Kukui Gardens to be sold 2500 Tenants to be evicted!

[Ron Whitfield]

Kukui Housing disgrace?

The renovations are nearing completion, and today we get news that these once affordable units will now be unavailable to the residents unless they accept a quadruple increase in rent!
http://www.staradvertiser.com/news/h...uncertain.html

[GeckoGeek]

Re: Kukui Gardens to be sold 2500 Tenants to be evicted!

Someone tell me what this latest development means...

The quick summery - a battle between two parties that have little to do with the politics surrounding Kukui Gardens except for the fact that it happens to be that building.

I'm not sure of your knowledge level, so I'll go a bit basic. When a mortgage is taken out on a unit, the loan is placed on the title of the property. The title can't be transfered unless the mortgage holder says "ok".

There's usually two ways to get the ok. One is to have the buyer assume the mortgage (provided the mortgage can be assumed and the mortgage holder is ok with the buyer). The other way is to pay off the mortgage.

A mortgage is a financial contract that goes for a specific period of time. If it's payed off early, that's called "prepayment". That's usually covered in the contract. Keep in mind the mortgage holder is getting income off the interest. By prepaying, they get their principle sooner, but they don't get the interest they would have otherwise received. So some times there's a prepayment penalty.

While the SB article says the loan was "below market", I'll bet it was below market in 1969. A quick google shows the prime rate in 1969 was between 1 to 1.5 points higher then today. So I think the mortgage holder isn't going to want to turn loose of their investment and is assessing a high prepayment penalty.

Without knowing the terms of the contract, I've got no clue who is going to win this one (besides the lawyers).

[TuNnL]

Re: Kukui Gardens to be sold 2500 Tenants to be evicted!

Someone tell me what this latest development means...

Suit filed over Kukui Gardens transfer

By Nelson Daranciang
ndaranciang@starbulletin.com

The former owner of the Kukui Gardens housing complex says its mortgage holder is not allowing it to pay off what it owes on the loan until it pays $4 million in prepayment and other fees.

[GeckoGeek]

Re: Kukui Gardens Agreement Reached

Astolfi said all residents earn less than 120 percent of the median income.

Interesting. Not just median, but 120% of median. I guess I'm not quite connected with what affordable housing is about.

[1stwahine]

Re: Kukui Gardens Agreement Reached

Forgot to ask, is MWH owned by the state at the moment?

Just saw your question.

MWH is owned by the State and Run by the State.

Auntie Lynn

[achow]

Re: Kukui Gardens to be sold 2500 Tenants to be evicted!

Mahalo for the update on the Kukui Garden deal... I really appreciate it.

[1stwahine]

Re: Kukui Gardens Agreement Reached

You think they only think one way or they just not bright enough to come up with ideas like that? Maybe we should pass that along and then see what they think.

HAHAHAHAHAHA

Well, there's HOPE! My State Rep. was newly elected in office and Kukui Gardens just happens to be in his District. He is Rep. Karl Rhoads. Now it remains to be seen if MWH is going to be forgotten like in the past.

As for the rest ~ Both!heheheh

We need new Blood and New Ideas! When you stay in Office too long ~ too much Limu grows no can see clearly!

Auntie Lynn

[joshuatree]

Re: Kukui Gardens Agreement Reached

heheheh

I like your thinking but it won't happen.

Dey only think one way.

Auntie Lynn

You think they only think one way or they just not bright enough to come up with ideas like that? Maybe we should pass that along and then see what they think.

Forgot to ask, is MWH owned by the state at the moment?

[1stwahine]

Re: Kukui Gardens Agreement Reached

I wonder if $55 mil is enough to rebuild MWH from scratch with condos so it can eradicate the security problem at MWH, have enough capacity to house all current occupants of MWH, and have enough capacity to house all of Kukui Garden residents? Two birds with one stone.

heheheh

I like your thinking but it won't happen.

Dey only think one way.

Auntie Lynn

[joshuatree]

Re: Kukui Gardens Agreement Reached

Not Yet!!

I wonder if $55 mil is enough to rebuild MWH from scratch with condos so it can eradicate the security problem at MWH, have enough capacity to house all current occupants of MWH, and have enough capacity to house all of Kukui Garden residents? Two birds with one stone.

[1stwahine]

Re: Kukui Gardens Agreement Reached

Finally, closure to this issue! Amen.

Not Yet!!


http://starbulletin.com/2007/01/25/news/story04.html

State leaders leery about subsidizing Kukui Gardens

Without state help, units would stay affordable until 2011

By Robert Shikina

"Asking the state to pitch in $55 million to help Kukui Gardens remain affordable is raising serious concerns among state leaders.

As part of an agreement reached between Kukui Gardens residents and San Francisco-based Carmel Partners, the state would have to come up with the money to subsidize the purchase.

House Speaker Calvin Say has only heard about the agreement and, along with Rep. Karl Rhoads, introduced a bill to keep negotiations alive.

As part of the agreement, if the state does not fund the $55 million, then Carmel will keep the complex affordable until 2011.

Astolfi said all residents earn less than 120 percent of the median income.

"If you make it affordable forever for people making 140 percent of median income, you're really talking about displacement," he said."

It's not OVER! $55 MILLION is a lot of $$$. Already State Leaders are griping. Nope. It's not over. It's continuing....

Auntie Lynn

[TuNnL]

Kukui Gardens Agreement Reached

Finally, closure to this issue! Amen.

Posted on: Wednesday, January 24, 2007
Kukui Gardens agreement reached

By Rick Daysog
Advertiser Staff Writer

The Kukui Gardens apartments will remain affordable under a compromise that will require upward of $55 million in state funding.

[achow]

Re: Kukui Gardens to be sold 2500 Tenants to be evicted!

I have to say this from experience! I don' t think that Kukui Gardens will be sold because there are too many elderly people living there. I should know because I used to live in Kukui Gardens! Actually, Kukui Gardens is still my home because I grew up in an apartment in Kukui Garden!

[Miulang]

Re: Kukui Gardens to be sold 2500 Tenants to be evicted!

Something else is happening with this pending sale. A housing consultant will be meeting with the Kukui Plaza tenants to describe a financing plan that might allow Kukui Plaza residents to buy the building for $80 million.

Seems kind of peculiar that both Lingle's statements and the arrival of this nonprofit housing consultant should be announced on the same day. And there's still the issue of whether or not Kukui Gardens Corp, which currently owns Kukui Plaza, would even consider an alternate bid.

Chanu Lee of Devine & Gong, a consulting firm that has preserved and developed more than 10,000 affordable-housing units throughout the country, said she has a commitment of $80 million from a mortgage lender for the purchase of Kukui Gardens.

"We have proposed a win-win situation where a nonprofit would come and be able to purchase the property for $80 million," Lee said yesterday at a news conference held at Kukui Gardens. She identified the lender as Capmark, formerly known as GMAC Commercial Mortgage Corp.

Lee also said her firm has a commitment for $20 million from Enterprise Community Investments, Inc., a tax credit investor based in San Francisco.

"Combined, we would be able to purchase the property and also do rehab of $20 million to fix up the property and keep the place affordable for current residents in perpetuity," she said.

Miulang

[TuNnL]

Kukui Sale to Carmel Properties Illegal?

Okay Ryan, I promise this is the last one I post until someone else shows interest, but I think you’ll agree, this is a significant development that changes the entire debate.

State legal opinion could hamper Kukui Gardens sale

Gov. Linda Lingle said today it would be illegal for the U.S. Department of Housing and Urban Development to approve the prepayment of a federally backed loan to the owners of the Kukui Gardens affordable rental complex.

Whoah!!! Only in an Election Year, huh?