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HCDA approves Gentry Homes reserved-housing prices for Kaʻulu increment 3
Summary
The Hawaiʻi Community Development Authority on March 5 approved pricing for Gentry Homes’ increment 3 reserved-housing units at Kaʻulu, after discussion about slow sales, pricing strategy and data staff should collect for potential future rule changes.
The Hawaiʻi Community Development Authority approved pricing for Gentry Homes’ reserved-housing units in increment 3 of the Kaʻulu by Gentry development during its March 5 Kailailoa board meeting.
The board voted 7–0 with one member excused to "approve pursuant to the findings of fact, conclusions of law and decision and order dated 02/02/2022" for application KAL21-005, allowing Gentry to price the reserved units for increment 3 at the levels presented to staff.
Ryan Tam, HCDA director of planning and development, told the board the increment 3 prices are essentially the same as prior increments: $610,000 for a two-bedroom, two-bath reserved unit and $685,000 for a three-bedroom, two-bath reserved unit. Tam said those prices correspond to roughly 123% and about 131% of area median income for the two- and three-bedroom units respectively, as presented in the staff report.
Andrew, a Gentry Homes representative, said the company has contracted and closed sales but at a slower pace than anticipated. He said buyers sometimes prefer comparable unrestricted units nearby because they carry no shared-equity or buyback restrictions, and that market units in other neighborhoods (for example, Kakaʻako) can command much higher prices, affecting buyer choices. Gentry said it has increased its market-unit prices in an effort to widen the spread and has offered incentives on reserved units, including a standard 3% incentive and up to 4% for certain loan products to cover closing costs or buy down interest.
Board members asked for more sales data and comparisons. Member Evans and others urged Gentry to provide market comparables that show unrestricted units at similar price points so HCDA staff can use that evidence if the authority later considers revising reserved-housing requirements. Tam and board members noted the authority's rules and findings of fact from the February 2, 2022 decision and order remain the basis for today's approval.
During questioning Gentry said about 80 total closings have occurred across the project to date, of which 11 were reserved units. Gentry also confirmed it is constructing increment 3 and that the project will ultimately include multifamily and single-family components; Gentry provided a phasing map showing a total program scale discussed in the meeting.
Member Gordner, Vice Chair Ishii, Secretary Lyd Stone, Member Miranda Johnson, Member Scribe and Chair Sterling Higa all voted yes. Member Anderson was recorded as excused.
No members of the public provided oral testimony on this agenda item.
Board members asked staff to gather and preserve sales-comparison data from developers as they market units so HCDA can assess whether the reserved-housing rules adopted previously remain appropriate for achieving moderate-priced housing goals in 2025 and beyond.
