Artspace, a Minneapolis-based nonprofit developer, hopes to build an eight-story building in Kakaako for artists to live in. The project, called Ola ka 'Ilima Artspace Lofts, will feature a total of 84 units and will cost $37 million to build. The Hawaii Housing Finance and Development Corp has approved $2.1 million in tax credits: $1.4 million in federal tax credits and $712,500 in state tax credits to help the project along. The credits can be claimed annually for the next 10 years, giving them a face value of $21 million. Artspace can in turn sell these credits to investors to help raise capital. Greg Handberg, the senior vice president of properties for Artspace, stated, "This is the critical financing step in this project. This is the hurdle. We're off to the races."
Under their proposal, the lofts would be affordable for 65 years and restricted to households earning 30 to 60 percent of Honolulu's median income. This equates to a maximum of $28,750 for a single person or $57,480 for a family of four. Rent would range from about $437 per month to $1,334 per month. Artists will receive a preference for tenancy, and this could cover a wide range of areas including literature, photography, architecture, singing, dancing, filmmaking, acting, and the teaching of art. Artspace hopes to begin construction next year and finish by late 2016.
Source: Honolulu Star Advertiser, 7-25-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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