To ease a dire shortage of affordable housing and homeless shelters, the state has joined with a church organization to develop a 72-unit housing project on state land in Wai'anae.

The Hawaii Coalition of Christian Churches last month received conditional approval from the state Housing and Community Development Corp. of Hawai'i to develop the project on ceded land.

The nonprofit organization was the sole applicant to the agency's request for proposals issued earlier this year, and the development award has drawn fire from one civil-rights activist challenging a faith-based organization's use of state resources to provide housing for the disadvantaged.

But state officials said the church coalition will be held to anti-discrimination laws that prohibit denial of services based on religion, sexual orientation, race or other protected civil liberties.

"They couldn't not take a homeless person because they are Buddhist," said Stephanie Aveiro, executive director of the Housing and Community Development Corp.

Aveiro said it may be a first for the agency to work with a faith-based housing developer, but that the state routinely works with faith-based service providers such as Catholic Charities. "We welcome anybody," she said.

The Wai'anae housing project, which is an effort to revitalize part of a model community built in 1974, is not new to controversy. In February, the state announced it planned to displace tenants and demolish a 60-unit rental property on the 2.5-acre site, rather than renovate it.

Aveiro said the decision to rebuild was based not only on replacement vs. renovation cost, but considered other factors such as poor construction of basic structures like walls and foundations, and orientation of apartments toward the parking lot instead of a park.

Under the redevelopment proposal, the Hawaii Coalition of Christian Churches would develop, own and operate the Uluwehi project — a gated complex of 32 transitional housing units, 24 affordable rental units and 16 emergency shelter units.

Services planned include primary medical care, child day-care, substance-abuse counseling, a literacy program, spiritual development and counseling, and a jobs program, according to Wade "Boo" Soares, Hawaii Coalition of Christian Churches chairman and a pastor at Wai'anae Christian Fellowship.

AIM IS 'TO CHANGE LIVES'

Soares presented details of the proposal yesterday to a Legislative task force created by Gov. Linda Lingle to tackle affordable housing and homeless issues.

He said replacing the Uluwehi apartments was a financially challenging proposition not likely to attract commercial developers interested in a monetary return.

"There is no money to be made in projects like this," Soares said. "HCCC's focus is not to build housing, but to use this housing to change lives."

Soares said it will cost an estimated $14.7 million to build the complex, including one year of operating expenses estimated to cost $900,000 a year.

DONORS SOUGHT

Financing is being sought from state, federal and private organizations including businesses, foundations and churches. Rental rates haven't been determined.

Soares said he has received initial support from potential donors, and hopes that he can have financing in place and be ready to begin construction by the end of next year. Construction would take about another year.

The state's conditional approval of the project is subject to meeting financing goals and other terms.

If successful, the Uluwehi rental complex could be a model Soares copies to help reduce Hawai'i's homeless population and help address what the state projects will be a need for 17,000 affordable rental units through 2009.

Soares said he would like to develop five similar projects, and has received interest from two groups in Windward O'ahu.

"We have a problem on our hands," he said. "The homeless situation is not about to be out of control, it is out of control. With the cost of housing and even rent, it's out of control. We're just stepping up to the plate ... seeing how we can help the people, to take the people off the beach."

OBJECTION NOTED

Bill Woods, a Kalihi resident who has advocated against discrimination on same-sex issues, challenged the appropriateness of the Uluwehi redevelopment award going to the church coalition, saying the organization would create a "gated religious ghetto."

Legislative task force chairman Rep. Michael Kahikina, D-44th (Nanakuli, Honokai Hale), declared Woods' comments out of order during the meeting, and said his complaint should be taken up with the Housing and Community Development Corp.

In an interview afterwards, Kahikina, who is an adviser to the church coalition, said it's unfortunate Woods chooses to make an issue of faith-based work addressing a homeless problem that doesn't discriminate by faith.

"It's not about separating Christian and non-Christian society," he said. "It's about a need. Faith-based, no-based, whatever — this is a crisis. I want to look at and support any proposal. If (Woods) has a project and a plan, then develop it."

Aveiro said the request for proposals to develop the Uluwehi site was available to anyone, and that the agency had only one proposal to consider. A panel made up of Wai'anae community members, agency staff and an outside accountant reviewed the proposal, recommended it, and the agency board voted to approve the project. "I feel that it got a thorough review," she said.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.