State of Hawaii, Standard Communities Unveil $223.9M Plan to Rehabilitate 1,221 Affordable Housing Units
HAWAII — Standard Communities, in partnership with the State of Hawaii and Honolulu-based Stanford Carr Development, has unveiled a $223.9 million public-private partnership that will reposition 1,221 affordable housing units across six properties on the islands of Oahu, Hawaii and Maui.
“Leveraging private funds through partnerships like this is a more efficient use of state resources,” says Gov. David Y. Ige. “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.”
In the first transaction, Standard Communities acquired five of the six properties for a total of 995 units. The sixth is expected to close in the coming months. The seller was Hawaii Housing Finance and Development Corp. (HHFDC), a state-run agency.
The new partnership preserves all the units as affordable housing for the long-term, though the exact length of that deal was not disclosed. The portfolio will undergo an $85 million rehabilitation. Residents will receive project-based rental assistance.
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. Residents will not be displaced during the renovation.
The four Oahu properties include Pohulani Elderly, Kauhale Kakaako, Kamakee Vista and Kekuilani Courts. The other properties include Honokowai Kauhale in Maui and Lailani Apartments in Hawaii.
The renovations will be completed faster than would be possible under the state’s ownership, according to Craig Hirai, executive director of HHFDC.
“Divesting the rental housing portfolio frees up HHFDC resources and provides the organization with additional capital that can be used to further advance its primary goal of increasing the supply of new affordable housing,” he says.
Founded in 2008, Los Angeles-based Standard Communities is the affordable housing division of Standard Cos., a full-service investment and asset management firm. Standard Cos. has a portfolio of more than 12,300 apartment units, of which 8,500 are affordable. The company has completed more than $1.7 billion of affordable housing acquisitions and rehabilitations.
— Kristin Hiller