University of Hawaii at Hilo administrators will be meeting with students this month to gather feedback on a draft plan to boost occupancy in the Hale ‘Alahonua residence hall.
University of Hawaii at Hilo administrators will be meeting with students this month to gather feedback on a draft plan to boost occupancy in the Hale ‘Alahonua residence hall.
The 300-bed, suite-style dormitory opened in fall 2013 and has since struggled to fill all its beds. In December, the dorm was just 49 percent full and has remained under 60 percent occupancy since opening. Students have complained the dorm is too expensive and lacks services.
The campus had financed a portion of its $28 million construction using a 30-year, $17 million revenue bond, to be paid back through money generated from housing fees.
As a result of lower-than-anticipated occupancy, it’s had to dip into reserves to pay off those $1.1 million annual revenue bond payments. Reserve fund payments have amounted to more than $400,000 annually for the past three years.
Now, in an effort to solve the problem, administrators plan to roll out a draft version of a “multi-year, comprehensive plan” as early as next week that will “demonstrate the university’s work toward being able to pay the bond completely through housing over time,” said Farrah-Marie Gomes, UH-Hilo’s vice chancellor for student affairs.
The plan will be presented to students first in a series of town hall meetings slated to begin this month. Meetings will solicit input from students about what they consider affordable dorm prices, gather feedback on the plan’s proposed timeline, and collect other general comments, Gomes said.
Gomes refrained from providing plan specifics until it’s presented to students, but she said it would take effect gradually and would adjust prices in “probably just two dorms” initially.
“I cannot roll out a plan next year realistically that says we can cover (the entire) bond,” Gomes said.
“The only way we can do that would be to have exorbitant rent, which drags down occupancy and defeats the purpose. … Over time (the plan) will (ideally) allow us to pay for a larger portion of the bond payment each year — ultimately, the plan is to get us there.”
Hale ‘Alahonua is the most expensive housing option on campus. Residents pay $3,859 per semester for a two-bedroom single unit. Students in Hale Ikena — an apartment-style residence hall and the next-most expensive housing option — pay up to $3,216 per semester.
UH-Hilo Chancellor Don Straney said last week prices for several on-campus dorms were set “in 2011 and 2012, and the housing market has (since) changed.” He said other UH campuses — such as Manoa — feature dorms priced higher than off-campus options, but “at the moment, (UH-Hilo) students need every bit of financial help they can get.”
“Finding that balance is really the challenge,” Straney said. “We need to be thoughtful in how we set rates. … I think some of (UH-Hilo’s dorms) are in need of price reductions. I think we do need to look at repricing some of them.”
Gomes said student feedback will be used to draft a final proposal, which likely will be presented to the Board of Regents next month.
Email Kirsten Johnson at kjohnson@hawaiitribune-herald.com.