Priced Out Kauai’s rapidly rising real estate prices are pricing out lowincome homebuyer programs.
Driven largely by outside buyers, home prices on Kauai and Maui have risen well past those on Oahu, even though neighbor island incomes are considerably lower than Oahu incomes.
Ken Rainforth, Kauai County housing director, told a local newspaper last week that homes are far beyond the price of people in programs set up in the 1990s by the county to help low-income people buy homes in the affordably priced range of $175,000 to $185,000. Rainforth said that cheapest they can find is $285,000, and even that is rare.
Owner-occupied homeownership in the state grew from 50.2 percent in 1997 to 58.3 percent last year — one of the fastest in the country. Counties impose requirements on developers for affordable housing, typically 10 percent of a project.
But developers often pay a fee and circumvent the requirement. On the Big Island, it’s $4,700 per unit — nothing compared to the profits.
Rainforth says there is a shortfall of roughly 1,000 housing units on Kauai out of 25,000 households. He said county officials are considering establishing public land trusts and mandating that some government-sponsored housing projects remain perpetually affordable.
Regency Opens Regency at Puakea’s retirement and assisted living facility had its V.I.P. opening Friday, May 14, 2004. The Retirement Community provides seniors with month-tomonth rental apartments that incorporate personal services and amenities within the rental rate.
The apartment buildings are specially designed to accommodate active and mobile seniors and persons needing some assistance with activities of daily living.
The basic services include: All utilities including cable TV, three meals a day from an open menu and served in the open-air dining room. Between meal snacks and beverages, weekly linen and towel service, weekly maid service,
Scheduled transportation with an ADA accessible bus, Assistance with appointments, personal emergency response system from anywhere in the facility and pool area, social and recreational programs, night-time monitored security.
Nursing staff is on site 24 hours for those needing assistance. Optional assisted living services are available also.
Located in Puhi, Regency at Puakea has a swimming pool and spa, gardening areas and walking paths. There are several residents living in the retirement community who are enjoying the lifestyle they have always dreamed of. A current resident said that it is like being on a cruise ship. Prices range from $2,250/month for a studio, $2,700/ month for a one bedroom and $3,200/month for a two-bedroom. Prices are determined by location and view.
See www.regencypacificinc.com for more on the locations and descriptions of the other assisted living facilities and long term care facilities owned and/or managed by the Regency Pacific, Inc. Biotech Convention Various Hawaii Economic Development Boards will head up a Hawaii contingent for the 2004
Annual Biotechnology Convention and Exhibition in San Francisco from June 6 to 9. It’s the largest biotechnology industry event in the world attracting roughly 20,000 participants.
Along with the Hawaii exhibit and Hospitality Suite, the Kaua‘i Economic Development Board will hold a Hawaii Biotech and Life Sciences Forum and reception. The Hawaii partnership includes the Department of Business,
Economic Development and Tourism, the University of Hawaii, Enterprise Honolulu, the Maui Economic Developmet Board and Hawaii Island Economic Development Board. Contact KEDB for details at 245-6692.
Guava Country
The majority of the Guava grown in the state come from Kauai. Total acreage was down 30 acres to 610, the lowest since 1976. Harvested acreage totaled 530 acres, 20 acres less than 2002. Hawaii island accounted for most of the abandoned acreage. Lower prices were still being reported by Hawaii island growers with some choosing to abandon their acreage or grow other crops. Statewide farm value totaled $925 thousand for 2003, down 36 percent from 2002. Brazil was the leader in guava imports into the U.S. Guava prepared or preserved imports increased 28 percent from the previous year to 10.6 million pounds. Dominican Republic, Mexico, Brazil supplied about 55 percent of the imports into the U.S.
Unemployment
Unemployment rates fell in 11 of the 17 battleground states that could decide the presidential election, with Michigan, Minnesota and Wisconsin showing the biggest declineslast month, the Labor Departmentsaid Friday.
Four of the battleground states saw jobless rates rise: Arizona, Arkansas, Ohio and Washington. Jobless rates in two battleground states remained the same: New Mexico and Pennsylvania. Overall, unemployment rates were lower in 29 states, higher in 14 states and the District of Columbia, and unchanged in seven states. President Bush’s economic team hit the road to tout an improving jobs market.
Tobacco Bucks
A jury Friday ordered the tobacco industry to pay $590 million for nicotine patches, telephone hot lines, advertising and other programs to help Louisiana smokers kick the habit.
Legal experts believe the verdict marks the first time a jury has found that tobacco companies should pay for such programs. While the verdict is not as large as other recent tobacco awards, some experts say the ruling could be precedent- setting.
Tobacco lawyers said they would immediately appeal, and the case could drag on for years in the courts before Big Tobacco spends actually any money on the programs. The next and final phase of the trial will determine how the programs will run, but that portion cannot begin until appeals of Friday’s ruling are complete.
Kyoto Protocols
Ending months of uncertainty, Russia agreed Friday to speed up its ratification of the Kyoto Protocol on combating global warming after the European Union offered to support its longtime bid to join the World Trade Organization. Russian President Vladimir
Putin said the two issues were not linked, but he added that a compromise after years of tense talks helped assuage some of Russia’s economic concerns, clearing the path for faster movement on Kyoto. “The EU has met us halfway in talks over the WTO and that cannot but affect positively our position on the Kyoto Protocol,” Putin said after the one-day Russia-EU summit. “We will speed up Russia’s movement toward the Kyoto Protocol’s.”
California’s credit
The state’s credit rating was upgraded Friday for the first time in four years because of an improving economy and what appears to be a stabilizing political climate under Gov. Arnold Schwarzenegger.
Even with the action by Moody’s Investors Service, California credit remains among the lowest in the nation. But analysts say if current trends continue, the economic outlook for the battered state is expected to brighten after years of giant deficits.
The state’s credit rating is closely watched by Wall Street because California — with the sixth-largest economy in the world — is an important figure in the municipal bond market. In making the announcement, the Wall Street firm noted voter approval in March of $15 billion in borrowing that will be used to help pay off the state’s deficit and close spending gaps in the future. Schwarzenegger was instrumental in getting the bond measure passed.
California Controller Steve Westly called the upgrade a sign that the state is on the “road back” to recovery. He said it was the first time in four years that the rating was improved. “It’s a direct result of both California’s improving economy and the bipartisan approach to solving problems,” said Westly.
Tim Blake of Moody’s acknowledged that Schwarzenegger’s proposed $103 billion budget for next year backs away from a number of spending cuts that the administration proposed in January. But Blake said the revised plan Schwarzenegger announced last week may be more “politically feasible” and thus more likely to be adopted by legislators without delay. The positive economic outlook in California includes continued job growth and more tax income over the next year or two.
While most economists have been disappointed with job creation in California so far this year, Blake said there has been steady improvement — with an average monthly increase of about 100,000 jobs in the first four months compared to last year.
The nation’s two other large credit rating services, Standard & Poors and Fitch Ratings, have not changed their rating, with both rating the state’s debt at near-junk bond levels.
