Parkway Village at Kapolei, a major affordable rental housing initiative under the Low-Income Housing Tax Credit Program, celebrated its grand opening Tuesday, marking a significant milestone in addressing Oahu’s housing crisis. The first 167 units are now available to house individuals and families.

The mixed-use development comprises 405 rental units, including 401 designated for tenants and four for building managers. The units range from studios to four-bedroom homes and cater to households earning between 30% and 60% of the area median income, or AMI. In 2024 it translates to annual incomes of $34,770 to $69,540 for a family of four in Honolulu County.

“As we’ve said many times before, we don’t have enough houses if they’re not affordable,” Gov. Josh Green said at the opening. “It’s our job to do whatever is humanly possible to get us to these wonderful moments.

“This project serves people who just don’t earn a lot of money. Imagine trying to live off of $35,000 and $70,000 a year. It’s almost impossible unless people like this group step up, and that is the point. That is the reason that we support housing together. It is otherwise utterly impossible for so many people doing necessary work for our state to actually live and stay here.”

Designed to balance affordability with quality, Parkway Village includes features like split-system air conditioning, ceiling fans and energy-efficient appliances. The community also offers green spaces and shared areas aimed at fostering connection and enhancing well-being.

The $199 million project was built on city-owned land and developed by the Kobayashi Group and Ahe Group in partnership with the City and County of Honolulu, Hawaii Housing Finance and Development Corp., CREA LLC and Bank of Hawaii.

Funding included $36 million from HHFDC’s Rental Housing Revolving Fund Loan, $112 million in Low-Income Housing Tax Credits and $98 million in Hula Mae Multi-Family Tax-Exempt Bonds.

“The land is a lease dollar a year from the city, thank goodness,” Kobayashi Group CEO and Partner Alana Kobayashi Pakkala told the Honolulu Star-Advertiser. “So there’s no land costs there. And then, of course, thanks to HHFDC and the state financing program, the financing costs are very low.”

Construction on Parkway Village began Sept. 19, 2023. The second phase of the project is scheduled to open in 2025, further expanding affordable housing options in West Oahu.

Units at Parkway Village range from 344 to 1,305 square feet. The development will offer tenants access to approximately 641 parking stalls, 10 laundry facilities and three recreation rooms.

Parkway Village also features two preschools — six preschool classrooms — aimed at addressing early education inequities in West Oahu.

“This was a vision between Kobayashi Group and Kamehameha Schools, because in the West side, there is actually only one licensed preschool seat for every 48 preschool-aged children,” Pakkala said. “So it’s a real inequity. This preschool is for the public.”

The first preschool, now complete, is the state’s first privately developed public charter preschool.

Created in partnership with Kamehameha Schools and operated by Parents and Children Together, it includes four classrooms and will serve 80 children. Funded through Kameha­meha Schools and the state’s Ready Keiki program, the preschool cost over $2.2 million to construct and will be open to the broader community.

Additionally, a community preschool exclusively for Parkway Village residents is scheduled to open next summer as part of the second phase of the development. Operated by Keiki o ka ‘Aina, this preschool will feature two classrooms and provide early learning opportunities for 40 keiki within the community.

Parkway Village also will feature the Freight Farm, a hydroponic container farm located within the community garden. This unique addition aims to educate keiki about farming and healthy eating while fostering connections among residents through sustainability and agriculture.

For households earning 30% of AMI, rent for a studio starts at $641; a one-bedroom is $673; a two-bedroom is $824; a three-bedroom is $947; and a four-bedroom is $1,054.

For those earning 60% of AMI, rent for a studio is $1,372; a one-bedroom is $1,456; a two-bedroom is $1,764; a three-bedroom is $2,030; and a four-bedroom is $2,266.

A studio could house up to two people, while the largest bedroom plan — the four-bedroom unit — has a maximum occupancy of nine people.

Two months ago Parkway Village opened applications for the first phase of 167 units through a lottery system, receiving 1,308 applicants. The anticipated move-in date is January.

The next round of applications will open in January, also through a lottery system, to allocate the remaining 234 units.

Once fully occupied, future vacancies at Parkway Village will be filled on a rolling, first-come, first-served basis as tenants move out.