Construction has begun on Hale Moiliili, a high-rise rental apartment complex that will be the state’s only affordable housing project exclusively serving beneficiaries of the Department of Hawaiian Home Lands.

The project, at 820 Isenberg St. on the site of the former Stadium Bowl-o-Drome, was celebrated Friday morning with a groundbreaking ceremony attended by DHHL officials, Gov. Josh Green, Honolulu Mayor Rick Blangiardi, U.S. Reps. Jill Tokuda and Ed Case, as well as Council members and state legislators.

The Hale Moiliili project is the first condominium development to combine Native Hawaiian housing with affordable housing using federal funding, made possible by the Fair Housing Act of 1964. The act protects people from housing discrimination based on race, color, religion, national origin, sex, familial status or disability.

​​”Innovative projects like Hale Moiliili ensure our Native Hawaiian families have a place to call home,” Green said in a statement. “Our families have endured on the waitlist for far too long. This opportunity has the potential to empower beneficiaries and create meaningful change. My administration will continue to encourage our leadership to seek bold strategies in the creation of affordable housing options and a project like this deserves our community’s support.”

Stadium Bowl-o-Drome, a bowling alley that operated from 1955 to 2004, sits on a nearly 2-acre parcel near Old Stadium Park, an area of growing concern for nearby residents.

Hale Moiliili is expected to be completed in a two-year development process, featuring a 23-story high-rise tower with 271 units. The complex will include 23 studios, 23 one-bedroom units, 203 two-bedroom units and 22 three-bedroom units.

Additionally, the project will feature a two-story townhouse with seven three-bedroom units overlooking Old Stadium Park, and a 290-stall parking structure.

“We invest in housing because it is the only way that Hawaii can survive. We have too few nurses because they can’t afford housing. We have too few teachers because they can’t find a house that’s affordable, and that extends to firefighters, police, doctors and virtually everyone,” Green said Friday. “Everyone who works is having a challenge finding a home. It’s heartbreaking and unacceptable.”

DHHL beneficiaries who choose to rent a unit will maintain their position on the lease award waitlist. Tenant income thresholds will range from 30% to 100% of the U.S. Department of Housing and Urban Development’s annual median income, with rents between $657 and $3,460.

“We’re delivering on our promise to provide affordable rental housing to beneficiaries on our waitlist,” DHHL Director Kali Watson said in a statement. “The opportunities an affordable rental unit can provide are the ability to address financial challenges, build savings for a future home purchase, or access outreach and counseling services for individuals experiencing houselessness. This housing model will serve as a pilot for future developments and DHHL would like to mahalo Governor Green for his support and steadfast commitment to our department’s mission.”

Applicants on the waitlist will be notified about the opportunity to apply about six months before the project is completed. Oahu’s residential waitlist exceeds 11,400, the highest need for beneficiary housing in the state.

The Hale Moiliili project, developed by Stanford Carr Development, will cost $155 million to build, though maintenance fees remain undetermined as of Friday.

SCD President Stanford Carr told the Honolulu Star-Advertiser that operation costs could account for 25% of the revenue. To reduce utility expenses, Carr mentioned the integration of solar panels for water heating and photovoltaic energy at the project.

Having previously worked on four projects with the U.S. Department of Housing and Urban Development, Carr said Hale Moiliili is the first project of its kind and that he is “honored” to be involved in such a groundbreaking development.

The Hawaii Housing Finance and Development Corp. board of directors supported the project with $41.5 million in low-interest loans from the Rental Housing Revolving Fund, $4.7 million in annual low-­income tax credits and $80 million in tax-exempt private-activity bonds.

In addition to housing, Hale Moiliili will offer social services such as financial literacy courses, keiki programs and spaces for small businesses to serve the community.

All improvements to the site are aimed at revitalizing the area while preserving the historical significance of Stadium Bowl-o-Drome.