City council approves search for new affordable housing buyer
The Honolulu City Council has given preliminary approval of a bill that allows the administration to seek another buyer for its 12 affordable housing complexes.
The move comes after the original $142 million deal with Honolulu Affordable Housing Partners fell through last Thursday.
The deal was nixed after both sides failed to reach an agreement on seller-backed financing.
Under the bill making its way through the council, the city would be allowed to issue another request for proposals. Four council members voted yes on Wednesday, but with reservations.
"I was very concerned with the manner in which the city handled the initial RFP [request for proposal] and sale authorizations, and before we really embark on a new RFP, I would really like to have a full explanation of what kinds of factors caused the city's sale process to falter," said Councilwoman Carol Fukunaga.
Cancellation of the affordable housing sale has created a $20 million deficit in the city's current annual budget.
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