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Workforce Housing

Recruiting and Retaining Teachers Through Workforce Housing

Summary of PreK Movement

The Hawaii Department of Education, the state's largest department with 258 schools, 37 charter schools, and over 25,000 employees, faced significant challenges in the 2022-2023 school year, with over 835 teachers resigning, including 374 who left Hawaii. Legislators attribute this to low educator salaries and the high cost of living, which contribute to the shortage of licensed educators. To address these issues, they have identified financial incentives and affordable teacher housing as key strategies. Under Act 172, SLH 2023, the Hawaii School Facilities Authority is tasked with implementing affordable housing to help attract and retain educators.

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How

Approach: Design, Build, Operate, Finance and Maintain (DBOFM)

A project delivery mechanism often used by government entities for public infrastructure projects involves entering into an agreement with a private sector party, which assumes all duties related to the project, including design, construction, financing, operation, and maintenance. In return, the private party receives fees from end users or payments from the government for a specified period, after which control is transferred back to the government. This structure is preferred because it shifts most project risks to the private sector and allows the government to undertake projects beyond its financial or technical capacity.

The State of Hawai'i has Limited CIP funds to fix schools and build workforce housing

DBFOM is a realistic option for workforce housing 

Program

Act 172 (2023)

Purpose: Provide the school facilities authority with powers necessary to develop housing projects on school lands; Appropriate funds, out of the school facilities special fund for the construction of housing prioritized for teachers, educators, and staff and classrooms.

Objectives

Repurposing of school lands for workforce housing

  • Private developer design, build, finance, operate and maintain (DBFOM) workforce housing 

  • Transfer of land to HISFA

  • Subdivision of land by HISFA for workforce housing

  • Long term lease agreements

  • Developer DBFOM agreements

**data based on Sept. 2023 data

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Pilot: RFP-SFA-23-01 Mililani HS

  • Pilot site Mililani HS

  • HISFA award of Request for Proposal (RFP) to Pacific Housing Assistance Corporation (PHAC).

  • Debriefings offers not selected.  No protest of the award.

  • RFP Published 12.15.23

  • Offer due 05.31.24

  • ​08.23.24 RFP award to PHAC LINK

  • PHAC proposal LINK available for public inspection.  HAR 3-122-58 Public inspection LINK

  • Land use process and agreements

  • Transfer of land process

  • Subdivision of land process

  • Long term lease agreement

  • Private developer agreements

  • Development agreements

  • Property management agreements

$5 M = Estimated Budget

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  • Due diligence criteria for site selections

  • 5 sites for workforce housing

 

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PHASE I: 5 Sites 2025-2026 

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  • Due diligence criteria for site selections

  • 5 sites for workforce housing

 

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$20 M = Estimated Budget

PHASE II: 5 Sites 2027 -28

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  • Due diligence criteria for site selections

  • 5 sites for workforce housing

 

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$20 M = Estimated Budget

Project Phases

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