Old housing in Moiliili cleared for affordable midrise

With a long-standing but soon-to-be-uprooted tangerine tree as a backdrop, a small piece of a Moiliili neighborhood was blessed Tuesday for a big addition of affordable housing.

The blessing by Kahu Kordell Kekoa was part of a ceremonial groundbreaking for a 105-unit midrise apartment building on a site previously occupied by 26 residences in several low-rise apartments and one single-family home dating as far back as 1928.

Kali Watson, head of the project’s development team, said the coming six-story Hale Makana o Mo‘ili‘ili apartment complex reserved for seniors with low incomes is one of several positive changes in store for the community where past change, including business closures and homeless encampments, hasn’t always been good.

“Changes are coming,” he said. “This project is part of that change.”

Watson, a former head of the state Department of Hawaiian Home Lands, once lived in the area with his grandmother and recalled much that had changed in the community since it was his home, including a park that replaced Honolulu’s main sports stadium, revamping the fixture bar Anna Bananas and the end of an era for The Willows restaurant.

“A lot has changed since then,” he said. “To me the future is bright.”

The site for Watson’s project spans a corner of Algaroba Street and Makahiki Way, where neighboring blocks include Old Stadium Park, the historic Waiola Shave Ice store and the McCully-Moiliili Public Library. It’s also close to the shuttered Bowl-O-Drome property where DHHL plans to build its own rental apartment building.

Mayor Rick Blangiardi, who played in and coached University of Hawaii football games at Honolulu Stadium before the affectionately nicknamed “Termite Palace” was replaced by Aloha Stadium in 1975, relished some nostalgia for the area where he also once lived, and called the apartment complex a good addition that helps address a critical need for affordable housing.

“I wish we could do one of these every day,” he said. “This is just such a great project.”

Other participants in the blessing included Gov. David Ige and City Council Chairman Tommy Waters, both of whom applauded the efforts at different government levels helping Watson’s team deliver the $40 million project.

Watson, executive director of the nonprofit Hawaiian Community Development Board, is developing the project in partnership with California-based 3 Leaf Holdings Inc. Primary financing includes a $13.6 million state loan, state and federal tax credits worth $20 million and bonds provided through the Hawaii Housing Finance and Development Corp., a state agency that helps facilitate affordable housing.

The city waived about $1.2 million in fees and granted a zoning exemption allowing high-density use of the property zoned for medium-density apartment use.

Demolition of the old housing on the site began last week and is nearly finished. Completion of the new building is projected for February 2023, and the developer anticipates seeking tenants shortly before apartments are ready for occupancy.

In return for the government financing and other benefits, affordable rental rates linked to income will be maintained for 60 years.

Monthly rent for studio and one-bedroom apartments would range from $521 to $1,226 for low-income residents age 55 and up if they were available this year.

Of the 105 units, 92 will be reserved for tenants with household incomes up to 50% of the median in Honolulu, which equates to $42,300 for a single person and $48,350 for a couple. Six units will be for households earning half as much, and six will be for households earning up to 60% of the median income. One manager’s unit also will be in the complex.