The Hawaiian Homes Commission on Tuesday approved the purchase of an acre of real estate in Moiliili from Kamehameha Schools.

According to a press release from the state Department of Hawaiian Home Lands, the land holds two vacant apartment buildings with 31 units on the three parcels between Isenberg and Coolidge Streets.

DHHL “intends to rehabilitate those buildings immediately and deploy them as affordable rentals to applicants on the wait list using recently approved rules for rentals on Hawaiian Home Lands,” the agency said.

The Moiliili lots are outlined above.

The long-term plans are to develop a high rise on the property.

Kamehameha Schools and the DHHL agreed on a $7.8 million sale price. DHHL is using a $6.9 million appropriation from the Hawaii State Legislature and $1.75 million of trust funds to purchase the real estate and to rehabilitate the buildings.

“The greatest demand on the DHHL wait list is for Oahu with over 9,000 residential applications,” said William J. Aila, Jr., HHC Chairman. “Oahu is also where we have the least amount of available land, roughly three percent of the department’s total land inventory. Securing additional lands on Oahu suitable for residential development will help to serve our beneficiaries.”

DHHL’s long term plans are to develop a high rise on the property at 820 Isenberg Street, the former Bowl-O-Drome location, which is across the street from the Kamehameha Schools parcels.

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