Legally OK to offer Kahala homes only to Native Hawaiians

Genshiro Kawamoto's plan to provide eight of his homes on Kahala Avenue to needy Native Hawaiian families raised an issue of whether his plan was a form of housing discrimination.

Some non-Hawaiians who applied but were passed over for Kawamoto homes, expressed such concern to the federal Department of Housing and Urban Development, which enforces the Fair Housing Act.

But following a lengthy examination, HUD late last year ruled that federal fair housing law didn't apply because Kawamoto provided the homes rent-free.

Jelani Madaraka, lead civil rights analyst for the Fair Housing and Equal Opportunity Program in HUD's Hawai'i office, said for the act to apply there needs to be a "real estate transaction" involved.

Kawamoto initially said he planned to charge $150 to $200 monthly rent, but ended up providing the homes for free, making the arrangement a gift and not a real estate transaction as defined by law.

"There was no rent or sale involved," Madaraka said. "We found the Fair Housing Act didn't apply."

The Fair Housing Act makes it a discriminatory practice for anyone to refuse to sell, exchange, rent or lease real property because of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, or human immunodeficiency virus infection.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.