Here’s one way to describe the Hawaii Community Development Authority mission: Grasp the reins and try to steer the redevelopment of land-use zones through a state of transition.
The most well-known of these wild-horse regions is Kakaako, an old light-industrial area now in mid-transition to a more residential-commercial mix. Less known among its charges: Kalaeloa, the former Barbers Point Naval Air Station; and Heeia wetlands in Windward Oahu.
Now in charge is Aedward Los Banos, 39, who has been on staff almost continuously since 2014, except for a six-month stretch as chief financial officer at Catholic Charities. Before coming aboard, he worked as chief operating officer for the Office of Hawaiian Affairs.
It’s been a bit unsettled at the helm of HCDA since the retirement of longtime executive director Anthony Ching in 2016. Los Banos served as interim ED for almost a year until Jesse Souki took over, but then Souki resigned Nov. 30.
In the meantime, Los Banos said, HCDA’s board of directors has become more settled and many of the outstanding project issues resolved (the latest being the go-ahead for Koula, the latest tower being built by Howard Hughes).
So when the top job came around again, he said, the timing seemed right.
“I could see realizing the potential of the agency, really,” Los Banos said. “The board is open to pursuing improvement district projects … where we put the infrastructure, lay the groundwork to create incentives for development.”
The Kamehameha Schools and University of Hawaii alumnus’ educational background is in accounting. He lives with his wife and their two young children in a more old-school neighborhood, in Pacific Heights.
Fun fact: The spelling of his first name happened because one side of the family had a tradition of giving the kids “A” names, he said, while the other side wanted to honor a namesake, Edward.
Question: Understanding that a lot of the discussion happened before your appointment: Do you have any opinions about the new affordability rules the board approved?
Answer: The rule amendments were necessary to address the reported speculation with future workforce housing projects. Like reserved housing, our workforce housing program provides favorable pricing for income-qualified buyers. As we’ve seen with re-sales at 801 South Street, the difference between this price and prevailing market prices can amount to a significant windfall upon re-sale.
By applying the shared equity requirements included in the amended rules, a portion of the windfall is remitted to the HCDA. Historically, the HCDA has reinvested these funds to create more housing at deeper levels of affordability, like Halekauwila Place.
Ultimately with the state’s housing challenge, it’s our responsibility to take measures to curb abuse of our programs and ensure that qualified local residents that need housing are served.
Q: What about the “micro-housing” tower? Do you think there are more opportunities to replicate that?
A: It will take innovative solutions and the production of inventory at all levels and prices to solve the state’s housing crunch. Innovation was the focus of Nohona Hale, a remnant land parcel acquired by the HCDA with its Cooke Street improvement project. Nohona Hale features 110 affordable rental units on only 10,000 square feet of land. The density and optimization of a parcel this size makes this project really unique.
If zoning and infrastructure permits, finding a 10,000 square foot parcel of land is not a significant barrier to replicate such a project. Micro-units are a relatively new housing product for Hawaii, so I think the market will determine if and when the project is replicated. …
Q: How much reserve housing and affordable units are built now in HCDA’s Kakaako area, and how many more will there be?
A: In the past five years, this construction cycle generated 3,821 new units in Kakaako, a 65 percent increase. Of those units 1,620 units or 42 percent were reserved or affordable. Currently there are 2,686 new units either permitted or currently under construction, 1,014 of those units are either reserved or affordable.
While the increase is alarming, urban density is the solution to prevent urban sprawl. To meet the existing shortage and growing demand for housing, vertical development is essential in keeping other areas of the island pristine.
Otherwise, as long as our rules stand, approximately 20 percent of all new development in Kakaako will be within range of local residents earning between 120 percent and 140 percent of area median income (AMI). If it’s a workforce-housing project, this number goes up to 75 percent and affordability drops as low as 100 percent of AMI.
Q:What is the remaining residential/commercial mix planned for Kakaako? How much of the existing industrial space will stay, for the near term?
A: The decision to redevelop is up to the landowner; the HCDA’s mission is redevelopment and its community plan and rules apply only when a decision to redevelop is made. The future development and ultimate mix of commercial, residential, and industrial is open to those landowners.
With its tools provided by statute, the HCDA does work to create incentives for landowners to redevelop by enhancing the land entitlements like density and improving existing infrastructure. A lot of the development that has occurred during this cycle and is currently in progress are focused on and around these incentives.
Q: Are you in any discussions with the Honolulu Authority for Rapid Transportation over its route and rail stops?
A:The way our statute is written, HCDA’s purview is generally limited to its community development districts and Kakaako is the only district affected by HART. To date, I think HART has briefed the authority twice now on the planned route through Kakaako.
Otherwise, the HCDA has been cooperating with HART and its requests to perform the necessary due diligence and utility relocation work ahead of the elevated guideway through Kakaako. There has also been some discussion with HART over HCDA-controlled parcels that will be directly affected by the project.
There are a few parcels that HART has acquired and is currently staging on in central Kakaako but most prominently, there is the vacant strip of land next to Keauhou Place that HART and (developers) Stanford Carr and Kamehameha Schools set aside for a future rail station. I think it will integrate nicely.
Q: Any updates for Kalaeloa? What’s the status of electricity service there?
A: Phase 1 of an energy and telecommunications infrastructure improvements along Enterprise Avenue is expected to be completed by the end of the year with Phase 2 to immediately follow. This infrastructure will provide firm power to the downtown area of the district. The HCDA is otherwise currently studying viable alternatives to provide reliable energy throughout the district, including the planned capacity at full build-out. …
HCDA is also surveying the planned right of ways through the district. Beyond vehicular transportation, roads are critical to the distribution of utilities. While it may sound basic, these steps are essential to the implementation of the Kalaeloa community development plan.
Q: Any changes for Heeia?
A: Last year, the entire Heeia community development district was included as part of a larger area designated as part of the National Estuarine Research Reserve System, or NERRS. As a part of the NERRS program and to restore the wetlands, funding was received and used towards the removal of mangrove, an invasive species. If you have driven by the Heeia bridge on Kamehameha Highway, the impact has been remarkable.
At the HCDA level, we have been working towards developing a community development plan and rules for this district. Founded in community input, the community development plan will not deviate much from the existing values of agriculture, conservation and preservation that currently guide HCDA stewardship of the district.
The work we do in Heeia really defies what people initially think when asked about HCDA; we’re not only about urban density.
