A California-based developer’s plan for a two-tower, 400-foot tall condominium-­hotel complex and a smaller building with affordable rentals for seniors along Kapiolani Boulevard won final approval from the Honolulu City Council Wednesday.

Resolution 17-221 Opens in a new tab gives Salem Partners what’s known as an Interim Planned Development-­Transit approval to build higher and at a greater density than previously allowed in the Ala Moana-Makaloa neighborhood to construct the condo-hotel on the site of the former Heald College.

Salem will be able to build up to 400 feet, higher than the current 250-foot limit, and a higher floor-to-area ratio in density. The plan calls for 444 condo-­hotel units.

The city is currently developing formal guidelines that would allow for greater height, increased density and other incentives — similar to what Salem Partners received in Transit Oriented Development zones near planned rail stations. The project is within the Ala Moana TOD zone.

But the most eye-opening part of the Salem Partners plan is to offer the area atop the adjacent Walgreens parking lot for 78 affordable rental units that will be made available only to seniors who earn 80 percent or less of area median income.

Traditionally, hotel-resort developers have not been required to contribute affordable housing units like their residential counterparts, but the city Department of Planning and Permitting and the Council have made it clear that policy is changing.

The 78 affordable units now proposed is more than the 68 units that was recommended earlier by DPP. Council Zoning Chairwoman Kymberly Pine also pressed the developer to promise to maintain affordability of the units for at least 60 years, double the previous 30 years. Language was inserted to require the units be studio, one-bedroom and two-bedroom units.

And whereas in the past, “affordable” units were aimed at those making 120 percent of median income, these units would be made available only to those making 80 percent or less.

Federal housing guidelines for 2017 say a couple in Honolulu making 80 percent of median income is earning $66,960 annually, while an individual at 80 percent AMI is receiving $58,640.

Nonprofit affordable housing developer EAH Housing has been in talks with Salem Partners to develop and manage the senior rental complex. EAH Hawaii vice president Kevin Carney told Council members that using the 2017 AMI guidelines, the maximum amount that could be charged would be $1,466 for a studio and $1,570 for a one-bedroom unit. Those making less than 80 percent AMI would pay less.

EAH expects a majority of the units will be rented to those making 60 percent or less, with some available for those making 30 percent or less of AMI. “This means that the majority of rents, including utilities, will range from $549 for a studio at 30 percent AMI to $1,177 for a one-bedroom at 60 percent AMI … based on 2017 figures,” he said.

The chance to develop affordable rentals for seniors in the Ala Moana area is “an unbelievable and extremely rare opportunity,” Carney said, praising Salem Partners for proposing the idea. EAH still will need government financing help to develop the project.

In an odd twist, DPP had called for the condo-hotel complex to carry 487 parking stalls even though the developer wanted more, reasoning that fewer stalls would be needed in a TOD neighborhood and that more would add to traffic. But neighbors said there is a need for more stalls in the area, and the Council approval is now for 537 parking stalls.