Keahumoa Place will provide 320 new affordable rental housing units for Hawaii families

KAPOLEI, HI – Today The Michaels Organization, in partnership with the Hawaii Housing Finance & Development Corporation (HHFDC), held a ceremonial groundbreaking and blessing for Keahumoa Place in East Kapolei. At the completion of Phase 4, the multi-family housing apartment community will provide Hawaii families with 320 new, affordable rental units by 2020.

“With high demand and a shortage of affordable rentals across the state, Keahumoa Place will create new inventory of rental units and build a new community for so many residents,” said Karen Seddon, regional vice president, The Michaels Development Company. “This project is the collaborative result of what can be accomplished when we all work together. Thanks to Governor Ige, Hawaii Housing Finance and Development Corporation, Mayor Caldwell, the City and County of Honolulu, and the community, we are able to help address the needs of Hawaii’s hardworking families.”

Located in the heart of the rapidly developing East Kapolei region, Keahumoa Place will be built on 19.72 acres along Keahumoa Parkway, a short distance from the Kualaka‘i Transit Station, the Salvation Army Kroc Community Center, and the University of Hawaii West Oahu.

The Keahumoa Place complex will have 37 two-story garden-style buildings with 320 rental apartments, 628 parking spaces, and open space. To serve as a gathering place for community residents, amenities will include a community center with computer lab, multipurpose room, covered-open gathering space, picnic area, tot lot, and a pet park.

“Keahumoa Place is a prime example of how my administration has attracted more private investment in Hawaiʻi by engaging with companies such as The Michaels Organization, to construct more affordable housing for our residents,” said Gov. David Ige. “There is no better place for this new affordable rental community than on previously vacant state land in the fastest growing region in the state and within close-proximity to rail stations, public transportation and employment centers,” he added.

Keahumoa Place will offer a mix of one-, two-, and three-bedroom units, and remain affordable for 65 years. More than 80 percent of the apartments will be offered at rents affordable to families earning 80 percent or less of the Area Median Income (AMI), as determined annually by the U.S. Department of Housing and Urban Development (HUD).

The 2018 AMI and anticipated rents for Keahumoa Place are as follows: Max Income by Household*
AMI	1 Person	2 Person	3 Person	4 Person	5 Person	6 Person
30% AMI	$ 24,510	$ 27,990	$ 31,500	$ 34,980	$ 37,800	$ 40,590
50% AMI	$ 40,850	$ 46,650	$ 52,500	$ 58,300	$ 63,000	$ 67,650
60% AMI	$ 49,020	$ 55,980	$ 63,000	$ 69,960	$ 75,600	$ 81,180
80% AMI	$ 65,360	$ 74,640	$ 84,000	$ 93,280	$ 100,800	$ 108,240
100% AMI	$ 81,700	$ 93,300	$ 105,000	$ 116,600	$ 126,000	$ 135,300

Proposed Net Rent*

AMI	1 Bedroom	2 Bedroom	3 Bedroom
30%	$ 587	$ 690	$ 784
50%	$ 1024	$ 1215	$ 1391
60%	$ 1243	$ 1478	$ 1694
80%	$ 1681	$ 2003	$ 2301
100%	$ 2118	$ 2528	$ 2907

*Sources: HHFDC Proposed Net Rent is Max Rent less Allowances

The $26.6 million for Phase 1 is financed by a variety of sources, including equity raised by the sale of low income housing tax credits allocated by the HHFDC.  The major investor in those credits is U.S. Bank, and construction and permanent funding came from American Savings Bank, the HHFDC Rental Housing Revolving Fund and Dwelling Unit Revolving Fund, along with funds from the Freddie Mac Tax Exempt Loan Program

The community will be developed in a total of four phases. The construction of the first three phases are underway with completion by December 2019 and the fourth phase will be completed by December 2020. Leasing information for Keahumoa Place can be attained by emailing keahumoa@tmo.com