Hawaii County’s housing department is proposing a 36 percent rent hike at its Kula‘imano Elderly Housing Project in Pepeekeo.
Hawaii County’s housing department is proposing a 36 percent rent hike at its Kula‘imano Elderly Housing Project in Pepeekeo.
Housing Administrator Neil Gyotoku said the rise from $441 to $600 a month for the one-bedroom units is intended to cover shortfalls and build up reserves. The last three fiscal years have seen expenses for the housing project on average exceed revenue by $30,119, according to the Office of Housing and Community Development.
Gyotoku said the rent increase would not affect those on Section 8 housing since they pay a percentage of their income for rent. The U.S. Department of Housing and Urban Development, which has to approve the increase, would pay the difference, he said.
But it would hit the pocketbooks of those not on the program. Gyotoku estimated three or four occupants of the 49 units, offered to low- and moderate-income seniors, would see their rents increase.
John Pini, a 69-year-old retired electrician, said that includes him and his wife, Nadine.
“One hundred sixty dollars is a big nut to crack every month,” he said during a meeting with housing staff Wednesday at Kula‘imano.
Christine Nguyen, housing accountant, said there is only about $30,000 left in reserves for the housing project.
“It depends on what breaks down,” she said, regarding expenses.
“We’re doing Band-Aid fixes.”
The county has increased rents incrementally every year or two, but they haven’t kept up with maintenance costs for the nearly 40-year-old units. Residents pay their own electricity while the county is responsible for other utilities, appliances and repairs.
Gyotoku, who oversaw the opening of Kula‘imano in the late 1970s, said rent was $300 in the beginning.
Nguyen said tapping into the county’s general fund or Kula‘imano’s investment fund isn’t an option for operating expenses.
Gyotoku said it’s not clear when HUD will respond to the proposal. He’s expecting the federal agency to approve something between $500 and $600.
A rental comparison study recommended an increase to $700 a month, Gyotoku said. He said that study looked at market pricing.
Senior housing can go above $900 a month in Hilo with or without utilities included, Gyotoku said.
Meanwhile, the housing office is seeking $670,355 in Community Development Block Grants for other upgrades to Kula‘imano.
Gyotoku said that would cover non-operating expenses such as adding solar panels, making the buildings hurricane resistant, fencing to keep out pigs and replacing roofs.
Email Tom Callis at tcallis@hawaiitribune-herald.com.