The Star Advertiser recently reported that the Hawaii Community Development Authority (HCDA) is delinquent approximately $800,000 in a maintenance fee debt.
According to the article, "The delinquency stems from financial shortfalls operating 150 state-owned affordable rental apartments in the Honuakaha complex, which also includes 93 condos and the historic Royal Brewery building at 545 and 547 Queen St."
This is frustrating because rents will probably increase to makeup for the shortfall. We are still in the thick of a pandemic and even a small rent increase could potentially hurt the tenants. The lack of HCDA's oversight can have long lasting effects.
I understand that working for the government can be a thankless job. However, mistakes like this cannot happen. Our local and state government, through our elected officials, can provide a solution to our ongoing housing crisis.
Our elected officials can:
(1) Overhaul the Department of Planning and Permitting (DPP). I recently spoke to a person who is trying to build an accessory dwelling unit. Her permit has been at the DPP for well over a year! Meanwhile, monster homes are still being built in our communities. How is this possible?
I was recently driving through Kaimuki and I saw a monster home. According to the tax records, the property consists of 10 bedrooms, 8 bathrooms, and over 3,000 living SF.
(2) Rezone certain parcels of land to allow for residential or commercial use. We need to built smart. This does not mean we should allow for a high-rise condo smack dab in the middle of Manoa.
(3) Create public-private partnerships to create affordable housing. The state and city own land. Why not pair up with an experience developer? This can range from senior housing, affordable rentals, or market price units (for sale).
Land is scarce on Oahu. If developers are forking out tens of millions to acquire raw land, chances are they will probably build something luxury to maximize their profits. If the land was "given" to the developer by the government, maybe a developer can build something much more affordable to the working class person.
The government has the power to create laws. However, it has been shown time-after-time that the government is not the best in project management. What is concerning is the Aloha Stadium redevelopment. Although things appear great on paper, many people are worried if this project will be like the construction of the rail.
JUST SOLD
Greg, Robin, and I recently sold a 1-bed condo unit at Lukepane Hale. The condo is located in Kapahulu. This was our client's first home. Prior to listing, our client repainted and added new luxury vinyl flooring. In addition, as part of Team Andrasick's package, Greg paid to have the unit professionally cleaned.
As soon as we listed the property, we received numerous showing requests! We quickly received an all cash offer. The buyer had ties to Hawaii and the buyer was looking to find a replacement property for his 1031 Exchange. Thankfully, we were able to close the transaction in less than 25 days!
Kapahulu is a walkable neighborhood. Want to hit golf balls? No problem. You are hop-skip away from Ala Wai Golf Course. Want to go to the beach or checkout Waikiki? You are only a couple miles away.
According to July 2021 report from the Honolulu Board of Realtors, the median Kapahulu year-to-date condo price is $351,389. This was a 30.4% increase from 2020!
HOME MAINTENANCE
One of the top homeowner insurance claims is water damage. To prevent a water leak, you can:
(1) Ensure your main shutoff valve and all your angle valves are in working condition. If you do not know how to install an angle valve, you should call a licensed plumber.
(2) Check the age of your water heater. If your water heater is old, you should change it. In our condo, at least three owners had their water heater flood their unit this year.
(3) How old is your toilet? Wax seals do not last forever and toilets can crack and leak too.
Most importantly, make sure you review your insurance policy with your insurance agent. You want to have the proper coverage.
Ramblings
Homeowners Insurance
Don't forget to review your insurance policy, especially if you live in a condo. I cannot stress how important it is for you to be properly covered. If you live in a condo, make sure you review your condo's association insurance policy too.
FBI
The FBI recently reported that violent and property crimes fell in Hawaii last year. Could this be a reason why out of state buyers are purchasing homes in Hawaii?
Affordable Rentals
KHON 2 recently reported that an $88 million affordable senior rental tower will be built in downtown Honolulu. Highridge Costa and Coastal Rim Properties are jointly developing the property. There will be 223 units for seniors whose income is 30 to 60 percent of the area median income.
-Roda