City pans Kahuku affordable-housing plan

A planned affordable- housing project on agricultural land in Kahuku has run into opposition from city planners and a majority of Honolulu City Council members.

The proposed development of 47 homes priced from $350,000 to $680,000 for households with low and moderate incomes, along with 44 “reasonably priced” lots, has been described as a rare opportunity to produce affordable housing in Kahuku.

Local contractor Reuben Fung of Oceanview Builders Inc. seeks to develop the rural subdivision called Manager’s Ridge with plantation- style homes on 17 acres behind Kahuku’s main residential area and largely outside the area’s community growth boundary by obtaining exemptions to zoning, property taxes, about $500,000 in fees and other breaks.

The city Department of Planning and Permitting, however, recommended in a report last month that the exemptions not be granted.

On Aug. 26, the Council’s four-member Committee on Zoning and Planning voted to disapprove the project. Additionally, Councilmember Heidi Tsuneyoshi, whose district includes Kahuku, sat in on the meeting and registered her disfavor, meaning five of the Council’s nine members have signaled opposition to Fung’s estimated $20.7 million plan.

A couple of committee members mentioned the prospect of Fung reworking his plan and submitting a new application, though Fung did not say in an interview whether he intends to do that.

Brandon Elefante, the committee’s chairman, said that in his 11 years on the Council he has never seen a recommended disapproval from DPP for a project that meets the criteria for potential exemptions under a state affordable-housing law known as 201H.

“There is a dire need for affordable housing, however perhaps just not in this area, especially when there are a lot of concerns,” he said.

Issues raised by DPP include 8.5 acres of the site being outside the area’s urban growth boundary, a portion of the land being recommended by the city for protection as important agricultural land, and opposition from many residents along with community associations in Kahuku and Hauula.

DPP also didn’t consider the 44 lots as being part of an affordable-housing contribution because they could be sold at market rates and buyers could build homes for unrestricted values.

“The DPP believes the project does not provide enough affordable housing to justify the requested exemptions,” the agency said in its report.

Tsuneyoshi said during the meeting that 61 out of 65 pieces of written testimony submitted to the Council opposed the project, though more submissions arrived and the tally grew to about 67 of 81. She also raised the issue of existing wind turbines being roughly 1,100 feet from the closest home site as a major factor in her position against Manager’s Ridge.

The project has some community support, including an endorsement from the Laie Community Association and 39 of 144 people surveyed by the Kahuku Community Association who said they would enter a lottery to buy one of the homes.

Fung and members of his development team told the five Council members, who also included Esther Kia‘aina, Calvin Say and Radiant Cor­dero, that by siding with DPP they would be denying opportunities for Kahuku residents to remain in the community and own a home.

“We are local people — local developers — providing homes for local people,” said fifth-generation Kahuku community member Spencer Colburn, whose late mother, Patsy Colburn, was involved with an unsuccessful attempt in the mid-2000s to develop 143 house lots on 58 acres that was also called Manager’s Ridge and included the land Fung is attempting to develop.

Colburn said he had to move out of a house he was renting in Kahuku because the landlord sold it to a mainland buyer for $1.3 million.

“Right now we have this opportunity knocking on our door,” he said. “The key point here is that it is an affordable-housing project, and it is for our people. We are providing about 90 affordable homes.”

After the meeting, Fung expressed disappointment that DPP staff didn’t give him feedback on perceived weaknesses in his application so that he could refine it before the agency issued its recommendation to the Council.

Fung also said some criticisms of his plan are unwarranted, such as roads designed without curbs or gutters, because the design adheres to the area’s sustainable communities plan calling for rural residential development and matches the neighboring subdivision. Also, the proximity of wind turbines in his view is irrelevant because city rules allow for it and homebuyers can decide whether they want to live in such proximity.

Say asked if it was possible to come up with a win-win situation in which the developer could address issues cited in DPP’s report.

The full City Council, which is scheduled to consider the project Wednesday, must take a vote even if Fung’s application were withdrawn. But the developer could submit a new application.

“I think that’s the best approach at this point in time,” Say said.