HONOLULU — Hale Kalele, a $91 million mixed-use housing project that will house a center for at-risk youth and add 201 units to the affordable rental market, opened its doors on Friday.

What You Need To Know

  • Gov. David Ige, Hawaii Supreme Court Chief Justice Mark Recktenwald and representatives from the Kobayashi Group attended the opening

  • The juvenile services center and shelter, which will serve at-risk youth, are located on sections of the first and second floors of the building that are accessible via Alder Street

  • Rental units are reserved for those who earn less than 60% of the median gross income for the area

  • The land remains under state ownership and is being provided to the developer for $1 a year for 75 years

The project, located in lower Makiki, is the result of a unique partnership between the Hawaii Housing Finance and Development Corporation, the Hawaii Judiciary and the Kobayashi Group.

“This project is significant because it took an aging building on underutilized state land and transformed it into a brand-new center that will offer support services and shelter for our at-risk youth, as well as new affordable rental units for a segment of our community that is most in need — families earning no more than 60% of area median income which translates to no more than $72,480 a year,” said HHFDC executive director Denise Iseri-Matsubara.

Gov. David Ige, Hawaii Supreme Court Chief Justice Mark Recktenwald and representatives from the Kobayashi Group attended the opening.

“I’m really happy to see the Kobayashi Group has expanded into the Low Income Housing Tax Credit field and am honored to share in its success on its first LIHTC project,” Iseri-Matsubara said.

The juvenile services center and shelter are located on sections of the first and second floors of the building that are accessible via Alder Street. The rental units are accessible via an entrance on Piikoi Street.

Rental units are reserved for those who earn less than 60% of the median gross income for the area, which translates to a maximum of $58,020 for a two-person household and $72,480 for a family of four, according to 2021 guidelines put out by the U.S. Department of Housing and Urban Development.

The developer will keep the units at affordable rates for a minimum of 73 years. Units currently run $664 to $1,480 a month for a two-bedroom unit, $570 to $1,250 for a one- bedroom unit and $542 to $1,177 for a studio.

Hale Kalele received $40.5 million in federal and state Low Income Housing Tax Credits, a Rental Housing Revolving Fund loan of up to $24.5 million and $25.4 million in Hula Mae Multi- Family tax-exempt revenue bonds.

The land remains under state ownership and is being provided to the developer for $1 a year for 75 years.

Michael Tsai covers local and state politics for Spectrum News Hawaii.