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Kauai tenants at Waipoli Courtyards seek clarity after HUD rejects relocation plan tied to DHHL purchase
Summary
Residents of Waipoli Courtyards told the Hawaiian Homes Commission they remain uncertain whether DHHL will exercise an option to buy the Kauai apartment complex before a May 7 contract deadline after HUD rejected the developer's relocation plan and said it would not participate in the project.
Residents of the Waipoli Courtyards apartments in Kapaa told the Hawaiian Homes Commission on April 22 that they lack clear information about a proposed DHHL purchase and have concerns after federal housing officials rejected the relocation plan submitted by InterWest Group.
At issue: The commission previously approved terms that gave DHHL an option to purchase the building with a closing date that could be extended to May 7, 2025. Residents said they were told the relocation budget in the InterWest plan stood at about $1.9 million and had been approved by HUD; residents and HUD correspondence shared at the meeting indicate HUD declined to approve the relocation plan and told DHHL it would not be involved if the proposed purchase moved forward as currently structured.
What residents said: Resident advocates asked the commission for clearer, timelier communications about whether DHHL will exercise the option to buy, for an explanation of how relocation data and budgets were calculated, and for more time to review any revised plan. “HUD declined the Waipoli Courtyard's application for mortgage insurance due to various concerns, including the relocation plan,” a HUD representative wrote to residents and DHHL, according to testimony. Residents said InterWest has begun a fresh round of interviews with tenants while the May 7 deadline approaches, which has increased uncertainty.
Why it matters: Tenants said the InterWest plan previously relied on statewide rental assumptions that could require many residents to relocate off‑island and that an inadequate relocation budget could leave households with limited options. Residents asked the commission whether it intends to extend the May 7 deadline or otherwise share a timetable for DHHL decision‑making.
Commission response and process notes: Commissioners acknowledged the confusion and requested better communication from DHHL on next steps. Commissioner comments at the meeting indicated staff and the department need to follow up with InterWest and HUD correspondence so residents can evaluate any revised relocation plan. No formal vote was taken at the meeting to extend the purchase option or otherwise change the timeline.
Ending: Residents requested prompt answers about whether DHHL will close by May 7 and sought public disclosure of the data and methodology used to build the relocation budget so tenants can comment on any revised plan before decisions are finalized.
