Affordable Housing on Oahu

If your household is making $100,000 per year after taxes, you would be spending $2,500 on rent or a monthly mortgage payment and utilities. However, with median single family home prices on Oahu at $1,100,055 and two-bedroom apartments renting on average for more than $2,500, “affordable housing” is hard to find in Hawaii.

The Problem:

Hawaii will need 64,700 new housing units to meet demand by 2025, with 70 percent of those units priced for households making less than 80 percent of the area median income (AMI), according to the Department of Business, Economic Development & Tourism’s study in 2015. Shown below is quantities existing affordable apartments in Hawaii.

The Goal:

Build at least 22,500 affordable rental housing units by 2026, as established by Act 127 in June 2016.

The definition of “affordable” varies, yet a generally-accepted guideline is that rent, including utilities, should not exceed more than 30% of gross monthly household income. The following is the breakdown of Hawaii’s targeted number of “affordable” units for each area median income (AMI) bracket:

Area Median Income - Number of Units to be Developed by 2026

• 30% or less - 5,400
• 30% to 50% - 4,350
• 50% to 60% - 2,209
• 60% to 80% - 3,289
• 80% to 100% - 2,884
• 100% to 120% - 1,870
• 120% to 140%* - 2,500

*140% Area Median Income (AMI) on Oahu in 2022 is $93,380 for a family of one, $106,680 for a family of two, and $133,280 for a family of four, according to Hawaii Housing and Finance Development Corporation (HHFDC).

The Plan:

A Special Action Team on Affordable Rental Housing published a plan in June 2018, the Affordable Rental Housing Report and Ten-Year Plan, giving policy recommendations for the future:

• Use Suitable and Available Lands. The plan mapped approximately 10,688 acres of state, county, and private lands that would be suitable to develop or redevelop housing for low- and moderate-income families. 40% of the lands were on Oahu, 22% on Maui, 30% on Hawaii Island, and 8% on Kauai.
• Preserve the Environment. Development will not occur in many areas of the islands in order to ensure Hawaii’s natural beauty remains.
• Transit-Oriented Development (TOD). Expect new mixed-use development along the 20-mile Honolulu rail line. Much of this land is currently underutilized and owned by the state or county. Development plans include more housing options for low-income families, seniors, and single professionals, walker- and biker- friendly paths, green spaces, commercial centers, community services, job opportunities, and more – creating convenient work-live communities at the rail stops. Neighborhood TOD plans have been developed for the following areas: East Kapolei, Waipahu, ‘Aiea-Pearl City, Halawa/Aloha Stadium, Airport Area, Kalihi, Downtown, Kakaako, and Ala Moana.
• Mixed-Income Development. As witnessed in the transforming Kakaako neighborhood, affordable housing development in Hawaii has been typically financed and constructed by private companies and allocates housing units for a variety of incomes. For example, 690 Pohukaina sold units for households making 60% AMI and 140% AMI. Mixed-income development seeks to ensure a positive quality of life for all Hawaii residents and specifically has a goal of supporting “special needs groups including persons with disabilities, frail elderly and the chronically homeless.”
• Land Use and Zoning Regulations. The plan seeks to streamline and expedite regulatory burdens to spur affordable housing development. It recommends re-examining and eliminating duplication of land use and zoning regulations along with further coordination between various state and county agencies involved in the processes.
• Find Funding. The plan recommends a few methods to fund affordable housing, including private-public partnerships, public financing programs, legislative funding for a Rental Housing Revolving Fund (RHRF) and a Dwelling Unit Rental Fund (DURF), and tax exemptions for certain affordable housing programs.

The Progress:

Governor Ige said, “We now have the opportunity to really increase the supply of units and generate the types of affordable and workforce housing that Hawaii needs. I challenge the community, developers, the construction industry and the banks to all come together and build the housing units that we need.”

The State of Hawaii now has 26,293 affordable housing units in its total inventory, according to data in June 2022 from the Hawaii Housing Finance and Development Corporation. Where is affordable housing on Oahu, Maui, Kauai, and the Big Island? Here is a breakdown of how many affordable housing units are on each Hawaiian Island:

• The Big Island or Hawaii Island has 2,860 affordable housing unit.
• Kauai has 1,412 affordable housing units.
• Maui has 2,695 affordable housing units.
• Oahu has 19,326 affordable housing units.

Despite the COVID-19 pandemic, construction continued in Hawaii, as construction workers were deemed essential. There are a number of planned affordable housing buildings that are already underway or might break ground soon, which will add to the affordable housing inventory in Hawaii:

• Alder Street/Hale Kalele – 200 units near Ala Moana estimated to be completed in June 2022; juvenile justice and shelter facility
• DE Thompson – 83 units in Ewa Beach estimate to be completed in July 2021; for seniors earning 60 percent of AMI
• Halawa View Apartments II & III – 300 family rental units near Aloha Stadium estimated to be completed in April 2023
• Hale Makana O Maili – 52 family rental units in Waianae for families earning 30 to 60 percent of AMI; estimated to be completed in 2021
• Hale Uhiwai Nalu Phase II – 50 rental units for families earning 30 to 60 percent of AMI in Kapolei; estimated to be completed in August 2022
• Ililani – 328 units for sale in Kakaako, 165 of which are affordable; estimate to be completed in August 2022
• Kaiaulu O Kuku‘ia and Kaiaulu O Kupuohi – 197 and 89 families rental units in Lahaina, Maui, for families earning 30 to 60 percent AMI; expected to be completed by mid-2022
• Kulia at Hoopili – 128 rental units for families earning 30 to 60 percent AMI in Kapolei; families have recently begun to move in
• Lima Ola Workforce Development – 550 residential units on 75 acres of land in ‘Ele‘ele, Kauai, households earning less than 140 percent AMI; groundbreaking occurred in 2021
• The Central – 513 units with 310 affordable units in Ala Moana; expected to be completed in 2021

How to Find Affordable Housing on Oahu:

In Hawaii, there are 358 housing complexes, whether they are buildings or other developments, that have affordable housing. Some of this housing is for elderly. Some are for families. Some qualify for federal public housing assistance while others qualify for state public housing. There is special needs housing and also some housing for labor or agricultural workers.

Renting:

• In Hawaii, there are 211 low income housing apartment complexes with more than 17,500 affordable apartments for rent. Many of these apartment rents are set based on income.
• “HUD apartments” or Project-Based Section 8 subsidized apartments also exist in Hawaii; in fact, there are about 3,300 of these types of apartments.
• There are 8,800 other low-income apartments that do not have rental assistance like HUD apartments but are simply considered affordable for low income families.
• Go to this U.S. Department of Housing and Urban Development (HUD) site to find affordable housing options and contact information in your Hawaii neighborhood.
• Here is a comprehensive list of all the affordable housing options in Hawaii.
• To apply for public housing or rental assistance through the Hawaii Public Housing Authority (HPHA), go here.

Buying:

• On Oahu, there are “Affordable Housing” and “Reserved Housing” units for sale, mostly found in Honolulu’s Kakaako and Ala Moana neighborhoods – and there are a few new developments in Kapolei and Ewa as well. Reserved housing is managed by the Hawaii Community Development Authority (HCDA), and affordable housing is managed by the Hawaii Housing Finance and Development Corporation (HHFDC) or the Department of Planning & Permitting (DPP).