Affordable housing near Halawa rail station begins construction

Construction has begun on a low-income rental housing tower near one current end of the city’s operating rail line after a three-year delay.

Developers of the 302-unit project called Halawa View II announced Wednesday that they have all necessary financing for the $168 million project near Aloha Stadium and recently began demolition work to make way for the envisioned 25-story tower.

The high-rise should be completed by summer 2025 and provide apartments for households earning 60% or less of the median income on Oahu, according to members of the project’s development partnership Halawa View Housing Partners LP.

Monthly rent is projected to be as low as $493 for studios and $1,418 for four-bedroom units in the tower.

“After working to bring this project to fruition for so many years, we are thrilled to be closer to putting more local families into such quality homes,” Sharon Gi, vice president of Hunt Development Group, a project partner, said in a statement. “Given the longstanding shortage of affordable housing in Hawaii, there is an overwhelming need for this type of rental project, especially in such a centrally located part of the island.”

Halawa View Housing has been working on the project since at least 2019 as part of what originally was a three-phase plan to renovate an existing low-income rental complex called Halawa View Apartments and then build three towers on the same site mainly in place of parking to provide 524 new predominantly affordable homes.

The developer aimed for the new towers to rise between 250 feet and 276 feet, exceeding the site’s 150-foot height limit.

This extra height, as well as more density and fewer parking spaces than required by city ordinance, led the area neighborhood board to oppose the project next to Halawa View Apartments, which was built in 1972 with 121 apartments mainly in a 14-story building between Aloha Stadium and the Pearl Harbor National Memorial.

Later, the neighborhood board endorsed a revised plan after the developer made changes that included reducing the number of new homes, eliminating one tower, making the two remaining towers not as tall and adding more parking. The developer also shifted away from possibly making some units condominiums for sale at market prices, and instead focused on all the units being affordable rentals ranging from studios to units with one, two, three and four bedrooms.

Halawa View Housing representatives contended that their plan deserved extra density and height in part because it is within a half-mile of the city’s Halawa rail station, which became part of an initial service segment that opened to public use Friday after years of delay and runs to East Kapolei.

A half-mile radius is generally considered a transit-­oriented development zone around rail stations, but the site for the planned towers didn’t include development bonuses under city TOD zoning around the Halawa station.

The developer considered seeking a city zoning amendment, but opted instead to seek a zoning exemption allowed under state law for affordable-­housing projects. This exemption was granted by the City Council in 2020.

More recently, the partnership, which completed renovation work on Halawa View Apartments in 2012 before announcing the expansion plan, combined the second and third phases into one larger tower with 454 parking stalls and rising around 250 feet.

This change contributed to development delays along with a design change to comply with updated flood maps and time to obtain city approvals, an approval from the Navy and building permits.

Joe Michael, another principal of the development partnership and president of California-based Pacific Development Group, said in a statement Wednesday that being ready to build Halawa View II represents years of planning and collaboration with the community and stakeholders.

“We hope this project will be a catalyst to transform the area into a vibrant community near Arizona Memorial and Aloha Stadium that aligns with the Halawa Area TOD Plan developed by the City and County of Honolulu.”

Besides Pacific Development and affiliates of Texas-­based Hunt, other partners in the project are local firms Hawaiian Community Development Board, Hawaii Assisted Housing Inc. and Mark Development Inc.

Most of the financing for the project was obtained through the Hawaii Housing Finance and Development Corp., a state agency focused on helping private developers produce affordable housing.

HHFDC authorized $93.3 million in state and federal tax credits for the partnership to sell to investors, along with a $42.3 million loan from its rental housing fund. The city also provided a $5 million loan. Private lenders are also helping finance the project.

As a condition of the public financing, the developer must keep rents affordable for low-income households for 56 years under HHFDC limits tied to median incomes.

To qualify for an apartment at Halawa View II, maximum annual income this year representing 60% of the median on Oahu would be $55,020 for a single person, $62,880 for a couple and $78,600 for a family of four. Some units are reserved for households earning half as much, or 30%, and some at 40%. Most units will be reserved for households earning no more than 50% of the median income.

At the 60% median income level, maximum monthly rents are projected to be $1,179 for a studio, compared with $493 at the lowest income level. Expected rents top out at $1,797 for a four-bedroom unit.

Five units also will be designated for chronically homeless individuals or those receiving public support services with referrals from the organization U.S. Vets.