Affordable housing on Kahala Ave?

[craigwatanabe]

Re: Affordable housing on Kahala Ave?

Individuals can't be "charities" under the strict interpretation of the IRS laws. They would have to incorporate as a 501(c)3 in order to have the donor to gain any kind of tax writeoff on that "gift" and as far as I know, Kawamoto doesn't have a foundation set up either for himself or for his tenants.

I got a #2 reason, Craig: HE'S WHACKO!

Miulang

But what if he creates a non-profit revocable trust for each home and him as the trustee. Then he creates a power of attorney in which he throws in the full amount of what should be fair rent for that neighborhood minus the amount the renters pay him.

Being a non-profit trust he can write off his portion as a charitable donation to the trust all the while having control of it as the trustee. The Power of Attorney will allow all future income to the trust be tax deductable.

And because it's revocable he can change the trust's wording anytime he wants as the trustee.

I still don't know why he'd single out native Hawaiians under this scenerio but then something tells me as in earlier posts, he may be attempting to be in the faces of those living around his properties by renting to those who would be "undesireable" to the neighborhood's snobbish attitudes.

As for #2...whacko? Well you don't get to be a billionaire by spending your money foolishly. Whacko? Nah maybe Eccentric but he's definately got something up his sleeve and it probably has everything to do with wealth preservation or growth. The wealthy are pretty smart when it comes to attaining monetary growth.

[damontucker]

Re: Affordable housing on Kahala Ave?

So you say he's family...okay, lets say Manoa is travelling to the Big Island and he's gonna stay at my house for a month ( ) for free because I'm such a nice guy , is the IRS gonna tax him for the benefit of living at my place based on fair rental or hotel book prices? NO WAY!

I need to remember this... my mom would probably charge me RENT!

Can I sign a 3 year lease now Craig?

[808shooter]

Re: Affordable housing on Kahala Ave?

As a landlord, you can rent for whatever amount you deem desireable. Take for example a couple with an adult child who isn't a dependent but lives there for free. Technically that child is living there but not paying rent. Are you gonna tax him for "benefits"? No way.

So you say he's family...okay, lets say Manoa is travelling to the Big Island and he's gonna stay at my house for a month ( ) for free because I'm such a nice guy , is the IRS gonna tax him for the benefit of living at my place based on fair rental or hotel book prices? NO WAY!

Nice.

I think this puts this issue to bed.

[Kahalu'u Kid]

Re: Affordable housing on Kahala Ave?

People, why does everyone insist on hating?!! Don't be a hater. Write Mr. Kawamoto a thank you note or something to relieve yourselves. Then ask YOURSELF what you've done to help Hawaiians with affordable housing. NOTTIN! In fact, we should kick everybody out of Kahala, and let Hawaiians live there. (That'll probably never happen since haoles are controlling everything now). I think it's a total disgrace that many Hawaiians don't have a place to live. After all, this is THEIR island. Auwe!

And don't give me no bull about it isn't fair to give preference to Hawaiians because it's discriminatory. How about giving back to Hawaiians. The haole attitudes of "take, take, take" still continue to this day. Terrible. Last time I checked, native Hawaiians are at the bottom of the economic ladder. So I say give them preference until their situation improves, because they deserve it.

P.S.--I've read a lot of the posts, and I can't believe so many local people (of Hawaiian ancestry or not) talk stink or do not support something like this that will obviously benefit Hawaiians. Wake up!

[tutusue]

Re: Affordable housing on Kahala Ave?

[...]Then ask YOURSELF what you've done to help Hawaiians with affordable housing. NOTTIN![...]P.S.--I've read a lot of the posts, and I can't believe so many local people (of Hawaiian ancestry or not) talk stink or do not support something like this that will obviously benefit Hawaiians. Wake up!

KK, I think a lot of the negativity related in this thread is less about not recognizing the benefits to Hawaiians and more about not trusting the end motives of Mr. Kawamoto. Will the Hawaiians who are selected for these leases come out unscathed in the end? That remains to be seen. I'd venture a guess that most, if not all, of us here on HT cannot begin to come close to being in the financial position to help Hawaiians with affordable housing that Kawamoto is. I'd even guess a fairly large percentage of HTers, regardless of race, are stretching to make their own rent or mortgage payments. Just my 2 cents.

[Kahalu'u Kid]

Re: Affordable housing on Kahala Ave?

KK, I think a lot of the negativity related in this thread is less about not recognizing the benefits to Hawaiians and more about not trusting the end motives of Mr. Kawamoto. Will the Hawaiians who are selected for these leases come out unscathed in the end? That remains to be seen. I'd venture a guess that most, if not all, of us here on HT cannot begin to come close to being in the financial position to help Hawaiians with affordable housing that Kawamoto is. I'd even guess a fairly large percentage of HTers, regardless of race, are stretching to make their own rent or mortgage payments. Just my 2 cents.

Aloha Tutusue, you're right. I was just venting yesterday, I guess. I guess a healthy does of skepticism keeps everything in perspective. It's just so hard for me to bite my tongue because I too have Hawaiian family and friends living on the beach. And I'll support or jump at any opportunity I have to help them. (Unless it's something that will obviously hurt them, but is that really the case here?).

With regards to Kawamoto though, lets just patiently wait and see how it plays out. It's still interesting to me though, how Kawamoto can do a seemingly innocent good deed, and everyone questions his motives with a microscope. I wish we were more critical of our own government in the same way since they don't seem to be in such a rush to help the homeless or Hawaiians. (That is, unless more and more tourists complain about the problem, and the govt feels it might hurt tourism. I'm being sarcastic.)

So let me ask you, who do you trust more to help the homeless, Genjiro Kawamoto or Linda Lingle? It was interesting to see how Lingle started trying to do stuff right around election time. And exactly what has she done anyway? Yeah, lots of meetings, planning and "we're getting the ball rolling" (typical bureaucratic bull) but where are the results? Where? At least with Kawamoto, there'll be three or four families (around 100 people), off the beaches, hopefully before New Years. Now that's what I call REAL results.

[damontucker]

Re: Affordable housing on Kahala Ave?

So let me ask you, who do you trust more to help the homeless, Genjiro Kawamoto or Linda Lingle? ...

No ifs and or buts about this one.... LINGLE! And I didn't vote for her.

[Pretender]

Re: Affordable housing on Kahala Ave?

So let's look at the benefits of renting low:

1) lower income so less tax consequence

hmmm I was going on to number 2 but I couldn't see anymore benefits why other than charity.

That's gotta be the reason why he's renting so low...charity. Is there any tax break for renting to indiginent people? If so then the difference between what he's renting for and the fair rental amount would be tax deductable.

Is it possible he's making these renters charitable institutiions and writing off the difference as a charitable deduction? Hmmmm

Here is my take on why Kawamoto MAY run into issues with the IRS for renting low. Generally landlords at the end of the year total up operating expenses from their properties, stack them up against revenues and in the case of a loss, can use that loss to offset other tax liabilities. If the IRS has determined that you have artificially suppressed revenue (rent) through under reporting or charging significantly under what is “market rent”, and this results in an inflated loss figure, then they have some problems.

The minefield you enter when overtly practicing discriminatory screening processes has already been covered. Let me assure you however that there are agencies at both the State and Federal level that live to investigate such practices. I would not be surprised if the fireworks start after the first lease is signed, since there is really no “harm” to anyone until then.

My two cents.

[craigwatanabe]

Re: Affordable housing on Kahala Ave?

With regards to Kawamoto though, lets just patiently wait and see how it plays out. It's still interesting to me though, how Kawamoto can do a seemingly innocent good deed, and everyone questions his motives with a microscope. I wish we were more critical of our own government in the same way since they don't seem to be in such a rush to help the homeless or Hawaiians. (That is, unless more and more tourists complain about the problem, and the govt feels it might hurt tourism. I'm being sarcastic.)

So let me ask you, who do you trust more to help the homeless, Genjiro Kawamoto or Linda Lingle?

"Seemingly innocent good deed". BINGO you said it. Where were you when Genshiro did his massive buyout of Kahala homes in the 80's? He wasn't the saint that you paint. It was people like him that drove up the cost of real estate here in Hawaii artificially, forcing out renters and making people who wanted to simply buy a home unable to do so. Who did he hurt the most? Low income renters who didn't qualify for section 8 housing and were forced to become homeless because of escalating rental costs...YES as it's happening now, it happened back in the 80's thanks to people like Mr. Genshiro Kawamoto.

So to answer your question on who do you trust more to help the homeless? I'll take Lingle anyday.

[TuNnL]

Re: Affordable housing on Kahala Ave?

So to answer your question on who do you trust more to help the homeless? I'll take Lingle anyday.

I agree with you craig — with one important distinction: Lingle has only helped the homeless because Mufi Hannemann has forced her to do so through his Ala Moana and Wai‘anae “beach cleaning” efforts. Ask yourself, would the Kaka‘ako shelter have been built if there wasn’t the very real threat of hundreds of homeless evictions? What about the one in Kapolei? “Trust” ’aint got nothing to do with it.

[craigwatanabe]

Re: Affordable housing on Kahala Ave?

I agree with you craig — with one important distinction: Lingle has only helped the homeless because Mufi Hannemann has forced her to do so through his Ala Moana and Wai‘anae “beach cleaning” efforts. Ask yourself, would the Kaka‘ako shelter have been built if there wasn’t the very real threat of hundreds of homeless evictions? What about the one in Kapolei? “Trust” ’aint got nothing to do with it.

You are correct but in this case the choice was either Lingle or Kawamoto. And you have to choose between the lesser of two evils right?

Kawamoto is up to something and his deeds are up to no good.

[i-hungry]

Re: Affordable housing on Kahala Ave?

Blah blah blah. Where can I sign up for this affordable housing?

[TuNnL]

Re: Affordable housing on Kahala Ave?

With regards to Kawamoto though, lets just patiently wait and see how it plays out.

Whoohoo! Let the games begin!

[TuNnL]

Re: Affordable housing on Kahala Ave?

Move in day, yesterday. Wow, Kawamoto actually slashed the cost to these families even more. Instead of paying $150 a month in rent, they get to live there for free!!! Some of these people were living in homeless shelters, so who knows if they can even afford the electricity, water and gas bill.

No one crying discrimination lawsuit yet. Maybe it is legal after all. The news media seems to be dancing around any controversy.

[GnosticWarrior]

Re: Affordable housing on Kahala Ave?

[quote=TuNnL;137423
No one crying discrimination lawsuit yet. Maybe it is legal after all.[/quote]

I think that's why he made it rent free.

I can't understand why people would actually want to stop someone's philanthropy. It's not like it's costing the tax payer. Yes, life is not fair and no one knows this better than Native Hawaiians. The rest of us are actually beneficiaries of their demise.

I hope these families use this opportunity to paydown whatever debt they have or to start building up their investment portfolio's.