A new affordable housing project in Makiki is set to welcome its first residents.
A crowd gathered Saturday for the grand opening of the Makiki Banyan, located at 1568 Pensacola St.
It brings 80 one-bedroom and 10 two-bedroom units to the neighborhood, available to households earning up to 80% of the area median income. While income limits depend on household sizes, 80% AMI for a one-person household is $86,240 and for a family of two is $98,560, according to current city guidelines.
Construction began in March 2025 and was completed in 13.5 months.
The project was developed by Lam Capital, itself led by Paul Lam, and co-developers Geena Thielen and Evan Amakata, under the City and County of Honolulu's Bill 7 program.
Bill 7 was adopted by the Honolulu City Council in 2019; these projects are also referred to as ROH Chapter 32 projects. According to the city's Department of Planning and Permitting, ROH Chapter 32 relaxes development standards and offers financial incentives for affordable rental projects in certain zoning districts and on lots no larger than 20,000 square feet as long as 80% of the units are rented to those earning no more than 100% of Honolulu's AMI for at least 15 years.
Makiki Banyan is the fifth affordable and workforce housing project that Lam Capital has so far developed under Bill 7. According to a recent announcement from the developer, previous projects include developments on Ernest, Kīna‘u and Algaroba streets and University Avenue.
The company has another 750 units in the pipeline across 12 projects in various stages of development, the announcement noted.
"We acquired the first parcel four years ago and we acquired the second parcel three years ago, so it's been a four-year project. We're just absolutely thrilled," Lam told Aloha State Daily on Saturday, when asked how it felt to see the project finished. "Rental housing is what we need as a community. So many people can't afford to buy."
Lam says he would "absolutely not" be able to do this kind of development without Bill 7.
"This is the piece of legislation that ... can help to solve infill urban housing needs."
Honolulu Mayor Rick Blangiardi told ASD Saturday that Makiki Banyan was the "execution of a concept done very, very well."
"The thing about a Bill 7 project like this is not only does it allow 90 families eventually to move in here at really good rates, it's where it's located and all the things that come with it," he says. "... The compounded value beyond the low rent is this location. [To] be able to live in an urban area with bus stops, walking distance to schools, to shopping centers, all those conveniences that just add to the quality of life. Not the least of which is they built a beautiful building where people could feel proud about living in a place that has great street appeal."
Davis Pitner, spokesperson for the city's Department of Planning and Permitting, told ASD in an email that eight Bill 7 projects have so far been completed, with certificates of occupancy issued. These projects have added 250 affordable housing units to O‘ahu's housing stock.
Meanwhile another 52 Bill 7 projects are in the pipeline, which Pitner says could create about 1,540 affordable housing units.
Currently, 31 of those projects are under review with the applicant; five are under review with the city and DPP, one project has been approved; and 15 are under construction with building permits issued, he told ASD.
For rental information or questions about leasing, contact Savio Asset Management at 808-946-3221.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
