Hawaii's largest public affordable housing project

Citi Community Capital closes transaction to finance the rehabilitation of 555 affordable housing units

Citi Community Capital closed a transaction to finance the rehabilitation of 555 affordable housing units near Honolulu airport in August. This includes 33 units for the physically impaired and 12 units for hearing and sight impaired residents.

The permanent loan was provided through a tax-exempt bond issue with credit enhancement from mortgage provider Freddie Mac.

Kuhio Park Terrace (KPT) has been home to low income families for over 45 years. Now, through a public-private partnership between The Michaels Development Company, Vitus Group and the Hawaii Public Housing Authority (HPHA), the deteriorating property will be revitalized into apartments.

An exterior redesign will include island-inspired decorative screening, a vibrant new fa├žade and a welcoming new entrance for each tower. Reconfigured ground floors will create new space for resident activities, social services, management offices and enlarged laundry facilities.

The renovations will not result in an increase in rent to the residents and will provide over 100 jobs for local construction workers.

HPHA will supply on-going rental assistance and operating subsidies, assuring KPT remains as affordable rental housing for many years to come.

"It is a win for the workers, KPT residents and the community," remarked Vitus Group Director Makani Maeva.

The project is being funded through $66 million in tax-exempt bonds and nearly $45 million in low-income housing tax credits equity. Hawaii Housing Finance and Development Corporation allocated the tax credits and served as the issuer of the tax-exempt debt, while Citi Community Capital structured the construction and permanent financing with the proceeds.