The Kahekili Terrace housing complex in Wailuku is shown on Friday evening. The 82-unit housing complex could potentially gain 200 more units under a plan by the state’s public housing authority to redevelop and expand several public housing complexes across the state over the next decade. — The Maui News / COLLEEN UECHI photo
Possibly 200 new units may be added to the state-owned 82-unit Kahekili Terrace public housing complex in Wailuku, courtesy of a recent agreement announced by the state and a California-based development company that is already helping with affordable housing efforts on the Valley Isle.
Earlier this week, Gov. Josh Green and the Hawai’i Public Housing Authority announced that Highridge Costa Development Co. would be its “master developer,” responsible for redeveloping part of the state’s public housing inventory and also creating more than 10,000 affordable housing units for nine properties across the state, including Kahekili Terrace.
The effort, Ka Lei Momi Redevelopment Project, aims to replace and create housing units for extremely low-income individuals, families and workforce employees.
But when Maui will see the new units built and current units replaced is still uncertain, as there is no timeline yet, said Dallis Ontiveros, housing information officer for the Hawai’i Public Housing Authority.
The effort is expected to take around 10 years, Ontiveros said on Thursday, with the 364-unit Mayor Wright Homes public housing on Oahu being the first on the schedule. The housing authority said in an email that Mayor Wright Homes has already been approved through a state and federal environmental impact statement for 2,448 new units and has received a legislative appropriation of $10 million to support the first phases of redevelopment. The redevelopment includes a rental and homeownership component.
The state’s public housing authority is proposing to redevelop and expand several public housing complexes across the state, including the 82-unit Kahekili Terrace in Wailuku, which could potentially see an additional 200 units. — The Maui News / COLLEEN UECHI photo
Ontiveros said the housing authority will work with property managers at each complex to house current residents when existing units are being replaced.
“Redevelopment presents an exceptional opportunity to close the gap between the need and supply of affordable housing in Hawai’i while also transforming our existing low-density public housing properties into modern, mixed-use, mixed-income, transit-oriented communities,” Hakim Ouansafi, executive director of the housing authority, said in a news release. “The only option to serve the wait lists and give choices to our residents to remain near their ohana, is to build more housing especially in areas where there is concentration of poverty.”
Central Maui state Rep. Troy Hashimoto, whose district includes Wailuku, and who is also the chairman of the House Committee on Housing, said, “I think as the Maui delegation we will push to see Kahekili come to fruition sooner than later. I think we definitely want to see more housing stock in that area and use that public land in a more efficient way.”
As the plans roll out in the future, the state administration will probably seek out funds that need to be approved by the Legislature.
Hashimoto said he will monitor how the Hawai’i Public Housing Authority and Highridge Costa fare with the Mayor Wright Homes redevelopment. He is also monitoring at how the housing authority does with a current affordable senior housing redevelopment project on School Street on Oahu.
Highridge “does have a very good reputation for development,” Hashimoto said, but added that the housing authority has struggled.
Highridge Costa is the developer of Liloa Hale, a $58.4-million, 117-unit affordable rental project for seniors in Kihei.
It is partnering with nonprofit Hale Mahaolu. Highridge Costa has developed and invested in low-income housing units in 33 states and Puerto Rico.
According to the housing authority, the estimated redevelopment cost in the Ka Lei Momi Redevelopment Project will be around $6.6 billion over at least 10 years. The housing authority said the effort is possible due to its position as a state agency, as well as the support of Green, the state Legislature and U.S. Department of Housing and Urban Development contribution of land and subsidy for the replacement units, through either project-base vouchers or the Rental Assistance Demonstration project, or a combination of both.
The housing authority and Highridge anticipate funding sources that will support Ka Lei Momi will include low-income housing tax credits, tax-exempt volume cap bonds, private debt, tax exempt qualified 501(c)(3) bonds, other private/foundation funds, additional funds available through the Hawaii Housing Finance Development Corp., homeownership sales proceeds and legislative appropriations.
“It’s good that they set a goal,” Hashimoto said. “I think its a laudable goal, now we just got to get to work to implement it.”
Central Maui state Sen. Gil Keith-Agaran, whose district includes Wailuku, said Thursday via text, “I like Governor Green’s initiative in supporting Hawaii Public Housing Authority’s expansion plans — with the law tweaked last year by Act 251, HPHA can develop mixed-income housing which can help residents who wouldn’t qualify for the usual public housing.”
Over the years, Kahekili Terrace has been allocated funding from the state to plan for redevelopment along with funding for electrical upgrades and interior repairs.
Kahekili Terrace, on the border of Wailuku and Happy Valley, was first occupied in 1966.
Kelly Maluo-Pearson, the chief executive officer for the Boys & Girls Clubs of Maui, which has a clubhouse at Kahekili Terrace, said, “Kahekili Terrace provides an important resource to the community and people of Maui with affordable housing and we understand there is a strong need here on Maui.”
Maluo-Pearson was supportive of the project to add units to the complex.
“Updating the current facility would also be a benefit to the living experience of those residing in the housing complex, and we support whatever is best for our youth and families,” Maluo-Pearson said in an email Thursday afternoon.
“If more units are added, we welcome new youth members to join our Kahekili Clubhouse for the great programs in a space that is fun, safe and positive,” Maluo-Pearson added.
Kahekili is the organization’s smallest club with 66 registered members and an average daily attendance of 13 members, which is an increase from fiscal year 2022.
“Although the club serves a smaller demographic, the need for BCGM’s services is arguably greater per capita in Kahekili Terrace than any of our other Clubhouses,” Maluo-Pearson said.
* Staff Writer Melissa Tanji can be reached at .
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