During a recent government meeting, significant discussions centered around the management and financial status of a residential property, particularly focusing on rent increases, unit vacancies, and necessary renovations.

Garret Sasaki, a representative, reported that rent has been increased annually since 2022, with plans to finalize the 2025 budget that will influence future rent adjustments. Currently, there are 20 vacant units, five of which are ready for new tenants pending applicant qualifications. The remaining 15 units require extensive renovations due to their poor condition, which has contributed to the prolonged vacancy.

The property has been undergoing a reserve study every two years, with the next study scheduled to begin next month. This study is crucial for maintaining the property’s financial health and ensuring adequate funds for future repairs and renovations.

Sasaki noted that the management company has recently transitioned to MDI, which is now approaching its one-year anniversary. This change has involved cleaning up accounting and tenant records, which had been neglected prior to the management switch.

Board members raised concerns regarding the financial implications of the necessary renovations. Member Evans inquired whether funds were available for the rehabilitation of the units or if additional funding from the Hawaii Community Development Authority (HCDA) would be necessary. Sasaki assured that the project could sustain itself without requiring extra loans from HCDA.

Further discussions highlighted the challenges faced due to the aging infrastructure of the units, originally constructed in the 1990s. The need for full renovations was attributed to both the age of the fixtures and the condition in which some tenants left the units. The board acknowledged that the rising utility costs and the inclusion of utilities in the rent have compounded financial pressures.

The meeting concluded with a call for public testimony, although no individuals had signed up to speak. The discussions underscored the ongoing challenges of managing a residential property while balancing the needs of tenants and the financial viability of the project.