an extensive explanation from
Kenneth N.Rainforth, Kaua’i County’s executive on housing, the Council agreed
to authorize the Kaua’i County Housing Agency to issue a lot purchase guarantee
to the Rural Community Assistance Corporation.
The county has guaranteed to
purchase up to 10 unsold Phase I, ‘Ele’ele I’Luna lots at a total lot purchase
not to exceed $750,000.
“Several years ago the Council approved Habitat for
Humanity changing from 100 houses to 50 houses (for their own affordable
housing subdivision). They (Habitat) have not been successful in obtaining the
financing … we believe the project is good,” Rainforth said.
He added
that the funding would come from “future home allocation … 2001 home
funds.”
When questioned by Council member Billy Swain about using money
“that isn’t there (in the budget) yet,” Rainforth talked about government
duty.
“I think the county is pretty much responsible to see the project
actually happens … (we) did (already) invest almost a million dollars,” he
said.
Councilmember Randal Valenciano wanted to know when the county knew
Habitat for Humanity had failed to follow through on the project.
“When
Habitat failed to do what they promised to do … they failed to build a
subdivision … over two years in default,” Rainforth said.
“It seems like
we’re becoming the lead entity?” Valenciano said.
“Anytime the county
approves a project it’s the county’s responsibility to see those funds are used
as intended,” Rainforth answered.
“All the bells are ringing … I’m not
sure I’m satisfied,” Valenciano said.
“We’re proposing to guarantee … so
the developer is not left holding a subdivision with vacant lots. It’s a
guarantee and if the project goes sideways the county would be responsible,”
Rainforth said.
The project, 50 house on the westside of the island, had
originally been slated for completion in the summer of 1998.
The county
would no longer hold the first mortgage on the project though according to
Rainforth.
“The county has agreed to subordinate its loan to the Bank of
Hawaii,” he said.
Council unanimously approved the request.
Dennis
Wilken can be reached at 245-3681, extention 252, or via e-mail[
HREF=”mailto:dwilken@pulitzer.net”>dwilken@pulitzer.net]
