What’s Ahead for Affordable Housing in Kakaʻako: HCDA’s Upcoming Projects

Kakaʻako continues to evolve as one of Honolulu’s most dynamic urban neighborhoods — and with it comes a renewed focus on affordable housing. The Hawaiʻi Community Development Authority (HCDA) has advanced several key projects that will bring much-needed affordable rental units and an innovative for-sale condominium program to the community.

Here’s a closer look at what’s in store for Blocks P, P-2, and P-3, plus updates on the HECO Ward parcel.

Block P: Affordable Rental Housing

Location: 956/958 Queen Street and 955/957 Kawaihao Street

Currently home to Interior Showplace and The Rice Factory, Block P is slated for redevelopment into affordable rental housing. The vision is to replace the aging structures with a new residential building that will provide homes for moderate-income households who want to live and work in Kakaʻako.

HCDA’s proposal ensures that this site contributes to the district’s affordable rental inventory, making it possible for residents to remain in the heart of Honolulu’s urban core.

Block P-2: Affordable Rental Housing

Location: 952 Kawaihao Street and 955 Waimanu Street

Block P-2, currently occupied by F45 Training, is also designated for affordable rental housing. Like Block P, this project aims to add hundreds of new units to the area, supporting the growing demand for rentals near jobs, transit, and amenities.

Once completed, Block P-2 will provide another vital option for renters who might otherwise be priced out of Kakaʻako’s rapidly rising market.

Block P-3: Ko Laila — Affordable 99-Year Leasehold Condominium

Location: 873 Kapiolani Boulevard and 610 Ward Avenue

Today, Block P-3 is home to Jack in the Box and the Gary Galiher Law Building. Soon, it will be transformed into Ko Laila, the first condominium project under HCDA’s new 99-year leasehold for-sale housing program.

Ko Laila represents an innovative approach: buyers can purchase an affordable condo with a 99-year ground lease, ensuring both equity-building for owners and long-term affordability for future generations. This model could serve as a blueprint for additional affordable for-sale projects across Honolulu.

HECO Ward Parcel Update

Location: 820 Ward Avenue

The HECO Ward parcel has long been under consideration for community-serving uses. While final plans have not been announced, HCDA continues to evaluate opportunities for this high-profile site that could complement nearby housing initiatives.

Why These Projects Matter

Together, Blocks P, P-2, and P-3 — along with the HECO Ward parcel — represent a major investment in making Kakaʻako more accessible to local residents. By combining affordable rental housing with new homeownership opportunities like Ko Laila, HCDA is addressing both short-term housing needs and long-term affordability.

Frequently Asked Questions about HCDA’s Affordable Housing in Kakaʻako

Q: What is HCDA’s role in Kakaʻako housing?A: The Hawaiʻi Community Development Authority (HCDA) oversees planning and development in Kakaʻako. In recent years, HCDA has focused on increasing affordable housing opportunities through long-term ground leases, rental projects, and innovative models like the 99-year leasehold condominium pilot.

Q: Where will the new affordable rentals be built?A: Affordable rental projects are planned for Block P (Queen Street/Kawaiahao Street) and Block P-2 (Kawaiahao Street/Waimanu Street). Both parcels are being transitioned from current commercial tenants into long-term affordable housing sites.

Q: What is the Ko Laila condominium project?A: Ko Laila is the proposed name for the condominium development at HCDA’s Block P-3 site (873 Kapiolani Boulevard & 610 Ward Avenue). It will be the pilot project for HCDA’s 99-year leasehold condominium program, offering qualified buyers the opportunity to own an affordable home in Kakaʻako while preserving affordability for future generations.

Q: What is the 99-year leasehold condominium program?A: The program allows qualified buyers to purchase a unit at Ko Laila under a 99-year ground lease. Owners build equity through ownership, while the leasehold structure ensures the units remain affordable long-term.

Q: Who can qualify for HCDA affordable housing?A: Affordable housing in Kakaʻako generally requires buyers or renters to meet income limits based on Area Median Income (AMI), as well as owner-occupancy and Hawaiʻi residency requirements. Specific qualifications will be announced when each project’s applications open.

Q: What’s happening with the HECO Ward site at 820 Ward Avenue?A: The HECO Ward parcel remains in use by Hawaiian Electric and has not been included in HCDA’s affordable housing plans at this time. While it’s a large and highly visible property, no official redevelopment updates have been released in 2025.

Q: How can I apply for affordable housing in Kakaʻako?A: Applications are not open yet for Ko Laila. HCDA will announce timelines once developer partners are selected. Buyers interested in affordable opportunities should prepare in advance by reviewing eligibility, gathering financial documents, and working with a REALTOR® experienced in affordable housing. Applications for the recently announced Kahuina will be available soon, and Ulana Ward Village is currently accepting applications for it's waitlist.

Stay Connected with inKaka'ako

As Kakaʻako specialists, inKaka'ako tracks HCDA updates, developer partnerships, and pre-sales milestones. If you’re a first-time buyer, we can:

• Pre-screen your eligibility for affordable programs

• Keep you updated on key dates (pre-sales, applications, lotteries, and sales launches)

• Help you prepare documents so you’re ready when opportunities open

Interested in updates for the Block P-3 Ko Laila,  Kahuina, or Ulana Ward Village? Contact us today and let us know which project you’d like to follow — we’ll make sure you’re first in line for the latest news.

Contact: info@inkakaako.com

Final Thoughts

HCDA’s plans for Blocks P, P-2, and P-3 — including the landmark Ko Laila condominium — represent a significant step forward in balancing Kakaʻako’s growth with local affordability. By creating both rental and ownership opportunities, these projects aim to ensure that more Hawaiʻi residents can live, work, and thrive in the urban heart of Honolulu.

Author Byline

Published by inKakaako. & ONE Pacific Realty. Written by Ed Chong, REALTOR®, specializing in affordable housing and new development opportunities across Oʻahu.