A critical new housing project, the Plaza at Ala Moana, is coming up for approval with the Honolulu City Council and we should all be excited by the potential opportunity it represents.
So what makes this a big deal? Unlike the scores of new condos in Ala Moana and Kakaako, this is one of the very few privately funded, all-rental housing projects in the area. Furthermore, of the 583 units in the proposed tower, 20% of the units will be set at affordable rates meant to serve those earning 80% or less than the area median income.
We all know that Oahu is facing a housing crisis with over 22,000 additional units needed by 2025. This project not only helps to meet that demand, but more importantly, it addresses an underserved sector in the market. Local residents often find homeownership out of reach due to down payment requirements when purchasing. As a result, rentals are the only option available. The problem is that there is scant new inventory on the market, particularly in the urban core of Honolulu.
There’s a reason new rentals are rarely built. It’s because it takes decades for developers to earn back their investments, unlike traditional sales that realize returns in just a few years. Simply put, few developers are interested in, or able to, wait that long.
Brookfield, the developer of the Plaza, should be recognized for its commitment to providing this housing opportunity to locals. It shows that it is invested in the community for the long haul and not simply looking to make a quick buck.
Rental housing opportunities alone at Plaza make it worthy of support. We should not lose sight, however, of another important benefit: This project will generate jobs and economic activity at a time when we need it most. Hawaii currently has the highest unemployment rate in the country at over 15%. That’s over twice the national average.
Clearly, we need jobs and economic investment in Honolulu and we need it now. If approved, this project is expected to produce roughly $96 million in near-term wages and $2 million in annual personal income for workers. That’s enormous given the current condition of our local economy.
Sadly, however, a small group of vocal residents at nearby luxury condos are opposing the project. Their primary objection is that the project will affect their views. This is shameful NIMBY-ism at its worst. Many of these individuals are also part of the same group that is opposing Friday night football games at McKinley High School’s brand-new field simply because they’re bothered by the lights.
As working-class residents seek to provide roofs over their heads, food for their families and jobs for themselves, it is appalling to think that a small group of entitled neighbors stand in the way.
Honolulu deserves better. It is our hope that the City Council will lead the way by approving this important project and focusing on its benefits for all, rather than the special interests of a privileged minority.
Nathaniel Kinney is executive director of the Hawaii Construction Alliance; Gino Soquena is executive director of the Hawaii Building and Construction Trades Council.
