Mayor Kirk Caldwell announced a City Selection Committee’s decision to enter negotiations with The Michaels Development Company on terms and conditions to finalize a Development Agreement for the affordable senior rental project ‘Halewai‘olu Residences’ on River Street.
The proposal by Michaels Development provides what the community asked for and what O‘ahu desperately needs: long-term affordable housing for our seniors. 25,000 new units are required to meet Oahu’s housing needs, 20,000 of which should be rentals affordable to people at 80% AMI and below. Combined with an aging population, a quarter of Oahu residents will be age 60 or over within a decade. Halewai‘olu Residences addresses all of those needs, and it’s in close proximity to a future rail station.
Managing Director Roy Amemiya, Councilmember Carol Fukunaga, Office of Strategic Development Director Sandra Pfund, Department of Community Services Deputy Director Barbara Yamashita, Office of Housing Executive Director Jun Yang, representatives from Michaels Development, Honorary Chinatown Mayor Joe Young, Lum Sai Ho Tong Chinese Society President Howard Lum, Chinatown Neighborhood Board Representative Chu Lan Shubert-Kwock, and Reverend Bob Nakata joined Mayor Caldwell on River Street for the announcement.
In 2013, Councilmember Fukunaga introduced Resolution 13-167, CD1, FD1, explicitly expressing the Chinatown community’s vision for the River Street property. The resolution called for the Administration to issue a Request for Proposals for “a senior housing complex on the River Street site, which includes a low-rise multicultural community center.” A copy of the Request for Proposals is attached.
The Michaels Development plan would provide 151 units of rental housing for residents age 62 and over at 80% AMI ($53,700 for a single person) and below, with the majority of units available to seniors with incomes up to 60% AMI ($40,260). Current City affordable housing requirements for private sector developments mandate that only 20% of new units have to be available for sale to households making up to 140% AMI ($93,940). Michaels Development would build two mid-rise towers that share an elevator core, over three levels of parking, with a street-level community center and retail space, in a style that complements Chinatown’s unique character and sense of place.
The project is estimated to cost approximately $49 million. Affordable rental projects require significant state and federal funding subsidies to be economically feasible and the developer will be seeking funds such as Low Income Housing Tax Credit Equity (LIHTC) and state Rental Housing Trust Funds (RHTF) as part of its financing package.
The Michaels Development Company has over 40 years of experience as an affordable housing developer and owner with more than $3 billion of residential assets produced across 34 states, including Hawaii and the Virgin Islands. Michaels embraces local firms as partners for area-familiarity and to enhance local job creation. Locally, in 2012, Michaels completed the 1st phase of the redevelopment at the Towers at Kuhio Park (555 units) using State and Federal Tax Credits, Public Housing, and Section 8 resources. Michaels has experience working with Community Development Block Grants, including recent projects in Newark, New Jersey (2014); Montgomery, Alabama (2012); and Jersey City, New Jersey (2008).
Prior to briefing the media, the City met with neighbors and Chinatown community leaders, continuing an ongoing dialogue with area stakeholders on the future of the site that began in 2010. Negotiations for similar development agreements are usually completed in approximately four months. The Administration will formally present a negotiated Development Agreement to the City Council for final review and approval once both parties have agreed on terms. The property is located near the corner of River Street and Vineyard Boulevard, at 1331 to 1347 River Street, TMK (1) 1-7-006-012.
