HONOLULU — State and city officials broke ground Friday on a much-anticipated affordable housing project that will create some 800 units for qualified seniors on underutilized Hawaii Public Housing Authority property in Kalihi.

“When people ask what’s most important, it’s affordability – the ability to have housing available for our kupuna, our keiki, the next generation,” said Gov. Josh Green at a ceremony at the site on Friday. “It comes back to that over and over and over again and the way we touch affordability, more than anything, is making sure that people’s rents or mortgages are much lower.”

The project calls for the conversion of HPHA’s 70-year-old, 13-building administrative campus at 1002 School Street that would consolidate HPHA operations into a 30,000-square-foot office building, thereby freeing the remaining space for affordable housing.

The new units would be available to seniors whose income is between 30% and 60% of the area median income, with studios available for as low as $634 per month, according to Green.

Honolulu Mayor Rick Blangiardi hailed the project as the first in what he expects will be many new affordable housing developments over the coming years.

“For the people who will ultimately come to live here, it will be very meaningful in their lives," he said. “That’s a very exciting thing.”

HPHA director Hakim Ouansafi noted the significance of holding the groundbreaking ceremony at the site where thousands of needy applicants line up simply to get on a waiting list each time housing units become available.

“Today, we are here to bring home and fulfill a promise and vision shared by our governor, the legislature, the (HPHA) board and the community,” he said. “Together we aim to transform this area from simply a place where people wait in line for housing services to a thriving community with elderly affordable housing options. Once completed, this sacred land will provide an additional 800 units for senior citizens, ensuring affordability for lifetime.”

California-based Highridge Costa, which was earlier selected to build nine affordable housing projects (totaling more than 10,000 units) across the state, is serving as the master developer, replacing the Retirement Housing Foundation.

“You don’t have a home, you can’t provide an address for a job,” said Highridge Costa president Mohannad Mohana. “You don’t have a home, you don’t have the ability to tell your children where you’re going to go tonight. People struggle. More than one in four families across the nation are paying more than 70% or 80% of their income on their housing.”

State Sen. Troy Hashimoto, who previously chaired the House Committee on Housing, said securing adequate funding will be key in realizing future affordable housing projects.

“I think everyone is clamoring for housing, and we are trying our best, but I think a lot of times it’s the financing that’s stopping us from moving forward,” Hashimoto said. “So I think we at the legislature need to add more to the rental housing revolving fund, and I think you’ll see this coming legislative session. We’re going to try with a lot more different creative financing methods.”

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.