City secures financing for Kalihi affordable housing project

HONOLULU (HawaiiNewsNow) - The City and County of Honolulu announced the financial closing for the first phase of an effort to revitalize one of Kalihi’s largest public housing communities.

The Kuhio Park Terrace redevelopment will be a multi-year undertaking with funds secured through Honolulu’s Department of Housing and Land Management and the Hawaii Public Housing Authority.

Located at 1449 Ahonui St., the Kuhio Park Terrace low-rises and homes are near other federally subsidized public housing.

Working in partnership with developer Highridge Costa Development Company, the full master plan would include 650 new low-income rental homes over three phases.

For this first phase, the City is investing more than $115 million to create 302 new affordable rental units, which will replace 60 aging units with three mid-rise buildings.

“The Kuhio Park Terrace community was originally built in the 1950s and 1960s, during a very different era for Honolulu,” said Honolulu Mayor Rick Blangiardi. “While these homes have served families for generations, the time has come to invest in the future. This redevelopment will create safe, modern, and affordable homes while also strengthening the Kalihi community with the services and amenities families deserve.”

The tallest building will be eight stories high.

The new homes will include one, two, three, and four-bedroom units, along with communal spaces like a playground, picnic area, community meeting room, fitness loop, and gardens.

Phase one will also create 96 parking stalls, 38 off-street and 58 on-street.

“Kuhio Park Terrace has been a cornerstone of the Kalihi community for generations, and today we are taking a major step forward in ensuring that it remains a place of dignity, opportunity, and hope for Hawaii families,” said Hawaii Gov. Josh Green.

All units will be reserved for households earning 30%, 40%, and 60% or less than the area median income.

HPHA will provide 65 project-based vouchers and reserve some units for households at or below 30% of the area median income.

“My administration is committed to accelerating housing at every level,” Green said, “And projects like this demonstrate that together we can — and will — deliver the homes our people need.”

HPHA has rehoused the 60 existing tenant families, who will have a guaranteed right to return once the new homes are complete.

Residents were given relocation options, including Tenant Protection Vouchers, HPHA vouchers, and other resources.

HPHA has also held multiple resident engagement meetings.

Construction on phase one of the Kuhio Park Terrace redevelopment is expected to begin before November and be completed in mid-2028.