HONOLULU (AP) — Honolulu officials were depending on the profits from an affordable housing deal but the buyer wants to delay paying the city.
The city was expecting the sale of 12 rental complexes to generate $20 million that would help balance the budget. But on Wednesday, the firm buying the properties asked to defer payments until six months to a year after the March 31 closing date. City officials said the buyer also asked for 20 more years to pay the rest.
City Managing Director Ember Shinn told the council’s Executive Matters and Legislative Affairs Committee the funds were factored into the fiscal 2014 budget.
“This raises more red flags for Council members concerning the buyer’s ability to obtain the financing necessary to close the transaction that we’re all concerned about,” said Councilman Ron Menor, chair of the committee.