Gov. Ige Celebrates Completion of Affordable Housing Projects On Oahu and Maui

(HONOLULU) – Gov. David Ige recently joined developers on Oahu and Maui to commemorate the completion of two affordable housing projects that received significant financial support from the State of Hawaii.

On Oahu, the recently completed Hale Kalele tower provides affordable rentals at a prime location – within walking distance of Ala Moana Shopping Center– for 200 households earning no more than 60% of area median income (AMI).

The project marked the first development collaboration between the Hawaii Housing Finance and Development Corporation, the Hawaii Judiciary and the Kobayashi Group. The complex is located on state land at what for decades was an underutilized facility that served as a shelter for at-risk youth and had become dilapidated as the Ala Moana and Kakaako communities grew around it. The new, 20-story structure includes a brand-new center that will offer support services and shelter for the youth in addition to the 200 affordable rentals.

Residents must earn no more than 60% AMI to qualify to live at Hale Kalele. Under 2021 guidelines issued by the U.S. Department of Housing and Urban Development, a two-person household earning no more than 60% AMI on Oahu earns up to $58,020 annually. For a family of four, it’s $72,480. Rents initially are running from $664 to $1,480 a month for a two-bedroom unit, $570 to $1,250 for a one-bedroom unit and $542 to $1,177 for a studio.

The $91 million project received significant financial support from HHFDC: $40.5 million in federal and state Low Income Housing Tax Credits, $24.5 million in Rental Housing Revolving Funds and $25.4 million in Hula Mae Multi-Family tax-exempt revenue bonds.

Among the tower’s amenities are electric vehicle charging stations and areas for EV car-sharing and electric bike rentals.

On Maui, Gov. Ige participated in a dedication ceremony for the second and final phase of the Kahului Lani senior affordable housing complex, which is located directly across the street from Queen Kaahumanu Center, a major commercial hub in Kahului. Combined, the complex provides 165 units for seniors 55 and older in the lower-income category.

The two-building complex was developed by the nonprofit Catholic Charities Hawaii, which also partnered with the state on other affordable rental projects including the 300-unit Meheula Vista project in Mililani on Oahu. Kahului Lani residents must earn no more than 60% AMI. Under the latest HUD guidelines, a single person would need to earn no more than $47,940 annually and a couple no more than $54,780 annually. Rents range from $470 to $935 for the one-bedroom units.

The second phase of Kahului Lani consists of 83 units. It also received critical financial support from HHFDC: $17.2 million in LIHTC and $14.2 million in RHRF. HHFDC also provided $2 million for design and road improvements through the Dwelling Unit Revolving Fund.

The complex features a 7,500-square-foot multi-purpose community room and case manager services.

Gov. Ige achieved the goal of 10,000 housing units completed from the time he took office in December 2014 to 2020 and the state is on track to add 3,000 more units online when he leaves office at the end of 2022. HHFDC’s projections show more than 7,500 housing units, nearly all of them in affordable categories, will be completed from 2022 to 2026.

“It’s through these types of private-public partnerships that more housing is possible so our community can have homes they can afford to live in,” said HHFDC Executive Director Denise Iseri-Matsubara.

Gov. Ige last month signed into law Senate Bill 3048, which infuses $300 million into the Rental Housing Revolving Fund, the largest, one-time infusion in the program’s history. “These additional funds will allow us to provide assistance to developers so they can feasibly build affordable rental projects for our residents,” Executive Director Iseri-Matsubara said.

The mission of the Hawaii Housing Finance and Development Corporation is to increase and preserve the supply of affordable housing statewide by providing financing and development resources for housing development. Contact: Gordon Pang, gordon.pang@hawaii.gov or 808-341-4069