HCDA board authorizes solicitation for developer to build mixed-income rental project on Kakaako 'Block P2'

The Hawaiʻi Community Development Authority (HCDA) Kakaʻako Authority on Jan. 7 authorized the executive director to solicit statements of qualifications (SOQs) from developers, select a developer, and enter into a development agreement and ground lease for a mixed-use, mixed-income rental housing project on HCDA-owned land at 952 Kawaihaʻo Street and 955 Waimanu Street (referred to in the meeting as Block P2).

The motion was moved by Member Streitz and seconded by Member Evans. Program Specialist Deepak Nupane conducted the staff presentation, saying HCDA acquired the parcel in September 2025 and that affordable housing development is a board priority. The board voted by roll call and the motion passed with seven affirmative votes; one member (Member Anderson) was excused.

The vote followed public testimony from local tenants and residents urging HCDA to consider interim uses of the property. Sarah Freeman, a Kakaʻako resident and operator of F45 at 955 Waimanu Street, asked whether HCDA would allow existing tenants to remain under an interim or extended lease while the authority moves through planning and selection. "Continuing to have F45 under an interim or extended lease during this period makes practical sense," Freeman said, adding that the gym brings daily activation and foot traffic and that keeping the site occupied can help maintain safety and generate revenue. Freeman cited financial figures included in the packet, saying the authority’s year-to-date financials show operating losses presented for the authority as a whole and for the Kakaʻako segment.

Chair Erling Higa acknowledged the comments, said housing shortage statewide makes development a priority, and indicated the development will proceed. Deepak Nupane clarified timing for the existing lease, stating the lease has a firm end date in October of the current year and that HCDA will provide more information as the developer-selection process moves forward. "We've heard your comments, so we'll take that into account," Deepak said.

Another public commenter, Todd Adams, asked HCDA to note persistent structure-borne vibrations in his unit at "Olana Ward Village" and to consider whether ongoing mechanical vibrations affect residential livability standards in HCDA-authorized projects. Adams said he had reported the condition to owner services and requested that HCDA place the concern on the administrative record and consider further review.

Members sought clarity about the project's ground-floor community facility. Member Oates asked whether the RFQ requires a particular community-facility program or if that will be developed with the selected developer; Deepak said HCDA typically collaborates with the developer to size and define community space and that some nonresidential uses may be constrained by project financing and low-income housing tax-credit or similar limits. Secretary Lindstone asked about community outreach; Deepak said this is a first formal action and that HCDA anticipates additional community engagement opportunities, including neighborhood-board-level outreach, as procurement and design proceed.

The board did not set a construction timeline at the meeting. The motion authorized HCDA to begin solicitation and selection; staff said the board will receive updates during the selection process and before major commitments are executed.

Action and vote at a glance: Motion to authorize the executive director to solicit SOQs, select a developer, and enter into a development agreement and ground lease for Block P2 — moved by Member Streitz; seconded by Member Evans; roll-call approval with seven yes votes and one excused member (Member Anderson).