Honolulu to distribute nearly $30 million for affordable housing developments
The City and County of Honolulu’s Department of Community Services announced Tuesday it will distribute nearly $30 million to six affordable housing projects across Oʻahu.
The developments receiving the funds are set to create 972 units within the next five years, according to the city.
"The affordable housing fund is really funded from our property taxes. Half a percent per year goes into the affordable housing fund. That’s about $7 million to $8 million a year. When we came into this position, there was quite a bit in that fund — $30 million to $40 million," said Anton Krucky, the department's director. "So we’ve worked diligently to try to put all of that out. I think the sense of urgency in affordable housing is apparent."
Krucky said it used to take about nine years for the funds to become housing units.
"All of these projects come in under five years. In addition to that, we’ve implemented where three of the projects are using the funds to acquire the land. They are acquiring it under what’s called a performance mortgage. And what that means is that if they don’t get the project started and going like the plan says, then that grant turns into a mortgage — and then we retain the assets," Krucky said.
The projects will be developed in Honolulu, Kailua, Waialua and ʻAiea.