Hawaii Starts $333 Million Phase of 2,400-Unit Kalihi Housing Overhaul

The conflict over Honolulu’s aging public housing stock came to a head on Thursday as state officials broke ground on the Mayor Wright Homes redevelopment. The project replaces a complex built nearly 75 years ago with a new development that will hold seven times as many homes. The 15-acre site sits in the Kalihi-Palama neighborhood near downtown Honolulu.

The Hawaii Public Housing Authority and developer Highridge Costa are leading the effort. The first phase, designated Phase 1A, will cost $333 million. The entire project was estimated at $1.3 billion in 2017. The new complex will feature 10 towers containing more than 2,400 rental homes, ranging from studios to five-bedroom units. It will also include condominiums for sale, commercial space, and four acres of public parks and recreational space.

Income requirements for the new units differ from the current site. More than half of the units are reserved for tenants earning less than 80% of the area median income. Later phases will serve households earning up to 100% of the area median income, a figure that equates to roughly $150,000 annually for a family of four. Current residents displaced by construction are being relocated and hold priority status to return to their new homes.

Hakim Ouansafi, executive director of the housing authority, said the project marks a shift in how the state addresses housing needs. "It is about breaking barriers," he said. He added that public housing should not mean second-class housing. Moe Mohanna, president of Highridge Costa Development Company, called the initiative a legacy project, praising the state for its commitment to large-scale development.

Gov. Josh Green described the project as central to the state’s housing strategy. "Housing provides health," he said, noting that stable housing allows residents to focus on education, food security, and health care. Honolulu Mayor Rick Blangiardi tied the development to the arrival of the Skyline rail line. The site is designed to be within walking distance of the planned Iwilei rail station.

The first building is scheduled to open in 2029. The full redevelopment is expected to take 15 years to complete. The project replaces the current complex bounded by King Street, Liliha Street, and Vineyard Boulevard.