The City and County of Honolulu is clearing the way for more affordable housing — literally.
Demolition work at the former Dee Lite Bakery site in Kalihi is being finalized "and once complete, we'll secure the site as we continue advancing plans for its redevelopment," Kevin Auger, director of the city's Department of Housing and Land Management, told Aloha State Daily in an emailed response to questions.
The city previously said it had acquired the property at 1930 Dillingham Blvd. and 1907 Eluwene St. for about $8.4 million in 2019 as part of a long-term effort to secure land for affordable housing near transit.
"The property is envisioned as a transit-oriented affordable rental housing development, with preliminary estimates suggesting the site could accommodate approximately 150 units," Auger says. "Its location directly across from the future Mokauea Skyline station creates an opportunity to provide affordable homes with convenient access to public transportation, employment centers and neighborhood services."
EAH Housing was selected as the city's "preferred negotiating partner" for the redevelopment earlier this year, and Auger says the city is working toward finalizing the pre-development agreement and long-term ground lease.
"EAH brings extensive experience developing and managing affordable housing communities, including here in Hawaiʻi," he told ASD. "The next phases of the project will involve working with EAH and community stakeholders to refine the development concept, explore financing opportunities and shape a project that responds to the needs of the surrounding Kalihi community. Community engagement will be an important part of that process as the project advances through planning, design and the necessary approvals.
"While the final development plans and construction timeline are still being determined, we're excited about what this property could mean for the future of Kalihi and the communities along the Skyline corridor."
Meanwhile in Waikīkī, the city is preparing to begin demolition work at another redevelopment site, 436 Ena Road, later this month.
According to the DHLM website, full demolition of the building structure is expected to take place beginning the week of Oct. 26 through the end of February 2027.
The site will remain secured with safety fencing throughout all phases of the work, the site notes, adding that all work will occur during standard construction hours.
Auger says the planned demolition marks an important step toward the property's redevelopment for affordable housing.
"This property represents an opportunity to create much-needed workforce housing in a community where so many people work but increasingly struggle to afford to live," he says. "Our vision is to provide more of our residents the opportunity to live closer to their jobs, reduce lengthy commutes and be part of the community they help sustain."
The city selected EAH Housing as its preferred negotiating partner for the redevelopment of this property in July 2025.
"Originally constructed in the early 1990s and later converted to residential use, the building was operated by the city as affordable rental housing until 2023," the city said in an announcement at that time. "The selected team will be tasked with redeveloping the property to maximize long-term affordability with utmost efficiency and quality."
Partnering with the development community to build housing on city-owned lands is one of the components of a strategic housing plan the city unveiled last year. You can find the plan here.
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
For the latest news of Hawai‘i, sign up here for our free Daily Edition newsletter.
