One of Kalihi’s largest public housing communities will be transformed as the first of a multi-phase redevelopment effort gets underway.
As part of the redevelopment, 13 existing buildings at Kūhiō Park Terrace Low-Rises and Homes will be demolished and 60 of the current 174 aging public housing units will be replaced with 302 new affordable rental homes and two manager units. The new units will be constructed in three mid-rise buildings that will range from six to eight stories.
Construction was expected to begin this month and be finished by mid-2028.
Financing for this first phase, a $214.3 million redevelopment, was recently secured.
The City and County of Honolulu’s Department of Housing Land Management, or DHLM and the Hawai‘i Public Housing Authority, or HPHA, made that announcement late last week.
“The Kūhiō Park Terrace redevelopment represents an essential reinvestment in one of Honolulu’s largest and oldest public housing communities,” Kevin Auger, DHLM director-designate told Aloha State Daily via email. “The original complex was built more than 60 years ago, and like many older properties across the island, it no longer meets the needs of today’s families.”
Auger says the project will replace aging infrastructure with “modern, resilient housing designed to support long-term affordability and quality of life for residents.”
“It reflects a broader effort to ensure that public lands and public resources are being used to provide safe, dignified homes for local families who are most at risk of being priced out.”
Financing for the first phase includes a $115.7 million investment from the city, which includes $107.7 million in private activity bonds and $8 million from its Affordable Housing Fund, the announcement noted.
Meanwhile, the Hawai‘i Housing Finance and Development Corp. is providing more than $10.18 million each in 4% federal and state Low-Income Housing Tax Credits, along with $48.6 million in gap financing through the Rental Housing Revolving Loan Fund, the city said.
The project’s tax credit equity investor is the Royal Bank of Canada, with construction financing provided by Bank of Hawai‘i.
In the first phase, one-, two-, three- and four-bedroom units will be available, along with community amenities that include a playground, picnic area, community meeting room, fitness loop and gardens, as well as 96 parking stalls, the announcement notes.
All units will be reserved for households that earn 30%, 40% and 60% or below of the area median income. HPHA also will provide 65 project-based vouchers and guarantee some units for households at or below 30% AMI, the announcement states. These income limits vary depending on the household size. You can find the city’s current limits here.
Kūhiō Park Terrace Low-Rises and Homes are adjacent properties at 1449 Ahonui St. that are currently home to 174 units of federally subsidized public housing on 22 acres, the announcement notes.
“Working in partnership with HPHA and its developer partner Highridge Costa Development Co., the full master plan envisions 650 new low-income rental homes across three phases,” the announcement reads.
The total capitalization for the first phase of work is approximately $214.3 million.
HPHA Executive Director Hakim Ouansafi said in an emailed response to questions from ASD, shared with us by a department planner, that the $214.3 million capitalization represents the total development cost for the first phase of the redevelopment. It includes “everything required to plan, finance and deliver a complete, occupied and operational housing community.”
That includes not only construction costs but demolition, site work, infrastructure, architectural and engineering services, environmental and permitting work, legal and accounting expenses, insurance and project management, as well relocation assistance for existing tenants, financing and bond issuance costs, interest, reserves for long-term operations and maintenance and more.
Ouansafi says that all 60 families affected by the first phase of development were successfully relocated earlier this year, a process that was planned and carried out in coordination with each household “to ensure that every family was treated fairly, supported throughout the move and provided with safe, affordable housing options.”
No other families will need to be relocated for the upcoming phase 1 redevelopment, and once the construction is complete, relocated residents who are in good standing and in compliance with their lease will have priority to return to the property, he noted.
Before relocating these families, Ouansafi says HPHA offered “one or more comparable housing units for each displaced tenant” and they were offered housing where they would not pay more than 30% of their income, like the cost of renting in public housing.
Addressing housing needs
Auger says this project reflects the kind of partnership critical to addressing the island’s housing shortage.
“The City’s involvement helps make large-scale redevelopment like this possible,” he says. “By providing financial resources to the HPHA, the city is leveraging public funds for maximum community impact — strengthening surrounding neighborhoods, improving connectivity and ensuring that affordability is preserved well into the future.”
According to Auger, the KPT redevelopment aligns with the city’s Strategic Housing Plan and the department’s mission to deliver more affordable and workforce housing by activating public lands — in this case state lands — through public-private partnerships.
Backed by the city’s $115.7 million investment, the redevelopment project “underscores DHLM’s strategic use of its newly reactivated PAB program to unlock large-scale redevelopment opportunities,” Auger says
“By combining city, state and private resources, the project exemplifies the kind of catalytic, results-driven investment that moves Honolulu closer to a more equitable housing system — one where every family, regardless of income, can find a safe, stable place to call home.”
Amanda Ybanez, chair of the Kalihi-Pālama Neighborhood Board No. 15, meanwhile, told ASD in an email that she’s “all for the redevelopment of KPT,” having long supported efforts to revitalize the community by supporting workforce affordable housing. She says she feels that affordable housing is the “real push” for thousands of local residents.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
