GHURA board OKs Tower 70 site change

by Mindy Aguon

Guam - The Guam Housing and Urban Renewal Authority's board of directors has agreed to allow a local developer to change the site of 70 proposed low-income homes. The company, Tower 70, was one of two developers that were awarded millions in Low-Income Housing Tax Credits.

Tower 70's Bob Salas and CoreTech International's Ho Eun appeared before the GHURA board today, asking that they be allowed to change the site of their proposed development for low-income housing.  The 70 homes were supposed to be built along Ypao Road in Tamuning, but are now proposed to be moved to the area behind the former MGM Spa in Tamuning, known as "The Old Island Home Improvement Center Area".

"The reason for the site change was basically there were issues with the permitting in terms of the density and the layout and if he was to meet his scheduled deadline of having those units built and occupied by December 31, 2013 - he had to make this move to change his site," said Dave Sablan, chairman of the board for GHURA.

The project was one of several that were submitted to the board back in December in hopes to receive millions in Low-Income Housing Tax Credits made available each year.  Great Homes and Tower 70 were awarded the credits, but Salas came back to the board because of his original site problems and because there was a change in partnership.

Upon advice from their legal counsel in Washington, DC, the board voted to allow Tower 70 to change the site, but also imposed a number of conditions. Sablan explained, "You must meet what our technical team and management requires of you. They're not going to be unreasonable. They're going to be related to the quality of life of the individuals that are going to be staying in there. That's our responsibility as GHURA. We're not putting people into slum houses or houses that will eventually fall apart in three, four, five or ten years."

Tower 70 must make a public announcement regarding the change in the site, put down a 5% good faith deposit to pay for GHURA's administrative costs, address flood control issues at the new location, build at least 70 units that are the same size and include the same amenities as was originally proposed and approved. The developer must also partner up with a non-profit organization and Salas and his previous partner, Keith Farrell, will not be eligible to apply for future Low-Income Housing Tax Credits for two program years.

"The board once we decide this we want to move on. We don't want to have to go back and forth, back and forth having to deal with this and then having to deal with all these correspondences with all these people," he said.

Should Tower 70 not complete the project and have the homes occupied by December 31 of next year, the developer will not receive the tax credits. Now, the one thing that could throw a wrench in the board's actions today is if their legal counsel says that the change in partnership is not allowed.

Meanwhile, KUAM News spoke with Micronesia Self-Help Housing Corporation's Carlos Camacho, who says he respects the board's decision and says it addresses the concerns he outlined in a letter sent to the agency on Monday. Camacho says he simply wanted to know if Ironwood Highlands - who also applied for the Low-Income Housing Tax Credits - could make changes to their proposal if a site change for Tower 70 was allowed. 

He makes it clear that he will not be filing a protest and looks forward to applying the next go around.