The University of Hawaii at Hilo is mulling ways to boost low occupancy in its newest residence hall, a problem that has forced the school to dip into reserve funds in order to pay back debt from the building’s construction.
Hale ‘Alahonua, a 300-bed, suite-style dormitory opened in fall 2013 to help mitigate a housing shortage. It was the first dorm built at UH-Hilo since 1989.
Part of the $28 million project was funded with a 30-year, $17 million revenue bond, to be paid back through money generated from housing fees.
But the dorm has since struggled to fill all its beds. Occupancy was 57 percent that first year and dipped as low as 39 percent in 2015. It’s currently 49 percent full. All other dormitories at UH-Hilo range between 83 percent and 99 percent full, according to information provided to the Tribune-Herald.
As a result of that lower-than-anticipated occupancy, UH-Hilo has had to subsidize its $1.1 million annual revenue bond payments for three years with “additional housing funds from (its) reserves,” campus spokesman Jerry Chang said in an email.
The school allocated $411,000 annually for those payments in fiscal years 2015 and 2016, Chang said. It allocated $425,000 for FY 2017.
The campus now is drafting a “revised business plan” aimed at increasing Hale ‘Alahonua’s appeal and ultimately generate sufficient revenue to make future bond payments.
“Right now, the university is taking a look at various ways that we can begin to increase occupancy,” interim Vice Chancellor for Student Affairs Gail Makuakane-Lundin told the Tribune-Herald.
There’s no one way to do that, Makuakane-Lundin said, but administrators are weighing multiple options — for example, lowering the cost to live in Hale ‘Alahonua.
Residents pay $3,859 per semester for a two-bedroom single unit — more costly than any other residence hall on campus. Students in Hale Ikena — an apartment-style residence hall and the next-most expensive housing option — pay up to $3,216 per semester.
“This is definitely the nicest dorm; everything is really nice, and there’s a nice kitchen with good amenities, and the staff is really nice,” said junior Micarah Drake, 21, a Hale ‘Alahonua resident who plans to move to Hale Ikena next semester. “I honestly think the only reason (occupancy is low) is the money. It’s just hard. A lot of people have to pay for (housing) out of pocket. … Hale Ikena is like $1,000 cheaper, and you don’t have to have a meal plan, so that’s like another $2,500 (savings) per semester.”
Hale ‘Alahonua also sits across campus, about 10 minutes away from dining facilities. Drake, along with fellow resident Marissa Dellomo, 20, said that can create a hassle during rainy weather or when carrying large amounts of food back to their room. Hale ‘Alahonua residents have access to a shared kitchen, but it’s only open during certain hours, Dellomo said.
“It’s not really far from campus, but it’s definitely far from the dining hall,” she said. “It’s only a 10-minute walk, but if you’re walking there and bringing your food back, it can be kind of a pain.”
This semester, administrators attempted to mitigate the dining issue by adding a snack station inside the dorm lounge area. The snack station sells coffee and basic food items designed to “supplement” the meal program and give residents “an option that’s really close” if needed, campus Director of Housing Miles Nagata said.
The campus also is looking at adding “amenities that might make rooms more attractive,” Nagata added, such as upgraded furniture or adding air-conditioning in certain parts of the building that get uncomfortable on hot days. Currently, no dorm rooms at UH-Hilo have air-conditioning.
Administrators also are looking at ways to “better utilize the space (inside Hale ‘Alahonua) and … other ways to occupy it,” Makuakane-Lundin said. For example, empty rooms could be used to house students for short-term study programs.
Makuakane-Lundin said declining enrollment campuswide in recent years also has probably contributed to Hale ‘Alahonua’s occupancy lag.
This fall, 3,666 students were enrolled at UH-Hilo, a 12 percent drop from fall 2012, when enrollment peaked at 4,157 after eight years of continual growth. That steady decline has prompted the school to revamp admission and recruitment materials in an effort to better retain and attract students.
The college also is considering separating its massive College of Arts and Sciences into two colleges next year to help better manage students within those programs.
Nagata said the Hale ‘Alahonua revised business plan will be drafted by February. Any changes, for example lowering residence hall prices, requires the Board of Regents’ approval.
A price restructure could take effect as soon as fall 2017, Makuakane-Lundin said.
UH-Hilo does not require freshmen to live on campus, though administrators have considered a mandatory on-campus housing for freshmen policy in recent years. Chang said no decision has been made as of yet, but it remains an option.
“We need to take into consideration the added costs especially for students from Hawaii Island,” Chang said.
Email Kirsten Johnson at kjohnson@hawaiitribune-herald.com.
