A developer aiming to build a condominium tower in Kakaako plans to seek state financing assistance in return for making half the project affordable to residents with moderate incomes.
The 328-unit project dubbed Ililani would have residences priced as low as around $300,000 based on current incomes and interest rates, and has been in the works for more than two years.
Previously Ililani’s developer, Ililani LLC, led by local architect brothers Henry and Kenneth Kai Chang, intended to build the tower under Hawaii Community Development Authority workforce housing rules that allow projects to be twice as dense along with other benefits if they use no government financing and reserve at least 75 percent of homes for residents earning no more than 140 percent of Honolulu’s annual median income.
But after that state agency’s board voted in September to overhaul its affordable-housing rules, the Changs opted to have Ililani approved by a different state agency that helps finance affordable housing in return for making at least half of a project affordable to residents with moderate incomes.
That agency is the Hawaii Housing Finance and Development Corp.
Henry Chang presented basic details of his revised project to the Ala Moana-Kakaako Neighborhood Board on Tuesday night. But he said after the meeting that it would be premature to provide any estimated financial figures including project cost and how much he will seek from HHFDC, which can provide low-interest loans as well as state and federal tax credits.
The agency also can help arrange exemptions from zoning standards, general excise taxes and fees that developers often must pay for parks, sewer connections and other things.
Ililani is proposed to be 367 feet tall, which is below a 400-foot height limit for Kakaako cemented into law by the Legislature.
Chang said Ililani will be similar to another HHFDC-assisted condo tower, Kapiolani Residence, which is under construction with affordable unit prices ranging from around $300,000 to $600,000 for studios to three-bedroom units. Market-price units range from about $500,000 to $1 million.
“We’re a very similar type of product,” Chang said. “What we’re trying to do is create an affordable project with HHFDC that there’s a lot of demand for in town.”
About 900 local residents applied for 292 affordable units at the 484-unit Kapiolani Residence in late 2016, and the project near Ala Moana Center sold out quickly.
Chang is proposing that 51 percent, or 187 units, at Ililani with one and two bedrooms will be reserved for moderate-income residences at affordable prices.
Of these units, 10 percent would be for residents earning up to 80 percent of the median income, which represents $58,640 for a single person, $66,960 for a couple and $83,680 for a family of four.
Another 10 percent would be for residents earning up to the median income ($83,700 for a couple),
15 percent would be for residents earning up to 120 percent of the median income ($100,440 for a couple) and the remaining 15 percent would be for residents earning up to 140 percent of the median income ($117,180 for a couple).
The project site is on Keawe Street mauka of the affordable rental tower Halekauwila Place and adjacent to the state-owned Pohulani rental apartment tower for seniors, but because it is a block from a planned city rail station, Ililani is proposed to have an average of one car parking space per unit.
Ililani’s developer plans to produce an environmental assessment for the project and will need HHFDC approval that includes financing for which other developers compete. Chang estimated that it could take about 2-1/2 years to deliver the project.
