HONOLULU (KHON2) — More affordable rental units are being offered to low-income families on Oahu.
Gov. David Ige joined Hawaii Supreme Court Chief Justice Mark Recktenwald and officials from the Kobayashi Group at the grand opening ceremony for the mixed-use Hale Kalele project.
This project adds 200, all-affordable rental housing units at a prime, and what some would call formerly underutilized, location in lower Makiki.
“This project is significant because it took an aging building on underutilized state land and transformed it into a brand-new center that will offer support services and shelter for our at-risk youth,” said Denise Iseri-Matsubara, executive director of the Hawaii Housing Finance and Development Corporation (HHFDC). “As well as new affordable rental units for a segment of our community that is most in need, families earning no more than 60% of area median income which translates to no more than $72,480 a year.”
The new complex is also home to a juvenile services center and shelter, located on portions of the first- and second- floors of the building. The rest of the building houses 201 units, including one unit reserved for a resident manager.
“I’m really happy to see the Kobayashi Group has expanded into the Low-Income Housing Tax Credit field and am honored to share in its success on its first LIHTC project,” Iseri-Matsubara said.
Residents cannot earn more than 60% of area median gross income to qualify to live at Hale Kalele.
According to the 2021 guidelines by the U.S. Department of Housing and Urban Development, a two person household earning 60% AMI on Oahu would be making a maximum of $58,020 annually. For a family of four, it’s $72,480. The developer will keep the units at affordable rates for a minimum of 73 years.
The units are currently running from $664 to $1,480 a month for a two-bedroom unit, $570 to $1,250 for a one-bedroom unit and $542 to $1,177 for a studio.
The $91 million project received significant financial support from HHFDC, providing opportunities to landowners and developers that construct or retain affordable housing units.
Hale Kalele received $40.5 million in federal and state Low Income Housing Tax Credits, a Rental Housing Revolving Fund loan of up to $24.5 million and $25.4 million in Hula Mae Multifamily tax-exempt revenue bonds.
Hale Kalele announced at this time, they are no longer accepting applications for their lottery. They held their selection pull on April 4th, and someone from Hale Kalele reached out to those who were selected.
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For more information on these units head to Hale Kalele’s website.