Committee advances Haleʻolipoa Aiea project after votes on SMA and 201H exemptions amid water and cultural concerns

The Committee on Zoning on Jan. 16 took consecutive actions on the Haleʻolipoa affordable rental housing project in Aiea, advancing both a Special Management Area (SMA) major permit (Resolution 25‑23 CD1) and reporting out HRS Chapter 201H exemptions (Resolution 25‑26 CD1) after committee debate and public testimony.

What the council acted on

Resolution 25‑23 CD1 (SMA): The committee amended the SMA resolution to a CD1 and, after a roll call, reported it out for adoption. Vote: Vice Chair dos Santos Tam — Aye; Council member Cordero — No (recorded objection); Council member Okimoto — Aye; Council member Weier — Aye; Chair Kia Aina — Aye (4 ayes, 1 no).

Resolution 25‑26 CD1 (201H exemptions): The committee amended the 201H exemptions resolution to CD1 and reported it out for adoption with a roll call. Vote recorded on the transcript: Vice Chair dos Santos Tam — Aye; Council member Cordero — No; Council member Okimoto — Aye; Council member Weier — Absent; Chair Kia Aina — Aye (3 ayes, 1 no, 1 absent). The committee noted a 45‑day statutory deadline for council action on 201H approvals and that the SMA permit must be granted before 201H exemptions are approved.

Project and developer presentation

Ikenakea Development (presenters Keegan Flaherty and Nainoa Watson) described Haleʻolipoa as an 8‑story, mid‑rise affordable rental project on a 42,000‑square‑foot lot at 98‑150 Lipoa Place, zoned BMX‑3 within the Aiea‑Pearl City Transit‑Oriented Development special district. The applicant said the project would replace six existing two‑story apartment buildings (48 existing, unrestricted rental units) and deliver 153 affordable units (18 studios; 51 one‑bedrooms; 72 two‑bedrooms; 12 three‑bedrooms) if low‑income housing tax credit financing is obtained. The developer said units are larger than typical comparable projects and that the team plans to pursue tax‑credit financing first and Rental Housing Revolving Fund Tier 2 financing as a second option if needed.

Water, hydrology and environmental review

Community members and the Office of Hawaiian Affairs had raised concerns about potential impacts to local groundwater, springs and historic fishponds (including Lokoʻiloa/Lokoʻikaʽpaʻa and Kalauao Springs). The applicant said they conducted a hydrogeological assessment included in the final environmental assessment; DPP issued a Finding of No Significant Impact (FONSI) on Aug. 9, 2024. The applicant also stated the building will use Board of Water Supply service and will not install new wells; post‑construction water‑conservation measures (rain catchment for irrigation, drought‑tolerant landscaping, low‑flow fixtures) and drainage improvements were described.

Relocation and community engagement

The applicant said it will offer voluntary relocation assistance and specialized relocation services to current tenants and a priority right to return (first right of refusal subject to eligibility) when the new units are ready. The developer described multiple rounds of outreach beginning November 2023 (neighborhood board, town hall, door‑to‑door mailings and meetings with community organizations). Several public commenters, including Native Hawaiian cultural practitioners, testified in opposition to the project citing concerns about impacts to wahi pana, fishpond restoration, groundwater salinity and cumulative impacts from multiple regional projects.

Parking, amenities and design

The proposed project includes 147 parking stalls (ground and second floor, roughly a 0.96:1 parking ratio vs. 153 units), five electric vehicle charging spaces and storage for about 100 bicycles. The third floor will host amenities (fitness center, resource center, courtyard) and floors 4–8 will contain residential units. The developer also emphasized design elements to reflect cultural context and local history.

Agency positions and public testimony

DPP recommended approval of the CD1 versions of both resolutions and stated it stands by its report and recommendation; DPP staff and the developer were available for questions. The Board of Water Supply said it supports Resolution 25‑26 and requested a deferral of water system facility charges until meter installation; Operating Engineers Local 3 testified in support. Opponents (written and oral testimony) urged the council to more fully consider hydrology and cultural impacts; some speakers said community concerns had not been adequately addressed.

Why it matters

Haleʻolipoa would replace aging rental stock with deed‑restricted affordable housing near a planned transit station; the project raises tradeoffs that commonly surface in Honolulu — increased housing density and transit‑oriented development balanced against groundwater, cultural landscape and infrastructure concerns.

Next steps

Both the SMA and 201H exemption resolutions were advanced to the full council as CD1s by the zoning committee on Jan. 16. The transcript records the votes listed above and the chair’s direction that further technical corrections could be made if the measures advance to council.

(Reporting notes: transcript records DPP’s FONSI and applicant’s hydrogeological assessment citations. The committee discussed timing, relocation, and the statutory 45‑day deadline for 201H actions.)