Ka Wai Ola - Office of Hawaiian Affairs, Volume 10, Number 9, 1 September 1993 — OHA Board Business [ARTICLE+ILLUSTRATION]

OHA Board Business

Na kuleana a ka rapa Kahu waiwai

by Deborah L. Ward Editor

The Board of Trustees of the Office of Hawaiian Affairs held its regular business meeting on Wednesday, Aug. 4, 1993 at the Kaua'i Resort Hotel, Ni'ihau room, at Wailua. All trustees were present. The following summarizes board actions taken during this meeting: Selection of custodian for OHA assets The board voted to select First Hawaiian Bank as new custodian for OHA assets received from the ceded land trust settlement. This action is in line with OHA's decision to eliminate potential eonflicts of interest by not allowing any one institution to perform more than one function. Prior to May 1993, the monitor of the funds was Bishop Trust, the custodian was Amenean Trust, and a manager was Hawaiian Trust. In May, Bank of Hawai'i, whieh owned Hawaiian Trust, acquired Bishop and Amenean Trust. To re-separate the functions, a new custodian had to be chosen. As custodian, First Hawaiian Bank is responsible for holding in an account the trust funds whieh are invested by other money managers selected by the board of trustees. First Hawaiian Bank was runner-up to Bank of Hawai'i in a custodial search two years ago and remains the only Hawai'i-based organization not

affiliated with Bank of Hawai'i with the capacity to administer the funds. 'Onipa'a commemorative book and video The board voted unanimously to execute contracts with a writer and producer to complete production of a commemorative book and one-hour documentary video about the centennial eommemoration. The board will provide an interest-free loan of $100,000 to the 'Onipa'a Centennial Committee to match the committee's funds. All profits and proceeds will eome to OHA. The projects will eome under the final approval and authority of the board's Education and Culture committee. (See story, page 2) James Severson contract The board unanimously approved $20,000 to extend the contract of housing consultant James M. Severson, AIA to allow completion of a housing and community development plan for OHA by Oct. 31, 1993. Housing loan programs In response to requests for assistance from Hawaiian homesteaders, the board approved two housing loan programs, subject to approval by the Hawaiian Homes Commission. The first authorized use of $10 million in OHA trust funds for a down payment loan program for purchases of homes on Hawaiian Home Lands.

The maximum loan amount for qualified owner/occupants is $20,000 for a 10-year period based on 20-year amortization at a fixed inerest rate of 6 7/8 percent. The board also voted to approve $10 million in trust funds to fund a rehabilitation loan program for Hawaiians on Hawaiian homestead land. The maximum loan to a qualified beneficiary will be $50,000 with the same loan terms as the down payment program. This action authorizes the board to enter into agreements with: • the Department of Hawaiian Home Lands, subject to the Hawaiian Homes Commission's agreement to guarantee the loans; • and with First Hawaiian Bank, whieh would service the loans statewide at a rate of .25 percent interest per loan. The loan program will begin when formal agreements have been signed. To date there are approximately 15,000 applicants (unduplicated count) waiting for awards on the DHHL listing. There are approximately 2,000 that have been awarded leases that are without homes. Many native Hawaiians have been unable to eome up with the necessary down payment on a home loan even though they may be able to make the monthly payments. This revolving loan

program would help qualified applicants to make their down payment, and to repay their loan at low interest rates, to keep the loan fund pool going for other Hawaiians. Feasibility study on obtaining state land at Ke'ehi Lagoon for a Hawaiian eanoe center The board voted to authorize the OHA administrator to request proposals for a study on the feasibility of OHA accepting a 15acre parcel from the state at Ke'ehi Lagoon, O'ahu. If OHA accepts, the state would require that OHA use five of the acres to build a eanoe center. Other eonstruction, as proposed by the state's master plan, includes eanoe launching facilities, retaining walls, utilities, a bridge across Kalihi stream and parking. The state estimates cost of eonstruction at $13.8 million. The feasibility study will estimate costs of construction to OHA if it accepts the land, the development potential of the remaining 10 acres, cost of that development, and any revenue that may be generated. The next meeting of the Board of Trustees was set for August 30 and 31 on Lāna'i. The board will meet on Moloka'i in September and resume meeting in Honolulu in October.