$333 million spent on first phase of Kalihi housing rebuild

The first phase of the Mayor Wright Homes redevelopment in Honolulu cost $333 million to launch. State officials and community leaders marked the start of work on Thursday at the 15-acre site in the Kalihi-Palama neighborhood. The project is the largest public housing effort in the state's history.

The Hawai‘i Public Housing Authority and developer Highridge Costa are replacing a complex built nearly 75 years ago. The site sits between King Street, Liliha Street and Vineyard Boulevard. The new development will contain seven times as many homes as the current structure. Instead of serving only very low-income residents, the new buildings will include a mix of income levels.

Hakim Ouansafi, executive director of the housing authority, framed the ceremony as a shift in policy. "It's not simply about breaking ground. It is about breaking barriers," he said. He argued that the state cannot solve future housing issues by using past methods.

Plans call for more than 2,400 new rental homes ranging from studios to five-bedroom units. The project will also include public housing units, condominiums for sale and commercial space. These elements will be spread across 10 towers. More than half of the units will be reserved for tenants earning less than 80% of area median income. Later phases will extend to households earning up to 100% of area median income, a figure that equates to roughly $150,000 a year for a family of four. Current residents displaced by construction will have priority to return.

Gov. Josh Green called the project central to the state's housing strategy. "Housing provides health," he said, noting that stable housing allows people to focus on education, food security and health care. Moe Mohanna, president of Highridge Costa Development Company, praised the state for undertaking a project of this scale. "What we are building here is a legacy," he said. Ouansafi added that public housing should never mean second class housing.

The state estimated the total cost of the entire project at $1.3 billion in 2017. The development will include four acres of public parks and recreational space. It is designed to be within walking distance of the planned Iwilei rail station. Honolulu Mayor Rick Blangiardi linked the project to the arrival of the Skyline rail line.

The first building is scheduled to open in 2029. The full redevelopment is expected to take 15 years to complete.