Affordable Housing Funds Wasted; There's a Better Way Forward

Message to Supporters from www.Djou.com                                       September 25, 2016

Through the campaign I've had the privilege of meeting a number of experts on homelessness in Hawaii. They tell me that one of the significant drivers of homelessness is the lack of affordable housing.  That's why it is so tragic that the City under the current administration has mismanaged tens of millions of dollars in affordable housing funds.

• Just last week, it was reported that the City failed to spend $26 million in the affordable housing fund and such failure may require the City to give back these funds to the Federal government.
• On Monday, we learned an audit uncovered that $16 million of the funds the City did spend on affordable housing may have been misspent, and the City may have to refund the money to the Federal government.
• On Thursday, the City Council Zoning Committee deferred action on the Manaolana hotel and condo project because the City administration still has no final affordable housing plan and no idea if any in lieu fee for the project will actually be used for affordable housing.
• Today, the newspaper issued a blistering indictment of the Caldwell administration's sloppy management of affordable housing.

The City's administration's failure to properly manage affordable housing in our community is utterly tragic and is one of the reasons I'm running for Mayor. 

First, I'm committed to completing an affordable housing plan for our City so we have a clear direction and commitment to providing affordable housing.  Second, we need to eliminate the waste and mismanagement in our affordable housing program so that federal funds are used appropriately. And, third, we need to look for creative options to incentivize development of affordable housing.  I have been working with affordable housing experts, including Peter Savio, to craft policies to actually create affordable housing. An example is "equity build" rental units, which will provide families a path to home ownership by offering them a chance to save their own down payment.  Tenants will pay rent, and as they do, the equity the unit gains will go into an escrow account for the tenant instead of to the landlord for profit.  This type of City project would create value for tenants; giving tenants the value of the appreciation, amortization, and tax benefits of ownership.

Charles at a press conference on Thursday with housing expert Peter Savio discussing the critical need to fix the City's sloppy handling of affordable housing and need to address housing for our community.

Will you help me continue to spread the word that we have a clear choice in this election -- more failed government or our vision for a better future?  Your contribution of $50, $100 or any amount up to the maximum of $4,000, will help us communicate our message.  Ballots will be mailed in three short weeks.  We can't wait.  Every dollar you donate will be immediately used to spread our message of fiscal responsibility and accountability in government.  Mahalo in advance for your support.

Aloha,

Charles Djou