Transformative Affordable Housing Development is Part of a Multi-Phase Housing Initiative in West O'ahu

HONOLULU, HAWAII / ACCESS Newswire / October 15, 2025 / The Hawaiʻi Housing Finance and Development Corporation (HHFDC) has awarded financing through its Low-Income Housing Tax Credit (LIHTC) Program to the first phase of Leiwili Kapolei, a new mixed-use, mixed-income community being developed in partnership by ʻIkenākea Development and The Michaels Organization. The award marks a key milestone in advancing one of West Oʻahu's most transformative affordable housing initiatives.

This first phase will comprise two, five-story mid-rise buildings, featuring 342 new rental apartment homes, which will serve households earning between 30 percent and 60 percent of the Area Median Income. Each of the midrise buildings center around courtyards, a design that promotes community connections and outside gatherings. Both buildings will offer apartments in floorplans for one-, two- and three-bedroom units. Residents will also have access to community-based supportive services from the non-profit organization Better Tomorrows, which offers a variety of programs centered on academic support, financial literacy, health and wellness, job readiness, and social engagement.

"This award represents an important step forward in kicking off the project," said Keegan Flaherty of ʻIkenākea Development, a company steering several affordable housing projects throughout the state. "We are deeply grateful to HHFDC for their continued commitment to supporting local partnerships that bring attainable homes to Hawaiʻi's residents. Honored that HHFDC selected us to steward this new development and awarded the funding needed to help house hundreds of families."

The Michaels Organization, a national leader in residential real estate, joins ʻIkenākea as co-developer on the project. "We appreciate the tremendous support of this much-needed development and look forward to developing the ‘Northwest Corner' into a beautiful community that offers affordable, sustainable housing to families with low and moderate incomes - in this phase and the planned future phases," said Michaels Vice President of Development Daniel Simonich.

The 4% LIHTC award will unlock the first phase of Leiwili Kapolei, which will include 342 affordable rental homes for households earning between 30% and 60% of the Area Median Income (AMI). Additional financing awarded through HHFDC included a $119.2 million loan from the Rental Housing Revolving Fund (RHRF), $130 million in Hula Mae Multi-Family tax-exempt bonds, and $9,291,310 million in both annual state and federal low-income housing tax credits. Construction is anticipated to begin in late 2026, with completion targeted for the end of 2028.

Leiwili Kapolei is a master-planned development that, when fully complete, will feature up to 900 new affordable and workforce rental and for-sale housing, as well as up to 95,000 square feet of versatile commercial space. The Kapolei development will span almost 20 acres, offering green space as well as amenities such as walking trails. Leiwili Kapolei will feature sustainable design principles, pedestrian-friendly streets, and access to transit, aligning with the State's long-term goals for smart growth and environmental stewardship. Designed as an "urban village," the development reflects the meaning of its name - "Leiwili," symbolizing the weaving together of people, housing, and commerce into a connected and sustainable community.

HHFDC Executive Director Dean Minakami said that the Corporation is pleased to be able to support Leiwili as it reaches this milestone.

"Leiwili Kapolei marks the completion of the 888-acre Villages of Kapolei community, which HHFDC initiated in the 1990s," Minakami said. "We can think of no better use for this last, major undeveloped piece of the Villages of Kapolei than to serve the needs of kamaʻaina in search of a quality yet affordable place they can call home."

In addition to providing much-needed affordable housing, Leiwili Kapolei is envisioned as a vibrant mixed-use community that will eventually include neighborhood-serving commercial and retail spaces. These elements are designed to seamlessly integrate with the surrounding community, creating a walkable, connected environment that meets the daily needs of residents and local businesses. The retail component is planned to advance alongside the first phase of affordable rental housing, ensuring that essential goods and services are available as the community grows. Looking ahead, future phases will introduce a mix of workforce rental and for-sale housing aimed at Hawaiʻi's "missing middle" - households who earn too much to qualify for low-income housing but not enough to afford market-rate homes. This balanced approach will help create a truly inclusive community that supports residents across a range of income levels. To find out more, please visit https://www.leiwilikapolei.com/.

The Michaels Organization is the largest, privately held owner of affordable housing in the country, and has been developing and managing affordable housing in Hawaii for more than a decade. ʻIkenākea Development is one of the state's most renowned developers, with deep experience in residential, retail, and mixed-use development. Lowney Architects is serving as the architect on the $244 million development and Albert C. Kobayashi, Inc. will serve as the General Contractor. Michaels will also provide property and asset management services to the community once construction is complete.

About The Michaels Organization

Michaels is a national leader in residential real estate, offering full-service capabilities in development, property and asset management, construction, and investment. Serving more than 200,000 residents in more than 600 communities across 39 states, the District of Columbia, and the U.S. Virgin Islands, Michaels is committed to crafting housing solutions that jumpstart education, civic engagement and neighborhood prosperity, and to creating Communities That Lift Lives.

About ʻIkenākea Development

ʻIkenākea is a Hawaii-based real estate development company dedicated to creating vibrant, sustainable, and inclusive communities across the islands. With a focus on affordable and workforce housing, as well as commercial and hospitality development, ʻIkenākea strives to deliver projects that honor Hawaii's culture, reflect community values, and address the urgent need for housing that local families can afford.

SOURCE: The Michaels Organization