A public-private partnership to convert an empty, city-owned parcel in Ewa Beach into 127 units of affordable rental housing is underway.
At a special Honolulu City Council Budget Committee meeting Thursday, Stanford Carr Development LLC unveiled plans to build Kaleimao Village at 91-1666 Renton Road.
To finance the construction of this multifamily project on public land, Mayor Rick Blangiardi’s administration proposes the issuance and sale of more than $30 million in private-activity bonds.
Located near Fort Weaver Road, the rental project will feature 119 units meant for eligible tenants who earn 60% or less of the area median income, or $83,550 a year for a four-person family, project plans indicate.
An additional seven units will be offered for extremely low-income tenants, or those earning 30% AMI, or $41,750 annually for a family of four. One extra unit will be reserved for the on-site manager, plans state.
The project is being advanced via Resolution 74. If adopted, the legislation will call for the execution of a 75-year ground lease with Komohale West Loch Venture LP, according to Kevin Auger, executive director of the Mayor’s Office of Housing.
“Making vacant or underutilized city lands available for affordable housing development through public-private partnerships is one of the Blangiardi administration’s key strategies to increase housing supply on Oahu,” Auger told the committee.
He noted the solicitation of this parcel in Ewa Beach was issued over six years ago. But “this timeline conforms with the average timeline of five plus years for solicitation to ground lease of city-owned properties to private partners to construct affordable housing (under city laws),” he said.
Stanford Carr Jr., the project’s manager, said the development deal involves Los Angeles-based Standard Communities, a national affordable housing developer and investor.
“Together we’ve collaborated to deliver this project under the entity of Komohale West Loch Venture LP,” Carr said. “The site where the project will be built is currently vacant.”
He added that the development will consist of seven three-story residential buildings and one centrally located community center building. A 136-stall parking lot will be adjacent to the complex.
“Adjacent to the community center is a tot lot for children to play as well as a community garden for residents to enjoy,” Carr said. “We recently received our building permit approval, so construction will commence upon closing, and is expected to be completed by the end of next year.”
The project will offer one-, two- and three-bedroom units ranging from 543 to 922 square feet in size, he said.
For those who fall under 30% AMI criteria, Carr said, “the one-bed, one-bath’s monthly rent would start at $783, further adjusted for utility allowance for a household of two, earning $33,000 annually.”
“And for a three-bedroom unit, rent will be up to a monthly rent of $2,172 for a household of four earning $83,000 annually,” he added.
Carr said the buildings’ exteriors will be fiber-cement siding, and units will be served by solar water heating. The buildings will be up to 35 feet in height.
At the meeting, Council member Esther Kia‘aina — whose Council District 3 encompasses most of Windward Oahu — claimed support for this affordable rental project slated for Ewa Beach.
“I’m clearly impressed with this project, both on the development side as well as the programmatic side, and I’m jealous,” she said. “I would love to have that in my district, and I know that Council member (Augie) Tulba (who represents portions of Ewa Beach) has more land availability for such projects.”
To that, Kia‘aina requested the city’s Office of Housing “help in the identification of city properties in my district.”
“It’s going to be a little harder in Waimanalo, but let me tell you, there’s a lot of state land,” she said, adding that the area also had a lot of homeless people, many of whom reside in city beach parks close to well-traveled Kalanianaole Highway. “I still cringe every time I drive by there because it’s an accident waiting to happen.”
Moreover, she said Kaneohe — with lands largely owned by Kamehameha Schools — offered opportunities for the city to “joint-venture for some affordable housing projects.”
In response, Auger said he “thought it was a terrific idea.”
“We do a lot of work together with the state; we’re looking forward to partnering with them more aggressively going forward,” he added. “KS is a great idea, and we’ll continue to consider that and we look forward to working with you to identify sites in your district.”
The Budget Committee ultimately recommended Resolution 74 be adopted by the full Council at a future meeting.
In a related action, the committee also reviewed and recommended Council adoption of Resolution 73, which authorizes the city Department of Planning and Permitting to issue and sell over $30.37 million in tax- exempt revenue bonds for the purpose of making a mortgage loan for Komohale West Loch Venture LP to develop the affordable rentals in Ewa Beach.
To comply with federal internal revenue code, the city ensures 40% of the residential units in the Kaleimao Village project — or about 50 units — will be occupied by individuals or families whose income is 60% or less of AMI, the resolution indicates.
The next full Council meeting is scheduled for Wednesday.
