Mayor Rick Blangiardi announced Thursday that the City and County of Honolulu’s Department of Land Management (DLM) has successfully completed the strategic real estate acquisition of 734 & 735 Kihapai Place in Kailua, expanding the city’s property portfolio and paving the way for the creation of much-needed affordable housing in the Kailua area. “Today, we take a significant step towards building a more inclusive and vibrant community,” said Mayor Rick Blangiardi.
“By purchasing land in Kailua for affordable housing, we affirm our commitment to ensuring that every resident, regardless of their background or income, has the opportunity to live, work, and thrive in our city.”
“This investment addresses the pressing issue of housing affordability and reinforces our values of compassion, equality, and progress. Together, we are shaping a future where everyone can find a place to call home,” added Mayor Blangiardi. The $5 million purchase price includes the land and construction drawings for the development of a four-story affordable housing building containing 42 one and two-bedroom units. The acquisition, which closed on August 31, 2023, was made possible through the utilization of funds from the City’s Capital Improvement Project (CIP) budget for affordable housing.
An essential driving force behind this forward-looking endeavor is the committed support of City Council Member Esther Kia’aina. With her insight and dedication to the community’s welfare, the Department of Land Management moved with purpose to secure this vacant property, setting the stage for an exciting chapter in Kailua’s growth. “I am excited about the potential of increasing much needed affordable housing in Kailua, to help our local families stay in Hawai‘i,” added Council Vice Chair Esther Kiaʻāina. “I look forward to working with the community and the administration to provide input on the proposed redevelopment of this property. I encourage the administration to identify other properties to advance city-driven affordable housing opportunities.”
DLM will issue a solicitation seeking a public-private partnership with a developer to construct, operate, and maintain the project through a ground lease. The partnership will ensure the effective construction, management, and rental of the units to eligible individuals and families, primarily at or below 80% of the median income.