Mayor Rick Blangiardi joined residents and partners to celebrate the completed renovation of Maunakea Tower, a 32-story affordable housing high-rise located at 1245 Maunakea Street in the heart of Chinatown. The revitalized tower is now home to more than 600 residents, including 408 kūpuna, who can continue to live in their homes with dignity and stability.
The project preserved 378 one- and two-bedroom units for households earning at or below 60% of the area median income (AMI) — a critical resource in one of Honolulu’s most housing-constrained areas.
“Securing these homes was a matter of urgency,” said Mayor Blangiardi. “Without swift and coordinated action, hundreds of local families and kūpuna could have lost their homes. Today, thanks to a collective commitment, they have the security and stability they deserve.”
The City's Private Activity Bond Program
To ensure long-term affordability, the City and County of Honolulu awarded $105 million in Private Activity Bonds (PABs) for the rehabilitation of Maunakea Tower. PABs are a key component of the federal Low-Income Housing Tax Credit (LIHTC) program, which is administered by HHFDC in Hawaiʻi. Used in tandem with 4% LIHTCs, PABs reduce the senior debt required to finance projects, lowering overall borrowing costs and allowing developers to charge more affordable rents. Federal rules require that these tax-exempt bonds cover at least half of total project costs.
Because Hawaiʻi is a small state, the amount of PABs it can issue each year is capped by the federal government on a per capita basis. While state law allocates a portion of this “bond cap” to each county, only the City and County of Honolulu and Kauaʻi County have recently elected to retain and deploy their allocation.
In 2020, the City retained its allocation but lacked a system to deploy it. Under the current administration, the City launched its Multi-Family Rental Housing Program within the Department of Planning and Permitting (DPP), hiring staff with the expertise to manage and issue bonds. The program’s first public offering occurred in late 2022, making Maunakea Tower one of its earliest success stories.
A Model for Preservation
The Maunakea Tower renovation extended the building’s HUD Housing Assistance Payment (HAP) contract and made major upgrades to unit interiors, shared spaces, and essential infrastructure — ensuring the tower remains a safe, stable, and affordable home for years to come.
“A heartfelt mahalo to Komohale Maunakea Venture LP for your dedication and hard work on this project,” said Mayor Blangiardi. “Bravo!”
Maunakea Tower will play a critical role in keeping longtime residents rooted in the Chinatown neighborhood they call home. This effort stands as a model for how public-private partnerships, strong policy tools, and urgent leadership can come together to preserve housing for Hawaiʻi’s most vulnerable residents.