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Tuesday, September 22, 2020
City Drops $10.5M for 29 Units that were already affordable
By News Release @ 11:43 PM :: 3982 Views :: Honolulu County, Development, Cost of Living, COVID-19

City adds property for low-income affordable rental units in ‘Aiea; property will temporarily serve as isolation/quarantine location

News Release from City and County of Honolulu, Sept 22, 2020

HONOLULU –The City and County of Honolulu acquired the property known as the Harbor Arms Hotel located at 98-130 Lipoa Place in ‘Aiea, Hawai‘i on September 18.  The City’s intent in acquiring the property is to increase the availability of low income affordable rental units for families.  However, due to the immediate need to ensure the availability of isolation/quarantine rooms for the COVID19 pandemic, the City will initially dedicate the use of the building for this purpose and will partner with the Department of Health who will provide intake and services. 

(Editor’s Note: This purchase adds ZERO new affordable units because these units were already affordable in the private sector.)

“While the COVID-19 pandemic continues, this property is ideal for multi-generational families who need to isolate or quarantine,” said Mayor Caldwell. “We need to protect our vulnerable populations during this pandemic, especially those who may not have access to a safe place to stay if and when they are exposed to COVID-19. This partnership with the Department of Health will help keep the virus under control on O‘ahu.” 

Councilmember Elefante, who represents this area, said, “One reason I support affordable housing is because it uplifts our citizenry by providing our citizens with the stability of a clean, safe place to live.  This area of ‘Aiea provides housing to many of our hard working families, and I’m excited that this particular parcel will eventually provide affordable rentals to our citizens who need it the most, and on the bus and rail line for access to transit. I commend the Mayor for working quickly to repurpose the facility to address COVID needs and look forward to adding these ‘Aiea units to our affordable housing rental inventory.”

The property is a 3 story apartment/hotel building consisting of 29 large apartment units (20 two bedroom and 9 one bedroom units all with lanais), 29 parking stalls, a resident manager’s unit, an office, and laundry facilities.  The units come completely furnished with furniture, appliances and amenities found in a standard hotel room and they are immediately available for occupancy. 

The city acquired the property for $10,525,000.  The property is in the Transit Oriented Development zone and in close proximity to the rail station which makes it an ideal investment to ensure affordable housing near rail transit and a prime property for future redevelopment at higher densities.

(Do the math: $10,525,000 / 29 units = $362,931 per unit.)



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