A New York development firm and a nonprofit partner held a unique ground blessing Thursday for a unique affordable-housing project in Kakaako.
The project, Nohona Hale, is unique because it’s the first tower of purely “micro- unit” rental apartments to be built in Hawaii.
And the blessing was unique because the site for 111 homes in a 16-story tower was too crowded to fit a tent for all the participants celebrating the recent start of the $53 million project. So the bulk of the ceremony was held about a block away at Mother Waldron Park.
“This is not your typical ground blessing,” said Kevin Carney, vice president of EAH Housing, the nonprofit partner helping New York-based Bronx Pro Group LLC develop Nohona Hale.
The project site at 630 Cooke St., near the corner of Queen Street, is roughly 10,000 square feet, which is a typical lot size for one single-family house.
A state agency that regulates development in Kakaako, the Hawaii Community Development Authority, owns the lot and in 2014 solicited proposals from private developers to produce affordable homes there. HCDA selected Bronx Pro and EAH in June 2015 over six competitors.
Samantha Magistro, a Bronx Pro principal, thanked state leaders for having faith in a project where apartments will all be studios with 300 square feet of living space reserved for residents with low incomes.
“I commend you for taking a chance on micro- units,” she said. “You are a trailblazer among cities in this country with this important housing tool.”
Gov. David Ige said HCDA took a remnant parcel — a site that was once home to a Seafarers International Union hiring hall — and turned it into a “gold mine” for affordable housing.
“Congratulations to all involved,” he said.
John Whalen, HCDA board chairman, said Nohona Hale is a good example of how affordable rental housing can be built in a state where developers say it is incredibly hard to do because of high land and construction costs.
“The work is not done, but this is a good step forward to seeing more rental housing here,” he said.
While 300 square feet might not seem like much to live in, Whalen has seen Bronx Pro micro-housing in Seattle that is similar to the Kakaako project and said the way studios are designed give them a sense of openness. Each unit in Kakaako will feature floor-to-ceiling windows and a 70-square-foot lanai.
Originally, Nohona Hale was going to be a 14-story building with 107 studios with 300 square feet of living space plus 40-square-foot lanai. But Magistro said two more floors were added and allowed four more units and bigger lanai.
Construction site work began in June, and the tower is slated to be finished in August 2019.
Bronx Pro initially projected that construction could start in 2016 and be finished in 2017. But it took longer than anticipated to arrange a development agreement with HCDA, which is leasing the land to the developer for $1 a year for 65 years, and to obtain financing.
Hawaii Housing Finance and Development Corp., a state agency that helps finance affordable housing, is providing Nohona Hale with $27 million in Hula Mae bonds, $22 million from a state rental housing fund, $1.8 million in state tax credits over five years and $1.8 million in federal tax credits over 10 years.
Rents must remain affordable for 65 years and are governed by HHFDC rules. Maximum monthly rent for 99 of the units is $1,225 for households earning no more than 60 percent of Honolulu’s annual median income. Another 11 units have a maximum monthly rent of $612 reserved for tenants earning no more than 30 percent of the median income. One unit would be for a manager.
Income limits equate to $49,020 for a single person or $55,980 for a couple at the 60 percent income level, and half that at the 30 percent level.
EAH Housing, which will manage Nohona Hale, won’t begin to solicit applications until about six months before the project is ready to open. However, prospective tenants can get on an interest list by calling 439-6286 or emailing nh-management@eahhousing.org. A lottery will be held to pick qualified tenants.
