The sellout of a lottery among middle-class buyers in March for a planned condominium tower on South Street was a strong sign of a need for affordable housing in Kakaako. However, a proposed tower qualifying for exemptions under the Hawaii Community Development Authority’s new "workforce housing" rules to encourage such housing is angering nearby neighbors, for good reason. The agency should back away from such projects that would be so detrimental to homeowners in existing nearby condos.
The shortage of housing for urban Honolulu residents with modest incomes is critical. It shouldn’t have been surprising when more than enough applicants resulted in the sales of all 635 units of a 46-story tower to be erected at 801 South Street, makai of the former newspaper building.
Some small exemptions were allowed for that developer, Downtown Capital LLC, to slightly exceed density limits because at least three-fourths of the units were priced for buyers earning no more than 140 percent of Honolulu’s median income. There were few, if any, complaints.
That is not the case in a proposal for a condo to be shoehorned next to the Imperial Plaza, a project built in 1991 between Kapiolani Boulevard and Kawaiahao Street that consists of two towers 400 feet and 125 feet high.
The proposed 803 Waimanu project by Franco Mola’s MJF Development Corp. is asking for HCDA approval of exemptions so it can build a 197-unit tower that would reach 250 feet high; the HCDA had reduced the height limit at the site two years ago from 400 feet to 65 feet. MJF also asks that the building’s space between the Imperial Plaza be reduced from 300 to 90 feet from the Plaza’s main tower, and from 80 to 39 feet from the other tower.
Reduction of the height and the spacing from Imperial Plaza had to have been for a reason, presumably to produce a well-planned community, as Imperial Plaza residents have suggested. Fourteen of those residents spoke against the MJF proposal at a hearing last week and 33 of the 36 letters opposing it were by residents. Those who testified at the hearing raised concerns including the effect on views, sunlight, air circulation and traffic.
Anthony Ching, HCDA’s executive director, says developers of condos affordable by people with modest incomes need adjustments from the rules. Under HCDA’s program, those who qualify for workforce housing are not allowed financial support from the government, such as tax credits, loans or land. That can be important due to the cost of land and development in Hawaii. Mola has been involved in Hawaii development, including a 176-unit affordable Kulana Hale senior apartment building on South Beretania Street.
While the need for affordable housing is and should be an important component of HCDA’s policy, tailoring projects to fit sites must take into account the effect on residents of neighboring condominiums. With the Kakaako district poised for major redevelopment, and every new project a potential precedent, the HCDA needs to stand firm: The touted "live, work, play" vision for the area must also mean breathability and quality of living. Squeezing in too much is a concern. Changes are needed in the 803 Waimanu tower development for it to go forward.