Kalihi Redevelopment: $333 Million Phase 1A Breaks Ground

State officials and community leaders gathered on Thursday in the Kalihi-Palama neighborhood to break ground on the first phase of the Mayor Wright Homes redevelopment. The ceremony marks the start of construction on what organizers describe as the largest public housing project in Hawaii's history, situated on a 15-acre site near downtown Honolulu.

The Hawai‘i Public Housing Authority and developer Highridge Costa will replace the existing complex, which is bounded by King Street, Liliha Street, and Vineyard Boulevard. The new development is planned to contain seven times as many homes as the current site. Officials estimate the cost of Phase 1A at $333 million, while the state's 2017 estimate for the entire project stands at $1.3 billion.

Plans call for more than 2,400 new rental homes, ranging from studios to five-bedroom units. These will be distributed across 10 towers alongside public housing units, condominiums for sale, and commercial space. More than half of the units will be reserved for tenants earning less than 80% of the area median income. Later phases will expand eligibility to households earning up to 100% of the area median income, a figure that is approximately $150,000 annually for a family of four.

Hakim Ouansafi, executive director of the housing authority, stated that the project aims to break barriers rather than simply break ground. He argued that the state cannot address future housing problems by relying on past approaches. Ouansafi emphasized that public housing should not mean second-class housing and that residents deserve safe, modern homes in communities where poverty is not concentrated.

Gov. Josh Green described the project as central to the state's housing strategy, noting that stable housing allows people to focus on education, food security, and health care. Moe Mohanna, president of Highridge Costa Development Company, praised the state for taking on an initiative of this size, calling the construction a legacy. Current residents displaced by the work are being relocated and will have priority to return to the new units.

The development includes four acres of public parks and recreational space. It is designed to be within walking distance of the planned Iwilei rail station. Honolulu Mayor Rick Blangiardi linked the project to the arrival of the Skyline rail line, calling the combination historic for affordable housing. The first building is scheduled to open in 2029, and the full redevelopment is expected to take 15 years.