Affordable housing - trying to make it more fair

What Happened during Kapiolani Residence?

Before I begin, I need to explain what happened at Kapiolani Residence (SamKoo Pacific, LLC's first tower) the sister building to The Central Ala Moana. 

Back in 2016 SamKoo Pacific, LLC launched their first building, Kapiolani Residence. This building also had 60% also go towards affordable housing (292 units) and the remaining 40% sold as market units.

When it came to the lottery there were 914 applicants applying for the 292 units. The odds were very daunting just looking from the numbers alone. You basically had a 1 out of 3 chance of getting selected, but then you had to hope your desired unit was still available. So realistically not everyone who got picked got a unit, as some may have only wanted a particular unit.

Also the lottery isn't your ordinary lottery. For example, if you were the 5th person to be selected for the lottery, it doesn't mean that you are the 5th person to select a unit. HHFDC (Hawaii Housing Finance and Developement Corporation) decides on the order and gives priority for those applicants who have large household sizes, family members with disabilities, those who earn less, etc. So that individual who got picked 5th in the lottery, may actually be the 15th person to select a home. Kapiolani Residence was grouped so that anyone making under 120% of the Area Median Income could pick from any unit. HHFDC essentially gave more priority to those at the lower bracket leaving those at the higher end unable to select a unit. 

So what is being done to make it more fair? 

According to The Star Advertiser, and plans submitted by SamKoo, the project is trying to get it approved so that there will be a certain number of units for each income bracket. This would mean that rather than competing against every single  applicants, you would only be competing with people that are in the same Area Median Income (AMI) bracket. Also, the AMI limit has been increased to 140%. 

2018 HHFDC Area Median Income (AMI) Brackets

Based on the plans submitted to the City and County, here is the tentative breakdown for the affordable units:

• 36 Units for those in the 80-90% AMI bracket
• 33 Units for those in the 90-100% AMI bracket
• 61 Units for those in the 100-110% AMI bracket
• 61 Units for those in the 110-120% AMI bracket
• 68 Units for those in the 120-130% AMI bracket and
• 51 Units for those in the 130-140% AMI bracket

That totals the 310 Units for Affordable Housing. Now this hasn't officially been approved, but SamKoo Pacific LLC has expressed an interest to make it more fair for those applying and has filed a request with the City and County.

If this isn't approved, it is possible that it could favor those who earn less. For example if 620 applicants applied and 310 were in the 80-100% AMI and the remaining 310 were in the 110-140% AMI, then the 310 who are in the 80-100% bracket would get units and the other 310 wouldn't since HHFDC decides on the order.  

We are hoping to hear good news on getting this changed so that it would allow everyone a fighting chance to get a unit at The Central Ala Moana. The project ideally wants to start within the next 2 months, but it depends on this approval. Stay tuned for updates and I will be sure to let you know whether this has been approved or not. Feel free to call, text, or email me if you have any questions that come to mind. For more information on the affordable housing you may click the button below. 

Affordable Housing FAQ Page