It’s noteworthy when a developer sees the bar that’s been set for a common good, such as housing, and aims to exceed it. Where that aspiration becomes praiseworthy, though, is when that higher bar is actually cleared.
So it is with Kamehameha Schools’ hope to build more affordable units for lower- and moderate-income people in its “Our Kakaako” redevelopment plan, than is currently required under state rules.
Kamehameha is now looking to have more than 50% of future homes reserved for low- to moderate-income households, a welcome improvement over an existing master plan requirement that 20% of homes be reserved for moderate-income households.
“We want to make sure that we are providing housing for local kamaaina residents,” said Serge Krivatsy, Kamehameha’s director of planning and development.
Kakaako’s other major master-plan developer, Texas-based Howard Hughes Corp., has largely built higher-priced and luxury units — average prices at or above $1 million — while adhering mainly to the 20%, moderate-income bar.
For Kamehameha to deliver on its updated housing vision, though, would likely require exemptions, such as in building density.
As reported by the Star-Advertiser’s Andrew Gomes, Kamehameha plans to ask the overseeing Hawaii Community Development Authority if it can boost tower densities, using a state affordable-housing incentive program. The so-called“201-H,” after the governing statute chapter, enables waivers to density and other regulations, as well as general excise tax exemptions and tax credits depending on the affordable housing produced.
Kamehameha’s existing plan allows construction of about 2,750 homes and 300,000 square feet of commercial space — so it’ll be intriguing to see how much more will be broached, and at what price.
The need for residential units — especially those affordable to Hawaii’s workforce — cannot be overstated. A 2015 state study projected that housing demand for Oahu alone would be about 26,400 units by the year 2025, just four years from now. It’s a goal that looks very unlikely to be met.
Clearly, getting many more units on the market is imperative. To that end, there was a welcome flurry of news this week:
>> On Monday, the application process began for an August lottery for one of 78 lower-moderate income rentals at Azure Ala Moana on Keeaumoku and Makaloa streets. Most are studios between 240 to 375 square feet, reserved for households earning up to 80% of Oahu’s area median income: $70,500 for an individual, $80,600 for a couple. Renters will need to evaluate whether these tiny units are worth the location. Meanwhile, the 41-story tower’s other 330 market-priced condos will cost between $550,000 and $2.2 million.
>> The Central Ala Moana condo is nearly built, with all 512 units sold. About 310 units sold for $286,000 to $708,000 under a state affordable-housing program at subsidized prices with buyer restrictions; another 202 market-priced condos sold for $580,000 to $1.4 million.
>> The Park on Keeaumoku, a 972-unit twin-tower condo project of mainly moderate-priced units near Ala Moana Center, is poised to start selling in March, with construction to start near year’s end. The second-largest residential condo project to be developed in Hawaii (behind 801 South), prices here are expected to be about $1,000 per square foot of living area. So figure about $900,000, plus or minus, for a 900-square-foot unit.
So even as Hawaii’s overall economy remains in the doldrums, the demand and supply for homes are in churn. But eyes and intentions must remain fixed on advancing Hawaii’s supply for as many working-class people as possible. Workforce housing for residents must be top of mind, not an afterthought to fulfill lower-income ratios to snag project approvals.
