County on hook for subsidized housing bill

HILO — Federal housing officials have withdrawn a voucher for phase two of the Mohouli senior housing project, prompting Hawaii County to help cover rent subsidies for future tenants of the 30-unit development in Hilo.

According to county Housing Administrator Neil Gyotoku, U.S. Department of Housing and Urban Development pulled the project-based vouchers in May because they said the county listed Mohouli 2 as an existing project. That apparently was an issue, he said, because the units are not complete.

“It was very unusual and very unexpected,” Gyotoku told the County Council on Tuesday, adding the county attempted to appeal.

Under the voucher program, the low-income tenants contribute 30 percent of their income to rent while the rest is subsidized.

Loss of the subsidy would have jeopardized financing for the next phase, scheduled to open in October, Gyotoku said.

In response, the council passed a resolution authorizing the county to issue housing choice vouchers for the project, which could cost the county anywhere from $8,000 to $61,000 a year, Deputy Finance Director Deanna Sako told council members.

Gyotoku said Thursday he hopes that’s a temporary fix and will submit a new application with HUD after the phase is complete.

He said his department is looking at ways to make up the expense in the budget.

The housing project is open to low-income seniors over 62 years old and disabled residents.

Gyotoku said there are 106 on the waiting list for phase two. Phase one also is a 30-unit development.

Email Tom Callis at tcallis@hawaiitribune-herald.com.