HCDA selects two downtown parcels for 99-year leasehold condominium pilot; board approves site selection

The Hawaiʻi Community Development Authority on June 4, 2025, selected two HCDA-owned parcels — 873 Kapiolani Boulevard (TMK 12-1-049-080) and 610 Ward Avenue (TMK 12-1-049-063) — as the development site for a 99-year leasehold residential condominium pilot project, as provided in HRS 206E-282(b).

Deepak Nupani, Program Specialist 5, presented the staff report (tab 3 of the board packet) and summarized predevelopment work with a developer, including unit mix, affordability levels, financing considerations and next steps. Nupani said the project concept currently envisions roughly 251–351 units, with about 60% of units affordable at or below 140% of area median income (AMI) and some 1‑bedroom units at 80% of AMI. He said the developer expects many market-rate units to be priced above those levels; for example, comparable downtown projects have three-bedroom prices in the $1.5–$1.7 million range, while the HCDA pilot product for larger units was estimated by the presenter as "slightly over a million." Nupani also said an approximate sales example for some units was around $373,800 per unit, acknowledging pricing remained preliminary and subject to change.

Nupani explained that the project requires a financing "stack" that may include developer equity, private financing, revolving funds (DERF), and state equity. He said the Legislature approved a request for $15,000,000 in CIP funding and that amount is included in the budget sent to the governor for signature; the project team is also discussing a potential DERF request. Nupani cautioned that costs remain uncertain — citing supply-chain pressures and tariffs — and that a presale will be needed to confirm buyer demand before finalizing financing.

The presenter recounted statutory site requirements: the statute defines eligible urban redevelopment sites as those within a one-mile radius of a transit station and not on ceded land. Nupani said the parcels recommended meet those criteria and that staff considered several other sites (including county-owned parcels in Pearl Ridge and downtown Honolulu and a Waipahu site) but found infrastructure or other constraints on some alternatives.

On building and revenue structure, Nupani said HCDA is considering retaining ownership of commercial space and parking in the building and leasing parking for a fixed schedule over the 99‑year lease; that revenue stream would flow to HCDA. He said the product will likely include owner-occupancy requirements and shared-equity provisions consistent with financing partners' rules for the affordable units.

Following presentation and member questions, the board voted to select the parcels as the pilot development site. The motion to select the parcels was moved by Member Gortner and seconded by Member Evans; the chair announced the motion passed after roll call.

No members of the public provided oral testimony on the item. The staff indicated it expects to return to the board with detailed financials, a finalized financing stack, condominium registration documents and presale materials at a future meeting.

The HCDA noted that the pilot is intended as a template that could be replicated on other parcels in the future if the pilot proves feasible.