Howard Hughes Requesting Clarification on Affordable Housing Rules in Kakaako

Under the current rules established by the Hawaii Community Development Authority, at least 20 percent of high-rise condominium units developed in Kakaako must be deemed "affordable" for residents earning no more than 140 percent of the annual median income of Honolulu.  This is approximately $94,000 for a single person or $134,000 for a family of four. However, developers may instead satisfy this 20 percent rule by offering rental units for residents earning no more than 100 percent of the median income for at least 15 years.  This is approximately $67,000 for a single person or $96,000 for a family of four.

The Howard Hughes Corp has submitted a petition to the Hawaii Community Development Authority asking the agency if they could offer rental units for residents earning no more than 100 percent of the median income for at least 30 years.  Their hope is that by doing so, they would have to make less than 20 percent of their total project affordable and allow for even more luxury condominiums. If this is allowed, Hughes Corp would change their planned affordable tower at 988 Halekauwila Street (formerly 404 Ward) from condos to rentals.

The 988 Halekauwila Tower was approved to have 424 condo units, of which 375 were going to qualify as affordable housing.  This equates to approximately 9 percent of the Hughes Corp's Ward Village's 4,300 units that are planned for 22 towers.

Source: Honolulu Star Advertiser, 8-29-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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