Editorial: City needs more from developer

The Hawaii Housing Finance and Development Corp. (HHFDC) has oversight of affordable housing programs for the state, including approval for developers seeking exemptions from zoning laws and fees in exchange for building affordable housing.

On Thursday, the HHFDC signed off on a proposal from Kobayashi Group LLC to qualify for these valuable tradeoffs, for a $619 million residential tower complex in Moiliili, on 3.2 acres of land now occupied by 141 low-rise rental apartments. The state agency should’ve insisted on more.

The Kuilei Place plan now moves to the Honolulu City Council, where additional requirements should be placed on the developer. With a project of this magnitude, the public should expect a certain number of units to be available to truly low-income residents.

Kobayashi Group is asking for a bevy of land-use concessions from the city, including major exemptions to building height and density limits. It’s a big ask. The main 400-foot tower exceeds the current 150-foot height limit for the property, rivaling the tallest buildings on Oahu. The total building density is 4.5 times greater than what zoning allows for the site.

Honolulu’s Department of Planning and Permitting has valued the zoning exemptions at close to or over $40 million. Kobayashi Group is also seeking exemptions to city fees for building permits, plan reviews, wastewater charges and such, valued at over $7 million.

Of 1,005 total units proposed, Kobayashi promises 60% will fit the definition of affordable and moderately priced housing — primarily for earners who would be largely professionals or economically secure retirees. The development would include a pool and recreation area, electrical-charging stations for cars and parking, with green space adjacent to Kapiolani Boulevard.

There’s much to like about this plan, including the potential for improved walkability along the boulevard, where the city has been working to establish a lively “Complete Streets” community friendly to bikes and pedestrians, and a more visually revitalized site. Kobayashi also proposes using sustainable materials and energy-saving design to lessen long-term costs for the towers.

Notably, this project would create hundreds of new homes for young and emerging professionals, essential workers such as teachers or firefighters, and those who have reached a well-deserved retirement.

Still, there are serious concerns about the prospects of those currently living in the 141 aging low-rise apartment units that will be torn down — and others like them in need of future housing.

Though the 1960s-era buildings currently on the Moiliili site are described as “substandard,” they have provided an increasingly rare source of housing for low-income renters. Most of the apartment-dwellers there likely earn substantially less than the condo buyers and renters targeted by the Kuilei Place development, and this displaced demographic should be given more consideration.

The project is proposed as a high-rise housing tower fronted by two midrise structures, one for housing and one for parking. Because the existing building is residential, there’s adequate sewer, electric and drainage infrastructure; that’s an advantage for a developer. However, it’s difficult to see how displacing the current residents will help address the crisis in housing low- income earners face in Honolulu.

Kobayashi Group told members of the HHFDC board that it will offer current tenants two months free rent and a return of their deposits, along with referrals for help finding new homes. It, and the city, should do better. Before the project moves forward, the City Council — and the public — must weigh the community pluses and minuses.