Centre Urban project would create 72 Waikiki workforce housing units – The Garden Island Newspaper

Report on Waikiki Affordable Housing Initiative and its Alignment with Sustainable Development Goals

Executive Summary

A new development initiative led by Centre Urban Real Estate aims to address the critical shortage of affordable workforce housing in Waikiki, Honolulu. The project involves the construction of 72 housing units across two sites, specifically targeting low-to-middle-income households. This initiative represents a significant contribution to achieving several United Nations Sustainable Development Goals (SDGs), most notably SDG 11 (Sustainable Cities and Communities), by transforming a derelict property into valuable community housing and promoting a more inclusive and sustainable urban environment. The project is a collaborative effort between the private developer and the City of Honolulu, underscoring the importance of SDG 17 (Partnerships for the Goals).

Project Overview and Specifications

Development Sites and Unit Allocation

The initiative encompasses the development of two mid-rise residential buildings:

• 2533 Kaneloa Road: A 32-unit building to be constructed on a fee-simple property acquired by the developer.
• 1615 Ala Wai Blvd.: A 40-unit building on a city-owned site, formerly a long-derelict property. The city acquired the site through condemnation and will lease it to Centre Urban for 75 years.

Project Timeline

The development is scheduled in two phases:

1. 2533 Kaneloa Road: Construction is planned to begin in early 2025, with an estimated completion timeline of 10 to 12 months.
2. 1615 Ala Wai Blvd.: Work is targeted to commence in late 2026 and is expected to be completed in 2027.

Contribution to Sustainable Development Goals (SDGs)

SDG 11: Sustainable Cities and Communities

The project directly addresses several key targets of SDG 11, fostering an inclusive, safe, and resilient urban community in Waikiki.

• Target 11.1 (Affordable Housing): The creation of 72 units for households earning 60% to 80% of the area median income directly increases the supply of adequate and affordable housing. Rents are projected to be 25% below current market rates.
• Target 11.3 (Sustainable Urbanization): The redevelopment of the blighted and long-vacant property at 1615 Ala Wai Blvd. into productive housing is a prime example of sustainable urban renewal, enhancing the quality of the urban environment.
• Target 11.2 (Sustainable Transport): The project is designed to support residents who work within Waikiki, encouraging walking and cycling and reducing reliance on private vehicles, thereby contributing to more sustainable transportation systems.

SDG 8: Decent Work and Economic Growth

By providing accessible housing for the local workforce, the initiative supports sustained and inclusive economic growth. It helps address labor shortages in Waikiki’s vital hospitality sector, which have been exacerbated by the lack of affordable living options for employees. This ensures that the local workforce can live in dignity within the community they serve.

SDG 10: Reduced Inequalities

The project is explicitly aimed at filling the “missing middle” housing gap. It provides secure and affordable housing opportunities for young professionals and families who are systemically priced out of the urban housing market, thereby reducing economic and social inequalities within the community.

SDG 17: Partnerships for the Goals

This initiative exemplifies a successful multi-stakeholder partnership essential for achieving sustainable development.

• Public Sector: The City of Honolulu played a crucial role by acquiring the derelict property through condemnation and establishing a long-term lease for its redevelopment.
• Private Sector: Centre Urban Real Estate is leading the development, financing, and construction of the housing units.
• Community: The Waikiki Neighborhood Board provided unanimous support, reflecting community endorsement for the project’s goals.

Stakeholder Perspectives and Community Impact

Support and Rationale

The project has garnered widespread support from various stakeholders who recognize its potential to generate positive community impact.

• Industry Leaders: Representatives from the hospitality sector have highlighted the critical need for workforce housing to sustain the local economy and support hotel employees.
• Municipal Government: City officials view the project as a dual victory, simultaneously eliminating a source of urban blight and delivering lasting value through high-quality, affordable housing.
• Developer: The principal of Centre Urban expressed a personal commitment to mitigating the housing crisis that forces local professionals to leave the state.

Community Feedback and Concerns

While the Waikiki Neighborhood Board endorsed the project, it also acknowledged feedback from some community members. Key concerns raised included:

• The limited availability of on-site parking for residents.
• The need for a clear process to ensure the units are allocated to individuals working within the Waikiki area.
• Suggestions for alternative uses of the land, such as senior or day care facilities.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 11: Sustainable Cities and Communities
   • The core of the article is about urban development. It details a project to build affordable housing in Waikiki, a dense urban area. This directly relates to making cities and human settlements inclusive, safe, resilient, and sustainable. The project aims to solve a housing crisis within the city, transform a “long-derelict” and blighted property, and provide housing for the local workforce, contributing to a more sustainable urban community.
2. SDG 8: Decent Work and Economic Growth
   • The project is explicitly defined as “workforce housing.” The article highlights the difficulty for young workers, particularly in the hospitality industry, to find affordable rentals near their jobs. By providing this housing, the project supports the local workforce, helps fill job openings at hotels, and contributes to the sustained economic growth of the local tourism and hospitality sector.
3. SDG 10: Reduced Inequalities
   • The housing units are specifically targeted at households with lower-to-middle incomes (“60% to 80% of area median income”). This initiative directly addresses economic inequality by providing access to affordable housing for a segment of the population that is being priced out of the market, thereby promoting social and economic inclusion.
4. SDG 17: Partnerships for the Goals
   • The project is a clear example of a public-private partnership. The city of Honolulu, a public entity, is working with Centre Urban Real Estate, a private developer, to achieve a common goal. The article states that Centre Urban was selected as the “city’s development partner” and that the city will lease the land to the developer, showcasing the collaboration required to achieve sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 11 (Sustainable Cities and Communities):
   • Target 11.1: “By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.” The article’s central theme is the creation of “72 affordable workforce housing units” with rents “25% below Waikiki market rates.” The project also involves redeveloping a “long-vacant and deteriorating property,” which aligns with upgrading blighted urban areas.
   • Target 11.3: “By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.” The project went through a city permitting process and was presented to the Waikiki Neighborhood Board, which “voted unanimously in support,” demonstrating a participatory and integrated planning process for urban development.
2. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.5: “By 2030, achieve full and productive employment and decent work for all…” While the project doesn’t create jobs directly, it is a critical enabler for “decent work.” The article notes that a lack of affordable housing makes it difficult to fill job openings at Waikiki hotels. By providing workforce housing, the project supports the ability of local businesses to maintain a stable workforce, thus contributing to full and productive employment.
3. Under SDG 10 (Reduced Inequalities):
   • Target 10.2: “By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… economic or other status.” The project specifically targets households earning “60% to 80% of area median income,” directly aiming to promote the economic inclusion of individuals and families who are otherwise excluded from the high-cost Waikiki housing market.
4. Under SDG 17 (Partnerships for the Goals):
   • Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…” The entire project is structured as a partnership between the city government (which acquired the land and selected the developer) and a private company, Centre Urban Real Estate. The article mentions the city leasing the site to the developer for 75 years, which is a concrete example of a long-term public-private partnership.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For Target 11.1 (Affordable Housing):
   • Number of affordable housing units created: The article explicitly states the project will create “72 affordable workforce housing units” (32 at one site, 40 at another).
   • Level of affordability: The article specifies that “Rents are expected to be 25% below Waikiki market rates.”
   • Proportion of redeveloped blighted land: The project transforms “the long-­derelict 1615 Ala Wai Blvd.,” a property that had been “vacant for at least a couple of decades.” This serves as an indicator of urban renewal.
2. For Target 10.2 (Inclusion):
   • Income level of beneficiaries: Progress can be measured by tracking whether the units are occupied by the target demographic, which is “households earning 60% to 80% of area median income.” The article provides the exact income brackets: “$63,840 to $85,120 for individuals and $91,200 to $121,600 for a family of four.”
3. For Target 17.17 (Partnerships):
   • Existence and terms of a public-private partnership: The article describes the partnership between the city and Centre Urban Real Estate, including the specific term of the land lease: “The city will lease the Ala Wai site to Centre Urban for 75 years.” This formal agreement is a clear indicator of a functioning partnership.
4. For Target 11.3 (Participatory Planning):
   • Engagement with local governance bodies: The proposal was presented to the “Waikiki Neighborhood Board,” which subsequently “voted unanimously in support.” This vote serves as an indicator of community and civil society participation in the planning process.

4. SDGs, Targets, and Indicators Table

Source: thegardenisland.com