State finds new operator for low-income complex

Andrew Gomes, The Honolulu Star-Advertiser
·2 min read

Jul. 5—A private development partnership has taken over the Kulia i ka Nu 'u low-­income rental housing complex in Waianae under a state land lease arrangement that includes a planned renovation of the property.

A private development partnership has taken over the Kulia i ka Nu 'u low-­income rental housing complex in Waianae under a state land lease arrangement that includes a planned renovation of the property.

Solar Farm View Estates LLC became the new leasehold owner and operator of the 72-unit complex Friday, according to a Monday announcement by the Hawaii Housing Finance and Development Corp., a state agency that took possession of Kulia in 2013.

The partnership acquired a 75-year land lease for the property, which contains studios and two-bedroom apartments, and will not change HHFDC's practice at Kulia where rent is affordable to households earning up to 60 % of the annual median income on Oahu.

The new leasehold owner also received a $5 million loan from the agency to finance improvements to the property including roof, electrical and water heating system repairs ; exterior stairwell replacement ; and a photovoltaic energy system addition.

Another part of the deal will have Solar Farm View convert eight studio and two-bedroom units into three-bedroom apartments.

"We are pleased that we are able to keep the units at Kulia i ka Nu 'u affordable as a result of this lease agreement, " Dean Minakami, HHFDC interim executive director, said in a statement. "The team that we are partnering with on this property is led by veteran companies and individuals with proven track records as housing developers and property managers in the Hawaii market."

The partnership was formed by local affordable-­housing developer and operator Mark Development Inc., Honolulu-based Skyler Pacific LLC and California-­based Pacific Development Group Inc.

Kulia was built in 2008 by the nonprofit Hawaii Coalition of Christian Churches on state land within the larger Uluwehi subdivision at a cost of $16.4 million, mainly using local taxpayer revenue.

The property was originally named Kahikolu Ohana Hale o Waianae and was designed to provide emergency, transitional and permanent housing for the homeless. In addition to the rental apartments, Kahikolu included a 40-bed dormitory, a preschool, day care, a commercial kitchen and social services.

Kahikolu was touted as a model that could be repeated, but troubles arose with management and finances. In 2013, HHFDC took over and renamed Kahikolu, which includes 1.3 acres of vacant land and an empty building that previously served as the 40-bed shelter.

HHFDC offered a 75-year lease for Kulia in 2022, and its board selected a proposal by Solar Farm View.