Palau – The Palau Housing Authority (PHA) is requesting $4.3 million from the national legislature, Olbiil Era Kelulau (OEK), to address its financial challenges and ensure the continuation of low-cost housing programs for residents.
In a May 7th letter to Senate President Hokkons Baules, PHA Chair Anthony Rudimch outlined the agency’s need for the funding. A significant portion, $3.57 million, is earmarked to settle the PHA’s outstanding debt with Mega Bank, which is accruing interest at an increasing rate.
“This debt is a major financial burden for the PHA,” Rudimch stated in the letter. “Repaying it would free up resources and allow us to resume serving applicants on our waiting list.”
Beyond debt repayment, the PHA is requesting an additional $270,000 to cover operational costs due to a recent increase in the minimum wage for employees. The remaining $500,000 is designated as seed funding.
Rudimch explained that the seed funding is critical for establishing a Memorandum of Understanding (MOU) with the U.S. Department of Agriculture. This MOU could potentially open doors for future collaborations and funding opportunities related to housing development initiatives.
The House of Delegates has already allocated $262,000 to the PHA in the FY 2024 Supplemental Budget bill. Additionally, the bill includes $1.59 million under Debt Service to repay the principal and interest on the Mega International Commercial Bank loan used for housing projects, including PHA loans.
The supplemental budget bill passed 3rd reading in the House and currently before the Senate for its deliberation.