Construction will start early next year in Nu'uanu on the first retirement community in the Islands geared to moderate-income seniors.

The $90 million, 171-unit facility at 15 Craigside Place is expected to open by December 2009, and is designed to serve a population whose long-term care options are limited in the Islands.

Advocates for the elderly see the project as a considerable step toward creating more options for middle- and lower-income seniors, who have largely been shut out of retirement community living in Hawai'i.

If the project works, it could pave the way for similar retirement homes.

"We need to have these types of facilities," said Cullen Haya-shida, president of Assisted Living Options Hawai'i, a nonprofit that advocates for more senior housing. "The numbers of seniors are climbing."

By 2010, about 26 percent of all adults in the state will be 60 and older, according to state Office on Aging figures.

Today, the vast majority of the more than 172,000 Hawai'i seniors who are 65 and older stay in their own homes, move to more affordable senior housing or live with family members. Though advocates say most seniors prefer residential settings to institutional ones, they also say the dearth of assisted-living options leaves some seniors at a disadvantage.

Statewide, there are about 8,900 beds in nursing facilities, adult residential care homes and assisted living facilities. Occupancy at many of those facilities is often above 90 percent, and several also have waiting lists of two to three years, Hayashida said.

The 11 existing assisted-living retirement communities in the state, which allow seniors to stay in place and get skilled nursing care if they need it, target a high-income population and often require considerable entry fees and monthly charges, said John McDermott, state long-term-care ombudsman.

FOR ACTIVE SENIORS

Assisted-living facilities differ from nursing homes, which are for the frailest seniors and are often attached to hospitals. In contrast, retirement communities — also known as assisted-living facilities — are designed for more active seniors who can then get nursing care in the same setting if they fall ill.

Under Hawai'i law, assisted-living facilities must provide at least one meal to residents a day and have 24-hour staffing in case of emergencies.

Some moderate-income seniors who can no longer live independently turn to adult residential care homes, which are often operated out of private residences and serve up to eight seniors. But those programs cannot serve everyone and do get pricey. In-home caregivers also are an option.

Meanwhile, there are about 7,500 affordable rental units for seniors in the state, but none offers assisted-living or other nursing services.

The Nu'uanu retirement community — named after its address — targets seniors who get from $39,650 to $59,890 a year, or couples who earn from $45,650 to $68,450 annually. Seniors also must have viable assets of between $464,000 for singles or $693,000 for couples.

Singles pay an entrance fee of $167,000 for a studio, or $297,000 for a one-bedroom. Couples have an average entrance fee of about $346,500.

Seniors also are responsible for a monthly charge of about $2,200, which covers meals, housekeeping, ground maintenance and other services.

75 UNITS ALREADY FILLED

McDermott said the program is still cost-prohibitive for many seniors. But since September, after a soft opening, about 75 units — or 44 percent of all apartments — have been filled in the proposed 11-story building.

The entrance fee covers the costs of a "life care contract," which ensures seniors they will never be kicked out, regardless of whether they exhaust their assets.

Craigside residents will have to pay more for assisted living and skilled nursing care as they age, which is why the facility requires seniors to have assets. Craigside developers are anticipating the average resident to stay in a unit for 10 years.

"Retirement living within reach, that's what you want," said Emmet White, president and chief executive officer of Arcadia Retirement Residence, which is spearheading the Craigside Place project.

Norman Chong, Arcadia chief financial officer, added that the income and asset restrictions are flexible and can be waived. "If you've saved all your life, but you're not rich, this is for you," Chong said. But, he added, seniors who get higher retirement incomes, of more than $90,000 a year, could probably qualify even if they are asset-poor.

Craigside officials say the population they are targeting is significant in Hawai'i, though it is difficult to pin down exact figures.

In 1999, the latest year for which Census figures are available, the median income for residents 60 and older in Hawai'i was $17,880.

Nationally, those 60 and older earned a median income of $15,322.

Craigside officials are quick to point a different statistic, though: about 44,000 households — or 54 percent of households in Hawai'i made up of people over 70 — earned from $40,000 to $70,000 a year in 2000.

The project is for seniors 62 and older.

REQUIREMENTS TO MEET

McDermott, the state ombudsman, did question the long-term viability of the project, especially as people are saving less and spending more on daily living costs. He said the asset restrictions could get harder to meet.

"We have this generation of workers who have saved and saved. They cash in and they move to assisted living," McDermott said. "But the following generation does not have these kinds of assets."

In addition to the 144 one-bedroom apartments and 27 studios, 15 Craigside Place will have a 40-bed nursing facility for those in need of round-the-clock care.

The Nu'uanu project is being undertaken by a nonprofit tied to Arcadia.

The land where the facility is being built is the former headquarters of the Hawai'i Conference United Church of Christ, and is being leased by the nonprofit.

The low-rise buildings, home to a chapel and conference rooms, on the land will be torn down to make way for the retirement home.

White said the 1.5-acre parcel will be purchased for $6 million sometime next year. He added it was always the church's intention to build a retirement community for moderate-income seniors at the site.

In May 2006, the church entered into an agreement with the newly formed Craigside nonprofit to develop, own and operate the home.

So far, residents in the neighborhood have voiced few concerns with the proposal, though that could change as the project moves forward. The Nu'uanu /Punchbowl Neighborhood Board supported the building at its November 2006 meeting.

Reach Mary Vorsino at mvorsino@honoluluadvertiser.com.