The City and County of Honolulu is in urgent need of a clear affordable housing policy — one that states plainly the expectations of developers whose projects fall within transit-oriented development (TOD) zones.
The policy void became woefully apparent as Mana‘olana Partners, developer of a condominium- hotel project across from the Hawai‘i Convention Center, was nearing final City Council approval.
With Mana‘olana the first project to submit a proposal under new, interim TOD guidelines, it is incumbent on the city to set a strong precedent and firm up regulations.
An affordable housing component for the project has been the sticking point: Does the city require Mana‘olana to pay “in lieu” fees? If so, how much — $1.1 million, $2.4 million or $3 million? Should it be required to provide rental housing on or off site?
Affordable housing advocates are rightly monitoring what community benefits this first TOD development will provide in exchange for being built higher, at a greater density and with less parking than traditional zoning allows for the site.
The latest iteration of the proposal — up for final Council vote today — calls for Mana‘olana’s developer to “partner with a city or state public housing development agency to provide at least 20 rental housing units” that meet affordable housing requirements within 1 mile of the upcoming Ala Moana rail transit station, or contribute the monetary equivalent of 20 rental units up to $3 million to be deposited into the city’s Housing Development Special Fund. The Council must decide whether that is enough and recognize that its decision will help shape the future of TOD projects set to come online.
This version is stronger than what city administrators first proposed — $1.1 million in in-lieu fees — but as the first foray under a TOD policy long-promised to tackle affordable housing needs, it falters.
Developers of the 400-foot condominium-hotel tower are seeking the first Interim Planned Development Transit (IPDT) permit for a project they describe as a catalyst in the revitalization of the Ala Moana neighborhood.
Plans for pedestrian- friendly sidewalks, a public plaza, restaurants and other commercial space undoubtedly are more attractive than the current blight at the intersection of Kapiolani Boulevard and Atkinson Drive. And building a luxury hotel directly across from the convention center would not just serve the center, it would also provide permanent jobs.
As for the affordable housing component, the developers say they would work with stakeholders to satisfy housing requirements — just not on the property. Maintenance fees for the project’s 109 high-end condominiums, they say, would simply be too expensive.
That might be the case, but developers cannot continue to use that “out” for future TOD projects. After all, the entire premise of TOD is to draw the working class to the urban core, allowing for easy access to rail transit. Honolulu is well-stocked with luxury condominiums. Affordable units, whether for rent or purchase, are the critical need.
Moving forward, an unambiguous policy that provides developers with clear affordable housing formulas and requirements — especially within TOD zones — must be in place. It’s inexcusable that no formalized affordable housing strategy exists even though the city in 2014 outlined its intent to create one.
Two years ago city administrators said they wanted to invest in better neighborhoods and develop housing in catalytic TOD projects — so the time has come to turn words into action. The expected results of the city’s affordable housing strategy — yet to be adopted — would be development concentrated along the transit corridor to increase connectivity and access; densities to increase housing supply through market forces; more diverse home types; and more affordable housing produced and maintained as affordable for longer periods, city administrators said in 2014.
The Mana‘olana project has brought into sharp focus the necessity of a forceful plan to meet Oahu’s desperate need for affordable housing. That need goes far beyond the proposed 20 units now on the table — in fact, 20,000 affordable rentals are needed now across the state with the highest per-capita rate of homelessness.
The path to meeting affordable housing goals will have to include buy-in from developers reaping the benefits of TOD, but more important, city officials having a comprehensive strategy and the political will to improve Oahu’s housing landscape.
