Support urged for Hilo housing project

More than 200 new units could be added to an affordable housing development in Hilo under a proposal by the Hawaii Public Housing Authority.

Back in 2019, the Authority developed the most recent phase of the Lanakila Homes project, which created 16 affordable rental units in four buildings on a parcel makai of Kapiolani Street.

Now, however, the Authority has proposed an expansion of the project that would develop 258 new housing units on an adjacent part of the Lanakila property. The units would be distributed among 22 two-story buildings on the site and would all be available to households making 60% or less of the area median income.

The Hawaii County Council on Thursday urged support for the project. The council’s Committee on Governmental Operations and External Affairs voted in favor of a resolution asking the planning director and the Hawaii Housing Finance and Development Corporation to approve some zoning and fee exemptions requested by the developer.

Chris Deuchar, managing principal at Form Partners, a developer of the project, told the committee the new housing will be built within a small portion of a nearly 30-acre parcel that stretches between Ululani Street and Popolo Street. The relevant part of that property is an 8.65-acre lot along the south side of Wailoa Street between Kapiolani Street and Ululani Street.

The project would be carried out in two phases, with the first developing 152 units on the eastern side of the property. Deuchar said that phase could begin construction by 2027 and be move-in ready by 2028. He did not specify a potential start date for the second phase, which would build out the rest of the units on the parts of the property west of Ululani Street.

Deuchar said the site presents a “unique opportunity” for a housing development, because it is undeveloped yet close to existing services and utilities. He said he hopes the project would include green spaces, community gardens, gathering areas and more.

He also requested certain exemptions from county building codes, namely minimum off-street parking requirements, sidewalk width standards, and similar regulations.

Deuchar explained that being exempt from those requirements would allow developers to maximize the usage of a relatively constrained area.

“The county roads here have a 40-foot right of way,” Deuchar said. “We are asking you to not change that, so we don’t have to constrict this space further.”

Deuchar also requested the development be exempt from permit fees and other related administrative costs, and added that the project’s future wholly hinges on its ability to secure financing through the Hawaii Housing Finance and Development Corporation. The total construction cost was not mentioned Thursday.

When built, units would be affordable to residents making between 30% and 60% of the area median income. For a family of four, this would be a household income between $33,240 and $66480, according to 2024 federal income guidelines.

The monthly affordable rent rates at this scale would range between $582 and $1,164 for a studio apartment, and between $864 and $1,728 for a three-bedroom unit.

“It’s kind of at the lower end of the affordability spectrum,” commented Hilo Councilwoman Jenn Kagiwada, who added that housing would not be granted through a voucher system. “It will be for working people paying their own rent.”

Kagiwada, who introduced the resolution, said the project didn’t have to go before the council at all, but explained that because of its scope and the need for affordable housing, it was worth bringing up for council discussion.

Other council members were supportive of the proposal. Puna Councilman Matt Kaneali‘i-Kleinfelder commented that he has “been curious about what’s going on with that parcel for years.”

And county Housing Administrator Susan Kunz said her department fully endorses the project, thanking the Hawaii Public Housing Authority and its partners for their work on the development.

The committee voted unanimously to forward the resolution to the full council with a favorable recommendation.

Email Michael Brestovansky at mbrestovansky@hawaiitribune-herald.com.