WAILUKU, Maui — Homeowners who took out low-interest home-repair loans from a county program more than 20 years ago still owe the county $163,180.

More than half the money loaned out in the Housing Rehabilitation Loan Program in 1986 was never paid back. Of 28 loans originally issued, 15 remain outstanding. Eleven of those unpaid balances are from 15-year deferred-payment loans on which borrowers never made a single payment.

"It was out of sight, out of mind," said Vanessa Medeiros, director of the Department of Housing and Human Concerns.

The county apparently lost track of the program over the years and never went after the money, Medeiros said.

"We want to make sure that if we start these programs, we don't forget about them," she said.

She said she learned about the old loans after a borrower with an outstanding balance called her office to inquire about a lien placed on his home.

Medeiros said her department is consulting with county attorneys on whether to pursue repayment or simply write off the old loans. Trying to recoup the money may be costly, time-consuming and difficult after more than 20 years, and it could come as an unpleasant "surprise" for families who may have forgotten they owed thousands of dollars to the county, she said.

"We're trying to make the best decision," Medeiros said. "We don't want to negatively impact families."

A total of $310,364 in loans to 28 families was made under the housing loan program, using federal Community Development Block Grant funds. Of the total loaned out, $147,184 was paid back. The last payment on a loan was received in 1999. When repaid, the funds were to be returned for reallocation to the CDBG office, which administers the annual $2 million federal grant.

Under the Housing Rehabilitation Loan Program, interest and payment requirements were based on the borrower's income.

Low- and median-income residents could qualify for low-interest or no-interest loans. People with very low incomes qualified for deferred-payment loans, in which no payment was required for 15 years.

The maximum loan amount was $15,000.

On average, homeowners who received the deferred-payment loans borrowed larger sums and paid back less than those who received low- or no-interest loans with a shorter payment schedule.

Residents getting low- or no-interest loans borrowed an average of $9,246. Ten paid back their loans.

Homeowners who received the 15-year deferred-payment loans borrowed an average of $12,545. Three paid back their loans, one made some payments, and 11 never made a payment.

The program was launched in Skill Village, the former Pa'ia plantation village that was subdivided to allow tenants to buy their homes. Later it was expanded to include Department of Hawaiian Home Lands lessees. Of the outstanding loans, seven were to lessees and were guaranteed by DHHL.

"We're attempting to work with DHHL and with the parties to determine whether or not the money can be collected," Medeiros said.

Medeiros said the situation should serve as a warning to the county not to create long-term financial assistance programs without setting up a mechanism to keep track of them.

She has raised concerns about the First-Time Homebuyer's Fund, a program created by the Maui County Council to provide loans to residents who can't afford the down payment or closing costs on a home.

The program was originally proposed to offer 15-year deferred payment loans, but Medeiros has said she will ask the council to change it to a three-year payback.

If borrowers never pay back the loans, she said, "you defeat the purpose of it being a revolving fund."