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HCDA staff flag end of LIHTC restrictions as Honuakaha Limited Partnership nears dissolution
Summary
HCDA staff told the board that the Honuakaha Limited Partnership (HCDA as general partner, First Hawaiian Bank as limited partner) will dissolve when the Low‑Income Housing Tax Credit term ends; unless the authority pursues other mechanisms, affordability restrictions tied to LIHTC would lapse and staff will return with options after reconciled financials are available.
Honuakaha Limited Partnership — the venture formed between the Hawaiʻi Community Development Authority (as general partner) and First Hawaiian Bank (as limited partner) — is scheduled to dissolve when the Low‑Income Housing Tax Credit (LIHTC) compliance term expires, HCDA staff told the board Dec. 3.
Garrick Sasaki, HCDA chief financial officer, said the project was developed in 1995 and currently carries age and income restrictions tied to the LIHTC. Once those restrictions expire with the partnership dissolution, the restrictions would not continue automatically. Staff said HCDA intends to evaluate options to preserve some level of affordability for existing and future tenants, but that accurate, reconciled financial statements will be an essential input to any recommendation.
Staff said they plan to start formal discussions with First Hawaiian Bank and to present options for board consideration after financial reconciliations are complete — staff suggested an update by the end of the first quarter. No board action was taken at the meeting; the item was informational.
