‘Iolani School allows owners, tenants time in land dispute

Question: Whatever happened to the leasehold land dispute between residents who live in the Date-Laau area and ‘Iolani School, which has purchased the land?

Answer: ‘Iolani School has extended different offers to owner-occupants, absentee owners and renters in the Date-Laau community, where leases expire Dec. 4, causing some owners to cry foul.

Some absentee homeowners call the different treatment “discriminative and inequitable,” saying most absentee owners were owner-occupants who moved because they couldn’t get fee simple ownership and now pay rent or mortgage for other homes, a March 12 letter to the Star-Advertiser signed “Home Owners of Date Laau Community” says.

“Both owner-occupants and absentee owners suffer the same financial loss and cost, why (do) absentee owners have to be singled out and mistreated?” the letter asks.

‘Iolani has made offers to take effect Dec. 5 when it takes ownership of the property containing 262 apartment units:

>> Absentee owners are upset they weren’t offered any compensation, except $1,000 for appliances, said Jason Aung, a member of the Date-Laau Community Association.

>> Owner-occupants will be given $15,000 a unit if they vacate by Dec. 5 and have the option of becoming a renter for up to 10 years from Dec. 4 for generally what they pay now, which is usually only maintenance fees up to $485 per month.

>> Long-term renters (eight years or more) were offered a reduced rent plan (70 percent of market rents)  for up to five years. Short-term renters and all other renters will pay ‘Iolani market rents after Dec. 4.

‘Iolani also offered to allow absentee owners’ tenants to remain for six months. These tenants may remain under a new rental agreement with ‘Iolani at market rates.

The school’s affiliate, Building Futures, becomes legal owner of the nine cooperative and two privately owned apartment buildings on Dec. 5. ‘Iolani purchased the 5.5-acre parcel for

$23 million in 2009, and honored the existing land lease.

‘Iolani made the offers in February to the owners and renters, but had worked since September with the association’s leaders to hammer out an acceptable proposal, ‘Iolani School spokeswoman Cathy Lee Chong said.

“Really the school is not obligated to do anything,” she said. “Absentee owners are considered investors collecting rent. … We are trying to prioritize and focus on owner-occupants or long-term renters.”

“Anyone living on the property now should have no fear of being displaced,” Chong said. Some development may begin in five years on an empty lot next to the campus.

Aung had supported the offer, saying: “I don’t want that offer to go away, at least for the owner-occupants. … Thirty percent of owner-occupants are still OK with it. They’re really old and are going to have a hard time looking for another place. … It’s still better than being on the street. As a member, that’s a choice I have to recommend.”

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This update was written by Leila Fujimori. Suggest a topic for “Whatever Happened To…” by writing Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-210, Honolulu 96813; call 529-4747; or email cityeditors@staradvertiser.com.