The Honolulu agency overseeing rail construction has determined that its prior history of shoddy relocation payments ultimately short-changed 24 businesses and tenants displaced by the future rail line to the tune of $883,000.<\/p>\n
Those underpaid parties were later compensated as part of a lengthy effort that wrapped earlier this month. It aimed to fix as best it could the widespread problems that occurred with the Honolulu Authority for Rapid Transportation\u2019s relocation payments through 2016.<\/p>\n
HART submitted its final report on the so-called \u201ccorrective action plan,\u201d which the Federal Transit Administration had required it to do, on May 2, according to Krista Lunzer, the rail agency\u2019s latest director of property acquisition and relocation. She briefed the HART board on the matter Thursday.<\/p>\n
What Lunzer didn\u2019t address in that briefing, however, were the numerous overpayments for relocation that HART and the city were also found to have made, in addition to the underpayments.<\/p>\n
Such overpayments on relocation costs were the focus of a grand jury subpoena<\/a> delivered to HART in early 2019, as part of a federal criminal investigation into rail that\u2019s believed to be ongoing.<\/p>\n
Since rail construction started, HART has relocated more than 100 property owners, businesses and residents along the transit route from east Kapolei to Ala Moana Center. The agency has reported issuing more than $13.2 million in relocation costs.<\/p>\n
Numerous problems including missing documents, math errors and \u201cpayments without justification\u201d in HART\u2019s relocation files were first discovered<\/a> by the agency\u2019s real estate consultants in 2017.<\/p>\n
A team of investigators with Hill International subsequently took a detailed look<\/a> at most of HART\u2019s relocation files for the FTA in 2019. They found that 22% of the individuals in those files were actually overpaid, and an additional 6% were paid even though they were ineligible.<\/p>\n
In its damning assessment that year, Hill stated that HART\u2019s relocation files were so incomplete based on what\u2019s required under federal standards<\/a> that nearly half of those displaced \u201cwere likely harmed\u201d as a result.<\/p>\n