News | The Michaels Organization to Build Affordable Family Rental Community In East Kapolei

The Michaels Organization to Build Affordable Family Rental Community In East Kapolei

Published on August 1, 2018

Keahumoa Place will provide 320 new affordable rental housing units for Hawaii families

 

KAPOLEI, HI – Today The Michaels Organization, in partnership with the Hawaii Housing Finance & Development Corporation (HHFDC), held a ceremonial groundbreaking and blessing for Keahumoa Place in East Kapolei. At the completion of Phase 4, the multi-family housing apartment community will provide Hawaii families with 320 new, affordable rental units by 2020.

“With high demand and a shortage of affordable rentals across the state, Keahumoa Place will create new inventory of rental units and build a new community for so many residents,” said Karen Seddon, regional vice president, The Michaels Development Company. “This project is the collaborative result of what can be accomplished when we all work together. Thanks to Governor Ige, Hawaii Housing Finance and Development Corporation, Mayor Caldwell, the City and County of Honolulu, and the community, we are able to help address the needs of Hawaii’s hardworking families.”

Located in the heart of the rapidly developing East Kapolei region, Keahumoa Place will be built on 19.72 acres along Keahumoa Parkway, a short distance from the Kualaka‘i Transit Station, the Salvation Army Kroc Community Center, and the University of Hawaii West Oahu.

The Keahumoa Place complex will have 37 two-story garden-style buildings with 320 rental apartments, 628 parking spaces, and open space. To serve as a gathering place for community residents, amenities will include a community center with computer lab, multipurpose room, covered-open gathering space, picnic area, tot lot, and a pet park.

“Keahumoa Place is a prime example of how my administration has attracted more private investment in Hawaiʻi by engaging with companies such as The Michaels Organization, to construct more affordable housing for our residents,” said Gov. David Ige. “There is no better place for this new affordable rental community than on previously vacant state land in the fastest growing region in the state and within close-proximity to rail stations, public transportation and employment centers,” he added.

Keahumoa Place will offer a mix of one-, two-, and three-bedroom units, and remain affordable for 65 years. More than 80 percent of the apartments will be offered at rents affordable to families earning 80 percent or less of the Area Median Income (AMI), as determined annually by the U.S. Department of Housing and Urban Development (HUD).

The 2018 AMI and anticipated rents for Keahumoa Place are as follows: 

     

Max Income by Household*

   

AMI

1 Person

2 Person

3 Person

4 Person

5 Person

6 Person

30% AMI

 $        24,510

 $          27,990

 $          31,500

 $          34,980

 $          37,800

 $    40,590

50% AMI

 $        40,850

 $          46,650

 $          52,500

 $          58,300

 $          63,000

 $    67,650

60% AMI

 $        49,020

 $          55,980

 $          63,000

 $          69,960

 $          75,600

 $    81,180

80% AMI

 $        65,360

 $          74,640

 $          84,000

 $          93,280

 $        100,800

 $  108,240

100% AMI

 $        81,700

 $          93,300

 $        105,000

 $        116,600

 $        126,000

 $  135,300

 

   

Proposed Net Rent*

 

AMI

1 Bedroom

2 Bedroom

3 Bedroom

30% AMI

$             587

$           690

$           784

50% AMI

$         1,024

$        1,215

$        1,391

60% AMI

$         1,243

$        1,478

$        1,694

80% AMI

$         1,681

$        2,003

$        2,301

100% AMI

$         2,118

$        2,528

$        2,907

 

*Sources: HHFDC. Proposed Net Rent is Max Rent less Allowances.

The $26.6 million for Phase 1 is financed by a variety of sources, including equity raised by the sale of low income housing tax credits allocated by the HHFDC. The major investor in those credits is U.S. Bank, and construction and permanent funding came from American Savings Bank, the HHFDC Rental Housing Revolving Fund and Dwelling Unit Revolving Fund, along with funds from the Freddie Mac Tax Exempt Loan program.

The community will be developed in a total of four phases. The construction of the first three phases are underway with completion by December 2019 and the fourth phase will be completed by December 2020.  Leasing information for Keahumoa Place can be attained by emailing keahumoa@tmo.com.                                                                                                                

 

About The Michaels Organization:

The Michaels Organization is a national leader in residential real estate, creating award-winning affordable, mixed-income, military, and student housing that enhance the lives of our residents and enriches communities. Serving more than 145,000 residents in 410 communities across 36 states, the District of Columbia, and the U.S. Virgin Islands, The Michaels Organization offers full service capabilities in development, property management, finance, construction, and tax credit syndication. More information on The Michaels Organization is available at: https://tmo.com/

 

About the Hawaii Housing Finance and Development Corporation:

The Hawaii Housing Finance and Development Corporation (HHFDC) is the State of Hawaii’s housing finance and development agency. More information on affordable housing development and state-sponsored homeownership initiatives is available at: http://dbedt.hawaii.gov/hhfdc/

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