The cheapest new townhome at Ka'ulu by Gentry costs about $701 per square foot. The market-rate two-bedroom on Gentry's most recent public price list costs about $696 per square foot. The cheaper home is the reserved unit, the one set aside for households earning up to 140 percent of Oahu's median income and sold by lottery with the Hawaii Community Development Authority.
Ka'ulu sits in Kalaeloa, with its sales office at 91-1101 Franklin D. Roosevelt Avenue in Kapolei. Of its 390 homes, 74 are reserved-housing units. According to Gentry, the reserved homes have the same quality finishes as the market units and are spread across the project. A buyer comparing the two types should know where the lower price actually comes from. Most of it comes from a smaller floor plan. The part that is a true discount gets repaid to the state when the home is sold.
The discount is mostly in the floor plan
Gentry's Release 17 reserved-housing packet, with a price list dated October 9, 2026, offers two plans. The nearest market-rate comparison is Gentry's Release 16 list, dated July 24, 2026, which was the latest market packet linked from the Ka'ulu townhomes page in late October.
| Ka'ulu townhome | Bedrooms | Living area | Base price | Price per sq. ft. |
|---|---|---|---|---|
| Plan 4, reserved, Oct. 2026 | 2 | 877 sq. ft. | $615,000 | about $701 |
| Plan 1, market, July 2026 | 2 | 1,020 sq. ft. | $710,000 | about $696 |
| Plan 2-R, reserved, Oct. 2026 | 3 | 1,089 sq. ft. | $685,000 | about $629 |
| Plan 3, market, July 2026 | 3 | 1,194 sq. ft. | $753,000 | about $631 |
The reserved two-bedroom costs $95,000 less than the market two-bedroom, and the reserved three-bedroom costs $68,000 less than the market three-bedroom. Per square foot, though, each pair is within a few dollars. These are different floor plans, and the market list is a builder's asking price from July, so the comparison is not exact. It still shows that most of the price gap tracks the gap in living area.
The packet gives its own figure for the true discount. In its worked example for Plan 4, it sets the original fair market value at $660,000 against a $615,000 contract price. That is a $45,000 difference, or about 6.8 percent.
The $45,000 stays attached to the house
Under the Kalaeloa Reserved Housing Rules, Hawaii Administrative Rules Chapter 15-216, HCDA's share of equity comes due when the home is resold. The rule text on HCDA's site sets that share at whichever of two figures is higher. Gentry's packet describes them this way:
- The original discount. This is the original fair market value minus the original contract price. On the Plan 4 example, it is $45,000.
- A percentage of net appreciation. The original discount is divided by the original fair market value, about 6.8 percent here. That percentage is then applied to the resale price minus the original contract price and the actual costs of selling.
The packet runs the numbers on a hypothetical resale at $1,284,000 with $77,040 in selling costs. That leaves $591,960 of net appreciation, and 6.8 percent of it is $40,361. The flat $45,000 is higher, so HCDA would collect $45,000.
The formula has a tipping point. With a 6.8 percent share, the percentage method only overtakes the flat discount once net appreciation is more than the original $660,000 fair market value. In other words, the home's value would have to more than double after selling costs. Below that point, the Plan 4 buyer owes the same $45,000 whether the home sells for a small gain or a large one. In effect, the discount works like a fixed balance that travels with the home and is paid off at sale.
The packet says that after the regulated term ends, the original buyer may sell the unit without restrictions, provided the equity-sharing amount is paid to HCDA.
The regulated term was cut to two years in 2026
The default rule sets a five-year regulated term for for-sale reserved units and lets HCDA change it project by project. At its February 4, 2026 meeting, according to the minutes, the HCDA Kalaeloa board approved amendments to Ka'ulu's program by a vote of 8 to 0. The changes:
- 14 reserved units converted to market units, along with other adjustments
- An updated marketing plan
- Use of the Hawaii Housing Finance and Development Corporation's DURF Equity Pilot program
- A shorter regulated term, cut from five years to two
Two months later, Gentry asked the board to approve Increment 4 reserved prices that "remain the same as previous increments," with slightly higher maintenance fees. According to the April 1, 2026 minutes, Gentry also asked that the approved prices count as a ceiling so it could lower them if needed. The minutes record that the pricing averaged 124.3 percent of area median income against a 140 percent maximum, and that year-to-date sales were below expectation, with a slow increase starting. The board deferred its decision that day.
These moves point to reserved prices held flat while the builder worked to make the units easier to sell. The October release carries the shorter term. During those two years, the owner must live in the home. HCDA also has the first option to buy it back if the owner wants to sell or rent. The buyback price is the lower of current fair market value minus HCDA's equity share, or the reserved price calculated from area median income at the time of sale.
Gentry also offers reserved buyers low deposits, closing-cost incentives, and a credit of 3 percent of the base price for using Bank of Hawaii, Central Pacific Bank, or Gentry HomeLoans. The credit may be lower with another lender. On a $615,000 base price, 3 percent is $18,450. That credit helps at closing and, unlike the price discount, the packet describes no requirement to repay it.
A few miles east, Ho'opili's markdowns come without an income cap
At D.R. Horton's Kāpili at Ho'opili Pōhaku Estates, a condominium community off Farrington Highway, the late-October listings show markdowns under a "Red Tag" event that ends November 1. Examples:
- A 1,208-square-foot three-bedroom listed at $696,830, down from $746,830, or about $577 per square foot
- A 1,266-square-foot two-bedroom listed at $705,975, down from $735,975
That three-bedroom costs $11,830 more than Ka'ulu's reserved Plan 2-R, with 119 more square feet. The D.R. Horton listings show no income limit, and they mention no equity payment due at resale. It is a condo rather than a townhome, so association costs and the ownership structure differ. Any price-per-square-foot comparison needs to sit next to the monthly fees for each.
Ka'ulu's fees started low. A 2023 HCDA staff report estimated $330 a month for the reserved Plan 4 and $410 for Plan 2-R. By April 2026, Gentry was describing the fees as slightly increased. Kāpili lists an HOA among its amenities, and buyers should ask for its current fee.
For island-wide context, the Honolulu Board of REALTORS September 2026 report put Oahu's resale median at $1.11 million for single-family homes and $523,000 for condos. New townhomes in the $600,000s and $700,000s fall between those two figures. Within that range, Kapolei buyers are comparing a modest reserved discount they will repay against builder markdowns they won't.
Questions to ask either sales office
- What is the current market-rate price for the same floor plan, and what fair market value has HCDA assigned to the reserved unit?
- Has the reserved price changed since the October 9, 2026 list, given that Gentry asked HCDA for room to lower prices?
- What is the current monthly association fee, and what does it cover?
- For Kāpili, which markdowns and incentives continue after November 1?
- Does the HHFDC equity program apply to this purchase, and on what terms?
FAQ
Who can apply for a Ka'ulu reserved unit? Applicants and their spouse and dependent children cannot have held a majority interest in a principal residence during the past three years. The household must also fall under income and asset limits. For a household of four, the income limit is $186,750 and the asset limit is $252,113. Applicants must also intend to live in the home.
Is Ka'ulu leasehold? No. Gentry's packet describes Ka'ulu as a fee simple condominium project.
When is the current release? Release 17 lists six owner-occupant units across Phases 27, 29, and 30. Applications are due at 5 p.m. on Thursday, October 29, 2026, and the lottery is Saturday, October 31, at 11 a.m. According to the packet, each new release repeats the same procedure.
This post is general information, not legal, tax, or financial advice. Please confirm how these rules apply to your own purchase with the program administrator, a lender, or an attorney.
If you're comparing a Ka'ulu reserved unit with a market-rate townhome or a Ho'opili condo, the team at Vonlin Real Estate can walk through the price per square foot, the monthly fees, and what you would owe at resale for each one, side by side. Contact us to set up a time.
