Honolulu just got a fresh batch of rental housing in one very tight Makiki footprint. City leaders and developers cut the ribbon Saturday on Makiki Banyan, a new six-story affordable rental building at the corner of Pensacola and Wilder that brings 90 income-restricted homes to central Makiki. The project includes 80 one-bedroom units and 10 two-bedroom units reserved for households earning up to 80% of Honolulu’s area median income, and officials said one-bedroom rents start at $1,950 with utilities included. Construction began in March 2025 and wrapped in roughly 13½ months, developers said, and the building is being touted as the largest completed project so far under the city’s Bill 7 workforce-housing program.
City leaders mark the opening
As reported by Hawaii News Now, developer Paul Lam said he was "proud to deliver much-needed workforce housing for Honolulu residents in an efficient timeframe" and thanked city partners for helping speed construction. The outlet noted that the mayor and other officials attended a Saturday blessing and ribbon-cutting, and also highlighted the project's claim as the largest affordable rental completed under Bill 7 to date.
What Makiki Banyan offers
The building's official site lists the address as 1568 Pensacola St and describes hotel-grade air conditioning, in-unit washers and dryers, two high-speed elevators, 32 covered parking stalls and bike and moped racks, as shown on MakikiBanyan.com. The same site advertises one-bedroom rents at about $2,280 and two-bedroom rents at $2,736, with parking priced separately. Those posted rates differ from the $1,950 figure announced at the opening, so applicants are advised to confirm income eligibility and current pricing with management.
How Bill 7 works
Makiki Banyan was built under the city's Bill 7 affordable rental program, which waives certain fees, offers property-tax exemptions and allows greater density in exchange for rent limits. The Department of Planning and Permitting outlines the program's basics, including a 20,000-square-foot lot cap, a 60-foot maximum height for many projects and a set of fee waivers and tax benefits, on its affordable housing page. Those incentives are designed to speed construction of small-lot rentals in transit-served neighborhoods, according to the Department of Planning and Permitting.
Local reaction and scrutiny
Residents who turned out for the opening praised the added housing, but Bill 7 itself has drawn scrutiny from neighborhood boards and some council members over building height, parking and permitting practices. Earlier this year, Civil Beat reported that a nearby Bill 7 project sat empty for months while waiting for final permits, and neighborhood leaders called the delays "incredibly frustrating." That kind of experience has prompted council proposals to revise parts of the program even as advocates argue Bill 7 is filling a key gap in the city's housing pipeline.
Developer's track record
Makiki Banyan was developed by Lam Capital, led by Paul Lam, who has completed a string of small Bill 7 projects across the urban core and has said his teams can build units quickly by standardizing the process. Industry coverage, including a profile by Building Industry Hawaii, notes past openings on Ernest and Kinau streets and describes Lam as a frequent Bill 7 developer. Supporters at the opening pointed to the project's roughly 13½-month timeline as evidence of the program's ability to produce housing faster than conventional developments.
City officials say the new apartments are aimed at working individuals and families who need to stay in town, with move-ins expected this month. For current availability, income limits and application details, see MakikiBanyan.com or contact the property manager listed on the site. The opening adds a sizable block of Bill 7 units to Makiki and also reopens familiar debates about how fast, and for whom, the city should relax development rules.
