The Singapore solution? Plan would build 67,500 affordable homes on Oahu

Originally published by the Honolulu Star-Advertiser; click here to read the article on staradvertiser.com.

By Andrew Gomes | November 17, 2018 Updated November 17, 2018 9:26am

Dense condominium towers built by the state near transit stations and sold at cost under leasehold land tenure could be the solution to Oahu's chronic affordable-housing crisis.

The idea was presented at a conference Friday at the Capitol by state Sen. Stanley Chang, and some event participants see merit in what the lawmaker calls a radical but politically realistic plan.

Chang, who bases the plan on a long-running and successful Singaporean government program, contends that the state could build and sell spacious high-rise homes with pools and other amenities for $300,000 with 99-year land leases.

As the incoming Senate Housing Committee chairman, Chang has drafted a bill to create a board-led state authority that would carry out the plan financed by bonds and repaid from condo sales.

"It is affordable to both the buyers and the state," he said.

To produce 10,000 such homes would cost $3 billion, but Chang said the cost wouldn't be a taxpayer expense.

"It is revenue neutral to the state," he said. "All that money is going to be recouped in the form of sales prices to the new buyers as they come in."

The estimated $300,000 home price, based on current construction costs, would be affordable to low-income households and compares with a roughly $425,000 median resale price for previously owned condos and $800,000 for single-family homes on Oahu.

Such a price would be possible, Chang said, because of high building density, no land costs and no profit.

As an example of density, Chang suggested there could be 20 towers developed on the 43-acre McKinley High School campus based on one tower with 500 homes on 2 acres, which is what exists at the twin-tower 801 South Street project in Kakaako.

With 270 acres of state land available near planned rail station sites including Aloha Stadium, Leeward Community College, Honolulu Community College, McKinley High and other sites, 67,500 homes could be built, Chang said.

Such volume would top the state's projected need for 65,000 affordable homes statewide by 2025.

"I think we have the makings of a solution here," said Anthony Aalto, former chairman of the Sierra Club's Oahu chapter, who participated in the conference and has advocated for more dense development in urban Honolulu so more green space and agricultural land can be preserved.

Local economist Paul Brewbaker said some elements of Singapore's leasehold condo development model could work in Hawaii, though he said it may be problematic to evict condo owners when land leases expire.

Christine Camp, a local developer who heads Avalon Group, called Chang's draft bill aspirational. However, she questioned whether procurement rules, funding, environmental regulations and a new bureaucracy would limit the effectiveness of such a program.

Chang said Singapore, which is half the size of Oahu and has about five times as many residents, shows that what he proposes can work.

Singapore created its program in response to a housing crisis several decades ago and can sell a roughly 1,000-square-foot unit with three bedrooms for $180,000 with a 99-year land lease, according to Chang, who visited the country earlier this year and is organizing a delegation to return in May.

The country has built so many affordable leasehold condos that 82 percent of the population lives in public housing, Chang added.

At Friday's conference other strategies for boosting affordable-housing production were presented, including a city initiative to provide incentives for developers to build low-rise rental apartments.

Brewbaker said taller buildings need to be allowed in parts of the urban core that include stretches of King and Beretania streets.

"We need to change the zoning," he said. "How many high-rises are being built on Beretania? … How many condo are being built on King Street by the No. 2 bus line? Zero. What is up with that?"

Gabu Heindl, an urban planner and architect in Vienna, explained via Skype how the government of Austria's capital has built thousands of subsidized rentals in response to housing affordability problems. She said the city, with a population of about 1.8 million, spends $741 million a year on subsidized housing and that 60 percent of the population lives in such homes.

Chang has dubbed his proposal "affordable, locally owned, homes for all," or A.L.O.H.A. He proposes making such homes available to any Hawaii resident who doesn't own real property regardless of their income. A requirement to occupy the home could be ensured by using keyless biometric door locks, he said.

There also would need to be resale conditions that would limit owners from profiting off their purchase. In Singapore someone may buy a public-housing unit only once.

Chang said a buyer who dies could pass their home to children, but the home would revert to the state at the end of the land lease.

"I am not OK with a Hawaii that is out of reach to all but the extremely wealthy," he said. "We need to find a way for not just millennials, but every future generation of Hawaii to be able to live here and to have a home here."

Town hall meeting addresses water main break, along Kalanianaole Hwy

Originally published by KITV; click here to read the article on kitv.com.

Posted: Feb 06, 2017 10:53 PM HST
Updated: Feb 07, 2017 12:38 AM HST

By Melody Gonzales

A state senator held a town hall meeting, Monday night, to address the traffic tie up that left drivers stuck for hours, as they headed toward Hawaii Kai on the H-1.

The traffic tangle that lasted for several days, as a result of the 24-inch water main that broke, along Kalanianaole Highway, on January 21st.

"It was a traffic nightmare," neighborhood board chair, Heather Lum said.

A nightmare-- Heather Lum doesn't want to repeat.

"As residents we hear water main break and we think, 'Okay' it's going to take a couple hours, it'll be slightly an inconvenience,' and then when it takes day, after day, after day.. it's like, 'Hey, who's not doing their job," Lum added.

State Senator Stanley Chang met with residents, to find out what worked and what didn't.

"Anytime that one of these situations happen we need to ensure that traffic is flowing as smoothly as possible -- that common sense measures like re-timing lights, police directing traffic other things are going to be implemented, " Sen. Chang said. "We need more contraflows. We need more detour routes. We need more notification to people on the highway.

Hawaii's State Department of Transportation was a no show at Monday night's meeting.

But other jurisdictions including the Honolulu Police Department, Board of Water Supply (BWS), and the city -- did answer questions about contraflow lanes, signage, and stand-still traffic.

"I get that there is someone specific for safety, but there is no one specific to make sure the traffic runs smoothly?" Sen Chang asked during the meeting.

The takeaway-- Sen. Chang points out that there should be more of a clear chain of command.

While BWS adds more communication early on was needed.

"Lesson learned, and here is what east Honolulu has to say.. you guys could do better, we all could do better... in terms of shutting down traffic," State Representative Gene Ward said.

While there was mention of the Joint Traffic Management Center-- which is expected to be complete by the end of this year-- Sen. Chang says a more pro-active approach is still needed.

"It's always good whenever anything happens to evaluate, what did we do well, what can we do better," Lum said.

2017 Opening Day Message

Aloha friends and neighbors,

As we begin the 29th session of the state legislature, I am deeply humbled by the opportunity to serve the people of East Honolulu in the Hawai‘i State Senate.

This year, for the first time in our state's history, and for the first time in the nation in more than 30 years, we serve in a legislative body with only one party. There are no Republicans in the State Senate. That means that as Democrats, we have a special responsibility to the people of Hawai‘i. We cannot just represent the people we agree with or who think the way we do. We have to represent everyone--by making a special effort to reach out to our constituents, by engaging as many different viewpoints as possible in the legislative process. This is my first pledge as a Senator, and we have already begun, by mailing a constituent survey to the whole district to solicit feedback on policy and district-related matters.

With respect to policy, there should be no higher matter on the agenda than homelessness. Knocking on 16,000 doors throughout East Honolulu, there were not a dozen issues, or five issues, or even three issues. Overwhelmingly, the top issue for our district is homelessness. Even though East Honolulu may not be one of the traditional hotspots for homelessness, it affects our entire state and every member of our community. We will fight for tangible results in dealing with this issue. That includes an expansion of Housing First and other efforts to house people who need it and mobile clinics to diagnose and treat the homeless with medical issues. As vice chair of the Human Services Committee, this will be my top priority for the session.

I got into public service because I wanted to make a difference in the lives of the average individual like myself and my parents. My parents came to America from China. My father became a professor at the University of Hawai‘i, and my mother became a teacher at Kalani High School. They were able to put my brother and me through school and give us opportunities that would have been impossible in China. Today, those opportunities are becoming more and more difficult for today's young people. We must fight to ensure that Hawai‘i remains a great place for every generation--20, 50, 100 years from now. I encourage all of my fellow lawmakers to listen to their young constituents.

I look forward to working with people across the spectrum to make our community a better place for us and for future generations. I believe that together we can accomplish great things.

Very truly yours,

Senator Stanley Chang