In September 2023, co-developer Kobayashi Group and Ahe Group, broke ground with traditional Hawaiian o’o (“oh-oh”) sticks at the future site of Parkway Village at Kapolei. Comprised of two developments, Lot 6 and Lot 7, this new construction community will create 401 affordable apartment homes for Hawaii residents earning 30-60% of the area median income (AMI). But, that’s just the beginning of a long list of amenities for residents.
While Parkway Village is not required to provide supportive services, residents will benefit from a service coordinator and the generosity of Horizon Housing Foundation’s commitment to providing a total of $350k toward supportive services at no cost to residents. The development’s service coordinator will serve as the central hub for various resident-focused activities and community events, as well as resident needs assessments and service plans.
Another unique offering, and testament to the development team’s passion for early education, is the 2,638 square feet of commercial space that will be utilized as a preschool/daycare and after-school care, available at a reduced cost. In addition to the development’s proximity to the Kobayashi-built middle and high schools in Kapolei, valuable farming skills and healthy eating habits will be nurtured at the Parkway Village community garden and farm-to-table “Freight Farm” which is a hydroponic container farm. As part of the after-school care program, children will learn to plant, care for, grow, and harvest food that can then be put on their tables.
The on-site four-classroom pre-school will be operated by Kamehameha Schools, a nonprofit serving “economically vulnerable youth and families in the Hawaiian community to overcome systematic disparities and historical trauma.” The programs and services they provide include:
Multi-General Education Programs: Having served over 30 communities throughout Hawaii, including 2,720 keiki (children), the program focuses on early childhood learning, caregiver education and curriculum studies.
Strengthening Families Social Services Programs: Addressing the needs of some of Hawaii’s most vulnerable youth and families, this program helps individuals build strengths-based life skills and assists in obtaining health insurance.
Island Resiliency Programs: With food security at its foundation, this program focuses on natural farming projects and successfully provides over 1,000 pounds of native crops annually.
Kamehameha Schools and Kobayashi Group will also partner with CVS Health to expand its access to childcare and healthcare services. “These investments and collaborations echo our longstanding commitment to supporting and uplifting the people of Hawaii,” said Scott Sutton, Regional Director at CVS Health. “We’re providing community members with access to meaningful affordable housing, health care, and educational and workforce opportunities to ensure that they have the resources they need to improve their overall wellbeing.”
Keiki O Ka Aina, a non-profit early education operator, will operate an additional two-classroom community pre-school. Community residents will have priority to enroll at reduced costs than market pre-schools.
"We express our gratitude for the opportunity to collaborate with two distinguished affordable housing developers in Hawaii for the development of Parkway Village in an underserved yet burgeoning region of Oahu," stated Alison Anderson, SVP, Originator at CREA. "Our unwavering focus on creating affordable housing that every resident can take pride in is reflected in the development of Lots 6 and 7. This development marks a crucial step towards linking early education to the residents and aligns with CREA's overarching goals through CREA Foundation."
Anticipated to open in Winter 2025, Parkway Village at Kapolei will make a small dent in the affordable housing crisis and have a big impact on future residents seeking safe, affordable housing with the additional benefit of educational opportunity.
Lot 6 Financing
In addition to LIHTC equity provided by Fannie Mae through CREA Corporate Tax Credit Fund 101, Parkway Village at Kapolei Lot 6 is financed with a $58.2MM/$28MM conversion loan from Bank of Hawaii, a $22.1MM Rental Housing Revolving Fund (“RHRF”) conversion loan and $58.2MM in Hula Mae Multi-Family Tax-Exempt Bonds from Hawaii Housing Finance and Development Corporation (“HHFDC”), and $18MM in State Low Income Tax Credit equity from Sugar Creek Capital.
Lot 7 Financing
In addition to LIHTC equity provided by CVS Health through CREA Corporate Tax Credit Fund 107, Parkway Village at Kapolei Lot 7 is being financed with $39.9MM/$19MM conversion loan from Bank of Hawaii, a $14.1MM RHRF conversion loan and $39.9MM in Hula Mae Multi-Family Tax-Exempt Bonds from HHFDC, and $12.3MM in State Low Income Tax Credit equity from Sugar Creek Capital.
Economic Impact
Parkway Village at Kepolei Lot 6 and 7 will generate a total of 506 jobs, $32.5MM in wages and salaries, $15.1MM in federal revenue, and $7.5MM in state and local revenue*.
*Source: National Association of Home Builders. Note: Totals are based on national estimates regarding the economic impact of residential construction for the U.S. economy as of April 1, 2020.
