Genshiro Kawamoto made good on his promise to help needy families yesterday by turning over the keys to three multimillion-dollar Kahala homes to three families.

But as the flamboyant Japanese billionaire handed over the keys and $1,000 in spending money to each family, he also dropped another bombshell: His promise to charge a low rent became no rent as the families will be allowed to live in the homes for free. The announcement brought gasps and then tears from the grateful families.

"I'm shocked. I'm overwhelmed," said Dorie-Ann Kahale, the first to receive her keys.

Kahale said she was already grateful for Kawamoto's offer of a home in East Honolulu for just $150 a month, but his announcement made her speechless. Kahale, 39, and her five daughters had been living in the state's transitional housing project in Kalaeloa since October and on a beach in Nanakuli prior to that.

"Thank you," she said to Kawamoto. "I love you so much."

The single mother said she and her children planned to move into the home at the corner of Kahala Avenue and 'Elepaio Street immediately. Kahale is a customer support representative for Pacific LightNet.

Kawamoto announced in October that he would rent eight of his Kahala homes to low-income families for $150 a month. But he confessed yesterday that he had never intended to charge a dime in rent.

"I wanted to do this in the beginning, but I didn't want to announce it too soon," Kawamoto said through an interpreter. "These are good people."

Kawamoto has selected four families to live in homes that ranged in price from $2 million to $3.4 million when he bought them in 2005. The fourth family selected will be shown their house after repairs are completed.

MOVING-IN DAY

As the Kahale family was settling in to their new digs and fighting over who would get one of the four bedrooms, Kawamoto made his way to two other properties on Kahala Avenue to introduce the other families to their new homes.

At 4578 Kahala Ave., Lyn Worley read a thank-you message in Japanese to Kawamoto as she was given the keys.

"I said that we were very happy and that words couldn't express our gratitude and that he's given our family a great opportunity," Worley said. " 'Domo arigato' just wasn't cutting it for me."

The divorced, single mother who works at Holomua Elementary School in 'Ewa Beach was accompanied yesterday by her brother and five children, but said everyone in her extended family will be invited to stay at the home.

"Viva Kahala!" she proclaimed, using a phrase coined by Kawamoto in November when he wrote "Viva Hawai'i, viva Hawaiian, viva Kahala Avenue!" in a statement detailing plans for his "Kahala Ave. Mission."

Worley had lived in Wai'anae, but her month-to-month lease expired and her family was looking at an uncertain future.

"We prayed so hard and cried so much for God to drop something from the heavens and he did," she said. "One door closes and another one opens. So we're really, really blessed."

SHELTER LIFE NO MORE

Two blocks away at 4337 Kahala Ave., Randy Key's and Leeann Gusman's six children were breaking in their new yard minutes after Kawamoto opened the door to their new home. The family had been living at the Ma'ili Land transitional shelter for more than a year.

"It's a blessing. We're so excited," Key said.

Before moving to Ma'ili Land, Key and Gusman lived on the beach, but their children had been taken away by state child welfare officials following Key's 2004 conviction for misdemeanor family abuse. He said the children were returned to them "eight, nine months" ago and they are moving forward with their new lives.

Key, who is unemployed, said his immediate concern is to make improvements to the family's new yard. Gusman works as a bank teller.

"I'm excited. I'm speechless," he said.

The families acknowledged that they have heard the complaints from some Kahala residents who said Kawamoto was doing this as a publicity stunt to upset the neighborhood and also was attempting to lower property values so he could purchase more homes at lower prices.

But the three families said they hope their new neighbors will give them a chance.

"They need to know the person individually," Kahale said. "I'm hoping to change a lot of the neighbors around here, to make them realize I will appreciate everything that I have received.

"I want to be able to shine upon all the neighbors around me, to make them realize I am not who they thought we were going to be," she continued. "To make them love me for me and not to discourage my landlord because he is such a wonderful man."

Worley said her neighbors are "going to love us" once they get to know her family.

"I just want people to be happy for other people's goodness," she said. "I know they paid a lot of money and worked really hard, but so do we. Timing and circumstances bring people to where they are in their life."

Kawamoto said he was not aware of the criticism, but he wore a sarcastic smile as he said that.

"I don't hear anything," he said.

HOME CONTROVERSY

Previously, Kawamoto investments have stirred controversy in other O'ahu neighborhoods after he bought homes mostly in East and Windward O'ahu in the late 1980s.

Kawamoto rented his property often for well below market value, but did little to maintain or improve the homes. In some cases, neighbors complained that homes in disrepair hurt their property values.

Kawamoto claimed that property managers didn't inform him of the conditions of his property. Property managers claimed Kawamoto was informed and refused to authorize repairs.

In 2002, Kawamoto announced he would sell all his roughly 160 O'ahu homes, creating public concern over loss of so many rentals. Kawamoto sold 60 homes quickly, and gradually sold most of the rest, after making repairs or renovations to some.

Reach Curtis Lum at culum@honoluluadvertiser.com.