As the board chairman for the proposed Luana Kai senior living community, and in response to the Honolulu Star-Advertiser’s May 30 story (“Tax-free bonds approved by lawmakers for ‘mystery’ Hawaii Kai senior-living project”), I would like to share information about the importance of this project and the need to address housing options for our aging population in Honolulu and more specifically, Hawaii Kai.

Statistics support the need for another senior living community in East Oahu. According to U.S. Census data from 2019, East Honolulu/Hawaii Kai has a greater concentration of citizens age 65 and over (25.4%) than Oahu as a whole (18.2% on average). And, the 2019 East Honolulu Sustainable Communities Plan states that 37% of East Honolulu residents will be 65 years or older by 2040, the highest on Oahu, and outlines guidelines for special needs and senior housing.

The concept of developing a senior community like Luana Kai began with a group of local citizens who saw an opportunity to provide comprehensive residential and health care services to seniors who prefer to stay in the neighborhood where their families were raised. The goal of developing Luana Kai is to provide a “life plan community” that fosters good health, independence, self-esteem, dignity and a sense of purpose for senior residents.

Life plan communities provide senior residents with continuing long-term care in a safe, comfortable environment. Luana Kai will include independent living apartments for healthy seniors. Assisted living, memory care and skilled nursing apartments will also be available to assist senior residents should they be needed as they age. Luana Kai will offer priority access to all available levels of care and give residents the assurance that they will never be asked to leave, even if they outlive their finances.

Day-to-day decision-making and governance of the Luana Kai community will be governed by a volunteer board of directors consisting of local leaders like myself.

There has been a lot of confusion about Luana Kai’s request for special purpose revenue bonds (SPRB) via House Bill 869. SPRBs are a type of municipal revenue bond authorized by the state Legislature that can be used to provide loan financing to assist qualifying private capital improvement projects that are in the public interest. SPRBs are sold to institutional investors and provide a type of tax-free financing that is less costly than commercial lending.

SPRBs issued through the state:

>> Do not put Hawaii citizens at risk of repayment or of higher taxes.

>> Do not impact the state’s financial condition.

>> Do not put the state at risk of bond repayment.

>> Do not affect the state’s bonding capacity for its own infrastructure.

Luana Kai has submitted an application to the IRS (IRS Form 1023) for a determination letter to confirm tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. We fully expect to receive such letter, and will comply with all filings required by the state of Hawaii.

Lastly, we understand the community’s desire for information about the proposed Luana Kai community and to have a voice in the planning process. We want to assure the public that there will be ample opportunity to share their opinions about this project once we have worked through negotiations to secure the site and financing.

We appreciate the feedback the community has already provided and look forward to sharing additional project details and engaging in meaningful dialogue.

Dr. David McEwan is board chairman for the proposed Luana Kai senior living community.