HONOLULU (AP) - Honolulu officials were depending on the profits from an affordable housing deal but the buyer wants to delay paying the city.
The city was expecting the sale of 12 rental complexes to generate $20 million that would help balance the budget. But the Honolulu Star-Advertiser reported Wednesday the firm buying the properties is asking to defer payments until six months to a year after the March 31 closing date. City officials say the buyer is also asking for 20 more years to pay the rest of the $142 million deal.
City Managing Director Ember Shinn says the funds had been factored into the fiscal 2014 budget.
Councilman Ron Menor says this raises concerns about Hawaii Affordable Housing Partners' ability to obtain the necessary financing to close the deal.