Zoning committee advances CD1 to waive fees for 1142 Canal Street 201H rental project

The Committee on Zoning on Jan. 16 amended and reported out Resolution 24‑297 CD1, a 201H request tied to an affordable rental project at 1142 Canal/Kinao Street in downtown Honolulu that seeks exemptions from certain city fees and park dedication requirements.

The committee chair recommended the CD1 amendment and, with no objections from members present, the measure was reported out for adoption. The Department of Planning and Permitting (DPP) and the Board of Water Supply said they support the CD1; Makani Maeva, president of applicant AHE Group LLC, presented details about the project.

The CD1 posted on the agenda waives wastewater system facility charges and park dedication requirements for the project’s affordable rental units. The council staff summary cited Resolution 20‑262 FD1, which guides when wastewater facility‑charge waivers and park dedication exemptions may be granted for HRS Chapter 201H projects. The CD1 application argues that formal approval processes for park dedication could delay permit issuance and reduce the cost benefits expected under the 201H statute.

Developer presentation and committee questions

Makani Maeva of AHE Group said the project will create affordable rental housing in the downtown core near Kaahumanu Elementary School and bus lines, and that the group intends to pursue state financing (tax‑exempt bonds and 4% LIHTC) after 201H approval. Maeva described a unit mix targeted to households at 30%, 50% and 60% of area median income (AMI) and said rents shown in the presentation were net of utilities.

Committee members questioned parking, building height and neighborhood outreach. The developer said the project provides a limited number of structured parking stalls (the presentation and the committee exchange referenced both 20 and 28 parking stalls at different points). The applicant explained preference and an initial wait‑list policy for allocating stalls (priority to seniors and ADA, then larger units) and noted the high cost of structured parking. The project was described as a roughly 20‑story building during the committee exchange.

Support and agency input

Kathy Mitchell of the Board of Water Supply stated the board supports Resolution 24‑297 and suggested clarifying amendments. Elizabeth Krieger appeared for DPP on behalf of Director Dawn Takeuchi Apana; Krieger said DPP supports the CD1 and had staff available for detailed questions.

Why it matters

Exempting wastewater facility charges and park dedication fees can alter the financial feasibility of affordable housing projects built under HRS Chapter 201H. Council policy (Resolution 20‑262 FD1) narrows when those fees may be waived. Committee members pressed the developer on parking supply and neighborhood engagement because downtown sites with limited on‑site parking can shift demand to adjacent public streets and affect neighborhood traffic and circulation.

Next steps

The committee’s action amended Resolution 24‑297 to CD1 and reported the measure out for adoption; the transcript records the chair’s recommendation and no objections from committee members at the meeting on Jan. 16, 2025.

(Reporting note: the project description in the committee presentation contains inconsistent unit totals. The presentation described both “240 affordable rental units and 2 manager units” and elsewhere referred to “204 affordable units” with suballocations to 60% and 100% AMI. That discrepancy was not resolved on the record.)