The developer behind a planned Waikiki rental tower has named the project and extended its affordability commitment, with the Waikiki rental tower set to offer below-market rents for three decades to households earning less than the area median income.
Development firm OliverMcMillan, which last year outlined plans for a high-rise at Kuhio Avenue and Kanekapolei Street, has named the project Lilia Waikiki and said it will surpass recently adopted city affordable-housing guidelines.
Waikiki rental tower affordability commitment
The company pledged that 20 percent of the building’s 455 homes, or 91 apartments, will be reserved for renters earning no more than 80 percent of Honolulu’s median income, and that affordability will be maintained for 30 years. An earlier proposal had set the same share of affordable units but for only 15 years.
Mayor Kirk Caldwell in April signed a bill updating city affordable-housing requirements. The ordinance does not apply to this project because it is strictly rental housing, though the City Council often seeks affordable contributions from developments requesting extra height or density.
OliverMcMillan is seeking to exceed the 260-foot height limit by 25 feet, increase density by 37 percent, and allow a minor encroachment into transitional setbacks that govern how far upper portions of a tower must be from property lines.
Unit mix, sizes and rent limits
The proposed affordable homes would include 38 studios averaging 385 square feet, 44 one-bedroom units averaging 500 square feet, and nine two-bedroom units averaging 900 square feet. If units were available this year, maximum qualifying incomes would be $65,350 for a single person, $74,650 for a couple, and $93,300 for a family of four.
Under city standards, the corresponding monthly rent caps would be $1,352 for studios, $1,527 for one-bedrooms, and $2,031 for two-bedrooms.
“Hawaii is faced with a housing crisis and we feel that rentals are a part of the housing solution,” Kris Hui, OliverMcMillan’s director of development, said in a statement.
Project name, site and timeline
The tower’s name, Lilia, means lily in Hawaiian, selected in reference to Queen Emma’s favorite flower. OliverMcMillan is leasing the site from Queen Emma Land Co., steward of lands once held by Queen Emma.
Income from the company’s real estate portfolio, which includes land beneath International Market Place, supports The Queen’s Health Systems.
Lilia Waikiki includes 402 apartments in the tower and renovation of 53 existing rental homes in four low-rise buildings on the Diamond Head side of Kanekapolei Street.
Subject to approvals, the developer expects to begin construction next year and complete the project in 2021.
The project’s affordable rentals add to the broader debate over housing supply and pricing on Oahu, where home prices have set record medians in recent years.
