In Partnership with State of Hawaii, Standard Communities Restructures 1,221-unit Affordable Housing Portfolio
STATE OF HAWAII AND STANDARD COMMUNITIES ANNOUNCE $223.9 MILLION PUBLIC-PRIVATE PARTNERSHIP TO REHABILITATE AND PRESERVE 1,221 UNITS OF AFFORDABLE HOUSING IN SIX LOCATIONS
Innovative Transaction to Rehabilitate Properties and Preserve Long-Term Affordability
News release from Standard Communities, August 23, 2023
Honolulu, HI– Standard Communities, in partnership with The State of Hawaii and Honolulu-based Stanford Carr Development, have closed on the first phase of an innovative $223.9 million public-private partnership that will reposition 1,221 units of affordable housing across six properties located on the islands of Oahu, Hawaii, and Maui. This first closing included five of the six properties, for a total of 995 units, with the sixth expected to close in the coming months. The new structure preserves all the units as affordable housing for the long-term, residents will now receive project-based rental assistance, and the six-property portfolio will undergo an $85 million rehabilitation. As part of the rehabilitation, unit interiors will be renovated, building systems will be modernized, and the common areas will be updated to house a comprehensive offering of services and programs designed to enrich residents’ lives and strengthen the community. Residents will not be displaced during the renovation.
“Leveraging private funds through partnerships like this is a more efficient use of State resources. It’s more cost effective to sell the leasehold interest and have Standard Communities and Stanford Carr Development bring private capital to pay for renovations and other capital improvements through the sale,” said Governor David Y. Ige.
The ambitious project is designed to “achieve the dual goals of rehabilitating the properties for long-term preservation of the portfolio while fulfilling the State’s commitment to minimize displacement of existing tenants,” said Craig Hirai, Executive Director of the Hawaii Housing Finance and Development Corporation (HHFDC).
“The substantial renovations will be completed faster than would be possible under the State’s ownership, and divesting the rental housing portfolio frees up HHFDC resources and provides HHFDC with additional capital that can be used to further advance its primary goal of increasing the supply of new affordable housing,” said Mr. Hirai.
The portfolio consists of six affordable rental housing and mixed-use properties with a total of 1,221 residential units and approximately 86,000 square feet of commercial space.
The portfolio acquisition and rehabilitation is led by Standard Communities, a firm committed to the creation, improvement, and preservation of affordable and workforce housing nationwide, and their Honolulu-based joint-venture partner, Stanford Carr Development.
“We are pleased to be partnering with the State of Hawaii and Stanford Carr Development in this large-scale and complex repositioning of affordable housing,” said Jeffrey Jaeger, co-Founder of Standard. “This is an opportunity to have a positive impact on the lives of more than 1,200 families, and we look forward to continuing our work to improve the properties and strengthen these communities for years to come. While we are busy renovating these properties, HHFDC will be putting the proceeds of the transaction to work for the benefit of thousands of additional households throughout Hawaii.”