The builder of Kuilei Place, a planned 43-story tower complex slated to house 1,005 moderately priced condominium units in Moiliili, launched an application campaign last week for yet-to-be-built market-rate units. The application process for units categorized as affordable housing opens today.
Sixty percent of Kuilei Place units are designated as affordable — mainly, for households with incomes at or below Honolulu’s 140% of area median income.
The $619 million project’s developer is 2599 Kapiolani LLC, a partnership between BlackSand Capital and Kobayashi Group. The complex is being developed in collaboration with the Hawaii Housing Finance and Development Corp., which ensures buyers meet Hawaii residency and other requirements.
Situated on a 3.15-acre site currently occupied by low-rise rentals near the corner of Kapiolani Boulevard and Mahiai Street, the project will receive upward of $12.3 million in exemptions and waivers for city permitting, plan reviews, fire, storm drain and public works fees. The project will also see the Honolulu Board of Water Supply defer more than $6.06 million in water and wastewater fees, to be paid back to the city if the project is completed.
Applicants for the project’s 402 market-rate units must submit a completed affidavit packet and attest to remain an owner-occupant for at least one year, among other conditions. Unit selection will be by lottery, and the application deadline is March 5. Any units not sold in the lottery will be available on a first-come, first-served basis to approved qualified resident owner-occupants who apply by April 4.
Kuilei Place’s 603 affordable units are for first-time homebuyers. Applicants must meet the HHFDC eligibility requirements, set income thresholds and demonstrate a need for affordable housing to qualify for a unit. Also, they must sign an affidavit that they will remain compliant with the affordable-housing program restrictions such as owner-occupancy and share in the net appreciation of the property.
All units are one-, two- and three-bedroom layout options. The market-rate units include 54 one-bedroom, 262 two-bedroom and 86 three-bedroom residences. Among the market-rate units are nine live/work lofts. Pricing for one-bedroom units ranges from $685,000 to $780,000, and for three-bedroom units, $989,000 to $1.25 million.
The affordable-housing units include 148 one-bedroom, 382 two-bedroom and 73 three-bedroom condos. All future tenants must be taxpaying Hawaii residents who agree to live in these units as a primary residence for 10 years. And all future tenants would be chosen by lottery, according to the developer.
Maximum sales prices for these units are set to range from $371,800 for a one-bedroom to $813,300 for a three-bedroom residence. At the low end this equates to $73,200 income for a single person and $104,480 for a family of four. At the high end this equates to an income of $128,100 for a single person and $182,840 for a family of four.
At a City Council meeting held in January, the project’s supporters — including members of construction trade associations, workers of past Kobayashi building projects, real estate agents and a vice president of a local bank — claimed Kuilei Place would offer greater housing options to a “gap group” of income earners who typically earn too much money to qualify for affordable housing units but do not earn enough to afford purchasing market-rate homes.
“There is a need for affordable housing,” Realtor Lee Wang told the Council during public testimony. “Kuilei Place is a positive change.”
Others countered that the project would displace residents in a cluster of 1960s-era walk-up rentals at 2599 Kapiolani Blvd. In response, a Kobayashi executive told the Council that the company’s outreach to the 124 tenants would include assisting them with finding new homes.
Kuilei Place is expected to break ground late this year, with an anticipated completion date of mid-2026. For more information about the project, visit www.kuileiplace.com or call 808-751-2599.
