Latest news with #DepartmentofLandManagement
Yahoo
23-03-2025
- Business
- Yahoo
ʻEwa Beach to gain 127 affordable housing units
HONOLULU (KHON2) — Honolulu will be developing Kaleimaʻo Village — West Loch Apartments, an affordable housing project in ʻEwa Beach designed to contain 127 units on a 3.7 acre lot owned by the city. The housing units will be rented to low-income households earning at or below 60% of the area median income, with single-person households making up to $58,000 eligible as well as families of four earning up to $75,000. Honolulu Mayor to give State of the City Address The build will be composed of seven three-story buildings totaling 28 one-bedroom, 87 two-bedroom and 12 three-bedroom units. There will also be a meeting space, a central laundry facility, administrative office, mailboxes, over 120 parking stalls and over 60 bicycle stalls. 'Kaleimaʻo Village specifically targets income ranges that include many of Oʻahu's essential workforce, food service employees, childcare providers, maintenance staff, healthcare support workers and transportation personnel, who are vital to our communities yet often struggle to find affordable housing,' said Mayor Rick Blangiardi. 'This is an excellent example of how through strong public-private partnerships and decisive action, we are ensuring that projects like this move forward efficiently.'Construction on the new project is expected to begin later this year, with an anticipated completion date of late 2026. A significant portion of financing the project came from Honolulu's Private Activity Bond program, which Blangiardi reinstated after its 23 year absence. The program is also known as the Multifamily Housing Revenue Bond program, and allows private entities to access tax-exempt debt for projects that serve the public, like affordable housing. The Honolulu City Council unanimously approved up to $30,376,937 in these bonds for the project, lowering borrowing costs and keeping rent low. The land for Kaleimaʻo Village is leased for 75 years, allowing for the units to be accessible to the public for at least three-quarters of a century. 'Kaleimaʻo Village is a great example of how we can use city owned land to create housing opportunities for local families,' said Department of Land Management Director Designate Catherine A. Taschner. 'With a long-term ground lease in place, we're ensuring that these homes will remain affordable well into the future. This project is the result of strong collaboration and commitment, and we look forward to seeing it come to life.' For more information, visit the Department of Land Management's website. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
07-02-2025
- Business
- Yahoo
Honolulu launches $5M grant program to support low-income rental housing
STAR-ADVERTISER / 2023 'Outside demand has pushed our market above the local sale price by over $700, 000.' Peter Savio Real estate developer STAR-ADVERTISER / 2023 'Outside demand has pushed our market above the local sale price by over $700, 000.' Peter Savio Real estate developer Honolulu Mayor Rick Blangiardi's administration is offering $5 million in grant funding to stoke the creation of more low-income rental housing on Oahu. Currently, the city Department of Land Management is soliciting proposals from nonprofit entities and public agencies for funding opportunities through the Affordable Housing Fund, or AHF, which typically provides funding to develop and expand affordable rental housing for households earning 60 % or less of area median income. The fund also comes with the requirement that funded housing remain affordable for at least 60 years. But in this solicitation, the city is prioritizing projects that serve extremely low-income households—or 30 % AMI and below, including those experiencing homelessness—in which a person earns $29, 250 a year or a family of four receives $41, 750 annually, according to the state Housing Community Development Authority. 'This funding opportunity is a key part of the city's broader strategy to increase the supply of affordable housing, particularly for those in urgent need, including individuals transitioning out of homelessness, ' Kevin Auger, executive director of the Mayor's Office of Housing, said in a statement. In a statement, Catherine Taschner, DLM's director designate, said the program encourages 'organizations to bring forward projects that will have a lasting impact.' Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. 'By prioritizing projects that serve extremely low-income households, this initiative underscores our commitment to tackling homelessness and expanding affordable housing opportunities, ' she said. The funding cap is $55, 000 per unit, meaning the program could support at least 90 units at full funding, according to city officials. They add that the actual unit production will depend on project scope, land acquisition costs and whether funds are used for new construction or rehabilitation. City officials say they won't know the number of affected units until the completion of the competitive selection process. And while 90 units is the estimated baseline, the final number could be higher depending on how efficiently funds are allocated and whether projects secure additional financing. The proposal submission deadline is scheduled for 3 p.m. March 18. Meantime, the city is also seeking developers willing to build or redevelop four new affordable housing projects on city-owned parcels in urban Honolulu. The properties in question include :—1615 Ala Wai Blvd.—436 Ena Road.—130 S. Beretania St.—1421 Pensacola St. Under this program, selected developers will enter into a 75-year ground lease with the city and will be responsible for designing, financing, constructing and operating affordable rental housing on these sites. DLM recently issued a 'request for qualifications ' to redevelop the four underutilized sites, the city said. The deadline to submit is 1 p.m. March 21. Both of these efforts correspond with the Blangiardi administration's unveiling earlier this week of its new plan to expand construction of more housing across Oahu. Coinciding with the mayor's second four-year term, the city's Office of Housing released its 2025-2028 Strategic Housing Plan, which aims to partner with developers to 'activate underutilized ' city-owned lands on the island and involve using new types of 'financing strategies ' to build more housing on the island. The plan, which does not offer an overall number of new housing units the city expects to develop on the island, will supposedly lay the groundwork for such development in the coming years—or at least as long as the Blangiardi administration remains in office. The mayor's second and final term ends in 2028. During a news conference held Wednesday at the Mayor's office, a few 'special guests '—namely, representatives from large developer firms including Kobayashi Group LLC, Stanford Carr Development LLC and Castle &Cooke Hawaii, among others—appeared. Peter Savio, a longtime real estate developer in Hawaii and president and CEO of the Savio Group of Companies, did not appear at the mayor's news conference. But afterward, Savio told the Honolulu Star-Advertiser that the city's approach to building more affordable housing on Oahu misunderstands the real issue at play. 'We do not have a supply problem ; we have a demand problem, ' he said. 'As we build affordable units and sales restrictions expire, they get resold at market and become unaffordable.' And most so-called affordable housing units are 'unaffordable based on local wages, ' he said. 'Real estate markets are local in nature, and slow for the building and sale of homes in a community, ' he added. 'This means homes are sold tied to the income of buyers and sellers in that community.' Savio said if applied to housing in Hawaii, and tied to average wages, a three-bedroom, two-bath fee-simple home should sell for about $450, 000. Instead, that home sells for more than $1 million, he noted. ''Affordable' projects have studios at $250, 000 (and ) one-bedrooms at $400, 000. They are lower than market prices but still unaffordable, ' said Savio. 'Outside demand has pushed our market above the local sale price by over $700, 000.' 'Our wages do not allow us to compete for home purchases. We are priced out of our market because of our demand, ' he said. 'If demand is the problem, building more supply simply attracts wealthy mainland and foreign buyers.' 'If demand is the issue, building more is the worst thing the government can do, ' he added. To solve the problem, Savio claimed the government must establish a program to keep housing affordable in perpetuity. 'This can be done by creating an affordable local market where homes are sold in a controlled market, where price is determined by increase in wages, ' he said. 'Wages go up 20 % over 10 years, the price goes up 20 %.' 'All we have done is create a local market for local wage earners, which is what our market would be without the distortion of outside buyers, ' he said. To that end, Savio said he supports new state-level legislation introduced by Sens. Les Ihara Jr. and Carol Fukunaga. He said the measures—Senate Bills 1632 and 379, respectively—are meant to establish 'a local market ' for housing as well as keep so-called affordable housing 'affordable forever.' 'That's the real story, ' he added. 'We have a solution and it will work.' Meanwhile, according to the city and the University of Hawaii Economic Research Organization, or UHERO, the median sales price of a single-family home exceeds $1.1 million, and median rents approach $2, 000. In the Honolulu metro area alone, there are nearly 20, 000 cost-restricted units, while West Oahu contains approximately 9, 000 units, UHERO says. According to the Hawaii Housing Factbook, 58 % of Oahu renters are rent-burdened, spending more than 30 % of their income on housing. In comparison, 29 % are severely rent-burdened, allocating over half their income to rent, the housing report says.
Yahoo
06-02-2025
- Business
- Yahoo
New Strategic Housing Plan for Oahu is launched by city
In what the city describes as bold and unprecedented, Honolulu Mayor Rick Blangiardi's administration this week publicly announced its plan to expand construction of more housing across Oahu. Coinciding with the mayor's second four-year term, the city's Office of Housing released its 2025-2028 Strategic Housing Plan, which aims to partner with developers to 'activate underutilized ' city-owned lands on the island and involve using new types of 'financing strategies ' to build more housing on the island. And the city's plan also calls for the merger of the existing Mayor's Office of Housing with the existing city Department of Land Management—to create the new Department of Housing and Land Management—to supposedly centralize and streamline the city's development, finance and policy efforts. The same plan would consolidate all homeless and transitional housing functions under the city Department of Community Services, the city says. The plan, which does not offer an overall number of new housing units the city expects to develop on the island, will supposedly lay the groundwork for such development in the coming years—or at least as long as the Blangiardi administration remains in office. The mayor's second and final term ends in 2028. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. 'This is about us moving from planning to execution, and a lot of our next term is going to be about doing precisely that, ' Blangiardi said during a news conference inside Honolulu Hale Wednesday. 'But I can't think of anything more profound or important for us in the city's involvement in what we're going to do to create housing.' The mayor's news conference also featured a few 'special guests '—namely, representatives from large developer firms including Kobayashi Group LLC, Stanford Carr Development LLC, and Castle &Cooke Hawaii, among others. City officials outlined the housing plan's key initiatives :—Expand transit-oriented development, or TOD, via Skyline to create high-density, mixed-use communities along its nearly 20-mile route. That effort would concentrate growth—housing, offices, retail, education, and government services—in Hono lulu's primary urban center. The TOD corridors would reduce commute times, lower transportation costs, and support Hono lulu's sustainability goals.—Activate Skyline's Kuwili Station TOD Redevelopment Area. The plan states the city and state's land holdings in the Iwilei area—where the Kuwili Station is planned—will help 'improve connectivity, address environmental concerns, and mitigate flood risks.' The plan envisions thousands of housing units within a mixed-use district, backed by $2.7 million in federal and state grants for infrastructure and master planning.—Accelerate housing development by leveraging underutilized public lands and streamlining procurement processes to expedite partnerships with local developers.—Enhance housing finance strategies. City officials say existing funding sources for affordable housing, including general obligation bonds, private activity bonds, and the Affordable Housing Fund—Ordinance 7-19—are limited. The city is currently exploring new financing strategies—some derived from other cities and counties on the mainland—to expand opportunities for housing development here.—Improve housing policies and processes with support from the University of Hawaii Economic Research Organization, or UHERO. To that end, city officials say they will conduct a comprehensive review of housing programs and policies. A new set of recommendations is expected by late 2025. At the news conference, Office of Housing Executive Director Kevin Auger said the housing plan—released to the public Friday—is the first time the city has 'addressed our affordable housing crisis in over 25 years.' 'It provides a road map outlining direct actions that the city will be undertaking to facilitate the production of housing on Oahu, ' he said. 'But more than that, it represents a fundamental shift toward a proactive delivery model that emphasizes execution, public-private collaboration and strategic investment.' In part, Auger said Skyline will offer TOD housing through urban Honolulu, where the rail will roll into downtown by 2031. 'TOD development concentrates growth and density in the primary urban areas without encroaching on rural areas, ' he said. He added the 'immediate focus ' of TOD projects would be in the Iwilei area, and at the Kuwili Skyline Station, near the old Iwilei Center. In January 2024, the city announced it closed a $51.5 million deal to purchase the Iwilei Center. The transaction will convert the existing center—long home to warehouses, loading docks, offices for lease as well as more than two dozen commercial tenants—to a new, city-owned affordable housing development, the city said. Acquired by the city's Department of Land Management from Iwilei Center LLC, an affiliate of Blacksand Capital, the purchase of the 3.8-acre property includes addresses at 850 and 866 Iwilei Road and 505 Kaaahi St., respectively. 'We believe that conservatively that that area can support 1, 500 to 2, 000 housing units, that's directly located adjacent to Chinatown, it's within walking distance of downtown, ' he said, adding TOD development will reduce residents' 'dependency on automobiles, reducing the cost to support them.' Deemed the first phase of the mayor's new housing plan, Auger said the city has 'an aggressive ' schedule to break ground on the Iwilei development by 2028. He noted the city also owns 10 properties around Oahu—from Waianae to Waikiki—that are ripe for redevelopment. 'The combined total (is ) about 35 acres, ' Auger said. 'We believe conservatively those lands can accommodate close to 2, 600 housing units, including the Iwilei Center development.' He added 'to move these properties into development, we're committed to issuing requests for qualifications to secure development partners for all of these properties for calendar year 2025.' 'The first request for qualifications includes the portfolio of four properties, and that was issued just last Friday, ' he said. But Auger admitted developing housing projects on Oahu could take time—in the case of Iwilei Center, it will be three years before the project breaks ground. 'It takes a long time to get a development off the ground in Hawaii, ' Auger told news reporters. 'Environmental review, planning and permitting, development … and most importantly, getting a line of low-income housing tax credits, if you're building affordable housing.' 'When you look at private activity bonds and low-income housing tax credits, that combination, and you look at the last five years—that program is administered by Hawaii Housing Finance and Development Corporation—that limited resource only delivers less than a thousand units a year on average, ' he added. At the news conference, individual developers did not speak on or address the city's prospective developments. But Council Vice Chair Matt Weyer, chair of the panel's Housing, Sustainability, Economy and Health Committee, spoke to the importance of creating more housing for residents. 'We see the need for resources on all parts of the spectrum, from non-congregate (housing ), to low-moderate income households, to market-rate units, ' Weyer said. 'And we see the need to address the out-migration. It's not just affecting our families, it's affecting our workforce.' After the news conference, Housing Hawaii's Future Policy Director Perry Arrasmith told the Honolulu Star-Advertiser that his nonprofit, which advocates for more workforce housing for teachers, firefighters, police officers and health care workers, was impressed with the city's new housing plan. 'This has been something that the city has needed for a really long time, ' he said, 'and now it's going to be a matter of actually implementing this plan.'
