The Hawaiian Council has acquired a 12-unit apartment building near The Queen's Medical Center in Honolulu for just under $3 million, with plans to preserve the property as long-term workforce and affordable housing.
Funding for the property, located at 1408 Lusitana St., came through federal Community Development Block Grant funds administered by the City and County of Honolulu, the Hawaiian Council — formerly known as the Council for Native Hawaiian Advancement — said in an announcement Monday. The transaction closed Feb. 27.
According to the Council, more than half of the 12 one-bedroom units will be reserved for households earning at or below 80% of the area median income. Income limits are determined by household size. You can find Honolulu's current limits here.
Hawaiian Council CEO Kūhiō Lewis told Aloha State Daily in an emailed response to questions that the member-based nonprofit — which aims to advance the cultural, economic and community development of Native Hawaiians — has an "ongoing goal of preserving and expanding the inventory of affordable housing options across Hawai‘i."
"When this CDBG opportunity was announced, it aligned directly with our housing strategy," he continued. "Acquiring an existing, occupied property allowed us to both preserve current housing inventory and ensure that a majority of the units remain affordable to low- to moderate-income households.
"Funding sources like CDBG provide a critical pathway to increase and protect affordable housing inventory, and this property represented a strong opportunity to advance that mission in an urban Honolulu setting."
The property is currently fully occupied, the announcement notes. When asked how the acquisition might affect current tenants, Lewis said Hawaiian Council will review the eligibility of the families currently residing there to determine whether they meet the program requirements.
"The property manager will be working directly with tenants to complete the income qualification process," he says. "If any tenants do not meet the requirements and relocation becomes necessary, we will work closely with them to identify appropriate housing options. However, our goal is to minimize disruption and we hope that relocation will not be required."
Lewis notes that seven of the 12 units are designated for households at or below 80% AMI.
"Based on the total number of units and the number designated as income-restricted, we are hopeful that there will be a workable combination that allows all current tenants to remain at the property."
According to the announcement, rental rates will align with the city's affordable housing guidelines.
Phased renovations are also planned for the property, along with the introduction of supportive resident services like housing counseling and pathways toward homeownership, the announcement notes.
"Hawaiian Council plans to approach renovations in phases to minimize disruption to residents while steadily improving the overall quality and resilience of the building," Lewis says. "In the near-term, we anticipate addressing priority capital needs such as electrical upgrades, targeted unit renovations as they become available, and necessary roof repairs. These improvements will be scheduled over time to ensure safety, code compliance and improved living conditions without requiring large-scale displacement.
"Over the longer term, our goal is to incorporate energy-resilient upgrades that improve residents’ monthly budgets," he continued. "For example, we are exploring the installation of solar panels as a future capital improvement. By integrating energy-efficient and renewable energy solutions, we hope to enhance sustainability, lower utility expenses and improve overall quality of life for residents."
This is just the latest addition to the Hawaiian Council's portfolio of multi-unit properties. According to the announcement, the organization in 2022 purchased the 10-unit Hale Manakō in Wahiawā through a CDBG grant from Honolulu to serve families at risk of homelessness. In 2023, it acquired the 18-unit Bayview Apartments in Kāne‘ohe.
"It is important for Hawaiian Council to continue growing its multi-unit housing portfolio because housing stability is directly tied to economic development, which is a core strategic priority for our organization," Lewis told ASD. "Our foundation is rooted in strengthening Hawaiʻi’s economy and expanding opportunity for local families. By increasing affordable housing options, we help ensure that working families can remain in Hawaiʻi, employers can retain their workforce, and communities remain stable and vibrant.
"Beyond economics, affordable housing is also about preserving the fabric of Hawaiʻi. When families are able to stay rooted in their communities, culture is sustained," he continued. "It allows us to carry forward the values, traditions and generational connections that define our Islands."
Housing Solutions Inc. will manage the property on behalf of the Hawaiian Council.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
